Dangote Plans To Acquire Ships After Failing To Find Vessels for Cement Exports
- Dangote Cement said it plans to acquire its own ships after struggling to find vessels willing to carry even 1,000 metric tonnes of goods to Ghana
- Sada Ladan-Baki, head of international trade export at Dangote Cement, disclosed at a seminar on non-oil exports
- Dangote Cement currently pays 18% VAT in Benin, Togo and Ivory Coast on road shipments
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Dangote Industries Limited is weighing a move into maritime shipping after the company found it could not secure vessels to carry cement from Nigeria to neighbouring West African countries, a senior executive said on Tuesday.
Sada Ladan-Baki, head of international trade export at Dangote Cement, disclosed the plan at a seminar on non-oil exports, saying the conglomerate has faced persistent difficulties moving its products across the region using existing shipping options.
Source: Getty Images
Ladan-Baki said:
"We are moving forward towards getting our own ships to do this business."
Why Road Transport Is No Longer Enough
Dangote Cement, which has exported cement for 16 years and now holds an annual production capacity of 50 million metric tonnes, currently relies on trucks to deliver goods to Ghana, Togo and Ivory Coast, BusinessDay reports.
However, Ladan-Baki said taxes levied along regional road corridors eat into the company's margins and erode the price competitiveness of Nigerian products.
He said:
"If we are going to export our cement from here to Ghana, we have to pay Value Added Tax of 18 percent in Benin. We pay in Togo. We pay another 18% if we are going to Ivory Coast," he said, adding that these charges accumulate before goods even reach their final destinations.
The group has assembled about 7,000 trucks to support distribution across West and Central Africa, but Ladan-Baki said maritime transport could offer a more cost-efficient alternative. The problem, he noted, is that no shipping operator was willing to take a cargo as small as 1,000 metric tonnes on the Nigeria-Ghana route.
"As of today, you cannot get a ship that will take your goods from here to Ghana. None. And that is for 1,000 metric tons, what the small traders and the business people can do."
Nigeria's Long-Standing Shipping Gap
The shortage of locally owned shipping capacity is not new. Nigeria's National Shipping Line ceased operations in 1995 after 36 years, leaving the country's international freight largely in the hands of foreign operators.
Some Nigerian conglomerates have since moved to fill the gap themselves.
BUA Group, owned by Abdul Samad Rabiu, took delivery of two vessels in 2022 to cut costs on sugar exports to West Africa.
Dangote Group already operates port terminals at Onne and Apapa and has built maritime infrastructure, including a jetty at Lekki, Lagos, to support its $20 billion refinery.
Source: Getty Images
Ladan-Baki also called on the government to activate Nigeria's $700 million Cabotage Vessel Financing Fund, established to help Nigerian operators acquire ships.
Ladan-Baki stated:
"We can only succeed if our two hands are clapping. We will only be happy if the country is self-sustaining in terms of shipping."
Dangote needs buyer for his private jet
Earlier, Legit.ng reported that Aliko Dangote, the richest man in Africa, is selling another private jet, this time a more sophisticated 2020 Bombardier Global 7500, almost a year and a half after listing his Bombardier Global Express XRS for sale.
The aeroplane, which is renowned for its extended range and opulent design, is presently for sale in Oklahoma City. For those looking for a luxury, pre-owned executive aircraft, this is a premium option.
The cabin, which can accommodate 18 passengers, is equipped with contemporary amenities.
Source: Legit.ng
