The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture and Nigerian Export-Import Bank, with the support of First Bank of Nigeria Capital, are to set up a Sealink that will boost maritime trade in under-served markets in ECOWAS and Central Africa.
The Sealink project will cost an estimated $60m. Out of the sum, $36, 000 will be spent on procurement of vessels and other equipment, while $24, 000 working capital will cover general administrative expenses.
The Sealink project is expected to tackle logistic issues and high intra-regional freight costs and shipment delays arising from trans-shipment arrangement within the West/Central African region.
At a one-day sensitisation and pre-investors forum held in Lagos on Wednesday, the President of NACCIMA, Dr. Herbert Ajayi, said travelling by road or connecting flights amongst the West African states had always been a nightmare to private sector operators, hence, the need for the Sealink project.
He said, “The West African market is huge and had not been fully tapped as a result of challenges being faced when goods and persons are being transported and the attendant high cost due to the absence of direct shipping line on the West and Central African corridor.
“In view of this, the Chambers of Commerce in the West African states under the auspices of Federation of West African Chambers of Commerce and Industry, in a bid to overcome these challenges, conceptualised the idea of the Sealink project, and is partnering with other investing partners to ensure its actualisation.”
He said the success of the company would increase intra-regional trade flow from the current flow; enhance capacity building in international trade and structured trade financing; and create jobs and investment opportunities, thereby meeting the economic objectives and transformation agenda of the Federal Government.
According to the Managing Director, NEXIM Bank, Mr. Robert Orya, the tentative routes for the project were divided into three, including the Freetown-Conakry-Bissau and Dakar route for combined freight and passenger cabotage.
Others are Cotonou-Calabar-Douala and Libreville route also for combined freight and passenger cabotage, and the Libreville-Dakar route for freight only with calls at major ports within its range.
Orya said the commissioned report on the regional sea-link project which is a private sector-driven initiative, had been formally presented to ECOWAS Commission and the FEWACCI.
“The project had also been endorsed as an initiative to be pursued and implemented as a regional project. This was based on the fact that ECOWAS Commission and FEWACCI had earlier conceived to commission a similar study but lacked funds from donors,” he said.
He added that the project would tackle the challenge of road infrastructure as well as the absence of rail link within the region, coupled with the comparative low budgetary cost and short implementation timeline of the project compared with a regional road/rail project.