Executive Summary 2015 - Deep Sea Port by Broad Spectrum Ind Serv Ltd (Autosaved)

Executive Summary for the Construction of Deep Sea Port, Super
Highway & Development of Mechanized Farming at Calabar Cross
River State by Broad Spectrum Industrial Services Ltd
Investor Brief-Executive Summary
for the Construction of Deep Sea
Port, Super Highway &
Development of Mechanized
Farming at Calabar, Cross River
State by
Broad Spectrum Industrial
Services Ltd. (BSIS)
2015
9/25/2015

[EXECUTIVE SUMMARY FOR THE CONSTRUCTION OF DEEP SEA PORT, SUPER HIGHWAY & DEVELOPMENT OF
MECHANIZED FARMING AT CALABAR CROSS RIVER STATE BY BROAD SPECTRUM INDUSTRIAL SERVICES LTD] September 25, 2015
Table of Content
S/N DESCRIPTION PAGE
1.0 Executive Summary 3-5
1.1 Introduction 6-7
1.2 Vision 7
1.3 Mission 7
2.0 Project Description & Justification 7
2.1 Project Description 7-8
2.2 Project Justification 9
3.0 Description of Project Site/Location 10
4.0 Alternative Option for the Project 10-14
5.0 Project Investment Cost/Concept of Financial Structure 15
6.0 Capital & Operation Cost Estimates 16-18
7.0 Benefits of Deep Sea Port Facilities 18-19
7.1 Direct Benefits 18
7.1.1 Cost Saving 18
7.2 General Cargo Vessels 18
7.3 Petroleum Product Vessels 19
7.4 Fisheries Vessels 19
8.0 Project Phases 20
9.0 Project Incentive, Security/Backing 21
10.0 Project Investment Opportunities 21
11.0 Financial Projections 22-24
11.1 Key Assumptions 22-24
12.0 Economic & Financial Viability 24
13.0 Assessment of Nigeria Ports 25
Appendix 1 Ten (10) Years Projected Cash Flow 26-29
14.0 Conclusion 30
Appendix 2 Super Highway 31
Appendix 3 Deep Sea Port 32
Appendix 4 Fully Mechanized Farming 33
2 | P a g e I n v e s t o r B r i e f - E x e c u t i v e S u m m a r y P r e p a r e d B y :
C o n s e r v a t i v e I n v e s t m e n t L t d : F i n a n c i a l C o n s u l t a n t s & M a n a g e m e n t A d v i s o r y

1.0 Executive Summary
COMPANY NAME: Broad Spectrum Industrial Services Ltd
(Core-Investor & Technical Partner)
RC NUMBER: 410547
YEAR OF INCORPORATION: 2001
PROPOSED PROJECT SITE: Calabar, Cross River State of Nigeria
OPERATIONAL OFFICE: 14B, Thaba Tseka Street, Ademola
Adetokunbo Crescent, Wuse 11 FCT, Abuja,
Nigeria
WEBSITE/E-MAILS: www. (in-view)/
michael.lehavre@yahoo.com
bsoilandgas@gmail.com
TOTAL PROJECT
CONSTRUCTION COST LAY: US$2.427Billion (Two Billion, Four Hundred
& Twenty Seven Million U.S. Dollars)
CORE VALUES: Financing the execution of three (3) major
projects identified by the Cross River
State Government.
The Projects which include:-
A) The construction of 260km super high
way containing six (6) lanes and
street lighting (Financial Cost
US$700Million)
B) Construction of 1.2km Deep Sea Port
(Financial Cost US$1.3Billion)and
C) Development of mechanized
farming/design, fabrication of
plants/machinery(Financial Cost
US$300Million)
(BSIS) CONTACT PERSONS 1. Michael Le Havre (CEO) and
2. Kenneth E Allen (MD)
CONTACT PHONES: +4475 502 89 502, +234 808 300 6303,
+234 809 426 4043
MILESSTONES ACHIEVED: Memorandum of Understanding duly signed
with the Government of Cross River State
STATE GOVERNMENT
COMMITMENT:
To provide the Core-Investor & Technical
Partner with US$25Million (Twenty Five
Million U.S Dollars) only as a local Bank
Guarantee. This is to take care of pre-
construction cost such as Environmental
Impact Assessment (EIA), Design,
Feasibility/Viability Study Report, Bill
of Quantity Engineering Drawings, etc.

The objective of this report is to provide the conceptual designs
for the roads and utilities and primary infrastructure for
the Calabar Deep Sea Port based on the updated land use Master
Plan which was presented and discussed with the Cross River State
Government and stakeholders.
The unique characteristics of the project is to create job
opportunities for the State, alleviate poverty, and economic
empowerment and enhanced revenue generation to give Cross River
State a New City the special natural ambience character based on
the proposed land use plan.
The Core-Investor & Technical Partner along with their other
reputable foreign partners has expressed interest in financing
the execution of the three (3) major projects identified by the
Cross River State Government which include among others:-
A) The construction of 260km super high way containing six (6)
lanes and street lighting,
B) The construction of 1.2km Deep Sea Port and
C) The Development of mechanized farming/design, fabrication of
plants/machinery.
Nigeria is the most populous country in Africa and the seventh
most populous in the world. Its population is expected to grow
from 170 million today to over 440 million by 2050. This has
grave implications for the country’s food security situation,
given that it is heavily dependent on food imports. If global
food price were to spike and drive up the price of imports, as
they did in 2007-2008, Nigeria would struggle to feed its
populations.
The Core-Investor & Technical Partner is offering a revolutionary way
of a fully mechanize farming and International Academy training
Institution Centre which include among others: Poultry farming,
Dairy Farming, Aquaculture Fish Production Farming, Planting &
Seeding of Soya Beans, Maize, Tomatoes, Pepper and Varieties of
other Vegetable types, Cow/Goat Slaughter House, and Irrigation
and Water Infrastructure that will have a tremendously positive
economic impact on Nigerian’s livelihood and that of most of West
Africa and potentially the world.
Broad Spectrum Industrial Services Ltd will be ensuring
that these same resources are employed to plant, cultivate, and
harvest the incredibly resilient and super-productive in
quantities that can significantly reduce hunger in West Africa,
create thousands of high-quality, enduring jobs, and provide
outstanding profits and returns to the farmers and investors of
this project.

