A Greenfield multipurpose bulk terminal is currently under construction at San Pedro Port, Côte d’Ivoire. The terminal is dubbed Terminal Industriel Polyvalent de San Pedro (TIPSP).
A close to US$ 92M 10-year senior debt financing package was recently secured for the implementation of the project. Rand Merchant Bank (RMB) acted as Mandated Lead Arranger of the financing package. RMB acted in partnership with two other commercial banks.
In addition, a 35-year concession agreement has also been signed with the Autonomous Port of San Pedro. The agreement encompasses the design, construction, financing, operation, and maintenance of the bulk terminal. Furthermore, it grants TIPSP exclusive rights to handle the import of bulk commodities. This includes cement clinker, gypsum, and limestone, as well as fertilizers and hydrocarbons.
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Moreover, the concession allows TIPSP to export manganese, nickel, and lithium, along with palm oil.
Expectations for the Greenfield multipurpose bulk terminal in San Pedro Port
San Pedro port was built in the 1970s. However, it is currently congested and incapable of handling the growing volumes of goods in the country. The concession and construction of the dry bulk port are, therefore, expected to have a significant developmental impact on the region.
First, the bulk terminal will allow for a more competitive import and export solution for commodities through the Western corridor of the country. Secondly, it will significantly reduce reliance on the larger, primary Abidjan Port. Noteworthy, San Pedro port is strategically positioned to serve Mali, Liberia, Burkina Faso, and Guinea. Therefore, it will capture a part of the traffic currently transiting through the port of Abidjan or other West African ports.
Arise Ports & Logistics is the majority shareholder of TIPSP. The company is backed by AP Moller Capital, African Finance Corporation, and Olam International.
