Babalola Yusuf Abiola
Lilypond Container Depot, an Inland Container Depot (ICD) on Friday announced its decision to discontinue operating its container depot in Nigeria due to lack of overflow of container into the depot and the high cost of operation.
According to the Managing Director of Lilypond, Mr. Tristram Denyer, in a statement, volume available for depots generally and increased capacity in Nigerian marine container terminals inform their decision.
The statement reads: “Lilypond Container Depot Nigeria Ltd (Lilypond) Management has notified the Nigerian Ports Authority (NPA) that it was no longer able to continue operating the Lilypond container depot at Ijora.
“Mr. Denyer said that the decision was a very difficult one and followed a concerted effort by Lilypond management and staff to develop a viable new and sustainable long term business model over the last 8 months.
“This effort has been frustrated by a number of factors including the lack of overflow container volume available for depots generally, the high cost of operating the depot and increased capacity in Nigerian marine container terminals.”
Mr. Denyer added that discussions with NPA over the period for transition to another operator would commence shortly but he expected this was unlikely to exceed 6 months.
He said, “The management of Lilypond would co-operate with NPA to ensure the successful handover to a new concessionaire should, as anticipated, NPA decide to tender the Lilypond concession,” Denyer stated.
