Dangote Industries to acquire shipping fleet for regional exports

Dangote Industries is planning to acquire its own fleet of shipping vessels to facilitate the transport of industrial products, such as cement, from Nigeria to markets across West and Central Africa.

The move aims to address significant logistical hurdles, including limited regional shipping capacity and the high costs associated with road transportation. Sada Ladan-Baki, head of international trade export at Dangote Cement, noted that the company has struggled to secure vessels even for small shipments, such as 1,000 metric tonnes destined for Ghana.

By transitioning to maritime logistics, the conglomerate seeks to bypass the heavy taxes and levies imposed on road freight passing through neighboring countries like Benin and Togo. This vertical integration is expected to improve the competitiveness of Nigerian exports and provide greater control over the group’s supply chain as its maritime-dependent operations, including the $20 billion Dangote refinery, continue to expand.