Investors justify siting of $1.5bn dockyard in Lagos

14 August 2015, Abuja – The investors in the $1.5 billion dockyard have given reasons why they earmarked on the project in the ancient town of Badagry, Lagos. Describing it as 100 per cent investment by the Badagry Ship Repair and Maritime Engineering Company (BSMEC), the investors said a lot factors were put into consideration in sitting the multi-billion naira project in the former slave port.


According to him, one of the subsidiaries of the Sifax Group, Sifax Marine Services and Logistics Limited, in conjunction with some other companies under the aegis of BSMEC, is the lead investor in the Badagry dockyard project.

The Badagry, Lagos location of the project and the involvement of the Nigerian Liquefied Natural Gas Limited (NLNG) has elicited a lot of criticisms from many stakeholders.

Quoting the BSMEC chairman, Dr. Taiwo Afolabi, who is also the chairman of the participating company, Sifax Logistics and Marine Services Limited, Akande dismissed the insinuation in some quarters that NLNG was the one funding the project.

He said: “BSMEC is the sole owner of the Badagry dry dock project and no one else. BSMEC is made up of five different successful Nigerian companies who came together as core investors to form Badagry Ship Repair and Maritime Engineering Company, which is a joint venture (JV) between Sifax Logistics and Marine Services Limited, Energy Nature Limited, GMT Energy Services Limited, Japaul Oil and Maritime Services Plc and SIVC Infrastructure DMCC (Sahara Group Limited).

“Nigeria LNG is not a part of the consortium and is not an investor in the construction of the dry dock project. To be clear, the Badagry Dry Dock will be used for the maintenance of a wide range of oil and gas related vessels including very large crude carriers (VLCCs), offshore drilling rigs, and offshore support vessels, in addition to large liquefied natural gas (LNG) carriers”.

He disclosed that the facility on completion would become a hub to be used for dry docking vessels from other West Africa countries and beyond.
According to him, the choice of location was made on a purely business interest basis, taking into account several factors considered important to investors.

“The project is in line with the government’s drive for Nigerian Content and will create capacity for Nigeria and help address capital flight”, he added.

– This Day

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