The construction of 260km super high ways containing six (6)
lanes and street lighting, building three toll gates and the
construction of 46 overhead bridges.
The goal of the tolling traffic and revenue study super highway
is to provide a “sketch-level analysis, a high-level
investigation into revenue potential.
The project will construct a new alignment six-lane freeway,
parallel to existing highway.
Highway tolls can provide a new, stable and dedicated source of
funding of highway infrastructure. By applying the ‘user pays’
principle, governments can direct scarce budget resources
elsewhere and the highway user pays for the service offered by
the highway in the same way that railways, pipelines, power
grids, water, broadcasting and broadband networks are paid for.
Potential consequences of tolling include the uncertainty that
toll revenues will be sufficient to cover all the costs of
construction, maintenance and operation (revenue risk). Toll
highways are rarely self-financing, often still requiring
substantial public subsidy and may create long term liabilities
for governments. High toll tariffs can result in diversion away
from the highway onto less suitable routes, resulting in the loss
of some of the potential economic benefits of the highway
accruing from improvements in travel time reliability, time
savings, vehicle operating costs and highway safety.

1.1 Introduction
Broad Spectrum Industrial Services Ltd, the Core-Investor &
Technical Partner is a duly registered company with the Corporate
Affairs Commission, Abuja RC: 410547 with the aim of carrying on
various aspects of initiating project financing, energy and
power, civil engineering, designs and agriculture.
The Cross River state Government recently conceived the idea of
developing and construction of a deep sea port, 260km super high
way containing six (6) lanes and street lighting and development
of mechanized farming/design, fabrication of plant/machinery in
the coast line of the State.
The projects are proposed to be private sector driven with the
state owning 30% equity on each of the projects before repayment
of project finance cost while Core-Investor & technical Partners
owns 70% i.e 50% is for project finance repayment while 20% is
equity ownership. Upon full repayment of project finance, the
Cross River state Government shall own 80% equity while the Core-
Investor & technical Partners shall retain 20% equity in all the
projects.
The project focuses on promoting International Trade, Transit
Trade, Bonded Storage and Export processing as well as other
ancillary businesses including Banking, offshore Finance,
Insurance, Futures Market, Commodity Exchange, Wharf Management,
Haulage, Forex Operations, IT and other related businesses.
For the realization of a highly efficient and automated seaport
container-handling system, we have focused on an automated guided
vehicle (AGV) transportation system. We proposed a design
methodology to find the appropriate number of operating machines
required for container handling.
Broad Spectrum Industrial Services Ltd, the Core-Investor &
Technical Partner has signed an agreement with the Government of
Cross River State to undertake various projects which includes
the design, funding arrangement, construction, management and
operation of a Deep Sea Port in Calabar; super highway;
mechanized farms; etc.
Broad Spectrum Industrial Services Ltd (BSIS) is seeking
funding from Global Investors/Funding Solutions Providers in
order to realize this project.
In conformity with the requirements of the environmental
legislation, an Environmental and Social Impact Assessment (ESIA)
for the project is accorded top priority.

The environmental and social impact assessment (ESIA) of the said
project will be undertaken in compliance with the legal
requirements of Nigeria, International policies and procedures
and the performance standards of the International Finance
Corporation (IFC). In accordance with International environmental
and social requirements, the ESIA examined the physical,
biological and socio-economic aspects and their impacts, upon
which the ESIA recommended several mitigation measures. The ESIA
summary of the aforementioned project will be presented in due
course
1.2 Vision
To be the large cargo port of choice in the West Africa Sub-
region that provides investors with an unmatchable business
ambience.
1.3 Mission
To provide world-class State of the Art facilities, highly
attractive incentive and focused business support services in a
safe and conducive environment that offers opportunities for all
Stakeholders to thrive and flourish.
2.0 Project Description and Justification
2.1. Project Description:
The project consists of construction of 1.2km Deep Sea Port,
construction of 260km super high way containing six (6) lanes and
street lighting expanding the existing facilities of the harbor
in order to enable large container carriers to enter the sea port
of Calabar and to subsequently distribute these containers to
neighboring countries and States on feeder ships. The third
aspect of the project is the development of mechanized
farming/design, fabrication of plants/machinery.

The following images show the site intended for this project (see
Figure 1).
Figure 1
Broad Spectrum Industrial Services Ltd (BSIS) plans to
build and operate facilities, which would include a dock with
several berths, and to build a large area intended for container
storage, within the framework of a Concession Agreement which
binds it to the Government of Cross River.
The project will be executed in the main stages described below.
- The pre-construction stage, during which subsurface studies,
oceanographic, feasibility and viability studies, and
environmental impact assessment will be undertaken.
- The construction and installation of facilities stage: targeted
construction and development sections of the project will be
carried out in a progressive manner over the following three
phases:
 Phase I
 Land-facing wharf wall, 750m long, with three berths;
 Sea-facing wharf wall, 1,025m long, without facilities;
 Land-facing area for storing containers: 160,000 m²; and
 Depth of water in the dock, the harbour basin and the access
channel: –14.60m z.p.
 Phase 2
 Land-facing wharf wall, 1,050m long, with three berths;
 Sea-facing wharf wall, 1,315 long, without facilities;
 Phase 3
 Land-facing area for storing containers: 220,000 m²; and

 Depth of water in the dock, the harbour basin and the access
channel: – 16.60m z.p.
2.2. Project justification:
This is in line with the Federal Government of Nigeria sectorial
policy of economic diversification from crude oil, the major
strategic objectives of which are:
- To increase the port’s capacity and to create an international
commercial, efficient and competitive port in Nigeria;
- To harness the natural, nautical and geographical resources of
the State coast;
- To increase maritime transshipment and transit trade with
landlocked countries (like Central Africa Region, Niger, Chad,
and others);
- To have a good shipping service with regular trade vessels,
particularly container carriers, with adequate frequency to
reduce waiting times and costs.
The proposed Calabar sea port is projected to become a dry and
liquid cargo gateway for the vast central and eastern Nigerian
markets and beyond. Development and subsequent operation of the
port will generate substantial economic activity in the region.
The Calabar Deep Sea Port will have the following unique
features:-
• Requires little dredging to accommodate large ocean going
vessels;
• Located in the oil rich region and would serve the oil
companies and oil service companies located within the
region;
• Easy access to the oil rich Gulf of Guinea;
• Proximity and centrality to deep offshore operation & West
Africa region, Sao Tome, Central Africa, Equatorial Guinea,
Cameroon, and Angola;
• Could stimulate industrial mercantile and tourism
activities;
• Development of infrastructure to support oil and gas
exploration, shipping industries and international trade
within a free trade zone framework;
• The synergy so generated would be used as a vehicle for
rapid development;
• Employment of a strategy that balances rapid
industrialization/economic growth with environment
protection.

