ICTSI sells 25% stake in Lekki port container terminal to CMA Terminals
Related M&A Transactions
International Container Terminal Services, Inc. (ICTSI) and CMA Terminals, a 100 percent subsidiary of the CMA CGM Group, have announced their future cooperation in Nigeria by signing an agreement for ICTSI to sell 25 % of the container terminal in Nigeria, Lekki International Container Terminal Services LFTZ Enterprise (LICTSLE), to CMA Terminals.
This adds one further major milestone that has been achieved since the signing of the sub- concession for the terminal in 2012.
LICTSLE will be providing a solution to the current congestion in the local market in Nigeria, and overall serve as regional transshipment hub in West Africa, allowing the countries connected with the hub to grow sustainably.
With a straight-line quay of 1200m and a yard area of 66 hectares, this modern facility, which is expected to be fully operational in 2017, provides the market with an annual capacity of 2.5 million TEUs. This capacity will serve the Nigerian market in the long run, and will ease capacity pressure. The terminal is designed to allow for further capacity growth exceeding the initial 2.5 million TEU.The advantageous location, 60 km east of metropolitan Lagos, will be combined with state-of-the-art facilities including 14 post-Panamax quay cranes.Farid Salem, CMA CGM Group executive officer declared:
"We are very pleased with this cooperation with ICTSI. This major future investment is undoubtedly a great opportunity for the CMA CGM Group through its dedicated subsidiary CMA Terminals, to further increase its presence in Nigeria, a country in continuous development."Jens O. Floe, ICTSI Senior Vice President responsible for the Africa Region said:
"The involvement of the CMA CGM Group shows the interest in West Africa and the confidence there is in the Nigerian market with the product we provide as we will strive to become the supplier of choice in West Africa as the principal transshipment hub, giving our customers a sustainable competitive advantage in the market range."