Dangote set to seal vessel deals with world’s No. 1 shipbuilding country as group targets 1,800 vessel calls a year
The Dangote Group is gearing up for a significant increase in its annual cargo handling capacity, with projections indicating a rise from approximately 300 shipments to as many as 1,800. This revelation was made by Devakumar Edwin, the Group Vice President for Oil and Gas.
Expansion Across Various Business Sectors
The surge in cargo movements is attributed to the expansion of Dangote’s diverse business segments, including cement, sugar, flour, refining, fertilizer, and petrochemical industries. The group’s flagship refinery in Lagos is also undergoing a phase of expansion, potentially positioning Dangote as a key player in global maritime trade.
China’s Role in Dangote’s Maritime Expansion
Given China’s prominence as the world’s leading shipbuilder, Dangote is eyeing Chinese shipyards to bolster its maritime capabilities. Recent UNCTAD data indicates that Chinese shipyards accounted for over half of the global shipbuilding output in 2024, surpassing South Korea and Japan combined.
Dangote’s Ambitious Refinery Expansion Plans
Currently operating at a capacity of 700,000 barrels per day, Dangote’s refinery aims to double its output to 1.4 million barrels per day by 2029 through a $14.3 billion expansion initiative. This expansion will not only enhance petrochemical production but also strengthen the group’s ability to supply refined products across Africa and beyond.
Challenges and Opportunities for Dangote
Despite the growth prospects, Dangote Industries faces challenges in securing shipping capacity for its products. The company is exploring the acquisition of vessels to facilitate transportation to West and Central Africa. Additionally, there is a notable gap in Nigeria’s maritime industry, where shipowners often lack the necessary vessels and financing to meet demand.
In conclusion, Dangote’s strategic move to expand its maritime capacity aligns with its broader business objectives, positioning the group for enhanced control over its product movements as operations expand. The planned IPO of its refinery to raise funds further underscores Dangote’s commitment to its expansion plans.