3.0 Description of Project Site/Location
Calabar, eastern Nigeria's main port, is situation 83kms up the
Cross River in the Niger delta. Nestled in the far south east of
Nigeria, Cross River State is Nigeria's frontier to Cameroon, Sao
Tome, Equatorial Guinea and beyond.
The proposed Calabar seaport will have an array of modern
facilities for export and import trade. It enjoys direct road
link with the middle belt and the north-eastern parts of the
country. Its facilities include 860m quay length and 35,000 sqm
of stacking area.
The port channel is 7m deep and is being dredged to 9m and 13m
draught, at turning basin and quay side respectively. This will
allow vessels of 170m and between 10,000 and 15,000 dead weight
to steam into the port without hindrance.
Its location on the south-eastern extremity of the country,
almost entirely isolated by rivers, warrants the maintenance of
good network of roads.
The two major road transportation arteries are the East West
lkang Calabar ltu Road and the North South Calabar lkom Yola
road. However, parts of both highways have fallen into a severe
state of disrepair on account of lack of adequate maintenance.
It is vital that both roads be rehabilitated and in fact
dualized. The road network runs directly through the commercial
city of Aba through to Onitsha, Nnewi and Enugu.
Distances are as follows:
Aba - 125 km
Onitsha - 280 km
Enugu - 285 km
Nnewi - 270 km
The Cross River towns have good intercity transportation (taxis,
buses, motorcycles), in addition to a good system of intercity
and inter local government area transportation.
4.0 Alternative Options for the Project

There are no alternate sites available in Calabar for this
project. The construction of a new harbor at a different site
will impact much more harmfully on the environment, considering
the area required and the extent of the construction needed to be
undertaken. The super highway has been carefully mapped to avoid
any disruption of the natural biodiversity and ecosystem.
Potential impacts and measures for mitigation and
enhancement
The project activities will be a source of impact during all the
phases (pre-construction, construction, operation and end of
project). During the construction phase, activities will include
construction of sand barriers, stripping the soil, raising the
site, compacting the soil, sealing the soil, filling the beach
and deepening the existing harbor basin and access channels.
During the operational phase, activities will include increased
maritime traffic, increased land port activities and development
and operation of the terminal.
During the end of project phase, activities will include
continuation of maritime traffic, continuation of land port
activities, development and operation of the terminal, as well as
upgrade activities of various types, and repairs to e.g. wharf
walls.
Negative impacts
Negative impacts on the various environments are potentially
associated with the activities which will be carried out in the
different phases of the project. These impacts and the measures
for managing them are described below.
Noise pollution and atmospheric pollution
Most of the construction activities, for example compaction of
the area, construction of wharf areas and of the infrastructure
of the new harbour area including roads, buildings, workshops
etc., cause noise and atmospheric pollution that will continue at
various intensities during the construction period. This will
increase noise and atmospheric pollution. The impacts caused by
noise pollution and by the quality of the air will be limited to
the periods of work.
If Option (A) (metal sheet-pile wall) is selected for
construction of wharf walls, the hammering works will cause noise
pollution which will be clearly heard by the riverside residents
of the site for the duration of the 9 months that the operations
continue. The inhabitants of the Calabar Port, and some other
locations, to the west will be exposed to this impact. In
compliance with Local Content requirements, none technical

employment would be made to inhabitants, who would be supplied
with protective gears to mitigate pollution.
Soil
The main impact will be the stripping of the top soil for the
road construction which could impact the environmental air
exchange as the natural vegetation is replaced by asphalt
surfaces. This is mitigated by the strenuous efforts made to
retain the natural park environment as is and also plant new
trees on road embankments.
Water resources
The major risk concerns marine or underground water pollution by
the chemical substances that will be handled in the construction
and operation phases. Thus plans for management of these
substances will be developed and implemented during these phases
of the project.
Vegetation
Stripping of the soil in the pre-construction phase of the
terminal will have a destructive impact on the biophysical
environment, as it will lead to the destruction of some hectares
of thickets and mangroves.
A replanting programme is being developed in consultation with
the appropriate institutions. The replanting programmes will at
least double the areas which were cleared and ensure the success
of the replanting. The other activities targeted in this
programme consist of identifying the reforestation sites,
information and awareness of the riverside populations of the
sites, training in plant production techniques, follow-up and
evaluation. A specialized NGO will be appointed for carrying out
these tasks.
Fauna
Animal habitat will be affected directly by the construction of
barriers and indirectly by the changes in the oceanic circulation
regimes and the sedimentary dynamics related to it. More mobile
species, such as fish, will be less affected as they will move to
adjacent areas.
Socio-economic environment
From the pre-construction phase (at the latest by the start of
the construction phase) those people occupying the site of the
facilities will be involved in the activities found in or carried

out around it will be relocated from the site permanently or they
will no longer be able to continue with the activities that they
are currently involved in.
It is in this manner that a full resettlement action plans for
the market gardeners and full resettlement action plans for the
sand miners will be developed. The details on these plans are
consolidated in the separate summary on the Resettlement Action
Plans for this project.
The project has the potential of breaking social and cultural
ties that characterize the populations in the area of the
project. These ties have guided the populations in their economic
and social activities, including sand collection, market
gardening, harvest festivals etc. The break will be more serious
if the population, due to the involuntary relocation, are not
relocated to the same new locations and will no longer have their
financial support systems, a shared culture etc.
Positive impacts:
National economy and local economy
The most significant potential impact of the project is expected
in the operation phase, during which the socio-economic benefits
will contribute towards improving the national and local
economies. The Cross River State and the city of Calabar will
have supplemental revenues with the injection of the financing
for the realization of the proposed projects.
The employment mass will have important fiscal effects. There
will be an increase in taxes due to the increase in revenues by
each person directly or indirectly involved in the terminal
activities.
Maritime services will be improved. The increase in revenues and
incomes for the state and the concerned institutions will enable
them to have additional financial resources to enhance existing
infrastructure and services and also to realize other projects or
initiatives which would contribute to the economic development of
the State.
Construction and operation of the terminal will make room for new
companies and commercial activities. This emergence will be
accompanied by a great demand for staff to support their
activities. There will be direct and indirect job opportunities
during the construction phase and the operational phase. Small
and medium enterprises and large enterprises will be created to
respond to the services and needs of the terminal. The additional
incomes and salaries will benefit the national and local
economies.
Job creation

