The Nation Newspaper

Category: Maritime

  • Lagos ports can now take big vessels

    Lagos ports can now take big vessels

    There is good news for those in the shipping business. The Lagos ports can now accommodate big vessel carrying between 4,500 and 5,000 containers following its dredging to widen its depth.

    Before the exercise, the port could only take small vessels carrying between 1,000 and 2,000 containers because of its shallow waters.

    With its depth widened to between 13 and 13.5 metres from its former seven and nine metres, following the dredging it can take big vessels, thereby enhancing its status.

    The Lagos Channels Management (LCM) said the exercise became necessary to ensure that the ports served their purpose and maximised their potentials.

    Besides, the company has removed 29 of 31 shipwrecks identified along the channel on which it is operating.

    LCM Limited is a venture with the Nigeria Ports Authority (NPA), which owns 60 per cent of the equity.

    The company is responsible for the dredging and removal of certain shipwrecks along the Fairway Buoys. It also operates a marine operation centre (MOC) where data is processed for port operation.

    Its Head of Human Resources, Mr Falade Oyekan, said: “Until November 2012, we have removed 27 shipwrecks and currently working on two other wrecks that we identified as those that pose risk to the channel. The statutory duty to remove wrecks is with the Nigeria Maritime Administration and Safety Agency (NIMASA) but based on the agreement between NPA and the agency, we are meant to remove wrecks on our contracted channels as recommended by the NPA.”

    According to him, the Fairway Buoy covers the region beginning from entry point from the Atlantic ocean into the Lagos ports, Tin Can Port and Badagry.

    “When we took over in 2005, the highest depth along the buoy was between seven and nine metres, but now what we have is a minimum of 13.5 metres. In some areas, the channel is deeper than that, except around the Key Wall, which is very a sensitive area to dredge. We are very careful when dredging around the Key Wall because if you exceed the limit, the wall can collapse. This makes it less than 13 metres, for instance around APMT Terminal.

    “At the Tin Can Port, we have berths that are nine and 14 metres. From the construction, we know the depth and its limitations so we dredge to 13 or 13.5,” Oyekan explained.

    On the company’s capacity to discharge its responsibility, he said LCM has 14 dredgers and vessels used to remove wrecks including special dredgers that can do the Key Walls.

    On controversies surrounding the award of the Calabar Port dredging contracts to his company by NPA last year, Oyekan said the contract was advertised and LCM bided for it and won the contract.

    “We have an independent body for the contracts. We bid like others but the advantage we have is that we have been in the system and so, people can see what we are doing. We bided for a lot of contracts which we didn’t win. Even the Calabar dredging contract that is having problems now, we won at initial stage, but NPA was criticised for awarding the contract to a company in which it had interest and contract was given to another company. Today, we all know what happened next,” Oyekan said.

  • A sector in search of redemption

    A sector in search of redemption

     Poor policy execution, inconsistency and lack of skilled manpower, among others, combined to hinder the actualisation of the maritime sector’s potentials in the first half of the year, writes Oluwakemi Dauda

     

    The Federal Government extended for the second time this year, the Destination Inspection contract with the service providers following the Customs’ inability to train its officers to take over the N257 billion scheme.

    The seven-year contract, which was to expire on December 31, last year, was first extended on January 1, this year by President Goodluck Jonathan.

    The new six months extension was granted last month, by the Federal Government through the Ministry of Finance.

    The seven-year Build, Own, Operate and Transfer DI contract entered in January 2006 with Cotecna Destination Inspection Nigeria Limited, Globalscan Systems Limited, SGS and Webb Fontaine; ought to have expired last Sunday.

    Stakeholders said Customs’ supervising ministry also did not see the preparedness of Customs officials to take over the job from the service providers and that the Federal Government was worried because it was afraid of creating crisis at the ports and the border stations.

    Sources, however, said the Federal Government expects Customs to build adequate capacity to ensure smooth takeover of the scheme before the end of the year.

