Signs Conakry Port Development Agreement (6808B)
February 23 2011 - 2:00AM
UK Regulatory
TIDMAGTA
RNS Number : 6808B
Agriterra Ltd
23 February 2011
Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector:
Agriculture
23 February 2011
Agriterra Ltd ('Agriterra' or 'the Company')
Signs Conakry Port Development Agreement
Agriterra Ltd, the AIM listed company focussed on the
agricultural sector in central and southern Africa, is pleased to
announce that its wholly owned subsidiary, Agriterra Guinee SA
('AGSA') has signed a Concession Agreement with Port Autonome de
Conakry (the Autonomous Port of Conakry, 'PAC') for the
construction and operation of a 30 hectare industrial and
commercial terminal in the East Zone of the Port of Conakry in
Guinea ('the Port'). The 20 year Concession Agreement ('the
Concession Agreement'), which may be renewed by agreement between
the parties after its initial term, is part of the Company's
strategy of expanding its operational activities within the
agricultural and logistics business in Africa.
Under the terms of the Concession Agreement, AGSA has been
granted a concession on 30 hectares in the East Zone of the port,
for the construction and operation of a commercial and industrial
terminal. This new terminal will include:
-- a 300 metre long dock; and
-- a 30 hectare platform, to be built by back-fill, to be used
as a base for the operations of the terminal and associated
activities.
It is anticipated that the terminal, when complete, will contain
grain storage silos, a processing unit, a preparation unit, a
logistics depot, a fuel depot, freight hangars and food storage
silos.
The Board and management of Agriterra have an in-depth
understanding of logistics and agriculture in Africa which will be
utilised throughout the development process. Leading German
international port consulting engineers and architects Inros
Lackner AG has been engaged to assist with the project and is
presently in the process of conducting an implementation and
development study. It is envisaged that a construction partner and
appropriate project financing will be secured to complete the
project.
Conakry is an important West African hub and a gateway for trade
into countries including Mali, Niger and Burkina Faso. Agricultural
produce is transported through the port as well as bulk commodities
including iron ore and bauxite. The expansion of the port is
intended to satisfy the increased demand for transportation
capacity needed due to the expanding regional economy.
Agriterra Director Andrew Groves said, "This is a fantastic
complementary opportunity for Agriterra to expand its activities
and utilise its African focussed agricultural, logistics and
project management experience to capitalise on the soft and hard
commodity resource boom in West Africa. There remain huge global
concerns regarding food security which are prompting significant
investment in West African agriculture, particularly in palm oil,
cocoa, rice, maize and livestock. This, in tandem with the dramatic
increase in the development of mineral resources, particularly iron
ore and bauxite, means there is a crucial need to expand the export
capacity of the Port of Conakry, which is recognised as a gateway
and staging post to interior West African countries including Mali,
Burkina Faso and Niger. Guinea has recently concluded a peaceful
democratic election and, as a result, is building its profile as an
investment destination. The expansion of the Port will aid the
development of Guinea as a regional hub and we plan to work with
international partners to ensure that the development is delivered
to the benefit of all interested parties.
"We will continue to develop our Mozambican grain processing and
cattle ranching businesses which are growing rapidly and gaining
market share in the region. This opportunity in Guinea provides us
with access into the complementary agricultural logistics sector,
which will provide us with additional traction as we build
Agriterra as a vertically integrated agricultural and associated
logistics group across sub-Saharan Africa."
The Company will release an announcement regarding progress of
this project in due course once there is further information.
** ENDS **
For further information please visit www.agriterra-ltd.com or
contact:
Andrew Groves Agriterra Ltd Tel: +44 (0) 20 7408
9200
Jonathan Wright Seymour Pierce Ltd Tel: +44 (0) 20 7107
8000
David Foreman Seymour Pierce Ltd Tel: +44 (0) 20 7107
8000
Robin Henshall Matrix Corporate Capital Tel: +44 (0) 20 3206
LLP 7000
Nick Stone Matrix Corporate Capital Tel: +44 (0) 20 3206
LLP 7000
Hugo de Salis St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
Susie Geliher St Brides Media & Finance Tel: +44 (0) 20 7236
Ltd 1177
This information is provided by RNS
The company news service from the London Stock Exchange
END
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