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Deep sea facility as game-changer for Nigeria's maritime ambition

Published 1 day ago9 minute read

For a sector grappling with infrastructure development, obsolete ports, inadequate technology, poor accessibility and shallow draughts, the creation of Lekki Freeport Terminal is a milestone in the efforts to deliver world-class maritime infrastructure, ADAKU ONYENUCHEYA reports.

For decades, Nigeria has struggled to build a deep seaport and automated terminals capable of competing for international trade in West and Central Africa to retain cargo diverted to neighbouring countries.

Over 70 per cent of cargo destined for Africa is Nigeria-bound. But due to the absence of viable and efficient deep seaports and technologically advanced terminals, the shipments are frequently offloaded in countries such as Benin Republic, Ghana and Togo.

Merchant vessels preferred ports in neighbouring countries due to their deeper drafts and technologically driven terminal operations, while Nigeria was relegated to a transit point where smaller vessels had to ferry cargo from these ports to Nigerian shores.

The diversion has cost Nigeria an estimated N1 trillion yearly, according to data from the Shippers’ Association of Lagos State (SALS). Also, the lack of modern technology and automation at Nigerian port terminals has made cargo processing cumbersome.

Persistent delays in cargo clearance often result in substantial demurrage fees, running into billions of naira, further frustrating shippers and licensed customs agents.

Concerned by the situation and determined to reposition Nigeria as a competitive maritime nation, the Lekki Freeport Terminal (LFT) entered the maritime space with a promise of technological advancement and operational efficiency.

LFT commenced commercial operations in April 2023, bringing cutting-edge infrastructure designed to serve both Nigeria and the broader African market.
Equipped with state-of-the-art facilities, including ship-to-shore (STS) cranes, the terminal is capable of handling large vessels, a first for any Nigerian port and discharging cargo with remarkable efficiency.

In less than two years of operations, LFT has earned a formidable reputation in the Nigerian maritime sector, due to its fully automated systems that minimise human interface and maximise efficiency.

Beyond national borders, LFT continues to consolidate its position on the international stage, opening new frontiers for trade and industrial development across Nigeria and Africa.

LFT has continued to upgrade its operation through the consistent deployment of technological innovations and strategic collaborations that have helped to drive progress.

With a 40 per cent year-on-year growth in throughput volume for 2025, the terminal’s capacity and quality of service delivery as a preferred gateway for Nigeria’s import and export trade were further solidified.

This has been attributed to its strategic collaborations, which contribute to the efficiency of port operations and operational excellence, supported by state-of-the-art facilities.

This enables vessels to have a quick turnaround time and experience seamless cargo handling, compared to other ports in the country.As proof of its influence and partnership in enabling efficient and seamless operations, the terminal enjoys the support of regulatory agencies, including the Nigerian Ports Authority, Nigerian Export Processing Zones Authority, Nigeria Customs Service, Nigerian Drug Law Enforcement Agency, Nigeria Police, and the Department of State Services.

The support and cooperation of these agencies have contributed immensely to the success of the port with their presence affirming a commitment to streamlining operations and facilitating the smooth movement of cargo.

The terminal’s design, along with its state-of-the-art post-Panamax ship-to-shore cranes, RTGs and other cargo handling equipment, sets it apart from other overcrowded terminals, enabling it to operate free of congestion, both at the quay and in the yard. The service delivery and state-of-the-art facilities continue to attract businesses to the port.

All these factors are enhancing connectivity to international markets and driving economic growth, with the presence of CMA-CGM, Maersk Line, COSCO Shipping, Ocean Network Express (ONE) and ZIM/GSL, leading shipping lines that further solidify the terminal’s role as a key player in global trade.

Currently, the shipping lines make weekly calls at the port with these services expected to attract more foreign direct investment (FDI) and enhance Nigeria’s standing in global maritime trade.

At the time the shipping line services were launched, both Lekki Port and Lekki Free Port Terminal management described it as a significant milestone in the terminal’s development and expansion of capacity.

They noted that through strategic collaborations with global shipping leaders, LFT is strengthening its international presence and creating new opportunities for trade and industrial growth in Nigeria and the region.

This milestone was also described as a reflection of LFT’s commitment to positioning the nation as the leading maritime hub in West Africa. The Chief Executive Officer of LFT, Christophe Cassang, described the introduction of the shipping line services as a significant milestone in the terminal’s development and capacity expansion.

He emphasised that the service reflects LFT’s commitment to positioning the nation as the leading maritime hub in West Africa. Cassang further noted that through strategic collaborations with global shipping leaders, LFT is strengthening its international presence and creating new opportunities for trade and industrial growth in Nigeria and the region.

Also, the Chief Executive Officer of the Lagos Free Zone (LFZ), Adesuwa Ladoja, added that businesses can now import raw materials through any of these shipping lines and deliver them directly to factories for production. She said businesses can also export finished goods to other parts of Africa and the world.

Representatives from COSCO, ONE, and ZIM expressed enthusiasm about their partnership with LFT, praising the terminal’s world-class infrastructure and operational facilities.

In line with its vision for operational excellence, LFT has deployed an electronic call-up system to streamline traffic and promote transshipment services. This initiative aims to restore Nigeria’s status as a key cargo transshipment hub in West Africa.

The terminal also offers barge handling services and supports barge operators with efficient loading and discharge operations across multiple inland corridors in Nigeria.

