Analysis of the Economic Viability of Inland Dry Ports for Decongesting Lagos Port Complex

Inland dry ports, also known as inland container depots, are increasingly proposed as a strategic infrastructure solution for reducing congestion at coastal port complexes by relocating cargo dwell and clearance activities to inland locations. This study analyses the economic viability of inland dry ports as a mechanism for decongesting the Lagos Port Complex. A professional feasibility analysis design was employed, drawing on traffic and throughput data from the Nigerian Ports Authority, rail and road freight cost structures, and structured interviews with 25 shipping agents, freight forwarders, and infrastructure investment professionals. The study evaluates the business case for dry port development at three candidate locations: Ibadan, Kaduna, and Kano, assessing cargo origin-destination patterns, rail connectivity potential, land availability, and construction cost estimates. Findings show that a significant proportion of Lagos import cargo originates from or is destined for the North West and South West hinterlands, supporting viable cargo volumes for dry port operations at Ibadan and Kano. However, economic viability is contingent on rail freight services operating at competitive tariffs and acceptable reliability levels, which current Nigerian Railway Corporation services do not yet provide. The study recommends phased dry port development beginning with the Ibadan corridor, aligned with the operationalisation of the Lagos-Ibadan standard gauge railway, alongside enabling policy frameworks for private dry port operators. Keywords: inland dry port, port congestion, Lagos, rail freight, container logistics.