     

    US sanctions/ ISP code

    A 90-day ultimatum was issued to Nigeria by the United States government to improve on security at ports and waterways or face a ban on ships from entering the country.

    The US threatened to stop shipping services to Nigeria and to also mobilise its allied countries to do the same if the port security situation was not improved upon.

    The 90-day ultimatum started in May and will expire at the end of August.

    Following the threat by the US  to stop shipping services to Nigeria and to also mobilise its allied countries to do the same if the port security situation was not improved upon. Consequently, the Nigeria Maritime Administration and Safety Agency (NIMASA) and other maritime stakeholders called for the implementation of International Ships and Port Facility Security (ISPS) code.

    ISPS code is the International Maritime Organisation (IMO) convention to secure and safeguard ships and port facilities around the world following the renewed global terrorism.

    Speaking at the opening of a two day General Stakeholders Conference on “Reviving ISPS Code Implementation in Nigeria” held in Lagos last month, NIMASA’s Director General, Mr Ziakede Akpobolokemi, said what concerns the country is the protocol put in place by the International Maritime Organisation (IMO), in the form of the ISPS Code, to ensure that the global maritime arena is free from the threat of terrorism and other.

    He said, the gains of compliance with the ISPS Code are immense and serve as an  aesthetic for any short-term discomfort which the implementation agenda might cause in the interim.

    On the flip side, he said, the risks of non-compliance with the ISPS Code are frightening and given the threats the country faces from the growing menace of global terrorism and other maritime crimes, non-compliance, he said, would prove disastrous.

     

    Commercial regulators

    The plan by the Nigerian Ports Authority (NPA) and the Nigerian Shippers’ Council (NSC) to become the commercial regulators at the ports was dashed by the Senate Committee on Marine Transport. The bill for the creation of a Technical Regulator is before the National Assembly.

    In their efforts to facilitate trade and stop arbitrary charges by terminal operators, both the NPA and the Shippers’ Council have been jostling for the position of technical regulator at ports .The legislative body is trying to create a technical regulator that will promote the interest of importers and other port users.

    But the two agencies are yet to get the nod of the Senate to take the position.

    Speaking in Houston Texas, United States, the Chairman, Senate Committee on Marine Transport, Senator Zainab Kure, said the senate would not consider the two agencies in their legislative efforts to create a technical regulator for port operations in the country.

    She said the Senate was not in support of any of the two agencies to regulate the industry.

    But stakeholders said the failure of the government to appoint commercial regulator for the ports are part of the reason why the cost of doing business is high and urged the government to address the issue before the year runs out.

     

    NIMASA and CVFF

    Operators say NIMASA performed well during the period under review as the agency is showing the ability to carry out its core responsibilities of assisting indigenous ship owners through the disbursement of the Cabotage fund to six applicants. The agency also uncovered about 1,200 fake certificates for vessels operating on Nigerian waters.

    Also, indigenous participation in the shipping sector, which is the core responsibility of the agency was at its lowest ebb during the period because of lack of fund from the government and the current war between it and NLNG. Operators urged President Jonathan to prevail on NIMASA and NNPC/NLNG to end the crisis as they see it as an embarrassment to the nation.

     

    NPA row and port facilities

    The award of the contract for the dredging of the Calabar port to Niger Global Engineering and Technical Company Limited, by the Managing Director, Nigerian Ports Authority (NPA), Mallam Habib Abdullahi, became a serious issue  between him and the Chairman, Chief Tony Anenih during the period under review.

    In a five-page letter titled: Appointment of Calabar Channel Management Company Limited to Manage the Calabar Channel Under a Public Private Partnership (PPP) Agreement with the Nigerian Ports Authority (NPA) sent to the Minister of Transport, Senator Idris Umar raised questions about the award of the contract. He said it did not follow due process.

