By: Edward Dictionary Caulker
On Friday, July 5, 2024, the Parliament of Sierra Leone debated and unanimously ratified the ARISE IIP’s “Dry Port Concession Agreement” between the Sierra Leone Ports and Harbours Authority and the Government of Sierra Leone. This agreement is part of a groundbreaking Industrial Zone Agreement between ARISE Integrated Industrial Platform (ARISE IIP) and the Government of Sierra Leone (GoSL) to develop and operate a Special Economic Zone (SEZ) in Koya, Mile 36.
Presenting the agreement for ratification, the Minister of Transport and Aviation, Hon. Fanday Turay, stated that the ARISE Agreement aims to invest in the dry port and river port industrial zone of the Port Loko district, with millions of United States dollars. He emphasized that the agreement is divided into four phases.
The Minister highlighted that the dry port will enhance regional connectivity, improve industrial growth, lower prices, and create significant employment opportunities for Sierra Leoneans, especially the youth. He also noted that the agreement would increase cargo volume and provide an environmentally friendly atmosphere to boost business growth and productivity.
Minister Turay outlined the phased investment plan:
- Phase 1: $25 million will be allocated for the construction and equipping of the dry port facility to handle up to 35,000 Twenty-foot Equivalent Units (TEU) per year. This phase includes a 15MW dedicated power plant and an administrative building, to be completed within the first two years.
- Phase 2: $15 million will be allocated for a river port, including procuring a barging fleet for container delivery by sea/river and modifying the Mabang bridge to allow barge passage, to be completed within 2-3 years.
- Phase 3: An additional $9 million will be used to expand the dry port’s capacity to accommodate up to 50,000 TEU.
- Phase 4: $6 million will be allocated for general upgrades.
The GoSL holds an equity stake in the SEZ, and profits from dry port operations will contribute to government revenue through dividends.
The agreement is expected to:
- Reduce congestion at seaports by alleviating cargo to inland locations.
- Enhance connectivity between seaports and the provinces, facilitating efficient transportation and distribution of goods.
- Spur provincial economic development by attracting businesses, creating jobs, and fostering industrial growth.
- Reduce truck idling time within the city, decreasing wear and tear on roads and lowering carbon emissions.
- Eliminate unnecessary round trips for exporters, saving time and costs.
- Enhance faster vessel discharge due to reduced port congestion, lowering import prices by eliminating the $20,000 per day cost of waiting to berth.
- Maintain customs oversight to minimize the risk of smuggling or misdeclaration of goods.
- Speed up the clearance process with first-class facilities for customs and other administrative procedures.
The initiative will enhance efficiency in import and export operations, increasing cargo volume and boosting revenue from duties. Transportation of goods via barge or convoy is up to 75% cheaper than using individual trucks, offering substantial cost savings. Overall, importer costs will be 10-30% cheaper than current rates, making the dry port a highly cost-effective solution. ARISE IIP has a proven track record of successfully building and operating dry ports in Togo, Gabon, and Benin.
The development is part of ARISE IIP’s proposed $120 million investment to develop the Koya Industrial Zones. The Koya integrated industrial zone is designed to host companies specializing in agro-industry, timber processing, pharmaceuticals, consumer goods manufacturing, electric vehicle manufacturing, and paint and tile manufacturing.
The company is also working with the Government of Sierra Leone to construct a 400 to 500 MT rice mill in the country, aimed at boosting economic growth, creating skilled jobs, and raising export revenue by attracting investors through streamlined permits and approvals.
Parliamentary Chairperson on Transport and Aviation, Hon. Ambrose Maada Labbie, praised the agreement as a presidential initiative aimed at improving economic growth and creating employment. Acting Opposition Leader, Hon. Daniel Koroma, expressed his support for the agreement, highlighting its potential for revenue generation and economic development.
Acting Leader of Government Business, Hon. Bashiru Silikie, applauded MPs for their contributions to the debate and requested the Parliamentary Oversight on Transport and Aviation to monitor the implementation of the agreement to ensure it benefits the people of Sierra Leone.
