By Femi Ogbonnikan
Last Friday, Ogun State witnessed yet another epoch-making event with the flag-off of the Gateway Inland Dry Port construction located at Kajola in Ewekoro Local Government Area.
The Minister of Marine and Blue Economy, Alhaji Adegboyega Oyetola, performed the ground-breaking ceremony amidst public excitement. Like no other before it, the Governor, Prince Dapo Abiodun glowed with an aura of inner fulfilment seeing his dream come true.
Having a dry port in the state to support and drive its sustainable industrial growth is one of the overarching objectives of his administration. Therefore, achieving the feat, without a doubt, is another significant milestone in his aggressive pursuit of infrastructural transformation as a catalyst for domestic and direct foreign investment inflow into the state.
And, of course, the importance of a dry port for sustainable industrial growth in a state like Ogun, with its peculiar advantage of proximity to Lagos State hosting the largest seaport in West Africa cannot be overemphasized.
In transportation and logistics jargon, an Inland dry port is an intermodal terminal directly connected by road or rail to a seaport, operating as a centre for transporting sea cargo to inland destination. In other words, an inland port is a physical site located away from traditional land, air, and coastal borders with the vision to facilitate and process international trade through strategic investment in multi-modal transportation assets and by promoting value-added services as goods move through the supply chain
In addition to its role in cargo trans-shipment, dry ports may also include facilities for the storage and consolidation of goods, cargo carriers, and customs clearance services.
An inland port is an inland site linked to a seaport. As this kind of port does not require a waterway, the key features include the transfer of containers between different modes of transportation (intermodal transfer) and the processing of international trade.
The creation of a dry port is to relieve competition for storage and customs space at the seaport. When completed, the Gateway Dry Inland Port will help to facilitate the flow of cargo between ships and major land transportation networks, creating a more central distribution point. The port will also improve the movement of imports and exports, moving the time-consuming sorting and processing of containers inland, away from congested seaports in Lagos. So, rather than goods being loaded and unloaded in the already congested Lagos Seaport, shipping containers can be transferred by road vehicle to the dry port. Container handling space can be reduced by transferring functions to an inland port away from the Sea port and coast.
For example, the functions of receiving, processing through customs, inspecting, sorting, and consolidating containers going to the overseas port can be transferred to this Inland Port to reduce congestion.
The presence of dry port in Ogun will attract new cargo flows and boost the economic effect of increasing the volume of transit cargo transportation, while also reducing the idle time of wagons waiting for reloading and the turnaround time of an empty container.
More specifically, when it becomes operational, the Port is expected to reduce congestion in the existing Lagos Seaports and transform the country into a trans-shipment hub. Over the years, Lagos has witnessed rising transport demand and road traffic jams which have led to increasing congestion and delays at the Ports. Successful completion of the project will not only reduce congestion at the Seaport but also increase cross-border trade between Nigeria and neighbouring countries.
It will also enhance distribution by setting up a link between the inland and sea port, resulting in a lower unit cost than sending containers individually by road. The containers are collected from their origins or distributed to their ultimate destinations by road with the transfer happening at the inland site.
The multiplier effects of all of these combined will generate huge employment opportunities for the teeming youths. By projection, the project is expected to create an estimated 20,000 new jobs directly and indirectly. This will in turn create a new vista of economic growth for the state and the nation as a whole.
Oyetola, speaking on the momentous occasion at Kajola, gave this assurance, adding that “it will attract investments that will spur regional development, benefiting Ogun State and beyond.
“This project is not merely about building infrastructure but about laying the foundation for a key logistics hub that will facilitate the movement of goods across Nigeria, creating over 5,000 direct jobs, 15,000 indirect jobs, and stimulating local businesses”.
Giving further insight into the project, he said the port would be built to international standards and equipped with the latest digital systems for tracking, clearance, and cargo movement to ensure efficiency, transparency, and global competitiveness.