The project prioritizes local recruitment. The recruitment of
youths and women is also considered. Certain parts of the
construction works will experience a need to employ local
businesses and their staff, and this will require a considerable
labour force. As skilled workers are available in large numbers
in Calabar, most of these will be recruited on site. The project
will result in the creation of direct employment opportunities
(2,500 persons) and indirect employment opportunities (4,500 -
5,000 persons) during the construction phase. There will be
permanent employment opportunities at the terminal (1,000
persons). Several associated and secondary jobs will also be
required for such large projects that are carried out by such a
large staff complement. Indirect employment opportunities (6,500
- 9,000 persons) will be created during the construction phase
period.

5.0 Project Investment Cost/Concept of Financial
Structure
The estimated proposed project investment cost amounting to
US$2.3Billion will be used for the economic and financial return
analysis including the investment options.
5.1 Concept of Financial Structure for the Deep Sea Port,
Super Highway and Fully Mechanized Farming
DEEP SEA PORT LONG TERM
DEVELOPMENT PROJECT COST
US$1.3bILLION
PORT FACILITIES
US$900MILLION
TERMINAL FACILITIES
US$400MILLION
TERMINAL FACILITIES &
EQUIPMENTS
STRATEGIC PORT
FACILITIES
NON- STRATEGIC PORT
FACILITIES
PRIVATE PUBLIC PARTNERSHIP
(PPP)
PRIVATE INVESTORS
PRIVATE OPERATORS
PRIVATE OPERATORS
BUILT OPERATE & TRANSFER
(BOT)
CONSTRUCTION OF 260KM SUPER
HIGHWAY WITH 6 LANE AND 46
OVER HEAD BRIDGES PROJECT
COST US$700MILLION
FULLY MECHANIZED FARMING
PLANTS/EQUIPMENTS
PROJECT US$300MILLION

6.0 Capital and Operating Cost Estimates
Preliminary cost estimates have been made for the Capital and
Annual Operating costs of the Deep Sea Port facility. Detailed
estimates are presented (in United State Dollars) in Tables 2 and
3 respectively below.
These estimates are intended for initial planning purposes only
and will need to be refined as the preferred design of the port
facilities is selected. .
6.1 Summary
The development of an Integrated Port Facility within the harbor
area of Calabar Deep Sea Port is considered technically feasible.
A number of options are available with respect to the type of
marine structure that is proposed for the berth itself. For this
assessment, and specifically in development of project cost, a
caisson structure has been proposed as a viable option, but it is
noted that a more cost effective design may be presented at
future stages of project development.
The next phase of the project would be to progress all aspects of
planning and facilities design to a feasibility level (or even to
a detailed design level) of assessment, which in turn will
provide a higher level of confidence in the capital and operating
cost estimates for the project.
Table 2 Calabar Deep Sea Port Facilities:
Base Capital Estimate and Total Capital Estimate
Item Unit Qty Unit Cost Cost in $
Deepwater Berth Capital Estimate:
Berth Structure
Storage Yard
Storage Shed
Operations Bldg & furnishings
Site Utilities
Road Access
"Canoe Passage" Bridge
Land Pipeline upgrade
Oil Transfer Arm
Safety and oil spill gear
Subtotal
Lump Sum
M2
M2
M2
LS
Linear metre
(LM)
M2
L/M
LS
LS
20,000
700
100
1,600
800
1,800
75
750
750
850
2,500
750
$20,000,000
1,500,000
525,000
75,000
2,000,000
1,360,000
2,000,000
1,350,000
1,750,000
1,500,000
$30,560,000
Deepwater Berth Equipment Capital Estimate
Mobile Crane (150 t capacity) LS 1 1,500,000 $1,500,000

Container Top Lift Truck (40 t Capacity)
GC Handling Fork Lift Truck (12t)
GC Handling Fork Lift Truck (5t)
Container Fork Lift Truck (3t)
Cargo Handling Gear (slings, ropes, shackles etc.)
Subtotal
Deepwater Berth Total Capital Estimate
LS
LS
LS
LS
LS
1
1
1
2
500,000
170,000
85,000
60,000
500,000
170,000
85,000
120,000
100,000
$2,475,000
$33,035,000
Small Craft Harbour Capital Estimate
Road Access
Causeway/Breakwater
Boat Mooring Floats
Float Piling per pile
Access Ramp
Storage Areas
Fuel day tanks and supply lines L/S
Small Craft Harbour Total Capital Estimate Integrated Port
Base Capital Estimate
L/M
L/M
M2
per pile
M2
M2
L/S
250
275
700
16
90
10,800
850
4,000
300
7,500
450
50
$212,500
1,100,000
210,000
120,000
40,500
540,000
200,000
$2,423,000
$35,458,000
Port Facility: Base Capital, Environmental, Engineering and
Contingency
Base Capital Cost
Environmental assessment/regulatory approvals (@5 % of Capex)
Engineering (@ 6% of Capex)
Contingency (@20% of Capex)
Total Deep Sea Facility
$33,035,000
1,651,750
1,982,100
7,003,420
$43,672,270
Small Craft Facility: Base Capital, Environmental, Engineering
and Contingency
Base Capital Cost
Environmental assessment/regulatory approvals (@5 % of Capex)
Engineering (@ 6% of Capex)
Contingency (@20% of Capex)
Total Small Craft Facility
$2,423,000
121,150
145,380
513,676
$3,203,20
6
Integrated Port Total Capital Estimate, with
Environmental, Engineering and Contingency $46,875,476
Note- all costs are order of magnitude estimates only and will be refined at the final engineering stage

