Operators of the Snake Island Integrated Free Zone (SIIFZ), Nigerdock, is to lay out over $1.85 billion in development of quays on the concession.
The investment plan follows approval by the Federal Executive Council (FEC) for commencement and expansion of the Snake Island Port.
The council had in a meeting given the go-ahead for the Public Private Partnership (PPP) model for the project.
LEADERSHIP reports that the total investment by the private sector for the development of Snake Island Port will be about $1.85 billion comprising initial billion dollar outlay and a further $850 million re-investment that would spread across the project’s lifetime.
Within the 45-year concession granted Nigerdock to operate the SIIFZ, over $5.2 billion revenue is expected to accrue to the federal government.
Historically, Nigerdock had focused on ship repair and marine services.
Sequel to its privatisation, Nigerdock was acquired in 2003 by Jagal, a diversified Nigerian conglomerate led by the late Anwar Jarmakani and his two sons Manssour and Maher Jarmakani.
After acquiring Nigerdock, Jagal embarked on an ambitious expansion program, investing heavily in new infrastructure, equipment and facilities, rapidly expanding the company’s workforce, increasing productivity, and improving efficiency. As a result of the investments, Nigerdock was able to significantly improve its capabilities and expand its service offerings.
The company became a leading service provider to the offshore oil and gas sectors providing EPC fabrication, marine services and supply base logistics. It played a central role in the growth of Nigeria’s local content capacity and the local development of the Country’s energy assets.
Under the core investment of Jagal, Nigerdock acquired a series of approvals over the last 20 years. The Company was awarded Free Zone and Port Development Status by the Presidency in 2005 for its 252 hectares of land at Snake Island, Lagos which led to the establishment of the Snake Island Integrated Free Trade Zone. In 2017, approval was granted by the Nigerian Ports Authority and the Nigeria Customs
Service for direct shipping, underscored by the company’s scale-up efforts to expand its Free Zone and Port Terminal operations, serving as a hub for strategic logistics and manufacturing businesses to set up.
This was followed by registration of the Company by the Nigerian Maritime Administration and Safety Agency (NIMASA) as a Terminal Operator. Furthermore, Presidential and Customs approval was granted to Nigerdock and Snake Island Integrated Free Zone to operate as a wharf within Apapa and Tin Can Ports in Lagos, and approval was granted by the Nigerian Ports Authority for the commencement of cargo handling operations.
The FEC’s approval will see Snake Island Port commence immediately as an expansion to Nigerdock’s terminal operations, while the company’s shipyard, Free Zone, and related services will remain core parts of the business.
This marks a significant milestone in Nigerdock’s history and a positive development for the maritime and logistics industry, as the company is positioned to attract a wider multi-sector clientele, whose operations will add significant value to the country’s economy.
