The Nation Newspaper

Category: Maritime

  • For congestion free ports

    For congestion free ports

    Over the years, congestion has been a problem at the ports. Many blame it on the undue dwell time of cargoes and uncoordinated entry of trucks, especially rickety ones, into the ports. Will things be different in 2014? Stakeholders are praying that they are, writes Assistant Editor EMEKA UGWUANYI.

     

    Congestion remains the bane of the ports. Despite efforts by the government and agencies to stem the menace, nothing seems to have been achieved.

    Investigation by The Nation revealed that to address the issue, some policies guiding ports operations should be reviewed. At the Lagos Port Complex (LPC) and the Tin Can Island Port Complex (TCIPC) in Apapa, a lot of work has to be done. The dwell time of cargoes at the ports is ridiculous when compared to other countries. In other countries, the maximum dwell time of cargoes is between three and five days but in Nigeria it is in excess of 21 days.

    The cause is that the penalty paid by importers for cargo delays at the ports is so low that they cash in on it to turn the ports into a warehouse. It was learnt that N8,100 is paid as fine on 1×20’ container for 12 days. Because of the low fine, importers abandon their cargoes at the terminals, especially if duties are high. This approach helps in building up unwanted cargoes at the ports.

    Although sometimes scanning and examination delay cargoes at the port, investigation revealed that, that cannot be for more than seven days.

    Some clearing agents also use the ports as warehouse pending the completion of their long clearing process with Customs, thereby contributing to ports congestion.

    A Customs officer told The Nation in confidence: “Many importers and agents are not worried when their containers stay long at the port terminals because storage charges are low. Terminal operators should make use of the port facilities unattractive for storage. Once those who leave containers for too long at the port are punished for doing so, the development will stop.”

    A maritime economist, Dr. Wilson Adeshina, said cheap storage rates at the terminals encourage the use of port facilities for storage. He said containers were allowed in the terminals free for the first three days of their arrival while $4.2 (N672) is charged per day for the next nine days and the charges progress to N4,400 after the first 12 days of arrival and to N6,000 per day after another nine days.

    He said: “The argument is simple. There is a proven link between the storage rate level and the dwell time at the port; the higher the storage, the lower the dwell time and vice versa. Low storage charges encourage long dwell time which may lead to port congestion,” Adeshina said.

    Investigation revealed that it costs an average of N25,000 per day to store one 20-foot equivalent unit (TEU) at a commercial warehouse outside the port environment in Apapa while the storage cost of similar container in Ikeja is about N35,000 per day.

    At Mombassa Port in Kenya, the first four days of the container arrival is storage free while a charge of $30 (N4,800) per day is applied for the next three days; Gothenberg Port, in Sweden grants free storage charge for the first three days of the container’s arrival and charges $15 for another three days; Port Elizabeth in New York/New Jersey in the United States allows the first four days of arrival as storage free and charges $136 per day subsequently. Sydney Port in Australia charges $80 per day after an initial rent-free period of three days.

     

    Lack of expansion,

    toll collection

    Efforts were made to expand the ports access roads. The same roads built at the construction of the ports decades ago are still the ones in use even as the number of cargoes continues to increase each year. For instance, the Nigerian Ports Authority (NPA) gate is still the same 40 years after construction. Stakeholders believe that the government should consider expanding the entry and exit roads and also build new ones.

    Also, rickety trucks that come to carry containers break down most times and block traffic. Many believe that agencies at the ports should either reduce or eliminate the use of such vehicles at the ports.

    There are multiple agencies at the ports, each claiming to perform distinct role. These agencies collect tolls from any container-carrying truck moving out of the terminal. Each truck spends at least two minutes at the stop points and when multiplied by 800 trucks where the number applies, it amounts to a huge lost time and congestion.

     

    Customs

    It was learnt that at least 800 trucks move out of some of the terminals daily and the Customs, which is an integral part of the ports’operation chain does not work on public days, thereby compounding the problems of the already congested ports. As a vital part of the chain, the Customs during such period absence cripples the effectiveness of the entire chain.

  • Terminal handlers claim boost in operations

    Major container terminal operators at the seaports said they handled their highest volume of containers in last November.

    The import container volume was the highest in any one month and was unprecedented in the history of port operation.

    A check at APM Terminals, Apapa revealed that a record import volume of about 30,000 TEUs was handled at West Africa’s largest container terminal in that month. This was higher than the volume handled in any one month since the terminal began operation.

