The world-renowned logistics industry magazine “Port Strategy” of London, UK, has reported that ICTSI’s investment in Onne Port will engender competition in the sector.
The global port operator ICTSI made a major investment to expand Nigeria’s modern port capacity in the face of loud protests and attempts of legal obstacles by a local operator.
The Port Strategy article gives interesting insight into how the international logistics industry sees the entrance of ICTSI into Nigeria and the protests of a local operator.
In broad terms, Port Strategy sees ICTSI’s entry into Eastern Nigeria’s Onne Port as very necessary introduction of competition and investments into a port too long dominated by vested interests protecting their monopolies.
And it sees a local operator’s reaction as a monopolist trying to maintain its market and pricing power in the face of new competition.
Port Strategy starts by pointing out that Onne Port – is the only major modern port in Eastern Nigeria for Oil and Gas cargo and West Africa Container Terminal (WACT) for containerized imports.
Port Strategy concludes with the following assessment: “ICTSI has clearly arrived in Onne Port when there is a manifest need for new competition. According to port users, it is a welcome change and one that represents progress in the nationwide drive to deliver competitive port and logistics services.’
The article proceeds to argue that the monopoly has been combined with very aggressive pricing.
On the containerized cargo side, which is the most important mode of imports for the Nigerian consumer, Port Strategy argues that West Africa Container Terminal, has enjoyed a monopoly without sufficient investments which is now resulting in lack of port capacity and very long waiting times for customers waiting for their cargo.