    The Joint Venture Agreement (JVA) for the contract was said to have been signed by NPA and the company on January 25, this year. Unless some issues, including the Nigerian Ports Authority’s (NPA’s) allegedly owing their members 11 months unpaid salaries, are promptly resolved, there would be crisis.

    The Maritime Workers’ Union of Nigeria (MWUN) in a petition dated June 12, 2013, and addressed to President Jonathan, alleged that NPA had for the past 11 months not paid tally clerks, on-board security men and others.

    They threatened last week, to shut the ports this week if the 11 months unpaid salaries of its members are not paid by NPA.

     

    Foreign ship owners

    Foreign ships owners still dominated the nation’s waters – a development, which indigenous ship owners have persistently criticized.

    Other stakeholders said the foreign dominance costs Nigeria huge revenue losses yearly.

     

    Shippers’ Council/ NIWA

    The appointment of Mr Hassan Bello as the Executive Secretary/Chief Executive Officer of the Nigerian Shippers’ Council (NSC) was confirmed by the government. He was the first person to be appointed internally to hold the position in almost 20 years of the agency.

    The Nigerian Inland Waterways Authority (NIWA) got the first female Managing Director,  Hajiya Inna Maryam Ciroma.

  • ‘High interest rate is killing shipping’

    ‘High interest rate is killing shipping’

    The Federal Government has been asked to reduce interest rates to enable ship owners upgrade their facilities and compete with foreigners.

    In an interview with The Nation in Lagos, some stakeholders urged the government to build a vibrant investment climate for the maritime sector.

    The Chairman, House Committee on Legislative Compliance Mr Moruf Akinderu-Fatai said there should be policies to create linkages between the maritime industry and other sectors, such as banking and manufacturing.

    He suggested measures like dedicated institutional financing mechanism for the shipping and maritime sector, a comprehensive maritime regulatory policy, to clearly delineate the role and responsibilities of the government and private sector in the development of the maritime sector and building.

    The purchase of modern vessels, Akinderu-Fatai, a shipper said, would also provide jobs for millions of Nigerians and the restive youths across the country.

    He said there was need for a sustained partnership between the private and public sectors for effective funding.

    The country, he said, had not enjoyed the commercial benefits of transporting large quantities of cargoes because the local ship owners lack the necessary capital.

    He suggested that the Federal Government should integrate maritime education and training into the national university system so that Nigerians who are interested in seafarers’training can get the necessary education needed to promote the sector.

    While lamenting the lack of foreign exposure for better performance, he said many operators were bugged down with only practical experience, with little or no academic performance.

    “There is need for more government intervention aside from CVFF to actively encourage the banking sector to support local ship owners to acquire modern fleet, which can sail anywhere in the world,” he said.

    The President, Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu, said 60 per cent of the inward and outward bound seaborne trade in the West and Central Africa sub-region passes through the nation waterways and called on the Central Bank of Nigeria (CBN) Governor and the Minister of Transport, Senator Idris Umar to assist in developing the maritime industry.

    He said the country needs to expand its merchant fleet based on the high volume of bulk liquid, gas and dry cargoes that pass through its waterways.

    “The fleet to carry the enormous quantity of cargo is estimated at 200 size tankers including combo general cargo vessels and liquefied natural gas vessels,” he said.

  • Customs seizes N131m goods

    The Customs has seized contraband worth N131, 461,840 in Owerri, Imo State.

    The Customs Area Controller, Mr Victor David Dimka told The Nation that two suspects were arrested in connection with the seizures, adding that they have been charged to court.

    Some of the seized goods, Dimka said, included 410 jumbo bales of second hand clothing worth N74,808,240; 1,517; cartons of imported frozen turkey and chicken worth N31,913,000; a truck load containing 333 50kg bags of rice, which he said, were impounded along Calabar axis worth N7,550,800 and 3,594 pairs of used footwear worth N7,368,520.

