• Tuesday, February 27, 2024
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Why $3bn Badagry Deep Seaport project is yet to commence – Hunpe

Badagry Deep Seaport

Babatunde Hunpe, a House of Representatives member, has given reasons for the delay in the commencement of the proposed $3billion Badagry Deep Seaport project in Lagos.

Hunpe, who represents Badagry Federal Constituency in the House, said this recently on the sideline of the presentation of relief materials donated by the Nigerian Maritime Administration and Safety Agency (NIMASA) to Internally Displaced Persons (IDPs) in Lagos.

While noting that the project had been discussed on the floor of the House of Representatives, he pointed out that the preliminary processes required for the port project to take-off, was contributing to delay in commencing the project.

Hunpe assured the people of Badagry that the port project is on course, and must follow due processes before the project can be actualised.

Read Also: Badagry and the Greater Lagos train

“I met with the former Managing Director of the Nigerian Ports Authority (NPA), we had a long discussion and she disclosed the level that they were on the port project, which gave the assurance that the project was coming up. I have also seen some steps taken by the NPA and I was able to get this because I am a member of the committee on special duties and so, I have the privilege to know what they are doing,” he said.

According to him, the project has been on since 2016 and presently, it has been going on.

Recall that the Badagry deep seaport project is an initiative of a consortium led by APM Terminals, Orlean Invest, Oando, Terminal Investment Ltd and Macquarie.

In 2020, the NPA disclosed that the promoters paid $500,000 as commitment deposit into an escrow account to signify their commitment towards the port project.

BusinessDay understands that the NPA kicked against the initial Outline Business Case for the port, which has been reviewed to include the suggestions of the Ports Authority.

The proposed site is located 55km west of Apapa and the port of Lagos, along the 55km long Lagos-Badagry Expressway, which is being upgraded from a four-lane to a ten-lane expressway.

The port is expected to have an annual throughput capacity of 1.8 million Twenty-foot Equivalent Units (TEUs). The proposal for the project was announced in 2012. Feasibility studies have been completed and construction works are yet to start. The project will be implemented in four phases, with the overall project cost estimated to range between $2 billion and $3 billion.

Also, it is expected that the new port will primarily ease pressure on the existing ports of Lagos, Apapa and Tin-Can Ports, which handles approximately 85 percent of the country’s non-oil throughput.

It will further alleviate the country’s ports, which are on the verge of exceeding their cargo handling capacities, and address the country’s annual container traffic, which is expected to grow to 10 million Twenty-foot Equivalent Units by 2030.