FG, private sector partner to develop a logistics hub for the commercial integration of the AfCFTA
An indigenous Nigerian company, Insight Dynamics Resources (IDR) (in conjunction with America’s largest engineering firm, AECOM) has proposed a partnership with the federal government to develop an integrated multimodal logistics system for the area’s business integration. African Continental Free Trade Agreement (AfCFTA).
The company is in partnership with the Federal Ministry of Industry, Trade and Investment.
IDR, in a statement to LEADERSHIP, said, âThe proposed multimodal logistics platform system will include five component modes that must be interconnected and operate in a coordinated seamless integration to actualize the vision and goals of the project.
âThe proposed facilities are Gateway Multimodal ‘Smart’ Port – possibly the world’s first sixth generation port with 5.6 km of runway for the air cargo terminal in the complex and the facility for the assembly plant. automobile of more than one million vehicles per year which would be built between Lagos and the State of Ogun.
âThe port will have a draft capacity of 50 meters to accommodate Valemax-sized ships or 400,000 deadweight bulk carriers. The multimodal Gateway port will have a throughput capacity of 350 million and an annual capacity of 15 million TEU by 2027. The port development strategy provides for better management of road, rail and maritime access to the port and facilitates transport. effective integration of the port with the wider land transport infrastructure system.
Recall that President Muhammad Buhari delayed joining the AfCFTA because increased regional integration would lead to unfair competition for jobs and the goods they produce in the country due to Nigeria’s infrastructure deficit.
The Minister of the Federal Ministry of Industry, Trade and Investment expressed his gratitude for the initiative and also expressed his support for the Federal Government’s support for his initiative and asked the Permanent Secretary of the Ministry to meet with the stakeholders and report for further action by the second week of January 2022..
He added that âWith Nigeria’s accession, the AfCFTA’s dream of increasing intra-African trade, which Nigeria is currently lagging behind, suffers from an overwhelming lack of capacity to increase both freight Bulk and containerized, this project which is the largest ever undertaken on African soil will certainly increase the competitiveness of Nigerian freight in the years to come. The project could cost around $ 50 billion and will employ around 830,000 employees during the construction phases and generate more than 15 million jobs through value chain optimization. it should be delivered in three to six years.
According to the company, the interconnection of the AfCFTA is necessary to spur economic growth and development across the continent in the years to come. Africa’s maritime industries and actors will be essential to achieve this result, as maritime transport offers the cheapest and fastest way to move the greatest amount of goods over long distances.
He added that âthe World Bank estimates that the AfCFTA could increase the continent’s income to $ 450 billion and lift nearly 30 million people out of extreme poverty. Yet the success and results of the initiative depend entirely on the ability of African states to increase the efficient capacity and safety of their maritime transport systems.
âAn African single market would be impractical unless it developed an infrastructure that could accommodate larger ships and more containers. Most African countries continue to export mainly bulk commodities such as petroleum, precious metals and raw agricultural products.