    Also seized were nine sacks of Indian hemp worth N2,625,000 and 23 rolls of textile materials worth N2,238,000.

    According to him, 140 bales of second hand clothing were concealed with 18 tonnes of scrap metals along the Calabar axis.

    His words: ”No smuggling activity will elude the eagle eyes of Customs Officers because the Comptroller –General of Customs (CGC), Alhaji Abdullahi Dikko Inde and his management have ably empowered us and provided the platform for achievements through the various capacity building programmes aimed at equipping officers with the necessary skills for improved performance in tracking down smuggling activities.”

    He urged smugglers to desist from engaging in illegal business, adding that the Service would not relent in its fight against smuggling in the area.

  • NIMASA seeks tighter ports security for US ships

    Nigeria must upgrade its ports security status within the next 34 days to enable ships from the United States enter its ports, the Nigerian Maritime Administration and Safety Agency (NIMASA) has said.

    NIMASA Director-General Mr. Ziakede Patrick Akpobolokemi said there was need for the country to meet global mandate on port security.

    He spoke at an International Ship and Port Security (ISPS) Code Implementation and Governance Conference in Lagos.

    NIMASA, according to him, convened the conference for stakeholders to articulate the agenda for ISPS Code implementation on behalf of the Federal Government

    Tracing the origin of the ISPS Code, Akpobolokemi said: “After the terrorist attacks on the World Trade Centre in New York on September 11 2001, the vulnerability of lives, property and other assets to attacks by criminal-minded elements under whatever guise became a global reality. The unconventional manner in which the infamous attacks were successfully carried out and the frightening devastation they caused brought to the centre of global discourse, the need for a concerted effort to ensure the safety of lives and property everywhere.

    “As much as terrorism is unacceptable, what is even more unacceptable is a lack of proactive response by independent nations to the constantly evolving menace of terrorism. I am pleased to note that the Federal Government of Nigeria has consistently demonstrated its awareness of the imperatives of making our nation safe and secure. It is in pursuance of our government’s commitment to combating terrorism by applying global best practices, that we are gathered here today.

    “Different responses to the increasing wave of global terrorism have been adopted by nations across the world and solutions have been and are still being fashioned out for different sectors. The one, which most concerns us today as stakeholders in the maritime community, is the protocol put in place by the International Maritime Organisation (IMO), in the form of the ISPS Code, to ensure that the global maritime arena is free from the threat of terrorism and other maritime crimes.”

    Noting that, until recently, the phenomenon called terrorism seemed alien to Nigeria, the NIMASA boss said that, at the inception of the ISPS Code, many were averse to this concept “as it was viewed as a western problem.”

    He said: “Today, we have three states in the Federal Republic under emergency rule as a result of terrorism. This new challenge requires an articulated and comprehensive response in the form of developed and workable protective measures if our maritime sector is to remain mitigated from this scourge. There is, therefore, no better time to have this issue in the front burner than now.”

    In his speech, the Senior Special Assistant to the President on Maritime matters, Mr Leke Oyewole, said the ISPS Code is the standard international framework through, which contracting governments, government agencies, local authorities, port and ship industries can cooperate and be assessed in the global commitment to detect security threats in the maritime transportation sector.

    Beginning from July 1, 2005, he said the ISPS Code became mandatory for contracting governments and member states of the International Maritime Organisation.

    He, however, commended the federal Government for embracing the ISPS Code and the need for its implementation in the nation’s ports and its environs.

  • NAGAFF faults moves to resolve CRFFN crisis

    The founder, National Association of Government Approved Freight Forwarders (NAGAFF), Dr Boniface Aniebonam, has spoken on why the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) is in crisis.

    He also faulted the move to revive the CRFFN.

    Aniebonam said the problem with CRFFN was human, adding that sabotage and lack of knowledge by some members of its governing council led to its present predicament.

    He urged the council to create an atmosphere where all stakehold-ers would come together to discuss the future of the body.

