Private Infrastructure Development Group (PIDG) company, the Emerging Africa Infrastructure Fund (EAIF) has invested US$ 15 million in local currency capital market bond issues by Senegal’s Port Autonome de Dakar (PAD), the owner of the Port of Dakar. The bond raised over US$ 107million. The issue marks the start of the process of relocating the capital city’s port and its operations to a new greenfield site.
The proceeds of the PAD bond will help fund phases one, two, and three of the move of the port of Dakar from the centre of the city to a deepwater port location 35 km by sea and 70 km by road from the existing site. The port will be part of the new special economic zone that includes Dakar’s international airport, which opened in 2017. New and upgraded road and rail links will connect the port and airport to Dakar and into the regional transport network. The seven-year bonds will have a coupon rate of 6.60%.
The current port at Dakar has evolved over the past 150 years and is now reaching the end of its productive life as global shipping demands deeper water, custom-built facilities for specialist cargoes and fast turnaround times. Senegal’s new port at Popinguine-Ndayane will cover an area of 1200 hectares. Offering deep water capable of taking very large ships with a draught of up to 16.5 meters, it is being purpose-built to respond to shipping market needs. Turnaround times will fall by between a half and two thirds, depending on the nature of the cargo. It will be rated a “4th generation” industrial port, meaning it will be capable of competing with the most advanced ports on the global stage. Container-based shipping is scheduled to be first to use the new facilities, followed by RoRo (roll-on, roll-off) traffic than other activities.
