A Nigeria indigenous company, Insight Dynamics Resources (IDR) (in with American largest engineering company, AECOM) has proposed a partnership with the federal government to develop Integrated Multimodal Logistics System for African Continental Free Trade Area (AfCFTA) trade integration.
The company is to partner with the Federal Ministry of Industry, Trade and Investment.
IDR, in a release to LEADERSHIP said that “The proposed Multimodal Logistics hub System will comprise of five component modes that has to be interlinked and function in coordinated seamless integration to actualize the vision and goals of the project.
“The proposed facilities are Gateway Multimodal ‘Smart’ Port-perhaps the first sixth Generation Port in the world with 5.6 km of runway for air cargo terminal within the complex and facility for automobile assemble plant of over one million vehicles per annual which would be built between Lagos and Ogun State.
“The port will have a draught capacity of 50 meters to received Valemax size ships or 400, 000 deadweight bulk-cargo ships. The Gateway Multimodal Port will have a 350 million throughput capacity and 15 million TEUs annual capacity by 2027. The Port Development Strategy provides for the better management of road, rail and shipping access to the Port and facilitates the effective integration of the port with the broader system of land transport infrastructure.”
Recall that President Muhammad’s Buhari had delayed joining AfCFTA because the increased regional integration would lead to unfair competition for jobs and the goods they produce in the country due to Nigeria’s infrastructure deficit .
The Minister of Federal Ministry of Industry, Trade and Investment expressed gratitude for the initiative and also expressed support federal government support for his initiative and directed the permanent secretary of the Ministry meet with stakeholders and present a report for further action by second week of January 2022.
It added that “With Nigeria signed up, AfCFTA’s dream of increasing intra-Africa trade, which Nigeria currently lags behind the suffer from a crippling lack of capacity to increase both bulk and containerised cargo handling such project which be the largest single project ever undertaken on African soil will certainly increase Nigeria freight competitiveness in years to come. The project might cost approximately $50 billion and will have about 830,000 employees during construction phases and will generates more than 15 million employment through value chain optimisation. it is expected to be delivered with three to six years.”
According to the company, AfCFTA inter-connectedness is needed to drive economic growth and development across the continent in the coming years. Africa’s maritime industries and actors will be vital in achieving this outcome, as sea transport offers the cheapest and fastest way of moving the largest quantity of goods across long distances.”
It further said that “The World Bank estimates that AfCFTA could boost continental income by up to $450 billion and lift close to 30 million people out of extreme poverty. Yet the success and results of the initiative depend entirely on African states’ ability to increase the efficient capacity and safety of their maritime transport systems.
“An African single market would be impractical unless it developed infrastructure that could accommodate larger vessels and more containers. Most African countries continue to export mostly bulk commodities such as oil, precious metals and raw agricultural products.”