Table 3 Estimated Annual Operating Cost
Item General Cargo/
Containers
Oil Products Fish
Products
Total
Projected Annual Cargo Volume (metric tonnes)
Terminal Operating Components
Estimated. cargo transfer rate (metric tonnes/berth hr)
Estimated Ship Discharge Time (hours/annum)
Operational Efficiency (working hours/available hours)
Estimated Effective Ship Discharge Time (hours/annum)
Estimated Effective Ship Discharge Time (days/annum)
On-site Manpower requirements per shift (number)
Estimated cost per hour per man & equipment (dollars per
hour)
Estimated man & equipment hours per annum
Estimated operating costs per annum
10,000
22
455
0.83
545.45
22.73
14
85
7,636
649,091
43,000
350
123
0.92
134.03
5.58
4
75
536
40,208
8,400
30
280
0.83
336.00
14.00
6
85
2,016
171,360
61,400
$860,659
Other Terminal Costs
Terminal Facility Infrastructure Maintenance*
Terminal Facility Equipment Maintenance
Insurance
Overhead & Management 1
Total Other Terminal Costs
Capital Estimate
40,553,770
3,118,500
43,672,270
43,672,270
% of Cap. Est./yr
0.75%
2.50%
1.00%
0.25%
304,153
77,963
436,723
109,181
$928,019
Base Estimated Annual Deep sea Facility Operations Cost
Contingency (at 20%)
$1,788,678
$357,736
Estimated Annual Deep Sea Facility Operations Cost $2,146,41
3
*Note- include Capital estimate of 33,035,000 plus contingency
Note- all costs are order of magnitude estimates only and will be refined at the final engineering stage
7.0 Benefits of Deep Sea Port Facilities
7.1 Direct Benefits:
7.1.1 Cost Savings
Construction of deepwater sea port facilities at Calabar will
have a major impact in the State while detailed estimates of
costs and potential cost savings as a key element of feasibility
studies, it is possible to provide an initial estimate of the
cost savings to these three user groups: general cargo
vessels/containers, oil products and fish products using the data
outlined above in this section:
7.2 General cargo vessels:

For general cargo vessels, current ship days spent in port are
calculated from the recent figures on average days in port, 4.1
days, and the average number of cargo vessels, 17 vessels
annually. Overall, general cargo ships spend 70 days in port
annually. It is estimated that with modern port facilities
allowing for unloading through all phases of the tide cycle,
reduced number of time handling cargo, a reduced level of cargo
damage, and increased use of containerization, this could be
reduced by almost 80%, to 15 days annually. In addition, general
cargo vessels would save on the costs of lighter age (barging)
currently required transporting cargo to the beach.
7.3 Petroleum Products Vessels:
Current annual ship days in port are 16 (an average of 4 vessels
per year requiring 3.9 days’ average for transferring products).
It is estimated that through reduced transfer time as a result of
more efficient procedures and reduced risk, this could be reduced
by a factor of about 60%, to 6 days annually.
7.4 Fisheries Vessels:
Currently, fisheries vessels are travelling to ports in
Newfoundland for unloading product resupply and crew change,
which requires from 8 to 12 days for the return trip to port and
back to the fishing grounds, depending on the location of the
port. If an average of 10 days is used as the current number of
days required, this could be replaced by a round trip of 4 days
for the projected minimum of 8 fisheries vessels visiting a port
at Iqaluit an average of 3 times per season in the future.
The results would be very significant cost savings for fisheries
vessels, increased fishing time and greater volume of catch where
quotas are not currently being filled, and vastly increased
visitation to Deep Sea Port by fisheries vessels (up from an
average of less than 1 visit per year).
The initial estimate of cost savings for these three user groups,
based on low and high estimates of operating costs per day for
vessels, is presented on the following page. The costs estimates
are calculated in real terms, that is, inflation has not been
factored in at this point.
This initial estimate of costs savings suggests that there could
potentially be a savings to these user groups of between $3.5 and
$4.9 million annually. When this figure is compared to the
project annual operating costs of port facilities, the indication
is that there will be a reasonable potential for charging a level
of user fees that will cover operating costs and provide for a
viable operation, as well as a potential for reducing cargo and
petroleum transportation costs. This would be a significant

benefit for Nunavut, which has the highest cost of living of any
jurisdiction in Canada. This does not take into account at this
point additional user fees to be obtained from other user groups.
Estimated Cost Savings to General Cargo, Petroleum
Products, and Fisheries Users from Construction of
Deepwater Port Facilities
Item General Cargo Oil Fish Total
Low
Range
High
Range
Low
Range
High
Range
Low
Range
High
Range
Low
Range
High
Range
Current Annual Ship Days in
Port or Transit
Forecast Annual Ship Days at
Berth or Transit
Variance in Annual Port/Berth
time or Transit
Estimated Cost per Ship day
Estimated Annual Ship Cost
Savings
Estimated Lighter age cost per
day
Estimated Lighter age cost per
annum
70
12
57.7
25,000
1,442,500
10,000
697,000
70
12
57.7
35,000
2,019,500
15,000
1,045,500
16
6
9.6
35,000
336,000
16
6
9.6
45,000
432,000
240
96
144
7,000
1,008,000
240
96
144
10,000
1,440,000 2,786,500
10,000
697,000
3,891,500
15,000
1,045,500
Total Annual Estimated
Cost Savings
2,139,5
00
3,065,0
00
336,0
00
432,0
00
1,008,0
00
1,440,0
00
3,483,5
00
4,937,0
00
8.0 Project Phases
Eight project planning phases are outlined in the main report to
provide general guidance and timing for the overall Calabar
Deepwater Port Project.
Funding for this project should occur in stages to correspond
with the project planning phases, which allows for effective cash
management and gives maximum flexibility as port concepts evolve.
The flowing planning phases and schedule for the project are
described in detail in the main report:
 Initial Project Planning/Scoping
 Consultation (Throughout the planning project)
 Deep Sea Port Plan and Feasibility Engineering
 Baseline Programs
 Final Engineering and Project Design
 Environmental Assessment and Regulatory Approvals

 Construction
 Operation and Monitoring
9.0 Project Incentive, Security/Backing
The Cross River State Government, as part of its equity
contribution to the project shall: -
• Provide the land with appurtenances in the selected
communities for the execution of these projects.
• Provide adequate security of persons and properties for each
allocated land where construction, deep sea port and
planting shall be carried out.
• Ensure the continuous stability and provide an enabling
environment to function effectively in the host communities.
• Secure/grant necessary approvals and permits that will lead
to the commencement of the proposed projects.
• Ensure that the relevant people in the host communities
execute all the necessary land documents needed for the
smooth operation of these projects.
10.0 Project Investment Opportunities
 Deep Sea Port Development,
 Bonded Storage Warehouses,
 Logistic Companies,
 Service Companies,
 Airstrip Development,
 Helipad Development,
 Refineries and Petrochemical Companies,
 Machines tools and Equipment Fabrication Companies,
 Export Oriented Companies

