Snake Island Port to earn FG N3.6 trn revenue
Sopuruchi Onwuka
The development and expansion of the Snake Island Port in Lagos State generate over $5.2 billion or N3.6 trillion in revenues for the government of Nigeria under a project outline that commands princely $1.85 billon private investment.
The Snake Island Port facilities will be hosted in the Snake Island Integrated Free Zone operated by Nigerdock, an affiliate of the Jagal Group: the diversified Nigerian conglomerate led by the late Anwar Jarmakani and his two sons Manssour and Maher.
Managing Director of Nigerdock, Mr Maher Jarmakani, stated that the investment plan was enabled by the approval granted the company by the Federal Executive Council (FEC) for commencement and expansion of Snake Island Port.
The federal cabinet had at the meeting of May 17, approved the Public Private Partnership (PPP) model presented by the company for the port development project which will entail initial private investment of about $1.0 billion (N700 billion) with a further reinvestment of significant $850 million (N595 billion) over the full project’s cycle.
According to Nigerdock, the investment outlay will see Snake Island Port commence immediately as an expansion to the company’s terminal operations, while the company’s shipyard, Free Zone, and related services will remain core parts of the business.
The Oracle Today reports that Nigerdock operates the Snake Island Integrated Free Zone under a 45-year concession within which, the company stated, the revenue to the federal government would reach over $5.2 billion.
Historically, Nigerdock had focused on ship repair and marine services. And sequel to its privatization, Nigerdock was acquired in 2003 by the Jagal Group which subsequently 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.
Nigerdock 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 State, which led to the establishment of the Snake Island Integrated Free Trade Zone.
In 2017, it earned approval of the Nigerian Ports Authority and the Nigeria Customs Service for direct shipping. Thisuunderscored 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.
The Nigerian Maritime Administration and Safety Agency (NIMASA) further registered the Nigerdock 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. The Nigerian Ports Authority also approved the company to commence cargo handling operations.
With the FEC’s approval, therefore, Snake Island Port would now kick off “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,” Nigerdock declared.
According to Mr Maher Jarmakani, “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.”
