Dangote Industries Limited to Acquire Its Own Vessels for Regional Exports
Dangote Industries Limited is taking decisive steps to overcome logistics barriers in regional exports by acquiring its own vessels for transporting products from Nigeria to markets across West and Central Africa. This move comes amid limited shipping capacity and high road transportation costs, both of which have significantly raised the expenses and complexity of regional trade.
Sada Ladan-Baki, Head of International Trade and Export at Dangote Cement, revealed that the company has struggled to secure vessels for regional shipments, directly impacting its ability to move products efficiently to neighboring countries. Speaking at a seminar on non-oil exports, she highlighted a recent challenge: at one point, Dangote was unable to secure a vessel to transport a 1,000-metric-tonne shipment to Ghana, despite the short distance between the two West African countries.
“The constraints had affected the conglomerate’s ability to move products efficiently across neighbouring markets. We are moving forward towards getting our own ships in order to do this business,” said Sada Ladan-Baki.
Road transportation presents further challenges. Products shipped by road from Nigeria to Ghana must travel through countries such as Benin and Togo, where additional taxes, fees, and other charges can significantly increase the final cost of delivery for Dangote and other regional exporters.
With these hurdles in mind, Dangote Industries Limited is advancing plans to establish its own maritime transport capacity. This strategic investment aims to enhance efficiency, reduce shipping delays, and lower transportation costs for its exports to West and Central African markets, supporting the company’s vision of expanding its regional footprint and securing sustainable trade flows.
Team V.4-LKDN-UAE