His words: “No doubt, this project aligns seamlessly with the ‘Renewed Hope Agenda’ of President Bola Ahmed Tinubu, as we are committed to creating an enabling environment that fosters innovation, economic growth, and infrastructural development.
“This initiative will undoubtedly help Ogun State become a more attractive destination for businesses and investors, reinforcing our collective aspiration for a prosperous Nigeria.
“During a recent visit to a logistics hub in Lagos, I observed firsthand the challenges businesses face due to congestion at our traditional seaports, which result in longer transport times and increased costs. This experience highlights the urgent need for developing inland ports like the Gateway Inland Dry Port.
“Inland Dry Ports provide faster and more efficient alternatives for moving goods, ultimately benefiting our economy and reducing the burden on our coastal seaports.”
He explained that the development of inland dry ports was a critical component of the broader strategy to position Nigeria as a leading player in the Blue Economy, stating “that as the nation continues to diversify its economy, it is essential to create infrastructure that serves as key nodes in the supply chain, thereby reducing reliance on traditional seaports.”
The Minister expressed optimism that the Dry Port would enhance the efficiency of the logistics network and contribute to the decongestion of Apapa, and Tin Can Ports, both in Lagos, thus improving Nigeria’s trade competitiveness on the global stage. Accordingly, he directed the Nigerian Shippers’ Council to ensure that the Port is developed as a state-of-the-art facility integrating advanced technology, leveraging ICT for seamless operations, and developing robust infrastructure that supports modern port processes.
“It is imperative that the Nigerian Shippers’ Council works closely with the Ogun State Government and the concessionaire to build a maritime ecosystem that is not only competitive but also a leader in innovation and technological advancement. Sustainability must be at the core of all our infrastructure projects.
“This Inland Dry Port is expected to significantly contribute to achieving that goal by enhancing the efficiency of our logistics network, reducing greenhouse gas emissions associated with road transportation, and promoting environmentally sustainable practices in line with global standards,” he stated.
The host Governor, Prince Dapo Abiodun, who had long envisioned the creation of a dry port to boost the state’s economy, re-echoed Oyetola’s optimism, saying the Port would help in opening up and engendering more development in the State by serving as a transport and logistics hub for the nation.
He outlined the immense benefits of the project thus: “Having identified the ideal location convenient to our Gateway Dry Port inland container terminal, this facility is a key enabler of industrial activity and manufacturing in Ogun State. It will, on completion, increase the ranking of our State on the ease of doing business index.
“Because of the rail line right here, containers destined for Ogun can be ferried to Kajola and, on arrival, loaded onto the train and transported to Shederu, Kajola. Our manufacturers will be able to bring in their raw materials without having to go through the hassle of going to Lagos Tin Can or Apapa Ports to clear and transport while dealing with the attendant demurrage costs that add to their overall cost of production.
“This Port will reduce vehicular trailer traffic on our roads, thus reducing the wear and tear and early maintenance on roads leading in and out of Lagos.
“With the Gateway Inland Dry Port, we are solidifying our position as the foremost logistics and industrial hub in the country, bringing unparalleled advantages to businesses operating here.
Abiodun said the groundbreaking event was not merely the foundation of a dry port, but the beginning of a new era of economic growth, job creation, and increased prosperity, emphasizing that the project was a testament to the shared vision of prosperity and industrialization that would transform the State into a leading logistics and commercial centre both in Nigeria and across West Africa.
The Ogun State Commissioner for Transportation, Engr. Gbenga Dairo, said the groundbreaking was another demonstration of the administration’s commitment to grow the economy and spread development to every part of the State.
The Olu of Ilaro and Paramount Ruler of Yewaland who is also the Chairman, Ogun State Council of Obas, Oba Kehinde Olugbenle, used the occasion to appeal for the reconstruction of the Sagamu interchange-Papalanto-Ilaro road to derive full benefits of the project. He thanked President Bola Tinubu for approving the siting of the port in the State, noting that his Renewed Hope agenda was already taking shape.
Ogbonnikan writes from Abeokuta, Ogun State capital
