Saturday, May 18, 2024

With Poor Capacity at Banjul Shipyard Causing Diversion of Containers to Senegal, Will New Gov’t. Expansion Agreement Help?

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By: Dawda Baldeh

Over the years, the port of Banjul has been challenged on modernization and expansion, and its inability to reliably manage the increase in sea traffic. This has led to vessels which were meant for The Gambia to be diverted to other countries, including neighboring Senegal, to avoid delay in offloading containers.

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The port’s main business is the container shipping line, and the terminals are reportedly constricted. This means that the port cannot handle any further increase in sea traffic as it has already been struggling to maintain existing volumes.

Importers and exporters over the years have expressed concerns about doing business in The Gambia, as the limitations have only worsened the high cost of doing any business in this area.

The government has granted approval for the Public Private Partnership (PPP) agreement between The Gambia Ports Authority (GPA) and Grupo Rodman of Spain for the design, construction, rehabilitation, operation, maintenance and hand back of the Banjul Shipyard (BSY) facility.

In a GPA press statement, the process of the expansion of the Banjul Shipyard premises will include “the relocation of the Gambia Navy Command Centre, and part of the Banjul Fisheries Jetty administrative area, in order to derive maximum value from the investment.”

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GPA also highlighted that the government decision is based, inter alia, on the need for the restructuring and further development of the Banjul Shipyard in order to enhance the sustainable operation and maintenance of the ferries fleet, GPA harbor craft, industrial fishing vessels and leisure craft.

The press statement revealed that the transaction was procured through an international competitive bidding on September 2022, through which Grupo Rodman was evaluated as the “most responsive bidder.”

GPA believes this will be substantially beneficial for the country and the shipyard due to the existence of a potential market for the ship repair facility, ship building, and ancillary services. It is also believed that this expansion and modernization will enhance knowledge and skills transfer as well as improve opportunities for job creation. Having been established as a subsidiary of GPA in 1924, the shipyard’s main objectives are to provide marine and industrial services.

“The agreement is to rehabilitate, redevelop and operate the Banjul Shipyard under a PPP arrangement where the investor will be required to finance, design, construct and operate the facility at a minimum capacity to maintain and repair (dry dock) vessels up to 1,000 gross tones, a secondary facility for a travel lift of up to 70  tones, new cranes of up to 25 tons lifting capacity, new mooring and repairing dock with 4 meter draft, new shed of 2000 m² and full modern workshop facilities for marine, diving, mechanical, machining, electrical and carpentry,” the GPA statement ended.

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