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Maersk Joint Venture Seals $1.5B Ghana Port Expansion Deal

Maersk Joint Venture Seals $1.5B Ghana Port Expansion Deal

From gCaptain.

APM Terminals, the container terminal operating unit of Maersk Group, and its partners have sealed a massive $1.5-billion investment in Ghana in what is viewed as a strong show of support for the West African nation and to Africa’s growth and development as a whole.

The investment will be made by APM Terminals through Meridian Port Services, a joint venture between APM Terminals, Bolloré Africa Logistics, and the Ghana Ports and Harbour Authority. Plans for the investment were first made in November 2014.

(APM headquarters are in the Netherlands. Bolloré headquarters are in France. Maersk headquarters are in Denmark.)

The funds will be used to upgrade APM Terminals’ existing terminal in Tema Port and add 3.5 million TEUs in annual throughput capacity.

(A TEU is a 20-foot equivalent unit — an inexact unit of cargo capacity often used to describe the capacity of container ships and container terminals, according to Wikipedia.)

The new project consists of both a new greenfield port outside APM Terminals’ present facility and a needed upgrade of the adjacent road network, APM Terminals says. Construction will include building four deep-water berths, a new breakwater and an access channel able to accommodate the world’s largest container ships. The project is also expected to create more than 5000 jobs.

“Increased access to global markets is a key component of Africa’s ongoing economic growth, and the new, world-class port development which begins here today will help to put Ghana, and all of West Africa at the forefront of African global trade,” said APM Terminals CEO Kim Fejfer during a formal signing ceremony Friday. President John Dramani Mahama attended.

In a separate project, APM Terminals and Bolloré Africa Logistics will upgrade the current highway between Accra and Tema to a six-lane modern highway along with improved connecting roads and access point to enhance the movement of cargoes into and out of the port of Tema and the hinterland.

In November 2014, Meridian Port Services (MPS) and the Ghana Ports & Harbours Authority signed a memo of understanding for the expansion plans. During the past five months, Meridian and Ghanaian government representatives completed contractual details, and finalized preparations for the project’s required design and engineering studies. The joint venture share is comprised of APM Terminals 35 percent; Bolloré 35 percent; and Ghana Ports & Harbours Authority 30 percent.

“This massive investment highlights the confidence of investors into the country,” Fejfer said. “It is a sign that Ghana is moving in the right direction and the journey will not end there. Expanding the port using superior infrastructure and modern, advanced technology will allow Ghanaian companies to compete for business in the most cost effective way.”

Container ship industry analysts estimated overall African containerized cargo handling increased by 7.2 percent in 2014 compared to overall global growth of 5.4 percent. African port container volumes are forecast to continue to increase well above the global market.

Read more at gCaptain.