{"id":7755,"date":"2013-08-05T02:39:43","date_gmt":"2013-08-05T02:39:43","guid":{"rendered":"http:\/\/disnaija.com\/nigerian-newspapers\/port-concessionaire-shuts-operations-over-high-cost-others\/"},"modified":"2013-08-05T02:39:43","modified_gmt":"2013-08-05T02:39:43","slug":"port-concessionaire-shuts-operations-over-high-cost-others","status":"publish","type":"post","link":"https:\/\/disnaija.com\/port-concessionaire-shuts-operations-over-high-cost-others\/","title":{"rendered":"Port concessionaire shuts operations over high cost, others"},"content":{"rendered":"
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ONE of the port concessionaires, Lilypond Inland Container Depot, has announced plans to discontinue operations, citing lack of container overflow and high cost of operation.<\/p>\n

  Already, the company has notified the Nigerian Ports Authority (NPA) that it is no longer in a position to continue operating the Lilypond container depot at Ijora, Lagos.<\/p>\n

  Briefing journalists at the weekend, Lilypond Manager, Tristram Denyer, disclosed that during the period of its operation, the company invested $ 15 million and recorded a loss of $ 5 million over the last one year.<\/p>\n

  He described the decision to pull out of the concession scheme, which started in 2006, as a \u201cvery difficult one and followed a concerted effort by Lilypond management and members of staff to develop a viable new and sustainable long-term business model over the last eight months.\u201d According to Denyer, the effort has been frustrated by a number of factors, including \u201clack of over-flow container volume available for depots generally, high cost of operating the depot and increased capacity in Nigerian marine container terminals.\u201d<\/p>\n

  He announced that discussions with NPA over the period for transition to another operator would commence soon, adding that it is \u201cunlikely to exceed six months.\u201d<\/p>\n

  Denyer said the management of Lilypond would co-operate with NPA to ensure successful handover to a new concessionaire \u201cshould, as anticipated, NPA decides to tender the Lilypond concession\u201d. He explained that the entitlement of workers were being worked out, promising that they would be absorbed by a sister company.<\/p>\n

  The Guardian learnt that the company\u2019s operations are being affected by ongoing expansion of terminal operator at Apapa. Specifically, terminal operator, APM Terminals, recently increased the container stacking area at its Apapa container terminal, Lagos, by an additional 300,000 square metres.<\/p>\n

  The company explained that it was also set to take delivery of five Rubber-Tyred-Gantry (RTG) cranes it ordered from Kone Cranes as part of terminal yard re-development and expansion.<\/p>\n

  The project, which is the Phase Three of the modernisation and upgrading of the facility, includes terminal yard re-development and expansion, new members of staff amenities and customer service building, acquisition of container handling equipment, implementation of new terminal operating systems and a new Customs container inspection facility.<\/p>\n

  Managing Director of APM Terminals, Apapa, Mr. Dallas Hampton, who disclosed this in his office in Lagos, said the new RTGs would be delivered by the end of August 2013.<\/p>\n

  \u201cThat is when the terminal will achieve the first impact of the ongoing development for increased capacity. The second batch of the remaining five RTGs will be delivered in November 2013\u201d, Hampton said.<\/p>\n

  The APM Terminals, Apapa, boss said that development of about 300,000 square metres of the North Yard of APM Terminals, Apapa is in full swing. \u201cThis area is being converted from Reach Stacker operations to RTG operations thus increasing the yard\u2019s capacity and efficiency. As this is being done in a functioning live Terminal, the area is divided into eight phases which are progressively taken over for construction and then handed back to operations after development. The first Area 1A was handed over on April 16, 2013 and the contractor is currently working on Area 1C\u201d, he said.<\/p>\n

  According to Hampton, yard works will continue till August 2014 and will also include enhanced lighting and a rail siding.<\/p>\n

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Posted in Nigerian Newspapers. <\/a>A DisNaija.Com<\/a> network.<\/p>\n

Source: Guardian Newspaper<\/p>\n

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