    At the Tin Can Island Container Terminal (TICT), the Commercial Manager, Mr. Richard Akinbosotu, said the terminal handled a record import container volume of 18,000 TEUs in November, which was said to be the highest volume handled in any one month at the facility.

    An expert and maritime economist, Dr. Wilson Adeshina, said the upsurge recorded was informed the Yuletide when importers imported in large quantity in order to meet high demand.

    Adeshina praised terminal operators for coping with the challenge, saying: “Without the right skill sets and the availability of top of the range cargo handling equipment, there would have been crisis during the high importation period but then we must give the credit to terminal operator.”

    Assistant General Manager, Public Affairs of the Nigerian Ports Authority (NPA), Musa Ilya, confirmed that the huge investment in container handling equipment by terminal operators helped the port system.

    He said facility upgrades and acquisition of state-of-the-art container handling equipment by terminal operators enhanced efficiency at the port.

  • Comptroller advises Customs operatives to be effective

    Comptroller advises Customs operatives to be effective

    The Customs Area Comptroller of Seme Area Command, Comptroller Willy Egbudin, has advised Customs operatives at the Owode Border Station and Gbaji Check Point to be more serious with the job.

    Seme Area Command’s Public Relations Officer, Ernest Olottah, said Egbudin’s visit was in continuation of his operational tour of Customs posts under his command.

    The visit, he said, was also to get a first hand view of the officers’operational environment to and effective planning to prevent loss of revenue.

    Addressing officers and men at the Owode Border Station, Egbudin reiterated the zero tolerance of Comptroller-General of Customs (CGC) to smuggling. He said it would no longer be business as usual for anyone, urging Customs operatives at the border post to embrace change and keep abreast the ongoing Customs modernisation process.

    He reiterated the command’s resolve to suppress smuggling, adding: “We are determined to offer the best of Customs preventive operation by making sure that the importation/exportation of prohibited items through the border are seized and the suspects arraigned to face the full weight of the law.”

    The Officers in Charge (O/Cs) of Owode and Gbaji stations thanked the Controller for the visit reassuring him of their commitment to duty.

    Assistant Comptroller Audu Ado of Owode Station said: “We have been here maintaining seamless shifts all through. We didn’t go for any Christmas or New Year break in line with directives from above and we shall keep this tempo all through the year to avoid being taken unawares by smugglers who attempt to use this route.’’

    At Gbaji Checkpoint, Abdulkadir Umar, the O/C, said aside the watch on vehicular movements and routine search, his men also had the keep close eyes on the adjoining bush paths and the marine environment under their control.

  • Navy mounts cameras on waters to curb piracy

    To stem piracy, the Nigerian Navy (NN) has installed eight automated cameras in the waters off its coast.

    The equipment called Regional Maritime Awareness Capability Centre (RMAC) is also expected to aid the fight against oil theft.

    The Chief of Naval Staff, Vice Admiral Dele Ezeoba, said the equipment, which were imported from Japan for about N2 billion, had high-frequency radio and long-range cameras able to spot ships up to 48 kilometres away.

    Speaking in Yenagoa, the Bayelsa State capital, he said, the data collected by the towers would be transmitted into a central naval intelligence room and then checked against ships’ registration, flag and other information.

    “From the domain awareness centre, we can see ships from anywhere in the world coming or leaving our maritime space. It also gives us the ability to ascertain the actual threat the vessel poses,” he said.

    According to the naval chief, four of the cameras are in Lagos, one each at the Bonny and Brass crude export terminals, one in Yenagoa and one in Ibaka, eastern Akwa Ibom State.

    He, however, said the country needed to work on its capacity to pursue pirates and other criminal gangs.

    Industry sources said the Navy captured four pirates off the coast of the main commercial hub of Lagos in mid August; and said it killed 12 pirates in a shootout a week earlier. But the source said it has had little luck stemming this lucrative enterprise which remains on the rise and has driven up insurance costs.

    Unlike the waters off Somalia on the East African coast, where boats now have armed guards on board, the source said there is little protection for the many ships which anchor off West Africa.

  • Merchant Navy set to boost water security

    The Nigeria Merchant Navy (NMN) is set to boost mari time security in the country.

    Speaking during its Ceremonial Parade at the Merchant Navy Training Depot, Idah, Kogi State, its Head of Department, Training Depot, Lt. John Buba, said his people are up to the task.

    Protecting the nation’s waterways from criminals, insurgent, and contributing to the growth of the maritime sector, Buba said, are some of the goals of the NMN.

    He said the NMN has acquired the skills to monitor the flow of goods into and outside the country in order to ensure safety of goods and life.

