Nigeria’s logistics market is projected to exceed $15 billion by 2030. The country possesses huge prospects, yet the challenge remains a lack of quality and reliable infrastructure enablers. Arno Van Der Merwe, chief executive officer of TY Logistics Park FZE, in this interview, said that logistics is one of the most strategic enablers of economic growth. He also talked about how TY Logistics Park FZE plans to meet growing market demand with world-class infrastructure built for precision, speed and compliance to serve not only the Nigerian market but also the African continent. Ndukuba Emmanuel brings the report. Excerpt:
What is your assessment of the logistics market opportunity in West Africa? Can you speak to the potential size and growth outlook for the sector?
The opportunity is enormous. West Africa is home to more than 400 million people, and Nigeria alone represents the continent’s largest consumer market. Demand for efficient logistics is growing faster than supply. Several factors are driving the steady rise in contract logistics. Logistics is one of the most strategic enablers of economic growth. With the expansion of regional manufacturing and e-commerce, companies are looking for trusted logistics partners. It is impossible to scale exports of agro-products, detergents or construction materials without reliable contract logistics providers capable of handling high-volume, compliance-heavy and time-sensitive shipments.
Demand is being fuelled by the emergence of location powerhouses shaped by both private and government investment, which are transforming the economic landscape. Lekki Free Zone and Alaro City are prime examples. With more than $15 billion in cumulative investment, the area is home to the deepest seaport in West Africa and sits at the intersection of key regional transportation networks: the Lekki-Epe Motorway, the Sagamu-Benin Motorway, the newly built Lagos-Calabar Motorway, and the 7th Axial Road. A new international airport will further transform the outlook for corporate cargo shipments.
Cross-border trade is on the rise. The Nigeria Customs Service reported a 34 per cent year-on-year increase in border revenue in early 2025, driven by surging import volumes. Cement, refined petroleum products, consumer goods and agricultural commodities are seeing growing demand from neighbouring countries and global markets.
Nigeria’s logistics market is projected to exceed $15 billion by 2030. Yet the challenge remains quality and reliability. This is the gap TY Logistics Park FZE fills: not just more warehouses, but better ones. We meet growing market demand with world-class infrastructure built for precision, speed and compliance. As the economy diversifies, our facility will support the sectors critical to growth – FMCG, pharmaceuticals, agriculture, technology and others – providing the backbone for sustainable regional trade.
The logistics industry in Nigeria today has several operators. Tell us what the vision is behind the setting up of TY Logistics Park.
TY Logistics Park FZE stands apart in three critical ways: ownership, standards, and systems. We are a Nigerian-owned company that has made a long-term commitment through full asset ownership. That stability gives clients confidence that they are partnering with a provider who is here to stay.
Our infrastructure is truly international-grade and scalable: 29,000 sqm of Grade-A Free Zone warehousing, 45,000 pallet positions, electric MHE, daylighting, and sustainability-compliant design. It is the first of its kind in West Africa.
We are systems-led. Our operation runs on a robust WMS platform with complete inventory visibility, traceability, and integration across inbound, storage, and outbound flows. This enables our clients, whether manufacturers, FMCG leaders, or regional distributors, to plug directly into a supply chain ecosystem that mirrors best practices in Dubai, Europe, or Asia.
In essence, the company brings global logistics capability locally, setting a new standard for smart, efficient, and sustainable supply chain management in West Africa.
What innovation and ideas are you bringing to the space, and how will you overcome the myriad of challenges that have plagued the sector?
We are bringing a very deliberate kind of innovation to the sector, one that tackles the root causes of the challenges logistics companies have struggled with for years. Our focus is on building the kind of infrastructure and operational systems that make reliability the norm, not the exception.
We are introducing purpose-built, compliance-ready facilities. A lot of inefficiencies in the market come from trying to scale operations inside outdated or improvised warehouses. We are building Grade-A spaces, temperature-controlled units and cross-docking facilities from day one, designed specifically for high-volume, time-sensitive and regulated cargo. This gives manufacturers, FMCG players and exporters the confidence that their goods can move consistently and at scale.
Second, we are bringing a data-driven operating model. One of the biggest pain points in the industry has been limited visibility; shipments get delayed, documentation gets stuck, and processes break down because systems don’t talk to each other. Our approach integrates digital tools for real-time inventory tracking, smart yard management, automated compliance documentation and customer performance dashboards. It means our clients get customised solutions that work seamlessly in a multi-user, multi-sector environment.
And third, we are in this for the long haul. A lot of logistics projects struggle because ownership changes, investment stops and service levels drop. The company is fully Nigerian-owned but built on global standards, and we are committed to being a long-term partner to the industries that rely on us. That stability is a real competitive advantage in a fast-growing, unpredictable market.
All of these positions at TY Logistics Park FZE, not just as another logistics development, but as a platform built to unlock efficiency, strengthen supply chains and raise the standard for what the region should expect from contract logistics.
In practical terms, who specifically was this facility built for, and how will it transform the logistics landscape across Africa?
We designed and built this logistics park for manufacturers, pharma, fashion, agriculture, FMCG brands, distributors, e-commerce players, and both local and international customers across various sectors looking to import final goods or raw materials who need reliability, efficiency, and scale.
