Nigeria Shipping Report Q1 2012
Includes 3 FREE quarterly updates
The Nigerian shipping sector, in particular the country's ports, is due for rapid growth over the mid term as the country booms on the back of high oil prices and increased stability. The facilities are in need of investment, however, and Nigeria's poor business environment could put off potential investors.
Nevertheless, BMI forecasts a healthy increase in throughput, as international container shipping companies such as Maersk Line increase their coverage of the country. The growing trend of pirate attacks off the West African coastline could also deter some of these firms, however.
Headline Industry Data
Key Industry Trends
Calabar Dredging Held Up By Dubious Tender Process: Planned dredging works on the Calabar River Channel, designed to improve access to the Port of Calabar, located at the river's mouth in the east of Nigeria, have stalled following objections to the awarding of the tender by the Nigerian Ports Authority (NPA). BMI notes the issue is reflective of our poor business environment rating for the West African country.
West Africa Becomes Another Target And East African Pirates Start To Hunt In Packs: Piracy remains an ongoing and mounting problem for the international shipping and maritime sector. Although the Somali pirates continue to dominate the headlines - and still account for the majority of attacks worldwide - the areas they operate in, which encompass the Somali coastline, the Gulf of Aden and Red Sea as well as the wider Indian Ocean region, is by no means the only territory afflicted. West Africa in particular is becoming a trouble zone, and incidents are even on the rise on Lake Victoria and in Singapore's waters.
BMI notes that the attacks are reportedly becoming increasingly audacious as security measures are stepped up, suggesting that the problem needs to be tackled at its root.
APMT To Enhance Container Scanning Procedure At ACT: Danish container terminal operator APM Terminals (APMT) is to enhance container scanning procedures at its Apapa Container Terminal (ACT) at the Nigerian Port of Lagos. The operator will now scan 200 containers a day in association with the Nigerian Ports Authority and Nigeria Customs Service. According to William Ross, business manager at ACT, the move will benefit importers, who will be charged US$65-70 per twenty-foot equivalent unit (TEU) for the transport of containers to and from scanning. APMT has made an investment of US$192mn over the last four years to modernise the ACT.
Key Risks To Outlook
Nigeria's growth outlook is promising over the mid term, although BMI notes that investment in the country's ports is essential and more must be done to tackle the nascent pirate threat in the region. Oil prices, which have remained elevated from the beginning of 2011, are subject to volatility, posing both upside and downside risks to Nigeria, Sub-Saharan Africa's leading crude producer.
The Nigerian shipping sector, in particular the country's ports, is due for rapid growth over the mid term as the country booms on the back of high oil prices and increased stability. The facilities are in need of investment, however, and Nigeria's poor business environment could put off potential investors.
Nevertheless, BMI forecasts a healthy increase in throughput, as international container shipping companies such as Maersk Line increase their coverage of the country. The growing trend of pirate attacks off the West African coastline could also deter some of these firms, however.
Headline Industry Data
- 2012 Port of Lagos tonnage throughput is forecast to increase by 5.9% and to average 5.3% to 2015.
- 2012 Port Harcourt tonnage throughput is forecast to increase by 5.1% and to average 6.7% over our forecast period.
- 2012 trade growth forecast at 6.0% and to average 7.0% to 2015.
Key Industry Trends
Calabar Dredging Held Up By Dubious Tender Process: Planned dredging works on the Calabar River Channel, designed to improve access to the Port of Calabar, located at the river's mouth in the east of Nigeria, have stalled following objections to the awarding of the tender by the Nigerian Ports Authority (NPA). BMI notes the issue is reflective of our poor business environment rating for the West African country.
West Africa Becomes Another Target And East African Pirates Start To Hunt In Packs: Piracy remains an ongoing and mounting problem for the international shipping and maritime sector. Although the Somali pirates continue to dominate the headlines - and still account for the majority of attacks worldwide - the areas they operate in, which encompass the Somali coastline, the Gulf of Aden and Red Sea as well as the wider Indian Ocean region, is by no means the only territory afflicted. West Africa in particular is becoming a trouble zone, and incidents are even on the rise on Lake Victoria and in Singapore's waters.
BMI notes that the attacks are reportedly becoming increasingly audacious as security measures are stepped up, suggesting that the problem needs to be tackled at its root.
APMT To Enhance Container Scanning Procedure At ACT: Danish container terminal operator APM Terminals (APMT) is to enhance container scanning procedures at its Apapa Container Terminal (ACT) at the Nigerian Port of Lagos. The operator will now scan 200 containers a day in association with the Nigerian Ports Authority and Nigeria Customs Service. According to William Ross, business manager at ACT, the move will benefit importers, who will be charged US$65-70 per twenty-foot equivalent unit (TEU) for the transport of containers to and from scanning. APMT has made an investment of US$192mn over the last four years to modernise the ACT.
Key Risks To Outlook
Nigeria's growth outlook is promising over the mid term, although BMI notes that investment in the country's ports is essential and more must be done to tackle the nascent pirate threat in the region. Oil prices, which have remained elevated from the beginning of 2011, are subject to volatility, posing both upside and downside risks to Nigeria, Sub-Saharan Africa's leading crude producer.
Contents
Executive SummarySWOT Analysis
Nigeria Shipping SWOT
Nigeria Political SWOT
Nigeria Economic SWOT
Nigeria Business Environment SWOT
Global Overview
Container Shipping
Lines To Enter 2012 In The Red
Overcapacity To Plague Medium Term, Beware 2013
Table: Snapshot Of Container Lines' Orders
Table: Top 20 World Ports
Port Operators To Face Tougher 2012 As Box Volumes Slow
Container Curse To Hit Box Manufacturers, But Outlook Strong
Dry Bulk
Chinese Slowdown Threat Double Downside Risk To Dry Bulk Shipping
Vale May Find Solace With South Korea As Chinese Troubles Continue
Lines Need To Up Capacity Reduction Strategies To Ease Oversupply
Dry Bulk Lines In Choppy Waters, Possibility Of More Bankruptcies
Liquid Bulk
Dirty Tanker Indices Not Very Buoyant
Differing Strategies, Differing Fortunes
Genmar Bankruptcy Just The Beginning
Survival Strategies For Floundering Tanker Operators
Rumoured Chinese Order Has Potential To Sink Crude Oil Shipping Sector
Industry Trends and Developments
Calabar Dredging Held Up By Dubious Tender Process
Market Overview
Port of Lagos (Apapa)
Overview
Shipping
Congestion
Terminals
Expansion And Developments
Multi Modal
Industry Forecast
Port of Lagos (Apapa) Q112
Port Harcourt Q112
Table: Major Port Data, 2008-2016
Table: Trade Overview, 2008-2016
Table: Key Trade Indicators, Table, 2008-2011
Table: Key Trade Indicators, Table, 2012-2016
Table: Main Import Partners, 2002-2009
Table: Main Export Partners, 2002-2009
Company Profiles
Delmas
Maersk Line
Mediterranean Shipping Company (MSC)
CMA CGM
COSCO Container Lines Company Limited (COSCON)
Hapag-Lloyd
Evergreen Line
APL
China Shipping Container Line (CSCL)
Hanjin Shipping (Container Operations)
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