    Buba said, he was happy after seeing the junior cadet displayed various gallantries effort and professionalism in the act of combating crime in the nation’s water ways and maritime domain.

    Buba expressed satisfaction over the turn-out of the event, adding that NMN can boasts of personnel that are technically, physically and mentally prepared and trained to combat local and international crimes.

    Buba commended the effort of the traditional Nigeria Navy towards safeguarding the Nigerian Maritime boundaries.

    He, however, stressed that the activities of the traditional Navy do not cover any vessel beyond the country’s maritime boundary which he said, has led to mysterious leakages of revenue.

    He urged the National Assembly to pass the Nigerian Merchant Bill to grow the economy.

    ‘’The US Navy, US Marine Corp and US Coast Guard are security agencies that have similar mode of operations, but cover different terrains.’’ he said.

    Also speaking at the event, the Head Medical/PRO Training Depot, Lt. Immaculate Aghaulor said that the parade was to show to Nigerians and the world the readiness of the NMN to protect the maritime sector in order to drive the nation’s economy.

    The Assistant Intelligence, Training Depot Officer, Lt. Solomon Ocheja, commended governors and traditional leaders who have been very supportive to them.

  • Reports on piracy misleading, says NIMASA boss

    Reports of attacks on ships on the nation’s territorial waters are sometimes exaggerated, the Director-General, Nigerian Maritime Administration and Safety Agency (NIMASA), Mr Patrick Akpobolokemi, has said.

    He told members of the House of Representatives Committee on Marine Transport that NIMASA is collaborating with some security agencies to stem criminality.

    The NIMASA boss said the collaboration with the Navy and the Air Force had helped to reduce attacks on ships and cargoes.

    “Not all the cases of reported hijacks, piracy and robbery on our waters are genuine. Some of these cases are hyped to undermine us and shore-up insurance premium to Nigeria. I am not saying that piracy does not occur in our domain, but it is exaggerated. We are working tirelessly to reduce piracy and illicit crimes on our waterways to the barest minimum through these collaborative efforts,” he said.

    Akpobolokemi said NIMASA under his watch was committed to positioning Nigeria as the best maritime nation in Africa, by 2020.

    He said the budget performance of NIMASA in terms of revenue generation showed an improved performance as at October 31, when compared to last year’s, indicating that the agency is set to meet its target before the end of the fiscal year.

    urged the Federal Government to formulate and implement good policies that will galvanise the required change in the nation’s maritime sector.

    Akpobolokemi urged domestic and foreign investors to invest in the nation’s maritime sector as over 5,300 vessels called at the nation’s sea ports last year.

    Also delivering a paper on the Maritime Sector: Gateway to Nigeria’s economic transformation at the event organised by the Maritime Reporters Association (MARAN) in Lagos, Akpobolokemi, who was represented by the Deputy Director, Public Affairs, Mr Isichei Osamgbi, urged government’s agencies operating in the maritime sector to synergise to boost the sector.

    He said with appropriate synergy and information sharing, the sector would be transformed and yield huge revenue for the country.

    Akpobolokemi praised the National Assembly for its plan to amend the Cabotage Act and make it adaptive to the nation’s maritime industry.

    He listed the achievements of the agency during the period under review to include enhanced safety and security of the maritime domain through regular patrols, building a corps of qualified maritime professionals under the Nigerian Seafarers Development Programme (NSDP) scheme, establishment of Institutes of Maritime Studies in four universities, establishment of a Maritime University, establishment of a Science and Technical College and construction of a ship yard and dock yard.

    Others are regular funding of Maritime Academy of Nigeria (MAN) in Oron, Akwa Ibom State, recruitment of qualified professionals in line with the International Maritime Organisation (IMO) Audit requirements, enhanced flag and port state administration, submission of the instruments of ratification of the Maritime Labour Convention (MLC) 2006 to the International Labour Organisation and procurement of boats through a PPP arrangement to boost enforcement.

    Appraising the agency’s performances, the Committee commended the budget performance of NIMASA this year.

    Its Chairman, Ifeanyi Ugwuanyi noted that the management of the agency has been spending more on capital projects than overhead and described the step as a necessity and good omen if all sectors of the nation’s economy are to move forward.

    Ugwuanyi said his commitment will continue to support NIMASA in order to ensure maximum efficiency in the transformation of the maritime sector.

    The Committee also applauded the NSDP of NIMASA as a veritable tool for wealth creation and pledged its unflinching support for youth development in the sector.

    Speaking on the Cabotage Act, Ugwuanyi, however, said the committee had noted the concerns of the agency for an amendment to the law to make it more adaptable to the Nigerian maritime realities.

