Nigeria Shipping Report Q2 2012
Includes 3 FREE quarterly updates
There are good grounds for optimism for the Nigerian shipping sector as we head into Q212. Tonnage throughput forecasts over the mid term are strong and although investment in facilities is a necessity if the country is to fulfil its potential, Nigeria continues to benefit on the back of high oil prices and increased domestic stability.
Although piracy off the West African coastline remains a threat to the sector, the Nigerian government seems intent on addressing the situation, evidenced by the recent military link-up with neighbouring Benin. On the plus side, there were some reassuring noises at the end of 2011 from Danish AP Moller Maersk. David Skov, managing director of subsidiary Maersk Nigeria, explained that his firm is committed to investing in Africa over the long term.
This commitment was underlined by the fact that Maersk's terminals company, APM Terminals (APMT), was considering an investment of US$120mn at the start of 2012 in expanding annual throughput capacity at the terminal at the Port of Apapa.
Headline Industry Data
APMT To Expand Apapa To 1mn TEUs Danish shipping conglomerate AP Moller Maersk was investing in its African connections in a bid to secure the growth market at a time when other, more established markets were struggling to return profits, it was reported in October 2011. On a visit to the Nigerian port of Apapa at Lagos, Maersk Nigeria managing director David Skov declared: 'We are not here to make a fast profit, we are here for the longrun.'
Nigerian Port Delays Threaten Forecasts Due to issues of overcapacity, the ports at the Nigerian city of Lagos, including the port of Apapa, were struck by delays in the processing of containers in November 2011. We caution that this could prove to be something of a recurring theme should proper investment not arrive.
New Nigerian Port To Join Fray To Become West African Trade Hub Speaking in December 2011, Omar Suleiman, managing director of the Nigerian Ports Authority (NPA), said the new Ibaka port, in Akwa Ibom state, would be able to receive ocean-going vessels within the next three years. The port development will be welcome news to international operators which have been showing increasing interest in investing in Nigeria.
Key Risks To Outlook
The mid term looks bright for Nigeria, although it must be borne in mind that the elevated oil prices, at present and since the beginning of 2011, are volatile and subject to both upside and downside, considering that the country is Sub-Saharan Africa's leading crude producer.
It is also crucial that Nigeria addresses the ongoing threat of piracy in the region. This appears to have been prioritised, with the news that a military operation involving Nigerian and Benin troops has been launched to counter the threat.
There are good grounds for optimism for the Nigerian shipping sector as we head into Q212. Tonnage throughput forecasts over the mid term are strong and although investment in facilities is a necessity if the country is to fulfil its potential, Nigeria continues to benefit on the back of high oil prices and increased domestic stability.
Although piracy off the West African coastline remains a threat to the sector, the Nigerian government seems intent on addressing the situation, evidenced by the recent military link-up with neighbouring Benin. On the plus side, there were some reassuring noises at the end of 2011 from Danish AP Moller Maersk. David Skov, managing director of subsidiary Maersk Nigeria, explained that his firm is committed to investing in Africa over the long term.
This commitment was underlined by the fact that Maersk's terminals company, APM Terminals (APMT), was considering an investment of US$120mn at the start of 2012 in expanding annual throughput capacity at the terminal at the Port of Apapa.
Headline Industry Data
- 2012 Port of Lagos tonnage throughput is forecast to increase by 5.9% and to average 5.3% to 2016.
- 2012 Port Harcourt tonnage throughput is forecast to increase by 5.1% and to average 7.2% over our forecast period to 2016.
- 2012 trade growth forecast at 6.0% and to average 7.0% to 2016. Key Industry Trends
APMT To Expand Apapa To 1mn TEUs Danish shipping conglomerate AP Moller Maersk was investing in its African connections in a bid to secure the growth market at a time when other, more established markets were struggling to return profits, it was reported in October 2011. On a visit to the Nigerian port of Apapa at Lagos, Maersk Nigeria managing director David Skov declared: 'We are not here to make a fast profit, we are here for the longrun.'
Nigerian Port Delays Threaten Forecasts Due to issues of overcapacity, the ports at the Nigerian city of Lagos, including the port of Apapa, were struck by delays in the processing of containers in November 2011. We caution that this could prove to be something of a recurring theme should proper investment not arrive.
New Nigerian Port To Join Fray To Become West African Trade Hub Speaking in December 2011, Omar Suleiman, managing director of the Nigerian Ports Authority (NPA), said the new Ibaka port, in Akwa Ibom state, would be able to receive ocean-going vessels within the next three years. The port development will be welcome news to international operators which have been showing increasing interest in investing in Nigeria.
Key Risks To Outlook
The mid term looks bright for Nigeria, although it must be borne in mind that the elevated oil prices, at present and since the beginning of 2011, are volatile and subject to both upside and downside, considering that the country is Sub-Saharan Africa's leading crude producer.
It is also crucial that Nigeria addresses the ongoing threat of piracy in the region. This appears to have been prioritised, with the news that a military operation involving Nigerian and Benin troops has been launched to counter the threat.
Contents
Executive SummarySWOT Analysis
Nigeria Shipping SWOT
Nigeria Political SWOT
Nigeria Economic SWOT
Nigeria Business Environment SWOT
Global Shipping Overview
Container Shipping
Replay Of 2009 Threatens As Carriers Face Twin Threats Of Declining Demand And Overcapacity
Overcapacity And Declining Demand To Collide, Asia-Europe Most Exposed
Liner Strategies Indicate Carriers Preparing For The Worst
What Is Wan Hai Lines Doing Right?
Asia-Europe Landbridge To Take Market Share, But Not Usurp Shipping
Container Shipping Must Meet Green Challenge Now
Dry Bulk
Dry Bulk Faces Bleak 2012, Chinese Slowdown Threatens Sector Already In Troubled Waters
Possibility Of Chinese Slowdown Presents Real Risk To Dry Bulk Shipping
One Vale Mega-Vessel Calls To China, Remains Unclear If Rest Will Follow
Dry Bulk Lines Suffering; Another Chinese Firm Withholds Charter Payments
Oversized Dry Bulk Fleet To Continue Growing
Liquid Bulk
Liquid Bulk Survival Tactics Deployed In Force In 2012
2012 OUTLOOK FOR CRUDE OIL TANKERS REMAINS POOR
Frontline 2012 To Be Consolidating Force In Supertanker Sector
Industry Trends And Developments
Nigeria Container Shipping Market Overview
Table: Nigeria’s Private Final Consumption Indicators, 1999-2021
Industry Forecast
Port Of Lagos (Apapa) Throughput Overview
Port Harcourt Throughput Overview
Table: Major Port Data – Throughput, 2009-2016 ('000 tonnes)
Trade
Table: Trade Overview, 2007-2016
Table: Key Trade Indicators, 2007-2016 (US$mn and % change y-o-y)
Table: Nigeria's Main Import Partners, 2002-2009 (US$mn)
Table: Nigeria's Main Export Partners, 2002-2009 (US$mn)
Company Profiles
Delmas
Maersk Line
Mediterranean Shipping Company (MSC)
CMA CGM
COSCO Container Lines Company Limited (COSCON)
Hapag-Lloyd
APL
Evergreen Line
China Shipping Container Line (CSCL)
Hanjin Shipping (Container Operations)
Mitsui OSK Lines (MOL) (Container) Skip to top