Tolaram run port in Nigeria attracts global shipping lines

Photo source: Lekki Port

The Lekki Deep Sea Port, situated on the outskirts of Nigeria’s largest city, Lagos, has started to attract international shipping lines with three–COSCO (China); Ocean Network Express (Japan), and Zim (Israel) – launching their services recently. Their presence is expected to provide a significant boost to Nigeria’s maritime and manufacturing sectors by offering importers and exporters more options and lowering container transport costs. The port is run and partly owned by Singapore-based Tolaram.

Earlier this month, the 7000 TEU capacity vessel E. A. Centaurus of COSCO made its inaugural call at the port. It was the largest COSCO ship to ever dock in Nigeria, marking a significant milestone for the port’s container terminal. Since beginning operations in April 2023, the port has been serviced exclusively by one shipping line, France’s CMA CGM.

The Lekki Deep Sea Port is a key part of the 850-hectare Lagos Free Zone (LFZ), private industrial zone run by Tolaram. With a depth of 16.5m, the port is capable of accommodating vessels up to four times larger than those that can currently dock at Nigeria’s older ports. The challenges of these older facilities are underscored by the World Bank’s 2023 container port performance index, which ranks Lagos’s Apapa and Tin Can Island ports 309th and 364th out of 405 ports globally, based on average port stay per vessel.

Beyond handling larger ships, Lekki port is positioning itself as a transshipment hub, facilitating cargo movement to other destinations, particularly neighbouring countries. Transshipment activities have already begun, a notable shift given that Nigeria’s ports were previously seen as unsuitable for such operations due to inadequate infrastructure.

The port’s development is proceeding in phases. Its container terminal, with an annual capacity of 1.2m containers, is fully operational and managed by CMA CGM Group. Upcoming phases include the construction of dry bulk and liquid terminals, while a third phase aims to double the capacity of the existing container terminal.

The LFZ is part of the broader Lekki Industrial Corridor, envisioned as a future economic hub for West Africa. The area is also home to projects such as Nigerian billionaire Aliko Dangote’s petroleum refinery and fertiliser plant. The arrival of new shipping lines at the Lekki Deep Sea Port is expected to make it easier for manufacturers to import raw materials and export finished goods to African markets and beyond. Additionally, the increased shipping options at the port are anticipated to attract further foreign investment into the zone.

 

References

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

‘Tolaram’s Lagos Free Zone issues US$38m bond for further expansion’, NTU-SBF Centre for African Studies, 18 April 2023

‘Tata International expands operations in Nigeria at Lagos Free Zone’, Lagos Free Zone, 24 November 2023

‘Lagos Free Zone emerges as an economic lifeline for Nigeria’, NTU-SBF Centre for African Studies, 27 March 2024

‘How will the introduction of Cosco shipping, Ocean Network Express, and ZIM Integrated Shipping Services at the Lagos Free Zone impact Nigeria’s blue economy and promote trade facilitation?’, CNBC Africa, 08 November 2024

'Lekki Port, Lekki Freeport Terminal, Lagos Free Zone launch COSCO Shipping, Ocean Network Express (ONE) & ZIM Lines services', Lagos Free Zone, 11 November 2024

‘COSCO, ONE, ZIM Launch Alliance To Boost International Trade’, Channels Television, 12 November 2024

‘The Container Port Performance Index 2023’, World Bank, 2024