Lekki International Container Terminal Services LFTZ Enterprise (LICTSE), the subsidiary in Nigeria of port operator International Container Terminal Services, Inc. (ICTSI), has terminated its sub-concession agreement with the concessionaire of Lekki Port.
ICTSI in a regulatory disclosure said LICTSE and Lekki Port LFTZ Enterprise (LPLE) agreed to terminate their sub-concession agreement that would have allowed LICTSE to operate the container terminal within the port.
The agreement dated August 10, 2012 was terminated following delays in the execution of the Lekki Port Project.
The termination, which was finalized and deemed effective May 24, 2017, involves the payment of an agreed amount to LICTSE as a sub-concessionaire.
The sub-concession agreement granted LICTSE the exclusive right to engage in development and operation, as well as provide handling equipment and services, at the box terminal within Lekki Port located at Ibeju Lekki, Lagos State, Federal Republic of Nigeria, for 21 years.
According to ICTSI’s website, the terminal was supposed to begin operating in 2017 as a world-class, modern container terminal serving not only Nigeria but also its neighboring countries.
ICTSI currently operates two terminals in Africa, one in Madagascar and another in Congo.
Last March, ICTSI, through wholly owned subsidiary ICTSI Oregon, Inc., also terminated its 25-year lease agreement to operate the Port of Portland’s Terminal 6. The termination came nearly a year after the terminal was idled by a labor dispute. The lease was ICTSI’s first venture in the U.S. and is the largest financial transaction in the history of the city’s maritime port, according to the ICTSI website.
In 2014, the port operator also ended, through its subsidiary ICTS (India) Pte Ltd, its agreement with L&T Shipbuilding Ltd for ICTSI to manage and operate the Kattupalli Container Terminal in Tamil Nadu, India, saying the current contract was not beneficial to either party.
