Shippers’ Council receives Dala IDP business report

Management of the Dala Inland Dry Port, (ID) )Kano State, yesterday submitted the facility’s Reviewed Full Business Report to the Nigerian Shippers’ Council (NSC).

Managing Partner/CEO of the Public Private Partnership Advisories, Hon.Mohammed Kumalia, said the report contains the important milestone relating to the bankability, viability and sustainability of the IDP.

During the meeting at the NCS Abuja Office, NSC Executive Secretary/CEO, Mr. Hassan Bello, said the project aims to decongest the ports and highlight the achievability of the Africa Free Continental Trade Agreement (AfCTA).

Shippers Council Dep PRO: Hon. Mohammad Kamalia, Managing Partner/ CEO, (right) Presenting the Reviewed Full Business Report of the Dala Inland Dry Port to Hassan Bello Executive Secretary/CEO Nigerian Shippers’ Council, (middle) and the Chairman, Dala IDP,

In a statement, Bello added that the location of the dry port would not only boost trade but also significantly reduce regional and continental trade barriers, even as he disclosed that both the Kano-Katsina –Jibiya-Maradi and the Lagos-Kano rail lines will be integrated into the project, to complement ease of distribution logistics.

According to him, the market share analysis for the Dala Inland Dry Port has been limited to Kano State (40 per cent market share; the primary market) and surrounding states such as Bauchi, Katsina, Kaduna and Jigawa 15 per cent market share, as secondary markets.

“The volume forecast is expected to be between 64,000 TEU (Low case) per annum throughput and 147, 000 TEU (High case) per annum throughput once it reaches its full market potential after three years of operation in 2026”.

He explains that with the new Kano – Katsina – Maradi Rail line, patronage from the Republic of Niger is expected to drive up the IDP market outreach, even as he expressed optimism that the growing population of Kano and environs will provide additional market share, while noting that the economy is expected to shrink by 4.3 per cent, following great strides to contain the outbreak of corona virus pandemic since 2019.

Bello further explained that the Dala IDP and others in the northern region would like those elsewhere in the country, create value for money by reducing transport cost and saving time in the movement of cargo to the hinterland, while increasing accessibility to Nigeria’s landlocked neighbours in the North.

The Dala Dry Port project which was concessioned in 2006 along with six other Inland Dry Ports, has suffered setbacks such as the lack of accessibility to long-term funding, lack of support from previous governments and regulatory gaps that existed when the concession exercise was initiated.

It however made a rebound in 2018 when it found new investors. Skeletal services are expected to commence by June this year, 2021. The NSC boss said the council has commenced consultation with different multi-lateral funding institutions particularly Afrexim Bank, to assist investors access long-term funding for the construction of IDPs in the country.

This is even as he applauded the Kano State Government for its support for the project through the provision of land and other necessary facilities. Also speaking at the event, Chairman, Dala Inland Dry Port, Alhaji Abubakar Bawuro, said that preparations are in top gear to ensure that the IDP commences operation soonest.

Bawuro, said that the submission of the report was very imperative as it would give direction to the activities of the dry inland port, instead of traveling all the way to the seaports.

“Those into importation and those with businesses in this region can now discharge their goods and cargo in our dry port, and then relate with us very close to home before relating to Lagos, Port Harcourt or Calabar once the report is implemented,” he said.

The statement indicated that the Reviewed Business Report will be submitted to the Infrastructure Concession Regulatory Commission (ICRC) through the Minister of Transportation for the issuance of a full business case compliance certificate.