11.0 Financial Projections
11.1 Key Assumptions
Item Assumption
Expense base 2015
Business days per week 7 days
Working days per month 30 days
Capital expenditure (CAPEX) $2.3Billion United State Dollars
Professional/Consultancy fees, Bank
Mgt/Processing fee and Financial Charges $126.5Million United State Dollars
Security Assets of the business will be used as collateral
Interest rate 3%
Period of Debt 10 Years
Expected yearly growth rate in revenue 10%
Inflation rate 6.5%
Tax Rate 30%
Depreciation 10%
Moratorium Period 2 Years
Tolls Gates: three in Number
Average number of Big Thriller per day: 7,000 2 trips per day @ N500.00 per toll gate fee
Average number of truck per day: 5,000 2 trips per day @ N300.00 per toll gate fee
Average number of Buses per day: 10,500
Average number of Car per day: 10,000
2 trips per day @ N200.00 per toll gate fee
2 trips per day @ N100.00 per toll gate fee
Exchange Rate Applied $1:N198
Monthly/Yearly Revenue on Toll Gate Fee
Toll Gate Per Day/week Per Month Per Year
Average number of Big Thriller per day: 7,000 x 3 Toll Gates A N147,000,000 N588,000,000 N7.056,000,000
Average number of truck per day: 5,000 x 3 Toll Gates B 63,000,000 252,000,000 3,024,000,000
Average number of Buses per day: 10,500 x 3 Toll Gates C 88,200,000 352,800,000 4,233,600,000
Average number of Motorists per day: 10,000 x 3 Toll Gates D 42,000,000 168,000,000 2,016,000,000
- - -

Total Monthly/Yearly Revenue on Toll Gate Fee N340,200,000 N1,360,800,000 N16,329,600,000
Assumption of Revenue on Containers Clearing
Year 1 DESCRIPTION
PROJECTED No OF
CONTAINERS YEARLY CLEARING CHARGES TOTAL
20 FT 1,500,000 N24,000 N36,000,000,000
40FT 1,000,000 N40,000 40,000,000,000
Total Revenue Year 1 N76,000,000,000
Year 2
20 FT 1,750,000 N24,000 N42,000,000,000
40FT 1,250,000 N40,000 50,000,000,000
Year 3
20 FT 2,000,000 N24,000 N48,000,000,000
40FT 1,500,000 N40,000 60,000,000,000
Year 4
20 FT 2,250,000 N24,000 N54,000,000,000
40FT 1,750,000 N40,000 70,000,000,000
Year 5
20 FT 2,500,000 N24,000 N60,000,000,000
40FT 2,000,000 N40,000 80,000,000,000
Year 6
20 FT 2,750,000 N24,000 N66,000,000,000
40FT 2,250,000 N40,000 90,000,000,000
Year 7

20 FT 3,000,000 N24,000 N72,000,000,000
40FT 2,500,000 N40,000 100,000,000,000
Year 8
20 FT 3,250,000 N24,000 N78,000,000,000
40FT 2,750,000 N40,000 110,000,000,000
Year 9
20 FT 3,500,000 N24,000 N84,000,000,000
40FT 3,000,000 N40,000 120,000,000,000
Year 10
20 FT 3,750,000 N24,000 N90,000,000,000
40FT 3,250,000 N40,000 130,000,000,000
12.0 Economic and Financial Viability
The critical issues in port planning, development and management
are the ability of a port to conveniently receive and effectively
service ships calling at the port at the least cost and in the
shortest time.
Preferred ports worldwide that distinguish themselves with their
high competitive profiles are invariable ports with:-
 Specialized/wide berths;
 Berthing and access channel depths of at least 15m;
 Secure warehouses;
 Spacious container yards;
 Specialized loading/offloading gantry cranes;
 Adequate transportation infrastructure which ensure
convenient movement of goods into and from the port zone;
 Efficient port operating systems handled by proactive port
management.
Flowing from the prevailing conditions above, there is a
compelling need for a deep sea port and FTZ as planned, on the
western flank of the Niger Delta. Since there is no deep sea port
along the West African Coast, a well-developed, equipped and
effectively managed deep sea port of a world-class standard,
serviced with good access roads, and properly marketed, will
inevitably become the West Africa hub port and trans-shipment
terminal serving Nigeria, the land-locked countries to the North
of Nigeria and smaller coastal countries along the West African
Coast.

Based on preliminary evaluation, the deep sea port project is an
attractive investment proposition. From the experience of
relatively small Onne Oil and Gas Free Trade Zone, a well-
planned deep sea port of 10,000 hectares; well serviced with
first class infrastructural facilities and superior quality
access roads linking interstate highways would have comparative
advantage.
13.0 Assessment of Nigerian Ports
Based on the considerations above, existing ports are not
competitive. Apart from the Lagos Port, they are all small. All
Nigeria ports have relatively shallow depths, are congested and
ill equipped, ill maintained and managed poorly.
These factors account for the poor services in the ports,
characterized by shipping delays, pilferage, lack of
competitiveness, high tariffs and long service turnaround times.
An eloquent manifestation of the non-competitiveness
/unattractiveness of Nigeria Ports is the significant and
continuing increase in the importance of Lome and Cotonou Ports
in Nigeria’s economic life.
+

