The port of Luanda will struggle handling the larger vessels
DP World is upping its Africa game, and it is not alone, with several terminal operators either having added or announced the addition of capacity into the continent amid surging volumes – the west coast proving “particularly hot” at the moment.
Investing $90m into Angola’s port of Luanda should be indicative of DP World’s confidence in the gateway; CEO of its Africa operations, Mohammed Akoojee, told The Loadstar there was a lot of optimism in “Africa’s long-term trade potential”.
He noted that “container volumes at our Luanda terminal have nearly doubled over the past five years, and the expansion will increase annual capacity from 500,000 to 1.2m teu”, while also mitigating some of the congestion that has caught the headlines.
Forwarders have been raving over West Africa, and Angola in particular, over the past two years, with the region seen as one of the bright spots. An executive at a multinational told The Loadstar they were not surprised, considering the demographics and cultural ties.
And certainly the hype appears to have caught terminal operators’ attention, with DP World’s Luanda plans coming on the back of its announcement earlier this year to up its operations at Senegal’s Dakar and at terminals in Mozambique, Tanzania, and the DRC.
Nor is DP World alone in this, with MSC and its Terminal Investment Ltd having agreed a 45-year concession at Nigeria’s Snake Island, while APMT pledged to put some $600m into its operations across Nigeria.
Despite the optimism and confidence surrounding Africa’s long-term prospects, Mr Akoojee said there was a balancing act needed when it came to committing to long-term investment, with “port capacity needing to be planned well ahead of demand”.
He said this meant any “decisions must reflect specific trade dynamics”, necessitating an in-depth assessment of growth prospects and infrastructure requirements, and he added that “demand and capacity conditions, however, vary considerably across West and Central Africa”.
Nonetheless, Mr Akoojee said that, “with African trade expected to grow and shipping requirements evolving, continued investment in integrated port and logistics infrastructure will be essential”.
He added: “Infrastructure needs will vary by market; our focus remains on developing capacity, improving operational efficiency, and strengthening inland connectivity. DP World remains committed to working with partners to support the continent’s economic development.”