Project proposal received
Project Proposal Received by Nigerian Shippers' Council
Nigerian Shippers' Council
The Proposed Lolo Inland Container Depot (ICD) was a private sector driven proposal borne out of the need to provide additional cargo handling and processing facility in the Northwest region of the country. The proposed ICD site which measures approximately 50 hectares is located in Lolo, Illo Area Development Council, with estimated distance of about 400km from Birnin Kebbi, the State Capital. The proposed ICD will have a modular design that consists of an annual 5,000 TEUs capacity facility that can be easily expanded with increasing throughput. The objectives of the Proposed Lolo ICD project are to: 1. Enhance the nation's cargo handling and processing capacity with additional handling capacity for 5,000 TEUs per annum; 2. Introduce modern and sophisticated systems, processes and procedures to handle and process containerized cargo; 3. Provide additional means of integrating surface transportation of containers in the northeast region; 4. Act as cargo consolidation point and Customs’ clearance establishment for cargo originating or destined for the northeast region; 5. Provide a comprehensive cargo sorting center; 6. A temporary cargo storage facility; 7. Provide cargo and truck management. This will entail installation of appropriate equipment and machinery to receive and dispatch containerized cargo to and from the ICD for onward shipping; 8. Ensure safe and secure cargo operations in the ICD complex. The Lolo ICD shall put in place necessary security and safety infrastructure, equipment and measures in order to comply with national and international requirements for such facility. 9. Implement immediate, short-term and long-term measures aimed at ensuring global best practices in operational levels as regards cargo dwell time, cargo productivity ratios, truck processing time, etc.
The proposed ICD facility will comprise of a container stacking area, an office complex for ICD administration and Customs employees, a container freight station with an adjacent stuffing and stripping area that also serves as customs inspection zone, a loading/unloading area for trucks carrying LCL- Cargo, an equipment parking area dedicated also to maintenance and repair activities, and a container interchange including a truck parking area outside of the ICD boundary.
The proposed Lolo ICD will provide all container handling and storage services that a port will offer; services which shall be complemented by a range of value added services. It shall be equipped with modern reach stackers and tractor trailer units for container handling and horizontal transport and will be connected to the national road and rail networks. The design is modular with capacity for both open container storage and covered storage that can be easily adapted to other throughput requirements.
The BOOT model of concession was recommended for DNL by the Consultants for the following reasons: • It is in tandem with existing policy and legislative framework which approved concessions as model for private sector's involvement in the nation's port sector. • NSC retains the ultimate ownership of the land on which the ICD will be located as the Landlord but transfers all the financial and operational risks to DNL. • The option will ensure NSC continues to act as the technical regulator while DNL assumes the responsibility for development of the ICD and it operations. This option best suits the NSC’s objective outlined for private sector participation in ICD development. The NSC has highlighted its preference for capital investment from the private sector (concessionaire) to develop facility such as the ICD and to fund subsequent equipment installation and maintenance. It is preferable to have the concessionaires fund the development of the facility as it makes them more effective in the operation and management of the facility. Besides, the private sector is more likely to deliver the project within the prescribed timeline than would the public sector and also the efficiency and organization of the private sector in operating the facility would benefit the project than if it was operated by the public sector. In recommending the BOOT option, the need to source for private sector financing for the infrastructure development, operation, and maintenance was considered important likewise the need to allow the private investor recoup its investment over time before the infrastructure is handed back to the NSC. Under this proposed arrangement, the concessionaire will agree to undertake the following: • Develop the proposed ICD facility and its ancillaries; • Assume substantial financial, technical, and operational risks; • Receive financial return through payments from operating the facility and other identified and approved sources of revenue over the life of the Concession Agreement; and • Return the infrastructure to the NSC’s ownership at the end of the contract. The BOOT concession as proposed is for a period of 25 years which was determined based on a projected 23.4% IRR, after which responsibility for maintenance and operation shall revert to the NSC. The concessionaire is expected to recoup its investment, operating, and financing costs and its profit over this period. The BOOT option is guaranteed to introduce private sector efficiencies.
The first stakeholder engagement meeting on the Lolo ICD was held on the 23rd of March 2017. The meeting brought together key stakeholders. A project delivery team has been constituted to ensure that the expectations of stakeholders are meet. An Evolving Corporate Social Responsibility (CSR) plan has been put in place which includes consultation with the host community and local government and ensuring provision of identified projects/amenities
Summary of Lolo ICD Project
Project Proposal Received by Nigerian Shippers' Council
Catamaran Nigerian Limited appointed Transaction Adviser Lolo Inland Container Depot
Project Proposal Screened by Infrastructure Concession Regulatory Commission (ICRC)
OBC Compliance Certificate issued by Infrastructure Concession Regulatory Commission
ICRC has issued OBC Compliance Certificate for the Lolo ICD project