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The Sierra Leone Parliament debated and unanimously approved ARISE IIP’s “Dry Port Concession Agreement between the Sierra Leone Ports and Harbours Authority and the Government of Sierra Leone”.
This is part of a groundbreaking Industrial Zones Agreement between the ARISE Integrated Industrial Platform (ARISE IIP) and the Government of Sierra Leone (GoSL) to develop and operate the Special Economic Zone (SEZ) at Koya, Mile 36.
The Minister of Transport and Aviation, Alhaji Fanday Turay, who presented the agreement before ratification, said the ARISE agreement is for a multi-million dollar investment in the construction of dry and river port industrial zones in the Port Loko area, stressing that the agreement is divided into four phases.
He also said the dry port will enhance connectivity in the region, boost industrial growth, help reduce prices and create significant employment opportunities for Sierra Leoneans, especially the youth.
The minister also said the agreement would increase freight volumes while the dry port would provide an environmentally friendly atmosphere to boost growth and productivity in the business sector.
The minister said: “The project will be completed in four phases. In this phase, $25 million will be allocated to build and equip the dry port facility to handle up to 35,000 twenty-foot equivalent units (TEUs) per year. This will include a 15MW dedicated power plant and administrative building, which will be constructed within the first two years.
“The dry port will significantly enhance the handling capacity of the Port of Freetown (Queen Elizabeth II Dock), allowing more ships to call at the Port of Freetown, thereby increasing the competitiveness of the port vis-à-vis other countries.
“During this phase, $15 million will be used to build the river port, including the procurement of a fleet of barges for transporting containers via sea/river, and the renovation of the Mabon Bridge to allow barge traffic. This will be completed in 2-3 years.
“Another $9 million will be used to expand the capacity of the dry port, allowing it to accommodate up to 50,000 TEUs. The final phase will see a comprehensive upgrade, and $6 million will be allocated for this phase.
“The Sri Lankan government holds an equity stake in the SEZ and profits from the dry port operations will be allocated to government revenue in the form of dividends.
“The agreement will ease congestion at seaports. By moving goods to inland areas, dry ports can ease congestion at seaports, allowing smoother operations and reducing delays. It will also enhance connectivity. This dry port will enhance connectivity between seaports and provinces, thereby facilitating efficient transportation and distribution of goods.
“This dry port will stimulate the province’s economic development by attracting businesses, creating jobs and promoting industrial growth in the province. When this port starts operating effectively, the idling time of trucks in the city will be reduced, which will free up roads, reduce wear and tear, lower carbon emissions and contribute to environmental sustainability.
“Putting empty containers at dry ports will save exporters time and costs by eliminating the need to travel back and forth to the port. This will reduce port congestion, allowing ships to unload faster and make imports cheaper as ships will no longer incur $20,000 per day in waiting fees.
“As an extension of the Port of Freetown, the dry port will continue to be under customs control, minimising the risk of smuggling or misdeclaration of cargo. The port will provide first-class facilities for customs and other administrative procedures, away from the congested port area, expediting the customs clearance process, thereby reducing unnecessary bottlenecks.
“While there will be no changes to government-imposed tariffs or fees, increased efficiency in import and export operations will increase freight volumes, thereby increasing tariff revenues. Moving freight by barge or convoy is 75% cheaper than using a single truck, providing significant cost savings.
“Overall, costs for importers will be 10-30% lower than current costs, making dry ports a very cost-effective solution. ARISE IIP has a proven track record of successfully building and operating dry ports in Togo, Gabon and Benin. Their expertise ensures project success and reliability.
“In summary, the ARISE Dry Port project is expected to deliver significant economic, logistical and environmental benefits, making Sierra Leone a competitive and attractive destination for global trade and investment.”
The above development will be in addition to the $120 million development SIZ – Koya (Sierra Leone Industrial Zone) proposed by ARISE IIP.
Recall that in 2023, the Sierra Leone Parliament approved the establishment of the Koya Industrial Zone, a project that will catalyze Sierra Leone’s industrialization process.
The Koya Integrated Industrial Estate aims to attract companies in sectors such as agro-industry, wood processing, pharmaceuticals, consumer goods manufacturing, electric vehicle manufacturing, and paint and tile manufacturing.
The company is also currently working with the Government of Sierra Leone to build a rice mill in the country with a capacity of 400 to 500 tonnes.
The program aims to attract investors by streamlining the licensing and approvals required to do business in Sierra Leone, thereby promoting economic growth and skilled employment, and increasing export revenues.
Ambrose Maada Labbie, the parliamentary chairman for transport and aviation, said the agreement was a presidential declaration to boost economic growth in the country.
He said the investment project, which is worth millions of dollars, will create a large number of jobs for the country, while stating that the agreement is not controversial and praising the country.
Acting Leader of Opposition, Daniel Koroma, said the idea was great, going on to note that he was impressed by the agreement and believed that it would generate revenue for the state.
He said the president’s intention was to generate revenue and support the president in reaching a deal.
The Acting Leader of Government Business, Honourable Bashiru Silikie, commended the MPs for their contribution to the debate and asked the Parliamentary Transport and Aviation Watchdog to monitor the implementation of the agreement and deliver justice to the people of Sierra Leone.
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