The post-concession race: have they heard the gun?

Unlike Nigeria, Cote D’Ivoire has a Customs regime that allows transhipment. Historically Abidjan has been the premiere West African transhipment operation and the Ledeco project would have given the deepwater and quay space required to dramatically increase transhipment operations, and a concession against which dredging finance could have been obtained.

Unlike the regional niche specialists, P&O Nedlloyd, the driving force behind the project, was able to take a multi-trade strategic view of the benefits as well as a regional view. Perhaps this is also why APM Terminals was able to offer three times more than others for their concession at Apapa, Nigeria. The successful completion of the Ledeco project would have enabled P&O Nedlloyd to combine four services into one pendulum service from the Far East to Europe and return. Transhipping in South Africa (the Cohega project) and Abidjan, they would have been able to combine their services covering the Far East to South Africa, Europe to South Africa, South Africa to West Africa and Europe to West Africa, thereby creating huge economies of scale.

To serve the region from Dakar to Luanda and its 20+ ports, there is probably the justification for 3 transhipment hubs. From a geographic point of view Dakar in the north already has the deepwater and Luanda in the south is well located, although the Angolan government will need to deal with its court case and streamline Customs procedures. If successful (a big if) this would then leave the need for only one other location. The issues of congestion and the combined burden of Customs and inspection delays, if not solved, will help to justify the investment needed for this third location. Once established, it would potentially then relegate all the other ports to feeder status.

The post-concession starting gun has been fired but apart from Lome, it?s not clear if anyone else has heard it, or which other port is going to pick up the baton.