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Lilypond Container Depot closes operations

By on August 4, 2013

The management of Lilypond Container Depot Nigeria Limited has announced its inability to continue operating its container depot in Ijora, Lagos, owing to poor patronage.

A statement by the organisation on Friday stated that the Nigerian Ports Authority had been notified of the development.

It quoted the Manager, Lilypond, Mr. Tristram Denyer, as saying the management’s continuous efforts aimed at stabilising the business over the last few months did not yield the desired results.

The firm had two months ago said that it lost N500m in the past one year due to inactivity at the terminal.

Denyer said on Friday said the decision to stop operation was a difficult one and it “followed a concerted effort by Lilypond management and staff to develop a viable new and sustainable long term business model over the last eight 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,” he said.

He explained that discussions with NPA over the period for transition to another operator would commence shortly, adding that he expected this was unlikely to exceed six months.

“The management of Lilypond would cooperate with the NPA to ensure the successful handover to a new concessionaire should, as anticipated, NPA decide to tender the Lilypond concession,” he added.

The statement added that all its workers, customers and stakeholders had been informed of the company’s decision.

 

 
[Punch]