IFC led a consortium of financiers in Togo’s largest-ever private investment project, the Lomé Container Terminal (LCT), which will play a critical role in reducing costs and trade impediments and encouraging regional integration. LCT will use the funding to develop a new transshipment container terminal within the Port of Lomé. Lomé has one of the few natural deep water ports in West and Central Africa and is well-located to serve as a transshipment hub for West Africa. The completed terminal will have an annual handling capacity of the equivalent of 2.2 million twenty foot container units. It will enable shipping lines to deploy the largest container vessels in West and Central Africa. It will also have the capacity to provide economies of scale that significantly lower regional transportation costs.
IFC & Lomé Container Terminal
IFC provided a loan valued at $116.21 million to development a new transshipment container terminal. IFC also acted as the sole lead arranger of the debt package, which was valued at around $300 million.
Regional Integration This project will introduce state-of-the-art container handling equipment and world class management know-how to create the first modern container transshipment hub in West and Central Africa (“WCA”) capable of handling today’s larger container ships. This will allow shipping lines to deploy larger container vessels in WCA, avail the region to scale benefits enjoyed elsewhere in the world, and significantly lower transport costs to the Terminal’s users. The Project will result in the expansion of Togo’s maritime sector, stimulate competition in the regional shipping and logistics market and potentially catalyze further regional integration.
Economic Once in the operation phase, the LCT is expected to benefit the local and national economies by increased tax payments from increased revenues from people and companies associated with the project. In addition, it is expected that increased incomes will create additional financial resources for infrastructure enhancements or other projects. During the construction phase this project is expected to utilize local labor, creating 1,200 direct jobs and 2,500-3,000 indirect ones. Once in operation, 700 additional permanent jobs are expected. Finally, terminal support activities such as suppliers, hoteliers, and transporter, could result in additional 2,000-2,500 jobs.