Swiss-based container terminal operator Terminal Investment Limited (TIL) has been selected as the preferred bidder to run Namibia Ports Authority’s (
Swiss-based container terminal operator Terminal Investment Limited (TIL) has been selected as the preferred bidder to run Namibia Ports Authority’s (Namport) new container terminal.
Namport CEO Andrew Kanime confirmed the report and said the selection follows an in-principle decision to concession the container terminal, and to issue a request for proposal in April this year to five candidates who responded to an expression of interest issued by the Namibia Investment Promotion and Development Board last year.
“This request for proposal closed on 29 July, and two bids were received from the five candidates. An extensive process of evaluating these bids concluded with the approval of TIL as preferred bidder,” said Mr. Kanime.
Boosting throughput
Negotiations between Namport and TIL on the concession agreement is set to take place. This will involve terms and conditions of the personnel to be taken over by the operator of the N$4 billion container terminal. It will culminate in the signing of the concession agreement and the handover of the cargo handling operations to the concessionaire possibly by the first quarter of 2023.
The CEO explained that it was important to introduce a private operator to boost the throughput of containers and transshipment volumes through the port of Walvis Bay. The new terminal which was inaugurated in 2019 currently increased Namport’s overall container handling capacity by 750 000 units per year. However, only about 168 750 units a year have been handled to date, representing a very low capacity utilisation of 23%. Kanime explained that it was critical that this asset needs to be utilised properly to earn a good return on investment.
“Unfortunately, the local volumes of imports and exports are restrictively low given Namibia’s small captive market,” Kanime noted, adding that an independent operator can drive volume growth, especially for the versatile transshipment business stream which can be a “game changer” for Namport volumes.
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