{"id":7893,"date":"2013-08-07T09:40:25","date_gmt":"2013-08-07T09:40:25","guid":{"rendered":"http:\/\/disnaija.com\/nigerian-newspapers\/job-loss-looms-at-port-as-major-investor-pulls-out-of-port-business\/"},"modified":"2013-08-07T09:40:25","modified_gmt":"2013-08-07T09:40:25","slug":"job-loss-looms-at-port-as-major-investor-pulls-out-of-port-business","status":"publish","type":"post","link":"https:\/\/disnaija.com\/job-loss-looms-at-port-as-major-investor-pulls-out-of-port-business\/","title":{"rendered":"Job loss looms at port as major Investor pulls out of port business"},"content":{"rendered":"
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There are indications that many Nigerians working in the maritime sector will loose their jobs as Global shipping giant; Maersk Line, has announced that it is pulling out its subsidiary; Lillypond Container Depot Nigeria Limited from the concession agreement with government on Ijora Terminal, Lagos.
Manager of the terminal, Mr. Tristram Denyer told journalists in Lagos that a colossal monthly loss of over $ 5 million (about N800 million) is being incurred by the company and this is no longer bearable.
Denyer said that the company had as at last Friday morning officially notified Nigerian Ports Authority (NPA) management of its decisions to embark on the gradual withdrawal which would ultimately take effect within the next six months.
While lamenting the apparent job losses due to the development, he said that talks had commenced with some sister organizations who may wish to employ some of its 47 permanent staffers while the larger number of contract employees will be disengaged within a month notice.
Describing the decision to pull out of the facility as \u201ca very difficult one\u201d, he noted that it was a last resort after the apparent failure of \u201cconcerted effort by Lillypond management and staff to develop a viable new and sustainable long term business model over the last eight months\u201d, which had been \u201cfrustrated by a number of factors including the lack of overflow container volume available for depots generally, the high cost of operating the depot and increased capacity in Nigerian marine container terminals.\u201d
He said that even though the company had invested over $ 15 million about (N2.4 billion) in developing the facility since it won the concession in 2006, the business model upon which the concession was granted can no longer be sustained.
Denyer added that discussions with the NPA over the period for transition to another operator would commence shortly, but that he expected this was unlikely to exceed six months.
The management of Lillypond, according to him, would co-operate with the NPA to ensure the successful hand over to a new concessionaire should, \u201cas anticipated, NPA decide to tender the Lillypond concession.\u201d
Pointing out that the Ijora Lillypond Terminal was not a complete write-off; Denyer advised that government may wish to consider other uses for the facility, aside from being retained as a bonded terminal.<\/p>\n

The post Job loss looms at port as major Investor pulls out of port business appeared first on Peoples Daily Newspaper, Nigeria.<\/p>\n

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