    “The problem with CRFFN has to do with human element, sabotage, lack of knowledge, which speaks volumes of the what was their mindset? Those who cut out this concept what do they have in mind?

    “I don’t know the advice they want to give as to the issue of the transport ministry and the council itself, it is most unfortunate but I think that if you look at the midterm report by the minister of transport, you will find out that CRFFN was not mentioned as a parastatal of the transport ministry. This goes a long way to prove that CRFFN is not a parastatal of transport ministry, but under the supervision of the ministry,” he said.

    Aniebonam said efforts to revive CRFFN could only be achieved when the key stakeholders are involved.

  • High interest rate is killing, says shipowners

    High interest rate is killing, says shipowners

    The Federal Government has been asked to reduce interest rates to enable ship owners to upgrade their facilities and compete with foreigners.

    In an interview with The Nation in Lagos, some stakeholders urged the government to build a vibrant investment climate for the maritime sector.

    The Chairman, House Committee on Legislative Compliance Mr Moruf Akinderu-Fatai said there should be policies to create linkages between the maritime industry and other sectors, such as banking and manufacturing.

    He suggested measures like dedicated institutional financing mechanism for the shipping and maritime sector, a comprehensive maritime regulatory policy, to clearly delineate the role and responsibilities of the government and private sector in the development of the maritime sector and building.

    The purchase of modern vessels, he said, would also provide jobs for millions of Nigerians and the restive youths across the country.

    He said there was need for a sustained partnership between the private and public sectors for effective funding.

    The country, he said, had not enjoyed the commercial benefits of transporting large quantities of cargoes because the local ship owners lack the necessary capital.

    He suggested that the Federal Government should integrate maritime education and training into the national university system so that Nigerians who are interested in seafarers’training can get the necessary education needed to promote the sector.

    While lamenting the lack of foreign exposure for better performance, he said many operators were bugged down with only practical experience, with little or no academic performance.

    “There is need for more government intervention aside from CVFF to actively encourage the banking sector to support local ship owners to acquire modern fleet, which can sail anywhere in the world,” he said.

    The President, Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu, said 60 per cent of the inward and outward bound seaborne trade in the West and Central Africa sub-region passes through the nation waterways and called on the Central Bank of Nigeria (CBN) Governor and the Minister of Transport, Senator Idris Umar to assist in developing the maritime industry.

    He said the country needs to expand its merchant fleet based on the high volume of bulk liquid, gas and dry cargoes that pass through its waterways.

    “The fleet to carry the enormous quantity of cargo is estimated at 200 size tankers including combo general cargo vessels and liquefied natural gas vessels,” he said.

  • Akwa Ibom, Chinese firm partner on Ibaka seaport

    Akwa Ibom, Chinese firm partner on Ibaka seaport

    The Chinese Civil Engineering Construction Company(CCECC) has pledged to work with the Akwa Ibom State government on the Ibaka Deep Seaport project.

    CCECC Managing Director in Nigeria Mr Shi Hong Bing told Governor Godswill Akpabio in Abuja that the firm would ensure that the seaport becomes a reality.

    Bing, who praised Akpabio for allowing the firm to construct some roads in the state, said it was involved in similar projects in other parts of Africa.

    He acknowledged the infra-structural facilities in Akwa Ibom, urging Governor Akpabio to keep up the good work.

    Governor Akpabio said it would be fantastic to collaborate with the firm in the construction of the seaport, adding that the committee on the project, which is on a road show, would meet with the company to work out the areas of cooperation.

    Chief Akpabio, who described Akwa Ibom as “work in progress”, praised the company for the quality of work it has done in the state.

    “CCECC and the government of Akwa Ibom State under my leadership have been good partners.  And it is a partnership that has produced results.

    “The first road contract that was awarded to your company was delivered in time complete with the best street lights and drainage in the country. And recently we signed a contract for the dualisation of Etinan-Eket road and more jobs are coming.

