The Namibian Ports Authority (NAMPORT) is nearing the completion of a concession agreement with Terminal Investments Limited (TIL), a subsidiary of MSC Mediterranean Shipping Company. TIL was selected as the preferred bidder for the New Container Terminal (NCT) project after a competitive process that also involved Abu Dhabi Ports.
Cliff Shikuambi, NAMPORT’s Manager for Marketing and Stakeholder Engagement, confirmed that the concession process is in its final stages. “We are currently finalizing the agreement with TIL as per the award conditions,” he said. “Both parties are engaged in negotiations to finalize the details and expect to complete the project by the fourth quarter of 2024.”
According to Shikuambi, the primary motivation behind the concession is to attract private investment. This investment will be used to improve NCT’s efficiency and competitiveness and create new employment opportunities. “We decided to pursue a concession model to secure the necessary capital for further development,” he explained. “This will allow us to increase cargo volumes handled by the terminal, enhance operational efficiency, and ultimately become more competitive in the regional market. Additionally, the concession aims to preserve existing jobs and create new ones.”
The concession agreement will see TIL assume operational control of the NCT, handling cargo instead of providing an upfront payment to NAMPORT. The exact terms and conditions, including details regarding personnel transitions, are still under negotiation.
The decision to concession the N$4.2 billion NCT, commissioned in 2019, was driven by significant changes within the global shipping industry and challenging economic circumstances. TIL, established in 2000, boasts a strong track record with over 60 terminals operating across 31 countries, handling at least 60 million TEUs (Twenty-foot Equivalent Units) annually. Their extensive global network and experience are expected to bring substantial benefits to the Port of Walvis Bay and the Namibian economy as a whole.
Looking beyond the Walvis Bay project, NAMPORT also has plans to initiate port expansion projects in Lüderitz next year. These expansions aim to provide the necessary infrastructure to support Namibia’s growing oil and gas, as well as green hydrogen industries.
These developments highlight NAMPORT’s commitment to establishing Namibia as a key maritime hub in Southern Africa. By attracting private investment and expanding its infrastructure, NAMPORT is well-positioned to play a crucial role in facilitating Namibia’s economic growth and development.