Côte d’Ivoire dry bulk port concession
Terminal Industriel Polyvalent de San Pedro (TIPSP) has secured a 35-year concession in San Pedro, Côte d’Ivoire’s secondary port.
The concession is an agreement between TIPSP and the Autonomous Port of San Pedro, the state-owned port authority, encompassing the design, construction, financing, operation and maintenance of a greenfield multipurpose bulk terminal.
The concession grants TIPSP exclusive rights to handle the import of cement clinker, gypsum, limestone, as well as fertilisers and hydrocarbons and the export of manganese, nickel and lithium, along with palm oil.
The port of San Pedro, built in the 1970s, is currently congested with limited capacity to support the growing volumes of goods handled by the port. The concession and construction of the dry bulk port are, therefore, expected to have a significant developmental impact on the region.
A dry bulk terminal in San Pedro allows for a more competitive import and export solution for commodities through the Western corridor of the country while reducing reliance on the larger, primary Abidjan Port.
San Pedro port is well-positioned to play a key role in servicing hinterland or landlocked countries, notably Mali, Liberia, Burkina Faso and Guinea, and capture a significant part of the traffic currently transiting via the port of Abidjan or other West African ports.
Arise Ports & Logistics is the majority shareholder of TIPSP, contributing a wealth of experience in developing and operating ports across Africa. Arise Ports and Logistics is further supported by three influential shareholders on the continent – AP Møller Capital, African Finance Corporation and Olam International.
Ebrima Sawaneh, chief operating officer of Arise Ports & Logistics, commented: “We are so pleased that a modern, state-of-the-art dry bulk terminal at TIPSP has enabled San Pedro to become a hub capable of servicing trade in the country and wider region. Mining ores such as nickel have been central to TIPSP’s shipping volumes since the port came into operation.”
Rand Merchant Bank (RMB), in partnership with two other commercial banks, acted as Mandated Lead Arranger, of a €90M 10-year senior debt financing package for TIPSP concession.
Enyinna Anumudu, senior transactor at RMB Nigeria, noted: “This transaction marks RMB’s first project finance facility for a concession in Côte d’Ivoire, a jurisdiction which the bank recognises as a country with strong performance metrics and significant infrastructure development plans.
“Our support of this deal is in line with RMB’s non-presence country strategy, as it looks to support strategic national infrastructure projects across the continent led by key sponsors”.
Amber Bolleurs, senior transactor in the Infrastructure Sector Solutions team at RMB, said: “Our involvement in this transaction conveys our commitment to the West African region.
“Further to this, the complexity of the market risk, which was analysed to establish bankability of this project, the timeline to reach financial close, and the involvement of multiple French and English-speaking funding partners and sponsors showcased RMB’s dedication to public-private partnerships and concessions as a means to delivering world-class infrastructure.”
He concluded: “We are proud to work alongside our funding partners, to service key sponsors, on this high-impact project. We look forward to pursuing further infrastructure projects in the West Africa region.”