Appendix 1 Ten (10) Years Projected Cash Flow Statement
Sources of Cash: Beginning Year 1
N’000
Year 2
N’000
Year 3
N’000
Year 4
N’000
Year 5
N’000
Cash on hand
N480,447,000,00
0
40,200,533,
000
99,675,667,74
9
178,545,668,41
4
277,149,501,
790
CASH INFLOW:
Investor Fund 480,447,000,000
SALES REVENUE:
DEEP SEA PORT
Terminal Handling
Charges
-
Container Clearing
Charges: 20ft & 40ft
-
76,,000,000,000 92,000,000,000 108,000,000,000 124,000,000,000 140,000,000,000
Ocean Freights Charges - 2,128,000,000 2,234,400,000 2,246,120,000 2,363,426,000 2,481,597,000
Demurrage Charges - 500,000,000 525,000,000 551,250,000 578,812,500 607,753,000
Landing,
Parking/Handling
Charges
-
1,148,000,000 1,176,700,000 1,206,117,500 1,236,270,000 1,267,177,000
Jetty/Maritime Services - 1,395,000,000 1,429,875,000 1,465,622,000 1,502,263,000 1,539,820,000
Car Park - 146,000,000 148,200,000 150,423,000 152,679,000 154,969,000
Speed Boat 30 Seaters
Marine Transportation
- 195,000,000 198,900,000 202,878,000 206,935,000 211,074,000
Vessel Berthing Length in
Metre
- 1,182,000,000 1,217,460,000 1,253,984,000 1,291,604,000 1,330,352,000
Warehouse Marine
Cargoes Handling
Charges
-
1,741,000,000 1,784,525,000 1,829,138,000 1,874,866,000 1,921,738,000
30-50 Metric Tons Fork
Lifting Crane
-
,572,000,000 586,300,000 600,958,000 615,982,000 631,382,000
Total Inflow in Naira
(N)
480,447,000,000 85,007,000,000 101,301,360,000 117,506,490,500 133,822,837,500 150,145,862,0
00
Total Inflow in Dollar
($)
$2,426,500,000 $431,507,614 $511,623,030 $593,467,124 $675,872,917 $758,312,434

SALES REVENUE:
TOLL GATE
Average number of Big
Thriller per day: 7,000 x 3
Toll Gates N7.056,000,000 7,761,600,000 8,537,760,000 9,391,536,000 10,330,689,600
Average number of truck
per day: 5,000 x 3
Toll Gates 3,024,000,000 3,326,400,000 3,659,040,000 4,024,944,000 4,427,438,400
Average number of Buses
per day: 10,500 x 3
Toll Gates 4,233,600,000 4,656,960,000 5,122,656,000 5,634,921,600 6,198,413,760
Average number of
Motorists per day: 10,000
x 3 Toll Gates 2,016,000,000 2,217,600,000 2,439,360,000 2,683,296,000 2,951,625,600
-
Total Sales Revenue
Toll/Gate in Naira (N) N16,329,600,000
N17,962,560,0
00N19,758,816,000
N21,734,697,60
0
N23,908,167,
360
Total Sales Revenue
Toll/Gate in Dollar ($)
$82,472,7
27
$90,720,00
0
$99,792,00
0
$109,771,20
0
$120,748
,320
SALES REVENUE:
FARMS
Sales of Grain 200,000,000 220,000,000 242,000,000 266,200,000 292,820,000
Livestock 250,000,000 275,000,000 302,500,000 332,750,000 366,025,000
Products 150,000,000 165,000,000 181,500,000 199,650,000 219,615,000
Other Sources of Farm
Income
150,000,000 165,000,000 181,500,000 199,650,000 219,615,000
Total Sales Revenue
Farm in Naira (N)
N750,000,0
00
N825,000,00
0
N907,500
,000
N998,250,
000
N1,098,075
,000
Total Sales Revenue
Farm in Dollar ($)
$3,787,8
79
$4,166,6
67
$4,583,3
33
$5,041,6
67
$5,545
,833
Net Sales Revenue in
Naira (N)
N102,086,600,
000
N120,088,920,
000
N138,172,806,
500
N156,555,785,10
0
175,152,104,
360
Dollar ($)
$515,588,8
89
$606,509,69
7
$697,842,4
57
$790,685,78
3
$884,606,
588
CASH OUTFLOW:
Road Construction Cost 138,600,000,000 - - - - -
Deep Sea Port
Infrastructure
Development Cost 257,400,000,000
- - - - -
Cost of Fully Mechanized
Farm Plants & Equipments
59,400,000,000
- - - - -
Professional
fees/Consultancy fees
2.50% 11,385,000,000
- - - - -
Bank
Management/Processing
fees 1.50% 6,831,000,000
- - - - -
Financial Charges 1.50% 6,831,000,000 - - - - -

Investors Repayment - 48,044,700,000 48,044,700,000 48,044,700,000 48,044,700,000 48,044,700,000
Interest on Investment - 13,841,367,000 12,569,085,251 11,258,105,835 9,907,251,724 8,515,310,097
Total Outflow 480,447,000,000 61,886,067,000 60,613,785,251 59,302,805,835 57,951,951,724 56,560,010,09
7
Net Cash Flow 0 N40,200,533,000 N59,475,134,749 N78,870,000,665 N98,603,833,376 118,592,094,2
63
Balance B/Fwd 0 N40,200,533,000 N40,200,533,000 N99,675,667,749 178,545,668,414 277,149,501,7
90
Cumulative Balance
C/Fwd in Naira (N)
0 40,200,533,00
0
99,675,667,749 178,545,668,414 277,149,501,790 395,741,596,0
53
Cumulative Balance
C/Fwd in Dollar ($)
0 $203,032,99
5
$503,412,463 $901,745,800 $1,399,744,959 $1,998,694,9
30
Sources of Cash: Beginning Year 6
N’000
Year 7
N’000
Year 8
N’000
Year 9
N’000
Year 10
N’000
Cash on hand 277,149,501,79
0
395,741,596,0
53
534,577,346,3
25
693,960,042,92
7
874,219,541,21
7
1,075,714,854,
312
CASH INFLOW:
Investor Fund
SALES REVENUE: DEEP
SEA PORT
Terminal Handling
Charges
Container Clearing
Charges: 20ft & 40ft 140,000,000,000 156,000,000,000 172,000,000,000 188,000,000,000 204,000,000,000 220,000,000,000
Ocean Freights Charges 2,481,597,000 2,605,677,000 2,735,961,000 2,872,759,000 3.016,397,000 3,167,217,000
Demurrage Charges 607,753,000 622,947,000 638,521,000 654,484,000 670,846,000 687,617,000
Landing,
Parking/Handling Charges
1,267,177,000 1,298,856,000 1,331,327,000 1,364,610,000 1,398,725,000 1,433,693,000
Jetty/Maritime Services 1,539,820,000 1,578,315,000 1,617,773,000 1,658,200,000 1,699,655,000 1,742,146,000
Car Park 154,969,000 157,294,000 159,653,000 162,048,000 164,479,000 166,946,000
Speed Boat 30 Seaters
Marine Transportation
211,074,000 215,295,000 219,600,000 223,992,000 228,472,000 233,041,000
Vessel Berthing Length in
Metre
1,330,352,000 1,370,263,000 1,411,371,000 1,453,712,000 1,497,323,000 1,542,243,000
Warehouse Marine
Cargoes Handling Charges 1,921,738,000 1,969,781,000 2,019,026,000 2,069,502,000 2,121,240,000 2,174,271,000
30-50 Metric Tons Fork
Lifting Crane 631,382,000 647,167,000 663,346,000 679,930,000 696,928,000 714,351,000

