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Necotrans makes bid for multipurpose terminal concession at future Kribi port

Necotrans makes bid for multipurpose terminal concession at future Kribi port
  • Comments   -   Friday, 24 October 2014 03:00

(Business in Cameroon) - The French logistics group, Necotrans, is showing its plans for Africa. Having copped the deal to manage the bulk carrier terminal in Dakar (Senegal) as well as the river port in Brazzaville (Congo) in May 2014, it has just submitted a bid to the selection committee to manage the multipurpose terminal in Kribi. Necotrans is competing against APMT (Maersk) and the Philippine company ICTSI. The announcement comes after a bid submitted on October 13 for the Kribi container terminal was not accepted. The decision confirms its strategic focus on logistics.

Brought in by Grégory Quérel (photo) and supported by former EADS executive in charge of Africa, Jean-Philippe Gouyet, Necotrans is on the offensive in Africa, a continent where it has been operating for 30 years. Bolstered by 110 million euros in international financing obtained in August, the Paris based company plans to develop its fields of interest (logistics, transportation commission, oil and mining services, equipment distribution) and solidify its position in West and North Africa. It is also targeting the promising region of East Africa where growth has been boosted by recent gigantic hydrocarbon deposits (Uganda, Kenya, Tanzania and Mozambique).

“Africa is a promising market,” explains Grégory Quérel, CEO of the 3,500 –employee group operating in 42 countries, including 33 ports in Africa. “The population is growing quickly, a middle class is beginning to emerge and mining oil and natural gas activities are experiencing new developments. African logistical flow, which represents approximately 15 billion euros in annual sales, should double by 2020.”

According to the African Development Bank (ADB), the quantity of merchandise (containers, bulk, rolling stock) processed at African ports should rise from the 265 million tonnes recorded in 2009 to 2 billion tonnes by 2040. Necotrans is counting on these future markets and is looking at investments in rail services as an operator. “The container business is important, but other port activities make up around 70% of the business there. When the terminal concession has been granted, we will have to develop all the specialised activities and means of ground transport,” explains Grégory Quérel.

The group also got good news in court. After losing its bid for the second container terminal in Abidjan to its competitor, Bolloré, the decision has been challenged by the West African Monetary and Economic Union (UEMOA). Another bit of good news for the French group is that, after being ousted from Conakry to make way for Bolloré, the latter was ordered by the Nanterre Commercial Court to shell out 2.1 million euros to Necotrans. The Common Court of Justice and Arbitration (CCJA) in Ohada also ruled that Guinea should pay 38.4 million euros.

Necotrans, which already had 954 million euros in sales in 2013, should cross the one billion mark this year.

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