Close collaboration with the Nigeria Customs Service (NCS), Nigerian Ports Authority (NPA) and other regulatory agencies has significantly improved the ease of doing business at the terminal.

These partnerships have enhanced transparency and facilitated smoother cargo clearance processes, reducing dwell time, a critical factor for sustaining growth in a competitive maritime market.

During one of his visits to the terminal, the Comptroller General of Customs, Bashir Adeniyi, pledged the NCS’s continued support for LFT and its stakeholders.

He assured them of the Service’s commitment to addressing challenges and improving trade facilitation.
Adeniyi underscored the terminal’s transformative potential, citing its expected contributions to foreign investment, job creation, foreign exchange earnings, and technology transfer for Nigeria.

For decades, poor infrastructure, administrative bottlenecks and limited accessibility had posed major challenges to Nigeria’s logistics chain and maritime industry, thereby negatively impacting international trade and economic expansion.

Ailing road networks and persistent gridlock along Lagos port corridors have led to severe congestion, increased cargo dwell time, and prolonged turnaround times for both trucks and vessels.

According to the Lagos Chamber of Commerce and Industry (LCCI), Nigeria lost an estimated N7.6 trillion yearly due to congestion at Apapa and Tin Can Island ports. The chamber also noted that trucks queue for days waiting for access, costing the economy $55 million daily in lost activities.

These inefficiencies, which cost the business community over N2.5 trillion, however, forced shipping lines to impose additional charges for delays at the nation’s ports, adding to the financial strain on port users.

Shippers, customs agents and other stakeholders have long decried the significant economic toll and have continually called for sustainable interventions. A major factor in LFT’s efficiency is the heavy investment in infrastructure, which has enabled increased efficiency and safety.

With a strong focus on automation, the terminal deploys technology and robotics to streamline various processes, including cargo handling, gate operations, and tracking.

This has boosted overall port operations by reducing human errors and improving productivity. A significant infrastructural boost is the soon-to-be-completed Coastal Road and the recently approved construction of the 7th Axial Road, which brings light to the tunnel of accessibility to the port.

The two roads are strategically important for port connectivity, making cargo evacuation from Lekki Port convenient and fast.Spanning a distance of 25 kilometres, with completion projected for 2028, the 7th Axial Road —a dual carriageway —will provide a critical alternative route, offering direct access to the A121 Lagos-Benin Expressway.

The road is expected to reduce travel time for cargo evacuation from Lekki Port significantly. Currently, trucks travelling from LFT to Lagos via the Coastal Road and the A121 corridor spend an average of 4.5 hours on the journey, while the 7th Axial Road is projected to cut this travel time significantly, improving cargo flow, reducing turnaround time, enhancing port efficiency and lowering overall logistics costs.

These developments will further boost turnaround time at LFT, considering the multiple access corridors and ongoing road upgrade initiatives underway, including the federal government’s consideration of connecting the axis to the national rail network.

This, if made possible, will enhance trade by facilitating the evacuation of cargo from the terminal to other parts of the country as well as to neighbouring landlocked countries.

In terms of time efficiency, the terminal holds a reputation as the most efficient maritime gateway in the country, with truck service time at its gates standing at 1.1 hours, a figure that no Lagos-based terminal can match. Over the last two years, dignitaries who have visited the terminal have consistently praised its technological advancements.

The Managing Director of the Nigerian Ports Authority (NPA), Dr Abubakar Dantsoho, who recently made his official visit to Lekki Deep Sea port commended the management of Lekki Deep Seaport and LFT for their unwavering commitment to operational excellence and port optimisation.

He went on to state that the NPA will benchmark Lekki Port and LFT’s cutting-edge infrastructure and advanced technology in its broader port modernisation programme.

Dantsoho highlighted the port’s growing transshipment volume, which is meeting the maritime demands of neighbouring countries and supporting the NPA’s objective of achieving economies of scale.

This, he said, enhances Nigeria’s global competitiveness, stimulates demand, boosts foreign exchange inflows, and contributes meaningfully to the country’s year-on-year trade surplus, ultimately strengthening the national economy.

He also highlighted how LFT’s fully automated operations align perfectly with NPA’s goal to implement the Port Community System (PCS), which will pave the way for the long-awaited National Single Window (NSW), designed to streamline the nation’s trade processes.

Dantsoho emphasised that the LFT and Lekki Port ability to berth super post-Panamax vessels and deliver rapid cargo and vessel turnaround makes it a strategic asset in enhancing Nigeria’s export competitiveness. He said this is particularly for agro-allied products as the African Continental Free Trade Area (AfCFTA) continues to gain momentum.

The Deputy Speaker of the House of Representatives, Benjamin Okezie Kalu, had during the inauguration of the Lekki Port access road, underscored the economic potential of the Lekki Port and LFT, which he said will handle 1.2 million TEUs yearly in its first phase, scaling up to 2.7 million TEUs, with the capacity to host mega vessels of up to 18,000 TEUs.

He noted that it will generate over $201 billion in federal and state revenue and create over 169,000 direct and indirect jobs. Kalu emphasised that the port, LFT and their supporting infrastructure will reduce congestion, enhance turnaround time, and help Nigeria reclaim maritime business lost to neighbouring nations.

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The Guardian Nigeria News - Nigeria and World News
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