FG Signs $100m Agreement for Warri Port

Lekki Deep Seaport
  • FG Signs $100m Agreement for Warri Port

The Federal Government on Tuesday signed a concession agreement with Ocean & Cargo Terminal Services Limited for Terminal B of Warri Old Port.

The agreement was signed after National Council on Privatisation approved a technical and commercial bid of $100.79 million submitted by Ocean & Cargo Terminal Services Limited on June 18, 2018.

Mr Alex Okoh, the Director General, Bureau of Public Enterprises, said the Federal Government signed the port concession to increase the efficiency of national ports and improve logistic services.

The director added that the process will help reduce the cost of shipping, improve services and ease the financial burden on the government.

Okoh, who represents the government in the deal, and Dr Taiwo Afolabi, the Chairman of Ocean and Cargo Terminal Services signed the document.

The BPE boss said, “The ports concession programme of the Federal Government under the supervision of the BPE started in 2005 and culminated in the concession of over 23 terminals to private operators.

“In fact, the concession of the seaports in Nigeria represents one of the success stories of the privatisation and commercialisation programme in Nigeria.

“The concessionaire is expected to focus on these objectives as they perform their business. The government expects nothing less than strict adherence to the terms of the concession agreement from the concessionaire.”

“Consequently, the pursuit of your business objectives must be tailored in a way that will also assist in the realisation of these objectives,” he told the concessionaire.

Despite the Federal Government upgrading the facilities of the Terminal B, construction of a new quay wall and apron equipped with requisite facilities for the berthing of vessels, Okoh said it is imperative to concession the terminal to a private investor who would manage and further develop the facilities in line with the Ports Concession Programme.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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