Dangote considers ships to ease Nigeria export vessel shortage

Key facts

Dangote plans to acquire ships in response to a shortage of vessels available for exports from Nigeria.

The reported plan followed an attempt to transport 1,000 tonnes of cement from Nigeria.

Dangote could not find a single ship for the proposed cement shipment, according to BusinessDay Nigeria.

The number, type, cost and acquisition timetable for the ships have not yet been disclosed in the supplied report.

Why it matters

Owning ships could give Dangote an alternative when suitable export vessels are unavailable. The reported difficulty securing transport even for a 1,000-tonne cement consignment highlights a practical obstacle facing efforts to move Nigerian goods to overseas markets. However, the scale and likely effect of the proposed investment cannot yet be assessed because no fleet size, routes, costs or delivery dates have been provided.

Dangote is considering acquiring ships after failing to secure a vessel to carry a relatively small cement export consignment from Nigeria, according to a report by BusinessDay Nigeria. The proposed move is intended to overcome the shortage of vessels available for export shipments.

The report said Africa’s richest man could not find a single ship to transport 1,000 tonnes of cement from Nigeria. That experience prompted the plan to obtain ships rather than remain wholly dependent on vessels available in the market.

The supplied evidence does not identify the intended destination of the cement, when the shipment was sought or whether it was eventually completed through another arrangement. It also does not specify whether the proposed ships would be bought directly, leased or acquired through one of Dangote’s businesses.

Important commercial details remain unknown. No information has been provided on how many vessels may be acquired, what type of ships are under consideration, how much the plan could cost or when any acquisitions might take place.

If completed, the acquisitions could provide a dedicated transport option for Dangote’s exports when outside vessels cannot be found. The wider effect on Nigeria’s export capacity is not yet clear because the report does not say whether the ships would carry goods for other companies or serve only Dangote-related cargo.