Importers and local manufacturers in Nigeria routinely face cargo dwell times of 18–21 days at major seaports, much longer than regional peers like Ghana (5–7 days) or Cotonou (4 days). This prolonged and unpredictable wait, driven by bureaucratic, manual processes and inter-agency delays, severely disrupts inventory planning and cash flow, raising costs and undermining competitiveness. Being in the Lekki Free Zone gives our clients a real advantage: duty savings, faster customs clearance, and seamless import and export operations all from one central hub.
But our biggest value is partnership. We handle the logistics, infrastructure, and systems so our clients can focus on what really drives growth, sales, markets, and building their share across West Africa.
With the right infrastructure and technology, we can transform West Africa from a high-cost trade corridor into a globally competitive logistics hub. That’s what drives our vision at TY Logistics Park FZE to bridge infrastructure gaps, connect regional markets, and power the next phase of industrial growth for Nigeria and the continent.
What is the significance of this project to infrastructure and trade in Nigeria and West Africa?
The company is a transformational infrastructure project because it directly addresses some of the most critical bottlenecks limiting Nigeria and West Africa’s competitiveness in global trade.
First, it provides modern, reliable, and scalable logistics infrastructure at a time when most businesses struggle with inadequate warehousing, poor road networks, port congestion, and fragmented supply chains. By introducing world-class storage capacity, advanced handling equipment, and a fully digital WMS ecosystem, the park helps reduce turnaround time, logistics costs, and operational waste, key issues that have held back regional trade for decades.
Second, the Free Zone advantage positions TY Logistics Park FZE as a true trade facilitation hub, enabling smoother customs processes, duty-free storage, and efficient re-export into the wider ECOWAS region. This creates a gateway for global manufacturers, FMCG players, and e-commerce companies seeking to penetrate West Africa’s 400-million-person market.
Third, the project strengthens regional value chains by improving access to Nigerian products, supporting local manufacturing, and enhancing export competitiveness. Better logistics infrastructure means lower costs of doing business, improved product movement, and stronger supply chains, all essential for Nigeria’s diversification and AfCFTA ambitions.
You plan to commence operation soon. Tell us what informed your decision to do that, and what does the future hold for Nigeria and the West Africa region in general?
We are already operational, but the official launch will be on the 8th of December 2025. Current inefficiencies come with a price. Just a few months back, in early 2025, major shipping companies, including MSC and Hapag-Lloyd, implemented congestion surcharges of up to $450 per TEU on inbound cargo bound for Lagos and Tema. Several have rerouted vessels to avoid backlogs entirely, favouring secondary ports like Kribi (Cameroon) and San Pedro (Côte d’Ivoire). We aim to convert the fragmented and costly into coordinated and efficient. From Alaro City and the Lekki Free Zone, we are helping position Nigeria as West Africa’s logistics hub, driving trade, creating opportunity, and shaping the future of regional connectivity.
How much in trade would the project facilitate in West Africa in the coming years?
We are targeting an annual throughput of 500,000 to 1,000,000 metric tonnes within the first three years, across multiple sectors.
What volume and value of business is TY Logistics targeting over the next three years, and what strategic levers will drive that growth?
Ultimately, our goal isn’t just volume; it is leadership and setting a new benchmark for contract logistics in West Africa and making Nigeria the region’s logistics gateway.
Would you describe TY Logistics as the largest operator in the region, and what metrics support that positioning?
Yes! TY Logistics Park FZE is the largest and only free zone-based Grade-A contract logistics hub in Nigeria and West Africa.
By size, it offers 29,000 sqm of racked warehousing, 45,000 pallet capacity, and systems-led operations, metrics unmatched in the region. But it’s not just about scale; it’s about standards. We’re the first fully systems-driven, Free Zone contract logistics operator in the region, setting new benchmarks for efficiency, accuracy, and transparency.
From your knowledge in this industry so far, how has the company’s solution been an enabler in helping businesses and operators in the field achieve their purpose?
From what we’ve seen in the industry so far, TY Logistics Park FZE has become a powerful enabler for businesses because it solves the most fundamental challenges operators face across Nigeria and West Africa: inefficiency, unpredictability, and high cost.
Our integrated logistics ecosystem allows companies to focus on their core purpose: manufacturing, distribution, retail, or export, while we handle the complexity behind the scenes. By offering modern infrastructure, advanced WMS technology, Free Zone advantages, and end-to-end supply chain visibility, we give businesses the stability and structure they need to operate at a global standard.
In short, our role is to remove the friction that has historically slowed down trade in the region.
Has the company developed or operated similar facilities in other African or global markets?
Yes, our leadership team brings extensive experience from similar projects across Sub-Saharan Africa. Before this, we were instrumental in setting up an international-grade logistics facility in Kenya, the first of its kind in East Africa. We also have deep operational experience in South Africa, setting up similar operations with global 3PLs like DP World Imperial, RTT, and Supply Chain Solutions.
And unlike competitors who rent temporary spaces, we’ve invested long-term. We own the infrastructure; we have built it to global standards, and we are here to stay.
