A Review of the Nigerian Energy Industry

Indorama, OIS partner on $130m port terminal

Indorama operated Eleme petrochemicals plant.
Indorama operated Eleme petrochemicals plant.

20 May 2015, Port Harcourt – INDORAMA and OIS, said they planned to build a world-class port terminal complex estimated at over $130 million, about N25.7 billion at the Onne Port, Port Harcourt, in Rivers state. In its latest in-house, the Managing Director/CEO, Indorama-Nigeria, Mr. Manish, said that the port complex will be used for exporting of dry bulk Urea fertilizer from Indorama’s fertilizer plant.

His words: “ The port complex, which is 72 percent completed as at March this year, is for exporting of dry bulk Urea fertilizer from Indorama’s fertilizer plant also under construction at the Indorama petrochemicals complex in Eleme near Port Harcourt. “The port terminal will also serve for import and export of various types of break-bulk and containerised cargo for the partnering company Messrs OIS.”

He added that the project which is a huge foreign direct investment, FDI, in the maritime sector, would be a major boost to Nigeria’s industrialisation process and economic development as well as revealing its commitment in fostering socio-economic prosperity of Nigeria. He said that the project was designed by international engineering companies and contracted local construction companies in partnership with expatriate engineers and other technical experts.

Manish noted that “the port terminal comprises marine facility of 320 meters quay to handle vessels ranging from 5000 dwt (deadweight) to 35000 dwt and 6.20 hectares of land terminal facility catering of handling and storage of dry bulk urea, break-bulk cargo and containerised cargo.” On fuel slum, he hinted that its operations in Nigeria is stridently facing the challenges of the current economic and the concomitant massive devaluation of the Naira, “I had stated that the economic downturn has impacted negatively on our operations, and sought everyone’s ideas on how we could surmount the challenge collectively.”

Also contributing, the Project Director, Mr. Ashwani Sood, maintained that the plant has a capacity to produce 4,000 tonnes of Urea fertilizer per day, which will be exported to international markets after meeting domestic consumption. He said, “The terminal has handling capacity for 1 million tonnes per annum of dry bulk urea, 150, 000 tonnes per annum of break-bulk cargo and 12, 000 TEU (Twenty feet Equivalent Units) per annum of containerised cargo.”

On local content, he said that the company has contracted the Engineering Procurement and Construction, EPC, to a local contractor, a fully Nigerian company, with most of the workforce as Nigerians, except some expatriates among them. “Also, the economic benefits of this project are both direct and indirect. The direct benefit is in terms of direct employment, business opportunities to local contractors and businessmen. During construction the peak work force is expected to be as high as 1500 people.

He further said that upon completion and operation, many support services such as vessels, tugs, boats, stevedores, maintenance and operational supports and services will be engaged and more revenues will be earned by the government from export duties, taxes, port revenue, while boosting the country’s economy.
*Ediri Ejoh – Vanguard

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