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 an additional cargo handling and processing facility in the Northwest region of the country. The proposed ICD site, which measures approximately 50 ha, is located in Lolo, Illo Area Development Council, about 400km from Birnin Kebbi, the state capital. The proposed ICD will have a modular design that consists of an annual capacity of 5,000 TEUs, which 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 of 5,000 TEUs per year. 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 a cargo consolidation point and Customs clearance establishment for cargo originating or destined for the Northeast region. 5. Provide a comprehensive cargo sorting center. 6. Provide 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 the necessary security and safety infrastructure, equipment, and measures to comply with the national and international requirements for such a facility. 9. Implement immediate, short-term, and long-term measures aimed at ensuring global best practices in operational levels for cargo dwell time, cargo productivity ratios, truck processing time, and so forth.
The proposed ICD facility will comprise a container stacking area, office complex for ICD administration and Customs employees, container freight station with an adjacent stuffing and stripping area that also serves as a Customs inspection zone, loading/unloading area for trucks carrying LCL cargo, equipment parking area dedicated to maintenance and repair activities, and container interchange including a truck parking area outside the ICD boundary.
The proposed Lolo ICD will provide all the container handling and storage services that a port offers, 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 it will be connected to the national road and rail networks. The design is modular with the capacity for open container storage and covered storage, and it 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 the existing policy and legislative framework, which approved concessions as a model for the private sector's involvement in the nation's port sector. • As the landlord, NSC retains the ultimate ownership of the land on which the ICD will be located, 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 its operations. This option best suits 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 facilities 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. Further, the private sector is more likely to deliver the project within the prescribed timeline than would the public sector, and the efficiency and organization of the private sector in operating the facility would benefit the project more 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 to recoup its investment over time before the infrastructure is handed back to 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 returns through payments from operating the facility and other identified and approved sources of revenue over the life of the concession agreement. • Return the infrastructure to 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 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 March 23, 2017. The meeting brought together key stakeholders. A project delivery team has been constituted to ensure that the expectations of the stakeholders are meet. An Evolving Corporate Social Responsibility plan has been put in place, which includes consultation with the host community and local government and ensures the provision of the identified projects/amenities.
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