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Volume 9 | November 2024

NEWSLETTER

CONGO 

Developments and Expansion of the Port of Pointe-Noire

Pointe-Noire: Ambitions as Central Africa's Gateway to the Ocean

The port of Pointe-Noire in Congo-Brazzaville is experiencing significant growth as a critical gateway for Central Africa. With ambitious expansion projects underway, Pointe-Noire aims to secure its position as a regional logistics hub and compete with other emerging ports in the region, such as Kribi in Cameroon and Lobito in Angola.

Growth and Investments: Reaching One Million Containers Annually

Olivier Denorais, CEO of African Global Logistics (AGL)—formerly Bolloré Africa Logistics and now a subsidiary of MSC—emphasizes the port’s impressive growth: "This is the third consecutive year we have surpassed one million containers in Pointe-Noire. We’ve quadrupled our volume in the past 15 years." With a vision to maintain its market-leading position, the port authorities are investing in infrastructure upgrades and expansions. AGL is dedicating €400 million to extend the terminal, adding 750 meters of quay with a depth of 17 meters. This extension will allow the port to accommodate larger vessels, particularly those arriving from Asia.

Growing International Investments in Natural Resources

The strategic location and increased capacity of Pointe-Noire are also attracting large-scale international investments. South African billionaire Patrice Motsepe plans to invest $600 million in phosphate mining, while Nigeria’s Dangote Group is investing in infrastructure to export limestone from Pointe-Noire to its cement plants. According to Séraphin Bala, port director, these new initiatives underscore the urgent need to streamline bulk cargo operations: "We are seeing increasing demand in containerized traffic, but bulk shipments still face delays. Bulk ships could previously spend weeks waiting for a berth."

Future Development of the Corridor 13 Project

Another key project under consideration is "Corridor 13," which would connect Pointe-Noire with Bangui in the Central African Republic, potentially extending to Chad. This initiative could accelerate regional economic development, linking the port to new inland markets in Central Africa. Although the project is not yet fully operational, the Congolese government recognizes the strategic importance of this corridor for regional integration.

A Look Ahead: Sustainable Growth and Development

With Africa’s economy expected to grow in the coming years, the port of Pointe-Noire is positioning itself to meet future demand. "We believe that African economies will continue to expand, and infrastructure must keep pace with that growth," Denorais stated. Through strategic investments and a commitment to innovation, Pointe-Noire remains well-prepared to serve as a logistics and trade powerhouse for Central Africa.

Sources: www.rfi.fr

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GUINEA

Kribi Containers Terminal (KCT) Advances Phase ll Expansion with new equipment

On October 14, 2024, Kribi Containers Terminal (KCT), the operator of the Container Terminal at Kribi Port, received its second shipment of handling equipment to support the Phase II expansion. This new delivery includes 13 rubber-tired gantry cranes (RTGs), 2 container stackers, and 3 empty container handlers, adding to the 5 ship-to-shore (STS) cranes and 2 RTGs delivered on September 12. This acquisition is part of an overall investment of $80 million (around 49 billion CFA francs).

The expanding terminal, covering 33 hectares with a draft of 16 meters and a 715-meter quay, will soon host a fleet comprising 7 STS cranes, 25 RTGs, 5 stackers, 48 terminal tractors, 58 trailers, 5 empty container handlers, 7 weighbridges, a maintenance truck, 6 forklifts, a workshop, and an administrative building currently under construction. The total investment for Phase II, encompassing equipment, structures, and infrastructure, reaches $114 million (about 70 billion CFA francs).

This ambitious expansion is part of a strategic partnership between KCT and the Cameroonian government aimed at strengthening the economies of the Gulf of Guinea and positioning Kribi as a regional maritime hub. The enhanced terminal capacity will not only improve service for customers and maritime operators but also create over 300 direct jobs, further establishing Kribi’s industrial-port platform and boosting economic activity throughout the subregion.

Simultaneously, Kribi’s industrial-port zone continues to attract significant investments. Société Internationale du Ciment (SIC), a subsidiary of Atlantic Group led by Ivorian businessman Koné Dossongui, recently signed an agreement with Cameroon’s Investment Promotion Agency (API). This partnership grants SIC the incentives provided under the 2013 Investment Law, including tax and customs exemptions lasting between 5 and 10 years, in support of constructing a cement plant with a capacity of one million tons annually.

The project involves the construction of the cement plant on a 10-hectare site provided by the Kribi Port Authority. The plant is expected to cost 39 billion CFA francs and is projected to create around 1,600 direct and indirect jobs.

In summary, the expansion of KCT and the construction of the Atlantic Group’s cement plant underscore Kribi's growing importance as a key economic hub, reinforcing the industrial-port zone’s role in advancing development within Cameroon and the broader region.

Sources:  www.agenceecofin.com | www.investiraucameroun.com

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DEMOCRATIC REPUBLIC OF CONGO 

The Grand Inga Hydropower Project: A Bold Plan to Energize Africa

The Grand Inga Hydropower Project in the Democratic Republic of Congo (DRC) is expected to become a game-changer for Africa’s energy landscape. Set to deliver over 42,000 MW of power, this ambitious endeavor aims to electrify the DRC and the broader African continent. Interest in harnessing the mighty Congo River dates back to the 1950s, drawing in global investors from Europe, Asia, and the Americas. 

In the 1970s, the DRC, then known as Zaire, launched the Inga 1 and Inga 2 hydropower stations. Although designed for a combined capacity of 2,132 MW, operational challenges have kept them running at only 40% of potential output. In the early 2000s, following a peace agreement, the DRC revivid its vision for an expanded hydropower project, partnering with regional power companies. However, after initial partnerships fell through, the DRC opted to proceed solo, with backing from international entities like the World Bank and financial commitments from South Africa to buy a substantial share of the power. 

A Larger Vision and Expanded Partnerships 

In 2018, the DRC expanded the scope of the Inga 3 project, raising its capacity target from 4,800 MW to 11,000 MW, with an estimated $18 billion investment. This new plan includes major partnerships with Chinese and Spanish firms, tasked with completing technical and environmental assessments and securing the necessary investment. 

Regional Power Distribution 

The expanded project has attracted regional interest, with South Africa requesting 5,000 MW, Nigeria 3,000 MW, and the DRC’s mining sector set to receive 1,300 MW. Interest is also growing from Guinea, with plans to acquire 7,500 MW. The DRC continues to promote the project, engaging stakeholders and building support for this vast infrastructure. 

Overcoming Challenges and Charting the Path Forward 

While the project has enormous potential, it faces hurdles: 

  1. Funding – Securing the full financial support needed is proving challenging. 
  2. Coordination – With new countries involved, agreements over transmission routes and capacity allocations are complex. 

To advance, the DRC is focusing on securing investment, building regional alliances, and establishing a continent-wide coordination framework. If successful, the Grand Inga could supply one-third of Africa's electricity, power up to 500 million homes, address South Africa's energy shortages, boost power availability from Egypt to Namibia, and support the DRC's industrialization, especially in mining. 

Sources:  tongafrika.com

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Volume 10 | December 2024
NEWSLETTER