Lilypond Container Terminal

Distressed

In September 2005 the government of Nigeria, through its Bureau of Public Enterprises (BPE), awarded a 10 year rehabilitate, lease and transfer concession for a container terminal at the Lagos port to private operator West Africa Container Terminal. The concessionaire pledged to pay leasing fees to the government amounting to some $9.65 million in net present value. Additionally, the concessionaire was expected to make all investments on the terminal’s berths, stacking yard, equipment, as well as improved security and fencing systems. The net present value of investments in infrastructure were estimated at $15.41 million. The project was part of a wider plan started in 2004 - 2005 to attract private participation in the Nigerian port sector. The contract was awarded in September 2005 after a competitive tender. Details on the number of bidders were not available. The winning bidder, West Africa Container Terminal, was a subsidiary of the Danish AP Moller - Maersk Group. The terminal had a capacity of 8,000 to 9,000 TEUs. An expansion project was ongoing for the construction of a new 570m quay. The expansion was expected to be completed in 2007. No information was publicly available on the total investments in facilities. 2011 saw a record throughput of 47,000 TEUs. In 2013 it became known that the concessionaire had invested N3 billion since 2006 (US$18.5 million). In September 2013, the National Council of Nigeria Licensed Customs Agents urged Nigerian Ports Authority to take over the management of the Lilypond terminal, because of operational problems (not enough containers, management considering pulling out themselves).