    “It is not a function of lobbying for the job but that of quality, good pricing and record time delivery.  We look forward to continuous partnership,” he said.

    The governor reiterated that the seaport would promote commerce and complement the port in Lagos and also serve as a major transshipment point for the West African coast. He said the project would also provide employment for many.

  • Customs officers queried over ‘shady’ goods’ clearance

    Customs officers queried over ‘shady’ goods’ clearance

    Some senior Customs officers have incurred the wrath of their Comptroller-General over alleged dereliction of duty.

    They were queried over alleged non-completion of the Single Goods Declaration (SGD) form C 2010 by some exporters before the cargoes were shipped out of the country.

    The query was contained in a circular sent to Deputy Comptrollers-General (DCGs); Assistant Comptrollers-General (ACG); Customs Area Controllers (CAC) and Heads of Unit.

    The circular signed by the DCG in charge of Tariff and Trade, Mr Julius Nwagwu said: “Reports reaching headquarters indicate that anomalies are prevalent in the clearance of exports through the ports/borders.”

    Some of the anomalies are:

    • Non-completion of the Single Goods Declaration (SGD Form C 2010) prior to exportation;

    • Exportation of goods without Clean Certificate of Inspection (CCI) issued by the pre-shipment inspection agent;

    • Inadequate attention by valuation officers on issues relating to value of export goods; and

    • Non-rendition of monthly returns of all exports to headquarters.

    In the letter, Nwagwu said: “The above anomalies among others are contrary to the provisions of the extant regulations/guidelines, particularly as contained in circular Nos 053/2004 of November 24, 2004 and 002/2011 of April 11, 2011.

    These circulars, he said, were still extant and must be followed to the letter by those directed to. Non-compliance, he said, would not be tolerated.

    Investigation showed that circular No. 53/2004 was signed by then DCG in-charge of Tariff and Trade, Mr S. O. Ogundeji and copied to DCGs, Zonal Co-ordinators, CACs and all Heads of Unit through a November 24, 2004 letter.

    The circular said certain procedure must be observed by officers and agencies involved in the documentation of clearing of goods for export from Nigeria.

  • Customs officers queried over export clearance

    Some senior Customs officers have incurred the wrath of their Comptroller-General over alleged derelication of duty.

    They were queried over alleged non-completion of the Single Goods Declaration (SGD) form C 2010 by some exporters before the cargoes were shipped out of the country.

    The query was contained in a circular sent to Deputy Comptrollers-General (DCGs); Assistant Comptrollers-General (ACG); Customs Area Controllers (CAC) and Heads of Unit.

    The circular signed by the DCG in charge of Tariff and Trade, Mr Julius Nwagwu said: “Reports reaching headquarters indicate that anomalies are prevalent in the clearance of exports through the ports/borders.”

    Some of the anomalies are:

    • Non-completion of the Single Goods Declaration (SGD Form C 2010) prior to exportation;

    • Exportation of goods without Clean Certificate of Inspection (CCI) issued by the pre-shipment inspection agent;

    • Inadequate attention by valuation officers on issues relating to value of export goods; and

    • Non-rendition of monthly returns of all exports to headquarters.

    In the letter, Nwagwu said: “The above anomalies among others are contrary to the provisions of the extant regulations/guidelines, particularly as contained in circular Nos 053/2004 of November 24, 2004 and 002/2011 of April 11, 2011.

    These circulars, he said, were still extant and must be followed to the letter by those directed to. Non-compliance, he said, would not be tolerated.

    Investigation showed that circular No. 53/2004 was signed by then DCG in-charge of Tariff and Trade, Mr S. O. Ogundeji and copied to DCGs, Zonal Co-ordinators, CACs and all Heads of Unit through a November 24, 2004 letter.

    The circular said certain procedure must be observed by officers and agencies involved in the documentation of clearing of goods for export from Nigeria.