Will Apapa, Tin-Can Ports lose more shipping services?

French shipping giant, CMA-CGM, recently pulled out its Europe-Africa-4-Services vessel call from Tin-Can Island Port to Lekki port, signaling a new twist in shipping services that may cost Apapa and Tin-Can Ports more vessel calls, writes TOLA ADENUBI.

IT is no longer news that French shipping liner, CMA-CGM, has pulled out its Europe-Africa-4-Services (Euraf4) vessel call from Tin-Can Island Container Terminal (TICT) to Lekki Deep seaport.

In an email advisory to its customers recently, CMA-CGM said the first vessel from its Euraf4 services will arrive Lekki Port in July 2023.

The email advisory read, “We would like to inform you that with immediate effect, our Europe Africa 4 Service (Euraf4) will start calling our dedicated Lekki Freeport Terminal (LFT) instead of Tin-Can Island Container Terminal (TICT).

“The first vessel will be the GSL Alice ETA Lekki 06/07/2023.

“We have diligently put in place dedicated arrangements to ensure the smooth and timely arrival of all TICT-bound shipments for your delivery.

“You can be confident that our team is committed to put in place the most alternative adapted solutions.

“Should you have any questions or concerns, please do not hesitate to reach out to us through our usual communication channels.

“We would like to express our deepest appreciation for your continuous support and partnership.”

With CMA-CGM Euraf4 shipping services gone, the sentiment that more shipping services might leave the river ports of Apapa and Tin-Can for the deep seaport of Lekki seems to be on the rise.

Why Euraf4 left

Speaking with the Nigerian Tribune, a shipping agent who works with Cosco Shipping Services explained that CMA-CGM’s withdrawal of its Euraf4 services from Tin-Can to Lekki Port was logical, given the identity of the firms handling the container terminal at Lekki Port.

The shipping agent, who spoke on  condition of anonymity, said, “The moment Lekki Port engaged a subsidiary of CMA-CGM to operate its container terminal, we all knew that the French shipping company will gradually start pulling out its shipping services from Apapa and Tin-Can Ports.

“Lekki Freeport Terminal, the container terminal operator at Lekki Port, is part of the CMA-CGM group and is the only Container Terminal Operator at Lekki Port. So, when news filtered in that they are diverting one of their shipping services away from Tin-Can Island Port, I particularly wasn’t surprised.

“It is normal in shipping business. Shipping lines feed their sister port operators. It is the same thing that is happening at APM Terminals in Apapa. Most of the vessel calls at APM Terminals are made by Maersk. Everybody knows that Maersk and APM Terminals are sister companies, same as CMA-CGM and Lekki Freeport Terminal.

“I expect CMA-CGM to withdraw more services to Lekki because it will be unwise to abandon your sister company and continue feeding container terminal operators that have no relationship with you, but operate within the same area as your sister company.

“If you have observed, all the vessel calls at Lekki Port have been done by either CMA-CGM vessels or Chinese shipping companies.

“Why some Chinese ships came was basically because of the Chinese connection with the construction of the Lekki Port. You know a major part of the funding for the port came from China. So, when equipment were being shipped in, like the ship-to-shore cranes and other cranes, they were brought in by a Chinese vessel due to the Chinese connection to the Lekki Port.

“However, when the port was completed and cargoes were needed to be handled as part of test-run process, all the vessels that have gone to Lekki Port have been vessels owned by CMA-CGM.

“I expect CMA-CGM to divert more of its shipping services to Lekki Port, but it will take a miracle for other shipping firms like Mediterranean Shipping Company (MSC) or Maersk to divert shipping services to Lekki Port.

“MSC has a stake in Tin-Can Island Container Terminal (TICT) through its acquisition of Bollore Logistics. Maersk and APM Terminals are sister organisations. So, for these two shipping lines, TICT and APM Terminals in Tin-Can and Apapa will be first choice for their vessels anytime they are bringing in cargoes. You also don’t expect Grimaldi ships to leave Ports and Terminal Multi-services Ltd (PTML) terminal for Lekki Port. Grimaldi Shipping has a stake in PTML terminal.”

Checks by the Nigerian Tribune reveal that the first transshipment vessel to call at the container terminal of Lekki Deep Sea Port was the CMA CGM RIMBAUD.

Though the ship carried cargoes belonging to both CMA CGM and Maersk, the ship herself is owned by CMA CGM and runs on its Far East services.

“The service originated from the Far East, passing through Shanghai, Ningbo, Shekou, Nansha, Tanjung Pelpas, Singapore to Kribi, Cameroun, before finally arriving at Lekki Port this afternoon.

“The vessel is carrying 411 Twenty-foot Equivalent Unit (TEUs) of transshipment cargo and has a nominal container handling capacity of 6,900 TEUs,” the Managing Director, Lekki Port, Du Ruogang, had said when the vessel arrived.

With Apapa and Tin-Can Ports upping their game by receiving very large vessels in recent weeks, industry watchers have said that the competition for cargoes will only favour importers at the end of the day.

“We are very happy that Lekki Port has come into the shipping space here in Nigeria. This will lead to competition for cargoes between the new port and the existing ports and will eventually be to the benefit of the cargo owners.

“The monopoly enjoyed by Apapa and Tin-Can Ports for years has become history. Cargo owners can now choose where to ship their cargoes depending on what they want.

“If Nigeria builds more ports, the choice for cargo owners will increase and cost of shipping will gradually reduce because of the competition that will follow in terms of shipping services.

“We expect Badagry Deep seaport and some other deep seaports being built across the country to join the list of deep seaports in Nigeria. It creates alternative choices and breaks monopoly,” acting National President of the Association of Nigerian Licensed Customs Agents (ANLCA), Dr Kayode Farinto, said.