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French, Swiss Interests Clash in Cameroon Port Deal

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 11 December 2019.

On December 11, 2019, Cameroon announced that it had settled on a local agency to manage its Doula seaport container terminal, ending a frenetic battle between French and Swiss interests.

The Port Authority of Douala (PAD) announced that RTC, a local agency, would be in charge of the terminal as a transitional measure, effective next month.

As a sweetener, traders will enjoy a 10 per cent discount on tariffs for offshore handling and haulage from January.

The decision comes in the backdrop of intense diplomatic contest between France and Switzerland to have their companies control the lucrative business at Douala, which is considered the Atlantic gateway to Central Africa.

Cameroon's president, Paul Biya, had ordered the PAD General Manager to suspend contract negotiations with Terminal Investment Limited (TIL) of Switzerland to take over terminal management from French conglomerate Bolloré Group in October.

The order coincided with the visit to Cameroon of French Minister for Europe and Foreign Affairs, Jean-Yves Le Drian, who met with President Biya and reportedly interceded for Bolloré Group.

However, the Swiss Ambassador to Cameroon, Pietro Lazzeri, held talks with President Biya just days later, discussing bilateral interests and the role of Swiss companies in Cameroon, including the Mediterranean Shipping Company (MSC) in the Port of Douala.

The PAD had floated the international tender for concession in January 2018, and after a year of evaluation, TIL was picked to renovate and manage the container terminal, with discussions on a contract for its full control from January 2020 to be completed soon.

However, the decision was met with opposition from Bolloré Group, which had managed the seaport since 2005 and had been eliminated at pre-qualification.

The concession contract award was also challenged in court, with a Douala Administrative Court ruling in favour of DIT, a joint venture between Bolloré Transport & Logistics (BTL) and APM Terminals, a member of A.P. Moller-Maersk.

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