    He said: “We have noted your concerns about the Cabotage Act and have already made a presentation to the House Committee on Rules and Business. Very soon, the amendments will be presented to the House for consideration.”

    The Chairman however, urged NIMASA to support the aspiration of MAN towards transforming into a degree awarding institution, as that would further enhance capacity development in the maritime sector.

  • Agents challenge Customs

    The National Association of Government Approved Freight Forwarders (NAGAFF) has urged the management Customs to tackle corruption among its men and enforce its law to ensure trade compliance

    The group also said the Customs has the capacity and capability to take over the management, operation and administration of Destination Inspection (DI).

    The Founder of the group, Mr Boniface Aniebonam told reporters in Lagos that they are happy that the Federal Government has lived up to expectation by directing the service providers to hand over D I scheme to Customs and advised its management to instil discipline.

    He advised Freight Agents to stop third party documentation because of inherent liability, revenue and security of practitioners and the country.

    He also urged stakeholders to embrace good practice of genuine declaration of imports for Customs purposes.

    “We are all happy that today every responsibility has been returned to the Nigeria Customs Service after several years of hard struggle,” he said.

    Aniebonam, however, advised Customs officers, Importers, Freight Forwarders and other stakeholders to buckle up to avoid what he called, “playing again into the hands of portfolio investors and world class business groups.

    “Customs must tackle corruption among some of its officers.  It is also important that Customs’ law should be enforced with a view to ensuring trade compliance.  In the same vein, issues of discipline, professionalism, best practice and respect for division of labour should be encouraged and actualised.

    “It is our view that the Nigeria Customs Service management must now raise the bar by invoking and applying relevant Sections of CEMA to do their job. Specifically, Nigeria Customs Service should pay attention to Sections 4, 5, 8, 11, 12, 13, 19, 27, 28, 29, 46, 47, 63, 64, 77, 136, 153, 154, 155, 158, 160, 161, 162,164, 166 and 176 etc.

    “The point herein is that laws are made to be obeyed, and if we do not enforce our trade laws, we may not be able to advance the course of compliance. Freight Forwarders whose names appear in the register of CRFFN and Licensed Customs Agents must now embrace the doctrine of professionalism and ethical standards in practice. There is the urgent need for scale of charges to be developed and applied by the agents for their services.”

    The Nigerian importer/exporter, he said, should take note of liability inherent under Sections 154 and 155 of Customs Law – CEMA.

  • Railway workers kick against privatisation

    The planned privatisation of rail will not be in the na tional interest, Nigerian Railway Corporation (NRC) workers have said.

    President of the National Union Railwaymen (NUR), Mr Raphael Okoro, told reporters in Lagos that the government should not privatise rail because it would not enhance the transport sector’s growth.

    A few weeks ago, the Bureau of Public Enterprises (BPE) said after the sector’s reform, the government would grant concession to private operators.

    But Okoro said: “A lesson should be learnt from Britain’s experience whereby the nation’s railway assets were blatantly sold off; most regrettable was the disastrous privatisation of London Underground.

    “Spain is a typical example of high-speed rail transport system that developed astronomically and steadily.

    “Why does the rail transport remain public despite European Union’s cruel pressure to privatise and liberalise it?

    “I strongly believe that the future of Nigeria’s rail system is bright if government still remains its owners.”

    Okoro said public ownership and democratic accountability would facilitate social and economic change.

    He said: “The government must realise that it is only the rail transport mode that can guarantee the social, economic and geographical developments that our nation craves for.”

    A former president of the union, Mr Godwin Ero, also urged the government not to privatise the rail transport sector as it would sabotage the governments’ Transformation Agenda.

    “By privatising railway that is just re-emerging after years of comatose, you want to sack railway again.

    “It is regrettable to have Nigerian Railway Corporation where it is today. The glory of the 70s and 80s has departed carelessly due to neglect from government,” he alleged.

    He said restoring the glory of rail transport system would require strong will and huge funds which no private organisation coudl afford.

  • Ports stink, says ICPC

    From the Independent Corrupt Practices and Other Related Offences Commission (ICPC) has come a damning report about the ports: they stink.

    Port operations, the report said, were riddled with corruption, adding that most of the units are manned by unqualified personnel.

    The report, titled: “Corruption Risk Assessment  in Nigerian ports”, was presented to the public in Abuja by the ICPC Chairman, Mr. Ekpo Nta.

