TY Logistics Park Set To Fix Nigeria’s $1.7bn Logistics Drain

TY Park, a Logistics  company has concluded plans to improve the country’s logistics drain, in alignment with infrastructure built to global standard.

This is contained in a statement issued to newsmen on Friday in Lagos.

According to the statement, Nigeria’s logistics sector sits at a painful crossroads, rising demand driven by e-commerce and manufacturing, but broken systems that choke movement and punish both producers and consumers.

It noted that for  many businesses, the cost of transporting goods was now equal to, or greater than the cost of the goods themselves.

The statement explained that the park merged  five traditionally separate segments,  into one controlled ecosystem; Clearing and Forwarding, Contract Logistics, Route-to-Market Planning, Free Zone Operations, as well as Digital Supply Chain Visibility.

“The TY Logistics Park, a new grade-A logistics hub inside the Lekki Free Trade Zone, believes it has a model that can reverse the losses bleeding the industry”, it stated.

It noted that the park’s facilities  built to global  standard included a 100,000 sqm in Phase 1, high-grade racked environments, jointless  floors for heavy machinery and a  system-driven inventory management.

Others include energy-efficient, green-certified warehouses, 30 per cent lower water and energy consumption, as well as full repatriation rights and zero corporate taxes (free zone benefits).

“These are features largely absent in Nigeria’s traditional logistics architecture,” it stated.

According to the statement, the TY logistics park,  located at the “orbital cusp” of the Lekki Free Trade Zone, is becoming  the hub Nigeria should be.

“The park is a 12 minutes drive to the international airport, 40 minutes to Lagos, 50 minutes to Apapa and a direct  access to the Lekki Port.

“The company expects the park to move 500,000 to 1 million metric tons annually, in its early phase, with a potential to hit 2 million as the full build-out continues.

“With built predictability into  the system, the  company’s core thesis is straightforward; reduce friction and cost will fall,” the statement said.

The statement added that the park was also designed  for large enterprises  and small businesses.

“A key differentiator is the “every client matters” principle.

“Based on insights shared by the Chief Executive Officer (CEO) Arno van der Merwe, Nigeria’s logistics challenges are not episodic, they are structural.

“Underinvestment in quality logistics infrastructure,

poor intermodal links between roads, ports, and airports, port  congestion leading to clearance delays of 18 to 21 days and  Customs fragmentation are some of the bottlenecks impeding the sector’s operation.

“There is also the issue of unreliable  warehousing standards and lack of technology-driven operations

This has created one of the most expensive logistics corridors in the world, contributing to Nigeria’s over $1.7 billion annual loss,” it stated.

According to the statement, businesses can keep inventory within the free zone without paying duties upfront, paying only on consignment release. 

It noted that this  alone, the CEO, Van der Merwe noted, was a major relief for companies who currently locked up capital in upfront duties.

“A client with two pallets gets the same attention as a client with 10,000 pallets,” the statement quoted Van der Merwe.

“This positions the park as an equalizer for Nigeria’s growing SME export community, especially food, beauty, crafts and light manufacturing businesses seeking U.S., the EU, and Asian markets,” it said.

The statement noted that sectors  targeted included the  Pharma, automotive, tech Oil and Gas, chemicals and consumer goods.

It added that the park had  already begun serving parts of the Dangote Refinery and Fertilizer operations, highlighting early market confidence.

It noted that despite having led logistics operations in Kenya, South and East Africa, Van der Merwe emphasised that the ambition was anchored in Nigeria.

“We want to make this a Nigerian story. We have  invested in the assets. We are here for the long run.

“If successful, the model could reduce  logistics costs, attract  manufacturers back to Nigeria, improve export competitiveness and 

reclaim cargo currently diverted to neighbouring countries.

“It could also expand  logistics employment within Lagos and the region and strengthen  intra-African trade under AfCFTA “ it disclosed.

The statement said in a sector often described as Nigeria’s ‘hidden tax on business’, the TY Logistics Park had positioned itself as the first major attempt to modernize the backbone of the economy.