A Wave of New Deep Seaport Projects Catches on in West Africa
The Asia-Africa trade lane has been one of the fastest-growing container shipping corridors globally in the past few years. The growth is supported by soaring import demand in Africa as countries in the region develop industrial capacity. Unfortunately, the surging imports have put a strain on old port infrastructure, especially in West Africa. To catch up, governments in the region are fast-tracking approval processes for deep-water port projects.
In the past week, Nigeria and Ghana have made significant progress in their port expansion efforts. After a decades-long wait, Nigeria is moving ahead with the construction of the Bakassi Deep Seaport in Cross River State. A groundbreaking ceremony was held on Friday, led by the country's Vice President, Kashim Shettima.
The port project was initially conceived in 2014 but was delayed by a slow regulatory process. With a proposed draft of 20 meters, the facility is set to become one of Nigeria's deepest ports. Currently, Nigeria is unable to accommodate ultra-large container vessels, as its major ports have shallow-water access. This has seen Nigerian-bound cargo transhipped through Lomé in Togo and Tema in Ghana.
Speaking at the groundbreaking ceremony, Nigerian Ports Authority (NPA) CEO Abubakar Dantsoho recognized Nigeria's need to match economic growth with port modernization. Nigeria's main trade gateway, Apapa Port, is approximately 100 years old. To keep up with the evolving demands of international shipping, Nigeria needs to urgently modernise its existing brownfield ports while simultaneously developing greenfield deep-sea ports, added Dantsoho.
The Bakassi port project is estimated to cost $3.5 billion, backed by a facility from the African Export-Import Bank (Afreximbank). An initial funding approval of $2.27 billion has already been made. The project will be delivered through a Public-Private Partnership arrangement.
Bakassi is one of the five deep seaports that Nigeria's government has approved. The other port projects include Badagry Deep Water Port in Lagos State, Olokola Port in Ondo State, Ibom Port in Akwa Ibom State and Bonny Port in Rivers State.
that matters most
Get the latest maritime news delivered to your inbox daily.
Meanwhile, Ghana has reportedly shortlisted seven companies to bid for the development of Keta port, the country's third commercial seaport. The selected firms will help finalize the project's design studies, as well as propose a financing model. The government did not reveal the names of the selected firms.
The proposed Keta port is expected to complement the existing Tema and Takoradi ports. Tema acts as Ghana's main import port, specifically for container shipping. Takoradi, on the other hand, handles bulk exports including cocoa, bauxite and manganese. Last week, the government launched construction of a new berth in Takoradi. The new facility, Berth 19, will enhance Takoradi's capacity at a time when cargo volume is rising. The berth project will cost $98 million, financed fully by the Ghana Ports and Harbours Authority (GPHA). The berth will be 300 meters long, with capacity to handle vessels of up to 75,000 dwt.
