Maersk Targets Ports in Africa Expansion Push

By Mike Cohen

(Bloomberg) — A.P. Moeller-Maersk A/S, proprietor of the world’s largest delivery container line, is searching for to win contracts to construct and improve ports in Nigeria and Kenya because the Danish firm expands its African operations.

Maersk is awaiting a closing sign-off on a contract to assist construct a brand new port in Badagry in Nigeria’s southern Lagos state, in keeping with Lars Reno Jakobsen, the corporate’s senior vp for Africa.

“That project, once it’s been finalized, could be more than $2 billion in terms of investment,” he mentioned in an interview on the World Economic Forum in Cape Town on Friday. “Hopefully we can start some time this year. It will provide capacity, not only for containers, but also for oil, break-bulk and offshore.”

Maersk employs nearly 10,000 folks in additional than 40 African nations and generates about 10 % of its gross sales in and across the continent. Besides its delivery enterprise, the Copenhagen-based firm provides oil- and gas-related providers. The firm’s APM Terminals unit operates 10 West African ports.

“We are actively looking in East Africa for opportunities,” Jakobsen mentioned. “There is an ongoing tender process for the port of Mombasa, where APM Terminals has shown interest” in working two new berths within the Kenyan metropolis.

Maersk can also be engaged on a $1 billion enlargement to Ghana’s Tema port in collaboration with the west African nation’s ports authority. The undertaking consists of the development of 4 new berths and can greater than quadruple the port’s capability.

Africa Sales

In 2013, Maersk partnered with Bollore SA and Bouygues SA to win a 450 million-euro ($500 million) contract to construct a second container terminal in Abidjan, Ivory Coast’s industrial capital. The terminal would begin working in 2016, Ballore mentioned on the time of signing the deal.

“That’s progressing according to plan,” Jakobsen mentioned. “It’s in accordance with what has been agreed with the Ivorian government and the port authorities.”

Maersk gross sales from Africa have been rising at 5 % to six % a yr, monitoring the continent’s financial progress, and Jakobsen expects the development to proceed. Shipments of agricultural merchandise, textiles and clothes are rising because the continent diversifies its commerce away from uncooked supplies, whereas extra digital and client items are being imported as family incomes rise, he mentioned.

“Africa is moving up in the value chain,” Jakobsen mentioned. “People can now probably afford things they couldn’t earlier on. Underlying sentiment is positive. You are still seeing quite healthy growth.”