Lekki Port LFTZ Enterprise has signed a Memorandum of Agreement with French container carrier, CMA CGM to operate a proposed container terminal at Lekki port.
Philippine port developer International Container Terminal Services (ICTSI), which was the original operator of the container terminal, terminated an agreement to develop and operate the Lekki port container terminal in May 2017.
ICTSI’s subsidiary, Lekki International Container Terminal Services LFTZ Enterprise (LICTSE) and Lekki Port LFTZ Enterprise agreed to terminate the sub-concession agreement signed in 2012, citing delays in the execution of the project.
According to ICTSI, LICTSE will be paid an amount agreed by the parties for the termination of the deal.
However, under the new agreement it signed with CMA CGM, the French carrier’s subsidiary, CMA Terminals will be responsible for marketing, operations and maintenance of the container terminal at the Lekki deep seaport, which will have two container berths once completed in 2020.
The company said that the latest move is fully in line with CMA CGM Group’s development in the region.
The container terminal will allow the group to develop its presence into West Africa’s first consumer market and will serve as a trans-shipment hub, especially to neighboring countries like Togo and Benin.
Upon completion, the container terminal will be equipped with a 1,200-meter-long quay as well as 13 quay cranes and will have a capacity of 2.5 million TEUs. With its 16-meter depth, it will allow the group to deploy ships with a capacity of up to 14,000 TEUs.
“As Nigeria’s first deep sea port, Lekki Port represents a strategic choice for the CMA CGM Group. Thanks to its position and capacity, Lekki Port will allow us to bring to Nigeria larger container ships from Europe and Asia to better serve our customers and pursue our commitment to the development of the entire region,” Executive Officer of the CMA CGM Group, Farid T. Salem, said in a statement on Monday.
The proposed Lekki Deep Seaport will be developed, built and operated by LPLE, a joint venture enterprise led by the Tolaram Group, the Lagos State Government and the Nigerian Ports Authority.
The Federal Government of Nigeria recently pledged its total support to the Lekki Port project during the official flag-off ceremony by President Muhammadu Buhari, who was represented by Vice President Yemi Osinbajo.