Global logistics giant DP World has strengthened its Nigerian trade footprint with the formation of a strategic partnership with Transnet Group International (TGI), according to multiple news reports.
The deal, which is yet to be officially announced by either party, will see DP World partner with TGI on a new logistics business in Nigeria. According to ThisDay Live, the partnership will involve a 43% stake acquisition by a subsidiary of TGI in United Africa Company (UAC), one of Nigeria’s oldest conglomerates.
The move is significant as it comes after DP World clinched a $7 billion deal to develop a container terminal at the Lekki Deep Sea Port in Lagos, Nigeria’s economic hub. The port project, which will be developed in partnership with the Lagos State Government and the Nigerian Ports Authority, is expected to significantly boost trade in the region.
Commenting on the deal, Governor Dapo Abiodun of Ogun State where the Lekki Deep Sea Port is located, hailed the partnership as a sign of deepening economic ties between Nigeria and the United Arab Emirates (UAE), where DP World is headquartered.
The partnership between DP World and TGI follows other strategic moves by the global logistics giant in Nigeria. In 2021, DP World acquired a 60% stake in Nigerian Container Terminal Limited (NCT) in Onne Port.
TGI is a South African-based company with interests in rail, ports, and logistics. The company has a presence in several countries across Africa, including Nigeria.
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