The Ibadan Inland Container Depot, now being reclassified as a dry port, is about to spring into life six years after it was established, thanks to a renewed partnership between the Oyo State government and the Federal Government. BISI OLADELE reports that the project is set to galvanise the economy of Ibadan and provide no fewer than 5,000 jobs.
Like a sleeping economic giant, Ibadan dry port lays waste on a large expanse of land, waiting for a big shove to wake it up from its deep slumber.
One of six similar projects set up six years ago across the country by the government to reduce pressure on the existing coastal ports, but which have seemingly been abandoned, the dry port with capacity to create no fewer than 5,000 jobs and boost the economy of the largest city in Africa south of the Sahara, was set up to cater for the import and export needs of the entire south west region.
At its ground-breaking ceremony on August 11, 2008, top Federal Government functionaries, particularly in the maritime sector turned up with fanfare at Erunmu, an Ibadan less city on the Ibadan –Iwo highway to turn the sod of the dry port project.
The seriousness attached to the event suggested that the project would hit the ground running, but that was not to be. The building donated by the Oyo State Government which is standing on the large expanse of land and other physical facilities offered by the state government, have since then been abandoned while weed overgrows its frontage and the facilities depreciate.
The inland container depots (as originally named), one in each of the six geo-political zones, were planned to take port activities to the hinterland, decongest existing ports, improve the economy of the new cities and states as well as make the business of importation and exportation easier for importers and exporters.
Seen as a fantastic idea, stakeholders hailed the thinking and embraced it with both hands. Relevant maritime agencies, coordinated by the Federal Ministry of Transport, swung into action and laid out step-by-step activities to realize the dream.
The Nigerian Shippers Council, one of such relevant agencies undertook the project to ensure they saw the light of the day, particularly the one cited in Ibadan for the Southwest Zone of the country.
The Ibadan dry port stirred hope in residents and the state government judging by the volume of containers and general import and export business that can be done in the city due to its proximity to Lagos as well as its strategic location in the heart of south west Nigeria. But that hope was dashed shortly after.
For instance, shortly after news hit the town that a depot/dry port was cited at Erunmu, investors swung into action, purchasing the landed properties around the depot covering more than 10 kilometers. The development forced price of land up in the area as more people scrambled to get a good piece or pieces as applied. Two years later, however, they began to offload their investments because of the failure of the project to fly as anticipated.
They may have to return soon as the project is coming back to life courtesy of the Oyo State governor Senator Abiola Ajimobi who has reopened its file so to speak. Last week, the government sent a delegation led by the Secretary to the State Government (SSG), Mr Olalekan Alli, to the Shippers Council in Lagos to work out how the project could be made to fly.
According to the SSG, the government was aiming at joining forces with the Federal Government to ensure the success of the project, and without delay. He expressed the determination of the state government to see to the successful take off of the project and its sustainability.
He explained that one major setback for the project was its original idea as an inland depot. Alli said Customs and other relevant government agencies cannot operate in a depot but only in a port, hence the need to transform it to a dry port.
“What we are looking at is the full implementation of the project as a dry port. All the government did was to set up six inland container depots in the six geo-political zones of the country. Later they said that Federal Government thought that it should not just be inland depots. The essence of this decentralized thing arose because of the congestion in our ports.
“We are saying that while the essence is to decongest the ports, the advantages are there. But it will be much better to make the dry ports fully equipped, fully manned and statutorily pursued to the point of making them ports of either origin or destination.
“We believe that exporters from this country should be able to move their goods out of this country from these six dry ports, in the six zones as ports of origin without putting more pressure on existing ports.
“We are also saying further that people importing into this country from these geo-political zones will make these ports their ports of destination. In which case, even when the cargoes get to any other port in the country, they could be transported essentially by rail to these dry ports from where they will be cleared.” Alli said.
He explained that the one in Ibadan would serve the Southwest as well as Kwara and Kogi states. This means all the ports agencies will be there.
Alli also pointed out that the project was sure to generate a lot of jobs and opportunities for both import and export.
“One would like to say that, this state having worked on the tripod programme of restoration, transformation and repositioning, it is impatient to have this port in place to further actualize the intention of industrializing the state.
“We have foreign investors coming into the state. What we are saying is that from China, Japan, USA, Britain and other parts of the world, they should be able to make this dry port in Ibadan their port of destination”.
According to him the project needs a 1.5 kilometre rail facility from the train station in Erunmu to the dry port. “All the government needs to do is to extend the rail from where it is now to the port.” He said, adding that doing this will reduce pressure on Nigerian roads.
Alli emphasized that the state government was working towards a return to the old practice when trains transported goods from one location to another. Apart from minimizing accidents on roads, this he said would save cost.
Alli added: “We are actually trying to collaborate with the Shippers Council which is the regulatory authority of the Federal Government on this particular programme. Also we are working with a concessionaire to ensure that this project succeeds. Hence we met with the Shippers Council earlier in the week.”
The Executive Secretary, Oyo State Investment Promotion and Public Private Partnerships, Mr Yinka Fatoki, further told The Nation that from inception, the Oyo State Government was part of the investment being a major beneficiary of the port.
According to him, the federal and state governments engaged a concessionaire on the project with the state government owning 35 per cent shareholding. The concession agreement Fatoki said was on Build, Operate and Transfer (BOT) where the firm would invest capital and operate it to recoup its investments within the agreed time frame. The state government shareholding, however, came in terms of the land offered for the project with Certificate of Occupancy and other titles to remove encumbrances. The state government also constructed an access road to link the port to the village and the main Ibadan-Iwo Road.
Fatoki said the state government did that as the largest shareholder which was most committed to the project.
On the efforts to resuscitate the project, Fatoki said: “One major thing this administration has done was to facilitate a working relationship between Maersk Limited and the concessionaire, Catamaran Logistics Limited. The latter, he said, is the special purpose vehicle specifically formed to drive the project along with other private interests.
Fatoki disclosed that the haulage company, which operates in 80 countries, has a shipping line and a cargo terminal in Lagos.
“The major condition Maersk brought to the table was that the legal framework that will designate Ibadan centre as a port of origin and final destination must be perfected. Once that was done, operation can commence within one week.” He said.
Fatoki explained that the 2007 gazette of the Shippers Council needs to be amended for the depots to become dry ports. “But only the Nigerian Ports Authority (NPA) can designate a port. The Minister of Transport has set up a joint committee of the NPA and the Council to make recommendations.” He said, adding that the committee has already submitted its report to the Presidency for approval. Once the approval was granted, the ministry will gazette it, then, Customs and other port agents can begin to operate there.
The Executive Secretary also disclosed that the Federal Ministry of Transport through the Shippers Council has given indication that the amendment of the legal framework would be completed before the end of the year.
When the project takes off, the Ibadan dry port is expected to create multiple new businesses including haulage, hospitality, real estate, transportation and financial services firms among others. These businesses are projected to generate over 5,000 direct and indirect jobs for residents. The project will also hasten industrialization.