    The study was carried out in collaboration with the United Nations Development Programme, Technical Unit on Governance and Anti-Corruption Reforms, the Bureau for Public Procurement, the Maritime Anti-Corruption Network, the Nigerian Ports Authority and others.

    It focused on ports in Calabar, Tin Can, Apapa, Warri, Port Harcourt and Onne to identify gaps and vulnerabilities to corruption in the ports and offer remedies to the menace.

    Nta said the ICPC was empowered under Section 6 (b) of the Corrupt Practices and Other Related Offences Act 2000 to “examine the practices, systems and procedures of public bodies and where, in the opinion of the commission, such practices, systems or procedures aid or facilitate fraud or corruption, to direct and supervise a review”.

    Although he said the study was an assessment to prevent corruption and not an investigation, the ICPC boss stressed that the commission would not hesitate to prosecute corrupt persons.

    Nta said: “Corruption Risk Assessment is a preventive tool but it goes hand in hand with the enforcement of sanctions against unacceptable behavior. The study conducted was an assessment to prevent corruption and not an investigation.

    “While all is being done to prevent corruption, the commission will not hesitate to prosecute corrupt persons. In addition, we shall continue to deny corrupt persons the enjoyment of the proceeds of their crime through asset seizures and forfeiture.

    “Nigeria, the international business community, clients and all other stakeholders want to see transparent and clean corruption-prone free processes at the ports.”

    The report indicted Nigeria Customs Service (NCS) officials for manipulating clearance processes at the port to short-change the government for personal gain, saying this explains the reason for the apathy displayed by the service towards the exercise.

    At the launch of the report in Abuja, Nta described it as a “corruption prevention tool which is applied in collaboration with organisations’ management to identify vulnerable areas that are prone to corruption and develop integrity plans would strengthen accountability and transparency”.

    Nta maintained that although the Corruption Risk Assessment was a tool to prevent corruption, it was not a substitute to investigation and prosecution function of the anti-graft body, as the Commission would not hesitate to bring anybody found wanting to book.

    “Corruption Risk Assessment is a preventive tool but it goes hand in hand with the enforcement of sanctions against unacceptable behavior. The study conducted was an assessment to prevent corruption and not an investigation. While all is being done to prevent corruption the commission will not hesitate to prosecute corrupt persons,” he said.

    Speaking on the findings of the report, the representative of Technical Unit on Governance and Anti-Corruption Reforms (TUGAR), Mrs Lilian Ekeangannu, noted poor facilities as well as lack of operational procedure which, she said give “port officials discretionary powers and sometimes inordinately delay the processing of document, often without consequence”.

    She explained that the NCS used ASYCUDA++ (UNCTAD’s Automated Customs Date Management System) to handle Customs clearance related processes to ensure transparency.

    Customs officers, she claimed, often conspired with clearing agents to influence the process which is electronic in nature to involve human contact for selfish interest, noting that officials deceive the public by saying that they had reduced clearing process to 40 per cent manual.

  • Charting of Lekki deep seaport begins

    The United Kingdom (UK) Hydrographic Officials have begun the charting of the Lekki deep seaport.

    The exercise started almost two weeks after the Federal Government announced a $1.345 billion (about N221.9 billion) budget for the port.

    The Minister of Transport, Alhaji Idris Umar, promised that the seaport project would be executed through the Private-Public Partnership arrangement, and that it has been concessioned to Messrs Lekki Ports LFTZ Enterprise for 45 years.

    The Assistant General Manager, Hydro and Dredging, Nigerian Ports Authority (NPA) Mr Olumide Omotoso said NPA sent details of the port to the UK Hydrographic Office for its information to be reflected on the world chart for sea-going vessels.

    “The first thing is for the seaport to appear in a chart so that when navigators see the location and position, they can begin to ask questions about it,” he said.

    He said the UK hydrographic office was handling the charting of the seaport, because it was the charting authority over the West Coast waters in Nigeria and West Africa.

    “The process of charting the port area is going on in the UK hydrographic office because we have sent the necessary details to them to be put on the world chart.

    “With the work in progress, the port is likely to take off operations in 2014,” Omotoso said.

    He said that on completion of the seaport and commencement of its operations, vessels would be saved from the problem of delays, while more economic activities would be attracted.

    “The advantage of the deep seaport is that the turn around time for vessels will be quicker; maintenance and dredging will be limited because the port is sitting right on a deep sea.

    “This development can attract the biggest vessels in the world and it is going to bring in more economic activities, more revenue and more employment opportunities,” Omotoso said.

    He also said the NPA was considering introducing penalties for owners of vessels that constituted wrecks in the nation’s water channels and harbour.