Global Maritime Firms Prioritize Expansion in West Africa
Rerouting of global trade around the Cape of Good Hope has presented growth opportunities for some regions in Africa. Particularly, West Africa has greatly benefited from the diversion of the shipping traffic, with major maritime companies expanding their presence in the region.
The longer voyage around the Cape of Good Hope has spiked demand for bunker fuels at emerging supply points in Africa. In addition, demand for ship repair services is also rising, an opportunity that West African countries appear anxious to take. This positive market outlook has also seen major shipping companies realign their liner schedules, deploying extra capacity to West Africa.
Last week, one of the world’s largest suppliers of marine fuels, Minerva Bunkering, announced its expansion in West Africa. The company owned by Mercuria Energy Group launched a bunkering service in Mauritania after approval by the National Hydrocarbons Commission (CNHY). Minerva will be operating from the Mauritanian ports of Nouadhibou and Nouakchott. From these locations, the company will supply commercial vessels as well as offshore oil and gas installations operating in West Africa.
In the past year, other major bunkering companies have also expanded their operations in West Africa. The companies include Flex Commodities, Vitol Bunkers, Monjasa, and Global Fuel Supply. This trend points to the reshaping of the shipping routes via the Cape of Good Hope, transforming some areas in West Africa into strategic bunkering hubs.
Ship repair is another sector that is realigning its growth to the routing shifts in the shipping industry. With its emerging strategic value, West Africa is becoming a natural choice for global ship repair firms pursuing regional expansion. Last week, Damen announced a joint venture with the Government of Senegal to operate the Dakar Shipyard. The public-private partnership will see Damen take over the operations of the yard with a 20-year contract. The government is represented by the Société des Infrastructures de Réparation Navale (SIRN).
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Damen seeks to revitalize Dakar Shipyard to offer repair and maintenance services to commercial vessels along the West African coast. Damen also said that it has long-term ambitions of restoring newbuilding activities at the shipyard.
Meanwhile, major ocean carriers continue to expand their presence in West Africa. MSC was the first to make the move last year, deploying its mega container vessels to serve key West African ports. Hapag-Lloyd has also recently strengthened its footprint in the region, opening a new office in Cotonou, Benin. The office will begin operations on May 20. Hapag- Lloyd hopes to boost its market position in West Africa through the Port of Cotonou, which also serves as a key trade gateway for landlocked markets, including Niger and Burkina Faso.