THISDAYonline

One hundred and ten pros-pective investors drawn from Europe, Asia, the Americas and Nigeria have indicated interest to take over the management of Nige-ria's sea ports slated for privatisation by the Bureau of Public Enterprises (BPE) through a concessioning arrangement.

The number is the highest ever for any transaction in the history of the country's privatisation exercise.

The ports earmarked for privatisation include the Apapa, Tincan, and RORO Ports in Lagos, as well ports in Calabar, Port Harcourt, Koko, Bonny and Sapele.

The companies whose identities were not disclosed by the BPE had submitted their Expressions of Interest (EOIs) at the close of the February 20 deadline.

It was, however, gathered that among the 110 firms that expressed interest in the privatisation exercise were multinational shipping lines who operate in the ports. The shipping lines are interested in acquiring terminals where they operate under lease agreement with the Nigerian Ports Authority (NPA).

The firms, it was gathered, made their intentions known over three months ago, and have been lobbying to ensure that they are allocated areas of interest at the ports.

Sources said most of the firms are interested in acquiring terminals in Lagos and Port Harcourt ports, apparently because of their lucrative nature.

Already, about half of the ports are under lease to most of the firms including Dangote Nigeria Limited, Flour Mills Nigeria, among others.

It is not clear if the firms have also indicated interest in acquiring areas of their operations, but observers believe that this cannot be ruled out.

Among the firms that are believed to have expressed their interest in the concessioning option, include RORO Oceanic Shipping, N& O Nedlloyd, Maerskline, Lagos and Niger Shipping Limited (LANSAL) and Comet Shipping.

Others include Intels Nigeria Limited, Alraine Nigeria Limited, Brawal Shipping, WASA Delmas and PanalPina Nigeria Limited.

The EOIs in sealed packs and envelopes were opened by the Director- General of BPE, Dr. Julius Bala at the weekend at a ceremony attended by top management staff of the Bureau including the Director of Infrastructure and Networks which is overseeing the ports privatisation process, Mrs. Irene Chigbue, representatives of the Federal Ministry of Transport and the NPA. Also present at the opening of the bids were representatives of CPCS Transcom International, the Canadian concessioning advisers to the offer.

In an address before the EOIs were opened, Bala said the huge number of investors who expressed interest in the ports was an indication of confidence the international investment public had in the Nigerian economy.

"For us at BPE, it's something that gladdens our hearts because the view that foreign investors are not keen about coming to Nigeria is not true," he said.

"This is a very important and historical activity because it's going to lead us to solve one of the problems investors abroad complain of, which is the management of the ports," he added.

Bala said the Federal Government decided to privatise the ports because of the "great need to transform our ports to be one of the best in the developing world and the whole world in the years to come."

To achieve this, he said the Bureau will ensure that "only competent companies are given the ports to manage."

The Director-General announced what he called Tentative time-table expected to lead to the privatisation of the ports as he said the opening of EOIs will be followed by evaluation of the bids which will be completed by February 27. Notification of pre-qualified candidates will be made by March 3, while the conduct of due diligence on the pre-qualified companies by the BPE will be done by April 23. The submission of financial and technical bids is expected to be made by middle of the year.

The ports privatisation process started in October last year with the appointment of CPCS as concessionioning advisers to the transactions. This was followed by advertisement for the EOIs in local and international media with the deadline of January 30, which was later extended to February 20.

When concessioned, the firms will be responsible for terminal operations including investment in the provision and maintenance of the superstructure and equipment, a role currently being played by the NPA.

Firms expressing interest in the ports are expected to provide verifiable evidence of record of successful investment and technical competence in ports service provision, requisite financial resources and technical competence not only to provide port services but also to improve and modernize existing superstructures and equipment.

Pre-qualified applicants were requested by the BPE to pay a non-refundable fee of US $5,000 in bank draft for each concession.

Under the new policy, all the services provided by the NPA will now be provided by the respective firms who emerge winners.

The NPA will then become a regulator, under the port landlord model that is in practice in some maritime nations.

As a regulator, the Authority will have less to do, a situation which will lead to mass retrenchment of workers.

Already, the World Bank has recommended the sack of 75 percent of the Authority's work force, in which it is feared that 8,000 workers may be affected.