In line with Nigeria’s national policy on Public Private Partnership(PPP), Federal Government has begun the procurement process for Ibom Deep Seaport(IDSP) project to ensure that it meets the planned development targets.
To this end, reputable private sector investors and concessionaires are being invited to take advantage of the 50 years concession period the investment offers as the emerging first transshipment hub in West and Central Africa.
The project being developed to augment the port capacity in the country has a tripartite equity structure of 20 per cent for the Federal Government through the Nigerian Ports Authority(NPA), 20 per cent for Akwa Ibom State Government and 60 per cent for private sector investors.
In a press statement, the Chairperson of the Akwa Ibom Technical Committee on the implementation of the IDSP, Mrs. Mfon Usoro said, “The IDSP is positioned to offer a value proposition superior to other seaports in the region. Available data indicates that the various seaports currently serving the West and Central African sub-region are reaching saturation and the need for viable alternatives has become critical for major shipping lines sailing these routes. With limited land to expand the existing seaports in Lagos and the inhibiting conditions against the development or expansion of other ports in neighbouring countries, the Ibom Deep Seaport offers an ultra-modern deep seaport with modern cargo handling equipment, facilities and systems that can address the capacity challenges constraining other seaports across the region. The greenfield site has substantial land available for future expansion.”
Strategically located in the South East of Akwa Ibom State, Nigeria (a leading oil and gas producing state in Nigeria), the approximate coordinates of the IDSP scaled from the British Admiralty Chart No. 1387 are Latitude 4° 32’ 35’’ N; Longitude 8° 14’ 7’’ E and UTM coordinates 415168 m E; 502,199 m N (UTM Zone 32N). The 2,565 hectares green field port area is designed for New Panamax Class vessels with channel (18.24m); turning basin and berth depth (16.72m) and quay length of about 7.5 km. When fully developed, the container terminals will be able to accommodate up to 13 New Panamax Class container vessels and 2 very large feeder vessels.
According to Usoro, the transshipment container market for the project is estimated to grow from about 1.2 million TEUs in 2021 to about 4 million TEUs in 2040, adding that the IDPS is better positioned to emerge as the first major transshipment hub for the west and Central African region because of its proximity to key markets in the region.
Other advantages it has in the region includes its nearness to neighbouring hinterland countries and major shipping lines calling West and Central Africa, large gateway market size to attract direct vessel services and sizeable transhipment cargo hinterland for feeder shipping network connection, as well as its capacity to handle post and New Panamax vessels at its specialized terminals.
Another defining feature of the IDSP is its location within the Ibom Industrial City – a designated Free Trade Zone replete with fiscal incentives. The Free Trade Zone status ensures that operations and investors in the Deep Seaport enjoy special regulatory or fiscal incentive regimes that enhance competitiveness and allow for cost saving with corresponding opportunities for investors to maximize returns on their investments. This includes, tax waivers and ease of repatriation of capital or investment proceed. The project will optimize the synergies of the other businesses to be situated within the Industrial City that is being developed in parallel (such as agriculture, oil and gas, petrochemicals, marine-related industries, auto assembly plants, power plants, as well as real estate developments), and existing power plant and the industrial development at IkotAbasi. It is within close proximity to Eket and Oron, among the largest urban developments in the State and oil and gas assets thereby creating an enabling environment for unlocking the full long-term potential of the investments in the IDSP for all stakeholders. The existing naval facilities in the area addresses security concerns.
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