Why MSC's takeover of TICT could change the dynamics of Nigeria's container ports
It is no longer news that the Mediterranean Shipping Company (MSC), the world's largest shipping company, is set to take over Nigeria's container port terminal, Tin-Can Island Container Terminal (TICT). However, what is new is that the takeover, which could be officially finalized in a few weeks, could change the dynamics of the Nigerian port system.
Recall that in January 2022, the MSC took over from the Danish Maersk Line to become the largest liner in the world.
According to a survey by the Nigerian Tribune, APM Terminal Apapa currently sits atop the chart of Nigeria's busiest container port terminals, accounting for the lion's share of container traffic that arrives at Nigerian ports.
>However, the results revealed that the number one position that APM Terminals has enjoyed over the years has been reinforced by the sister relationship that exists between the former world's largest shipping company, Maersk Line and APM Terminals in Apapa .
With the acquisition of TICT by MSC, the toga of Apapa's busiest container port may be set to change given MSC's current position as the world's largest ocean liner. Speaking to the Nigerian Tribune on development, a Cosco Shipping Line shipping agent who wouldn't want his name printed explained that MSC's entry into port business in Nigeria could change the dynamics of Nigerian ports.
According to the shipping agent, "APM Terminals has been Apapa's busiest container port operator for years, as its sister company, Maersk Line, easily supplies it with cargo year after year. Even when the Cargo volume has dropped at ports over the past few months due to the global economic downturn, APM Terminals still has enough cargo to handle as Maersk Line does not move cargo to any other container terminal in Nigeria other than APM Terminals Apapa.
"Other container terminals like TICT and Port & Cargo Handling Services (P&CHS) have had to depend on a memorandum of understanding with foreign shipping lines to secure enough cargo at times.
"However, the current situation where MSC takes over TIC T only means one thing, from now on MSC will supply TICT with containers throughout the year, as Maersk Line has always done with APM Terminals. L acquisition is expected to turn TICT into a busy container terminal. I expect it will surpass APM Terminals here in Apapa.
“Shipping dynamics are beginning to move beyond mere ownership of shipping lines. Investors now see the acquisition of port terminals as an add-on to shipping line ownership. ports that have shipping lines that feed them regularly are the most active Take for example the PTML terminal which is the busiest Roll-On, Roll-Off (RORO) port in Nigeria as it has a dedicated shipping line to Grimaldi which supplies it all year round. PTML and Grimaldi are sister companies. Same with APM Terminals and Maersk Line. Now MSC has entered the fray with TICT. Let's watch and see the battle for the container terminal the most attended from Nigeria over the next 12 months.”
It is no longer news that the Mediterranean Shipping Company (MSC), the world's largest shipping company, is set to take over Nigeria's container port terminal, Tin-Can Island Container Terminal (TICT). However, what is new is that the takeover, which could be officially finalized in a few weeks, could change the dynamics of the Nigerian port system.
Recall that in January 2022, the MSC took over from the Danish Maersk Line to become the largest liner in the world.
According to a survey by the Nigerian Tribune, APM Terminal Apapa currently sits atop the chart of Nigeria's busiest container port terminals, accounting for the lion's share of container traffic that arrives at Nigerian ports.
>However, the results revealed that the number one position that APM Terminals has enjoyed over the years has been reinforced by the sister relationship that exists between the former world's largest shipping company, Maersk Line and APM Terminals in Apapa .
With the acquisition of TICT by MSC, the toga of Apapa's busiest container port may be set to change given MSC's current position as the world's largest ocean liner. Speaking to the Nigerian Tribune on development, a Cosco Shipping Line shipping agent who wouldn't want his name printed explained that MSC's entry into port business in Nigeria could change the dynamics of Nigerian ports.
According to the shipping agent, "APM Terminals has been Apapa's busiest container port operator for years, as its sister company, Maersk Line, easily supplies it with cargo year after year. Even when the Cargo volume has dropped at ports over the past few months due to the global economic downturn, APM Terminals still has enough cargo to handle as Maersk Line does not move cargo to any other container terminal in Nigeria other than APM Terminals Apapa.
"Other container terminals like TICT and Port & Cargo Handling Services (P&CHS) have had to depend on a memorandum of understanding with foreign shipping lines to secure enough cargo at times.
"However, the current situation where MSC takes over TIC T only means one thing, from now on MSC will supply TICT with containers throughout the year, as Maersk Line has always done with APM Terminals. L acquisition is expected to turn TICT into a busy container terminal. I expect it will surpass APM Terminals here in Apapa.
“Shipping dynamics are beginning to move beyond mere ownership of shipping lines. Investors now see the acquisition of port terminals as an add-on to shipping line ownership. ports that have shipping lines that feed them regularly are the most active Take for example the PTML terminal which is the busiest Roll-On, Roll-Off (RORO) port in Nigeria as it has a dedicated shipping line to Grimaldi which supplies it all year round. PTML and Grimaldi are sister companies. Same with APM Terminals and Maersk Line. Now MSC has entered the fray with TICT. Let's watch and see the battle for the container terminal the most attended from Nigeria over the next 12 months.”
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