Total Inflow in Naira
(N)
150,145,862,000 166,465,595,000 182,796,578,000 199,139,237,000 215,494,065,000 231,861,525,00
0
Total Inflow in Dollar
($)
$758,312,434 $840,735,328 $923,215,040 $1,005,753,722 $1,088,353,864 $1,171,017,803
SALES REVENUE:
TOLL GATE
Average number of Big
Thriller per day: 7,000 x 3
Toll Gates 10,330,689,600 11,363,759,000 12,500,135,000 13,750,148,000 15,125,163,000 16,637,679,000
Average number of truck
per day: 5,000 x 3 Toll
Gates 4,427,438,400 4,870,182,000 5,357,200,000 5,892,920,000 6,482,212,000 7,130,433,000
Average number of Buses
per day:10,500 x 3 Toll
Gates 6,198,413,760 6,818,255,000 7,500,081,000 8,250,089,000 9.075,098,000 9,982,608,000
Average number of
Motorists per day:10,000 x
3 Toll Gates 2,951,625,600 3,246,788,000 3,571,467,000 3,928,614,000 4,321,475,000 4,753,623,000
Total Sales Revenue
Toll/Gate in Naira (N)
N23,908,167,36
0 N26,298,984,000
N28,928,883,00
0
N31,821,771,00
0
N35,003,948,00
0
N38,504,343,
000
Total Sales Revenue
Toll/Gate in Dollar ($)
$120,748,3
20
$132,823,1
52
$146,105,47
0
$160,716,0
15
$176,787,61
6
$194,466,
379
SALES REVENUE:
FARMS
Sales of Grain 292,820,000 322,102,000 354,312,000 389,743,000 428,717,000 471,589,000
Livestock 366,025,000 402,627,500 442,890,000 487,179,000 535,897,000 589,487,000
Products 219,615,000 241,577,000 265,735,000 292,308,000 321,539,000 353,693,000
Other Sources of Farm
Income
219,615,000 230,596,000 242,126,000 254,232,000 266,944,000 280,291,000
Total Sales Revenue
Farm in Naira (N)
N1,098,075,0
00
N1,196,902,50
0
N1,305,063,00
0
N1,423,462,0
00
N1,553,097,00
0
N1,695,060,
000
Total Sales Revenue
Farm in Dollar ($)
$5,545,8
33
$6,044,9
62
$6,591,2
27
$7,189,2
02
$7,843,9
24
$8,56
0,909
Naira (N)
175,152,104,36
0
193,961,481,5
00
213,030,524,0
00
232,384,47
0,000
252,051,110,0
00
272,060,928,
000
Dollar ($)
$884,606,58
8
$979,603,4
42
$1,075,911,73
7
$1,173,658,9
39
$1,272,985,40
4
$1,374,045,
091
CASH OUTFLOW:
Road Construction Cost - - - - -
Deep Sea Port
Infrastructure
Development Cost
- - - - -
Cost of Fully Mechanized
Farm Plants & Equipments
- - - - -
Professional
fees/Consultancy fees
2.50%
- - - - -
Bank
Management/Processing
fees 1.50%
- - - - -
Financial Charges 1.50% - - - - -

Investors Repayment 48,044,700,000 48,044,700,000 48,044,700,000 48,044,700,000 48,044,700,000 48,044,700,000
Interest on Investment 8,515,310,097 7,081,031,228 5,603,127,398 4,080,271,710 2,511,096,905 894,194,150
Total Outflow 56,560,010,097 55,125,731,228 53,647,827,398 52,124,971,710 50,555,796,905 48,938,894,150
Net Cash Flow 118,592,094,263 138,835,750,272 159,382,696,602 180,259,498,290 201,495,313,095 223,122,033,85
0
Balance B/Fwd 277,149,501,790 395,741,596,053 534,577,346,325 693,960,042,927 874,219,541,217 1,075,714,854,3
12
Cumulative Balance
C/Fwd in Naira (N)
395,741,596,053 534,577,346,325 693,960,042,927 874,219,541,217 1,075,714,854,31
2
1,298,836,888,1
62
Cumulative Balance
C/Fwd in Dollar ($)
$1,998,694,930 $2,699,885,588 $3,504,848,702 $4,415,250,208 $5,432,903,305 $6,559,782,263
14.0 Conclusion
In this study an examination has been conducted of various
factors that must be considered before a deepwater sea port
facility at Calabar can be constructed and it has been determined
that such an endeavor is indeed both technically feasible and
economically desirable. Preliminary estimates of costs for each
of the phases necessary to bring the construction of deep sea
port facilities to fruition have been identified and range of
cost benefits also initially assessed. To complete this project,
considerable effort will be required and it will take time.
Perhaps the most ambitious estimate for completion of this
project is two years, but more realistically three years from
this point before the first ship could be berthed at the new
wharf.
This report notes that there are a number of options available
with respect to the type of marine structure for the berth
itself. Nevertheless, in order to develop some preliminary cost
estimates it was necessary to choose one of these and a caisson
structure has been proposed as a viable option. Notwithstanding
this initial choice, more cost effective designs may be presented
at future stages of project development.

Appendix: 2 Super Highway

Appendix: 3 Deep Sea Port

Appendix 4 Fully Mechanized Farming

Executive Summary 2015 - Deep Sea Port by Broad Spectrum Ind Serv Ltd (Autosaved)

Recommended

Recommended

More Related Content

What's hot

What's hot (13)

Similar to Executive Summary 2015 - Deep Sea Port by Broad Spectrum Ind Serv Ltd (Autosaved)

Similar to Executive Summary 2015 - Deep Sea Port by Broad Spectrum Ind Serv Ltd (Autosaved) (20)

Executive Summary 2015 - Deep Sea Port by Broad Spectrum Ind Serv Ltd (Autosaved)