Dangote to launch own shipping fleet to boost maritime operation
Dangote Industries to Launch Own Shipping Fleet Amid Transportation Challenges
By Godwin Oritse
LAGOS, Nigeria — In response to limited shipping capacity and escalating road transportation costs, Dangote Industries has announced plans to acquire its own vessels for transporting products from Nigeria to markets throughout West and Central Africa.
During a seminar focused on non-oil exports on Tuesday, Sada Ladan-Baki, head of International Trade and Export at Dangote Cement, outlined the logistical difficulties facing regional trade and emphasized the need for the company to develop its own maritime transport capabilities.
Ladan-Baki highlighted a significant hurdle the company faced when it struggled to secure a vessel for a 1,000-metric-ton consignment destined for Ghana, despite the geographical proximity of the two countries.
“We are moving forward towards getting our own ships in order to do this business,” Ladan-Baki stated.
She further noted that the dependency on road transport has compounded these challenges, as products traveling to Ghana must pass through neighboring countries like Benin and Togo, incurring additional taxes and fees. This situation increases transportation costs and negatively impacts the competitiveness of Nigerian exports in the regional market, underscoring the urgency for Dangote to enhance its maritime logistics.
The move to establish a shipping fleet is significant, as Dangote’s operations are increasingly reliant on maritime trade. The company’s $20 billion refinery in Lagos is already influencing Nigeria’s seaborne trade, with the U.S. Energy Information Administration reporting a seven-fold increase in Nigeria’s petroleum-product exports by sea since 2023, largely attributed to output from the Dangote refinery.
The refinery is projected to accommodate approximately 600 vessels annually, comprising both tankers bringing in crude oil and those transporting refined products to local and international markets.
Otunba Shola Adewumi, President of the Indigenous Shipping Association of Nigeria (ISAN), acknowledged that Dangote has historically depended on foreign-flagged vessels for transporting crude oil and refined products due to a lack of sufficient domestic vessels.
However, Adewumi issued a note of caution regarding the challenges associated with vessel maintenance and management. “It is very easy to buy a ship, but maintaining the ship is a different ball game,” he said.
He expressed hope that Dangote would register the new vessels under the Nigerian flag to enhance the national fleet’s tonnage and bolster Nigeria’s standing in the global shipping industry.
Furthermore, Adewumi indicated that the acquisition of these vessels could create new employment opportunities for Nigerian seafarers and professionals involved in shipping and international trade.
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