Bolloré Group pledges CFA15bn to upgrade the Port of Douala timber terminal

(Business in Cameroon) - The Port Authority of Douala (PAD) signed last December 10 a concession agreement with Port of Douala Timber Terminal (TBPD), the new subsidiary of Bolloré Group, which has taken over the assets of the Société d'exploitation des parcs à bois du Cameroun (SEPBC).

As part of this deal, the new Bolloré subsidiary will be in charge of operating, maintaining and developing the timber terminal of the port platform for 15 years. The company intends to invest nearly CFA15 billion; CFA6.5 billion more than the commitments made in the concession contract. The resources will be used to pave the storage and loading areas over a total area of 10 hectares; launch the construction of storage sheds for processed products (in line with changes in international and regional regulations on timber exports); renew handling and transport equipment (loaders, reach stackers, forklifts, tractors, etc.) to improve the productivity of operations.

PAD expects the new concessionaire to pay CFA100 million for the entry ticket; fixed royalties of CFA1,976 per m2 (against CFA1,630 currently) for an area estimated at 28 ha (a total of CFA560 million a year). PAD will also collect 2.5% of the turnover (against CFA75 per m3 of shipped timber currently); the merchandise fee evaluated at CFA1200 per m3 of shipped timber and 50% of the parking penalties. "At the end of the 15-year agreement, the PAD will earn, excluding royalty on goods, a total of CFA13.56 billion, the State of Cameroon will collect CFA29.5 billion, and the concessionaire CFA10.28 billion," says the port authority.

According to the PAD, this agreement has helped normalize relations with the subsidiary of the Bolloré Group. "The renewal of this concession contract is the materialization of the partnership that has linked Bolloré Ports and the Port Authority of Douala for several years," said the Bolloré Group, which recalled it has carried out major projects valued at nearly CFA11 billion over the past five years. These include the pre-financing of an advanced berthing (dolphin structure) on behalf of the PAD for an amount of CFA5.3 billion.

S.A.