Country Report Togo April 2011

The domestic economy: The Port of Lome attracts major new investment

In a boost to Lomé's status as a key regional port, Bolloré, a French logistics firm, began the construction of a third quay in March, as part of a CFAfr300bn (US$600m) investment programme that also includes the modernisation of the container terminal. The aim is to double container-handling capacity, currently around 350,000 units a year, within five years. The need for expansion has been highlighted by the latest crisis in Côte d'Ivoire, which has diverted regional cargo away from that country's capital, Abidjan, towards other regional ports, including Lomé. However, port infrastructure is struggling to cope with the increased traffic, leading to lengthy delays and long queues of inbound and outbound trucks. To help address the short-term problems, Bolloré, whose subsidiaries SE2M and SE3M share port-handling duties in Lomé, alongside Manuport, a subsidiary of the French Getma group, has moved some heavy lifting equipment to Lomé, but congestion will remain a problem. Overall port traffic increased by 1m tonnes to 8m tonnes in 2010, and could reach 9m tonnes in 2011, according to the port's commercial director, Kwame Willi Néné; this estimate is feasible given forecasts of reasonable growth both domestically and among Togo's neighbours.

Apart from expansion at the existing port, a second major project is also in the pipeline, led by Getma and the Swiss-based Mediterranean Shipping Company. They plan to invest US$420m in a second harbour, the Lomé Container Terminal (LCT), west of the existing docks, and secured US$170m in funding from the International Finance Corporation (the World Bank's private-sector arm) in February. Work is due to start in July for completion by mid-2013. LCT won a 35-year concession in 2008 to build and operate the terminal, which will have an annual capacity of 500,000 containers. However, deficiencies in the regional road network will need to be addressed for Togo to reap the full benefits of investment in the port.

© 2011 The Economist lntelligence Unit Ltd. All rights reserved
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