For decades, seaports in Lagos, Tema, Abidjan, and other West African coastal cities have shouldered the bulk of international trade. But congestion, delays, and the rising cost of logistics have created a bottleneck for businesses, especially those in landlocked or distant hinterland areas. Enter the inland dry port, an innovation reshaping how cargo moves across West Africa.
An inland dry port is an inland terminal connected to a seaport by road or rail, where goods can be received, processed, and cleared by customs as though they were at the port itself. In Nigeria, the concept has gained momentum through the Federal Government’s initiative to establish Inland Container Depots (ICDs) in cities like Kaduna, Ibadan, Kano, and Funtua. This model not only eases pressure on Lagos ports but also brings trade opportunities closer to businesses in the hinterlands.
Tackling Congestion and Delays
West Africa’s busiest ports, particularly Apapa and Tin Can Island in Lagos, handle a large share of regional imports and exports. According to the Nigerian Ports Authority (NPA), Lagos ports handle over 70% of Nigeria’s cargo traffic. But this dominance has led to congestion, long dwell times, and high demurrage charges.
Dry ports serve as decongestion points, allowing containers to move swiftly from seaports to inland facilities where clearance and distribution can be completed. For example, the Kaduna Inland Dry Port, commissioned in 2018, has already reduced cargo transit times for northern businesses by cutting out the need for constant trips to Lagos.
Boosting Trade Facilitation
By bringing customs and other regulatory agencies inland, dry ports promote trade facilitation, a key goal of the World Trade Organization (WTO) Trade Facilitation Agreement. Businesses no longer have to travel to Lagos to clear goods, regulatory processes such as duty payments, inspections, and documentation can all be done closer to the point of use.
This ease of doing business lowers costs and makes Nigerian exports more competitive, particularly agricultural produce from the north. Farmers and exporters can now ship goods like ginger, sesame, and hibiscus flowers more efficiently, meeting international demand without excessive spoilage or delay.
Driving Regional Integration
West Africa’s trade ambitions, guided by the African Continental Free Trade Area (AfCFTA), depend on improved connectivity. Dry ports strengthen this by linking seaports with inland regions and neighboring countries. For example:
- The Kaduna Dry Port connects northern Nigeria with Niger Republic, enhancing trans-Sahel trade.
- Similar projects in Ghana and Côte d’Ivoire aim to support hinterland economies and create logistics hubs.
By facilitating smoother cross-border flows, inland dry ports make West Africa more integrated and competitive in global trade.
Opportunities for Businesses
For importers, inland dry ports mean reduced logistics costs, lower demurrage, and faster access to cargo. For exporters, they provide easier access to international markets, with customs and storage facilities closer to production centers. Warehousing, consolidation, and distribution services at dry ports also create room for value-added services, from packaging to labeling for export compliance.
Investors benefit too. Dry ports attract ancillary businesses, haulage, insurance, banking, and ICT solutions, all of which create jobs and stimulate local economies.
Challenges to Address
Despite the progress, inland dry ports face challenges:
- Infrastructure gaps: Poor rail and road connections limit efficiency.
- Bureaucracy: Multiple regulatory agencies sometimes slow the clearance process.
- Awareness: Many businesses still do not fully understand the benefits of using dry ports.
The Nigerian government, through the Nigerian Shippers’ Council, is working to resolve these issues by encouraging private sector participation, strengthening rail connectivity, and harmonizing agency procedures.
Inland dry ports are more than logistics facilities, they are economic game changers for West Africa. By decongesting coastal ports, simplifying trade procedures, and connecting inland economies to global markets, they are revolutionizing how cargo moves across the region.
For Nigerian businesses, especially those in the hinterland, the rise of dry ports represents an opportunity to cut costs, save time, and compete better internationally. At SKYBLUE DRY PORT TERMINAL, we see inland dry ports not just as a solution to port congestion, but as a pathway to inclusive trade growth for the entire region.
