APM Terminals Signs Monrovia Concession (Liberia)
The Hague, Netherlands – APM Terminals has signed a 25‐year concession agreement for the operation of the Port of Monrovia in Liberia, having been named the preferred bidder for the port management and modernization project last March. The now formalized agreement for the port’s privatization will result in the investment of $120 million USD in the facility over the course of the contract term.
Monrovia is the Capital and largest city in Liberia, a nation of 3.8 million people on the West African coast. “As part of APM Terminals’ long‐term and emerging markets strategy, we have thoroughly investigated the needs of our customers in this market in serving them through a gateway into Liberia” said APM Terminals Senior Vice President and Head of New Terminals, Peder Sondergaard.
The Liberian government elected to privatize the port in response to the urgent need for port infrastructure improvement, as the current facility was developed prior to containerized cargo transportation and requires investment in equipment and technology to bring the facility up to current industry standards.
A customer of the port ‐ local Monrovia businessman, Upjit Singh Sachdeva of Jeety Trading Corp. stated “Privatization is always something to be excited about and this is no exception”, adding “APM Terminals is the world’s leading port operator and we expect great things in the near future.”
Most of APM Terminals’ investment will in the initial years be to construct the quay, establish efficient yard handling procedures and install the new equipment required to transform the port into a more competitive, world‐class facility capable of handling modern, deep‐draft vessels.
“This will be the first 100% APM Terminals‐owned terminal in Africa, which is a big milestone for us and represents the company’s positive outlook for the region” said Hans‐Ole Madsen, Vice President for Business Development for Africa, Middle East and Indian Subcontinent, who participated in the signing ceremony on August 17th with Richard Tolbert, Chairman of the Liberian National Investment Commission, and Patrick Sendolo, Head of Liberia’s Port Reform Secretariat.
The APM Terminals Global Terminal Network is well‐established in West Africa with facilities in Abidjan, Ivory Coast; Cotonou, Benin; Tema, Ghana; Apapa (Lagos), and Onne (Port Harcourt), Nigeria; Douala, Cameroon; Pointe Noire (under development), DR Congo; and Luanda, Angola.
“We look forward to working with APM Terminals. We welcome them to Liberia and eagerly await the improvements to be made to the Freeport of Monrovia” said Mr. Sachdeva – who also serves as honorary Indian Consul General.
Geographic market targeted: 90% of economic activity takes place in Monrovia, and the Freeport is considered the economic gateway to the country of Liberia. There are three other outports in Liberia as well; Harper, Greenville and Robertsport, where mostly iron ore and timber are handled.
This concession coincides with increased foreign investment into Liberia, including several new concessions in mining, oil & gas exploration/production and agriculture.
Major lines calling port: Maersk Line, Safmarine, CMA‐CGM (Delmas and OT Africa Line), the Grimaldi group.
Train and truck services: Only truck.
Terminal equipment: Ships gear operation with reach stackers to support in yard. Mobile Harbor cranes will be introduced in the medium term as volume develops.
Duration of concession agreement: 25 years
Location advantages: Approach from main sea channel Distance: ½ mile
Accessible for ships:
With draft: 10 meters. NPA will dredge to ‐12 meters in third year
With length: 180 meters Length‐Over‐All, allowed entry will increase to 200 meters
Turning basin: 375 meters
Access to highways:
Direct access to the City of Monrovia and the National Highway system Economic impact of the port
Total investment in project: USD 120 million
Government investment in project: The Government of Liberia will pay for dredging and infrastructure connecting the Terminal to the port and surrounding community.
TEU Size of vessels port will be able to handle: 4500 TEU
Quay length: 600 meters
Water depth at Quay: approx. ‐10 meters currently, will be dredged to ‐12 meters in three years
Harbor channel: approx. ‐10 meters currently, will be dredged to ‐12 meters in three years
Annual throughput capacity at opening and future phases/years: 75,000 TEU and 750,000 tons of GC
Stacking yard: 13 hectares
Quay length: 600 meters