Published on 29 Jul 2024

Singaporean shipper boosts West African operations with new vessel

Pacific International Lines is enhancing its shipping network across the continent

Photo credit: Pacific International Lines

Singapore-based cargo shipping line Pacific International Lines (PIL) recently deployed its largest vessel to date to the ports of Tema in Ghana and Lomé in Togo. With a capacity of 7,092 standard containers, the Kota Tema is also PIL's newest container ship. The move marked the start of PIL’s transshipment activities in Lomé, handling cargo in transit for other destinations.

In April, PIL also sent the largest vessel ever to the Onne Multipurpose Terminal (OMT) in Port Harcourt, Nigeria – the Kota Cempaka, with a capacity of 6,600 containers. This port serves as a gateway to Nigeria’s largest oil production region and the country’s hinterland areas.

PIL has been operating in Africa since the 1960s. It first established a presence on the continent in response to the shipping demands of its Chinese clients who sought to transport goods and equipment to East Africa. In 2022, the company enhanced its operations between China and East Africa by splitting its previous route into two distinct services: one to Mombasa, Kenya and the other to Dar es Salaam, Tanzania. Last year, PIL completed its first avocado shipment from Kenya to Brunei, utilising controlled atmosphere reefer containers to safeguard fruit quality throughout the lengthy voyage. Additionally, PIL opened its first branch office in landlocked Rwanda a few months ago. The company’s ability to transport cargo to and from inland locations in Africa was recently exemplified by the shipment of 21 containers of plywood from an inland site in Kenya to China.

Several African countries have seen substantial investment in port infrastructure, with Asian companies playing a significant role. Last year, Singapore-based Tolaram launched the Lekki Deep Sea Port on the outskirts of Lagos. The Lekki port, Nigeria's deepest, can accommodate vessels four times larger than those currently docking at the Tin Can and Apapa Ports in Lagos. The port is situated within the Lagos Free Zone, an 850-hectare private industrial zone developed by Tolaram. Chinese companies have also established a strong presence in Africa’s port industry. China Merchants Port Holdings operates in Nigeria, Togo, and Djibouti, while China Harbour Engineering Company has undertaken dredging and marine engineering projects in Sudan, Angola, and Egypt. In 2023, Hong Kong-based Hutchison Ports committed approximately US$700m to two Egyptian port projects, bringing its total investments in the country to US$1.5bn. International Container Terminal Services Inc. from the Philippines has also won a bid to develop and upgrade a container terminal in Durban, South Africa.

The African Continental Free Trade Area (AfCFTA) could further enhance the continent’s maritime industry. It is projected to boost demand for maritime freight by 62% and will create demand for an additional 100 vessels by 2030.

References

‘PIL enhances China to East Africa Service with two direct services – EAS and EA3’, PIL, 23 February 2022

‘Nigerian President inaugurates Lekki Deep Sea Port’, NTU-SBF Centre for African Studies, 27 January 2023

‘Hutchison Ports to invest $700 mln in two Egyptian ports’, Reuters, 16 March 2023

‘PIL successfully delivers first shipment of avocadoes from Africa to Asia with Carrier Transicold’s EverFRESH Active Controlled Atmosphere System’, PIL, 31 May 2023

‘Singapore shipping firm PIL facilitates Kenya-Asia avocado trade’, NTU-SBF Centre for African Studies, 20 June 2023

‘Philippine giant wins bid to run Durban container terminal’, News24, 17 July 2023

‘Review of maritime transport 2023: Facts and figures on Africa’, United Nations Conference on Trade and Development, 27 September 2023

'Opening of PIL (RWANDA) Limited', PIL, April 2024

'Kota Cempaka is the largest container vessel to call at Nigeria's Onne Multipurpose Terminal', PIL, May 2024

‘Kota Tema makes maiden call to Tema, Ghana’, PIL, June 2024

'Reinforcing our commitment to Togo with the inaugural arrival of Kota Tema', PIL, June 2024