APM Terminals Joint Venture Seals $1.5 Billion Port Deal in Ghana

APM Terminals, the container terminal working unit of Maersk Group, and its companions have sealed an enormous $1.5 billion funding in Ghana in what’s considered as a robust present of help for the West African nation and to Africa’s progress and improvement as a complete.

[contextly_sidebar id=”H9d1EV8vEretVl8dTgi02EZJ40SqNhVQ”]The funding will probably be made by APM Terminals via Meridian Port Services, a three way partnership between APM Terminals, Bolloré Africa Logistics, and the Ghana Ports and Harbour Authority. Plans for the funding have been first made in November 2014.

The funds will probably be used to improve APM Terminals’ present terminal in Tema Port and add 3.5 million TEUs in annual throughput capability.

The new undertaking consists of each a brand new greenfield port outdoors APM Terminals’ current facility and a wanted improve of the adjoining highway community, APM Terminals says. Construction will embrace the constructing of 4 deep-water berths, a brand new breakwater and an entry channel in a position to accommodate the world’s largest container ships. The undertaking can also be anticipated to create greater than 5000 jobs.

“We are excited about how this port will contribute to Ghana’s future economy and emphasize APM Terminals’ strong commitment to Africa’s growth and development. Increased access to global markets is a key component of Africa’s ongoing economic growth, and the new, world-class port development which begins here today will help to put Ghana, and all of West Africa at the forefront of African global trade,” said APM Terminals CEO Kim Fejfer throughout a proper signing ceremony held Friday by His Excellency John Dramani Mahama, the President of the Republic of Ghana.

In a separate undertaking, APM Terminals and Bolloré Africa Logistics will improve the present freeway between Accra and Tema to a six-lane fashionable freeway together with improved connecting roads and entry level to boost the motion of cargoes into and out of the port of Tema and the hinterland.

In November 2014, an preliminary Memorandum of Understanding was signed by Meridian Port Services (MPS) and the GPHA for the growth plans. During the previous 5 months, MPS and the Ghanaian authorities representatives accomplished contractual particulars, and finalized preparations for the undertaking’s required design and engineering research. The three way partnership share is comprised of APM Terminals 35%; Bolloré 35%; and Ghana Ports & Harbours Authority 30%.

“This massive investment highlights the confidence of investors into the country. It is a sign that Ghana is moving in the right direction and the journey will not end there. Expanding the port using superior infrastructure and modern, advanced technology will allow Ghanaian companies to compete for business in the most cost effective way,” mentioned Kim Fejfer.

The International Monetary Fund has projected an annual financial progress price of 4.5% for Sub-Saharan Africa in 2015, and 5.1% in 2016, following a 5% GDP growth in 2014. The IMF has projected Ghana’s financial system to broaden by 3.5% in 2015 and by 6.4% in 2016. Container ship trade analysts have estimated general African containerized cargo dealing with to have elevated by 7.2% in 2014, as in contrast with an general international progress price of 5.4%. African port container volumes are forecast to proceed to extend effectively above the worldwide market.

Container throughput at MPS was 651,000 TEUs in 2014, and the prevailing container facility – operated by APM Terminals in partnership with Bollore since 2004 – is near most utilization.