Dangote to acquire ships to ease cement exports in Africa

Dangote Industries is considering buying its own ships to move goods from Nigeria to other markets in West and Central Africa, as a shortage of vessels and expensive road transport continue to affect its regional business. Sada Ladan-Baki, Head of International Trade Export at Dangote Cement, said the group is working towards owning vessels for its export operations. “We are moving forward towards getting our own ships in order to do this business,” he said at a seminar on non-oil exports on Tuesday, according to BusinessDay. Here's how much a coconut seller in Accra earns on average He mentioned that Dangote recently could not secure a vessel to transport 1,000 metric tonnes of products from Nigeria to Ghana, despite the two countries being relatively close. Transporting the goods by road is also expensive. According to Ladan-Baki, cement moving from Nigeria to Ghana passes through Benin and Togo, where taxes and other charges increase the cost of the product. This makes Nigerian goods less competitive in the Ghanaian market and other regional destinations. Owning ships could help Dangote reduce some of these costs while giving the group more control over how its products are moved across the region. The plan comes as maritime transport becomes increasingly important to Dangote’s growing businesses. The group’s $20 billion refinery in Lagos has already contributed to a sharp increase in Nigeria’s seaborne petroleum exports. The U.S. Energy Information Administration said petroleum-product exports by sea have increased seven-fold since 2023, mainly due to the refinery’s output. The refinery is also expected to handle about 600 vessels annually, including ship bringing in crude oil and those carrying refined products to local and international markets. Ghana’s economic recovery beats IMF expectations – Adrian Alter Beyond petroleum, Dangote Cement has operations in several African countries, making transport costs a major factor in its expansion plans. The group has a large trucking network, but moving heavy products such as cement over long distances by road can be costly due to fuel expenses, border delays and taxes. The planned vessel acquisition would therefore give Dangote another way to move its products across Africa while reducing its reliance on road transport. DR/SA Ghana will not borrow simply because financing is available – Dr Ato Forson Source: www.ghanaweb.com
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