Category: Maritime

  • SIFAX Group introduces ‘Whistle Blower’ policy to curb extortion

    SIFAX Group introduces ‘Whistle Blower’ policy to curb extortion

    By Muyiwa Lucas

     

    The issue of extortion has become a culture in the maritime sector.To curb this, a major stakeholder in the industry, the SIFAX Group, has announced a whistle blower policy aimed at addressing the issue by way of also checkmating the operational activities of its staff.

    Sifax’s Head of Corporate Communications, SIFAX Group, Mr. Muyiwa Akande who made this known, disclosed that its management had  recently constituted “a kind of whistle blower policy” that has resulted in the dismissal of some staff, affirming that the organisation is a customer oriented conglomerate.

    Akande while reacting on the protest embarked on by members of the Association of Registered Freight Forwarders in Nigeria (AREEFN) , Kirikiri Lighter Terminal (KLT) Chapter, over alleged delays on the clearance of consignments from Ports and Cargo Handling Services, Tin Can Island Port to the Kirikiri Lighter Terminal (KLT) facility, noted that the policy began in December 2020 . He revealed that some staff have been asked to leave the employment of the company owing to what he called “sharp practices” at the terminal through the whistle blowing mechanism.”

    Assuring that the complaints of freight forwarders which has led to protest at the Port and Cargo Terminal, would have been completely addressed, Akande reiterated that his firm would always give a listening ear to its stakeholders and partners which he noted the freight agents constitute a major part of.

    The image maker disclosed that the company’s management has had a fruitful deliberation with the protesters and has also constituted a four man committee to resolve the issues and grievances raised by the protesters.

    Akande assured freight agents that  all their containers will be  transferred out of the port to the off dock terminal.

    Commenting on the issue of delay, the image maker clarified that demurrage payment is legitimate, but added  that  “if there are cases of force majeure, as in cases of road construction which cause delay in movement, the customer is considered and not made to pay demurrage over the period of the delay.”

    The aggrieved members of the Association of Registered Freight Forwarders of Nigeria (AREFFN) KLT Chapter , had earlier protested what they term the undue delays in cargo clearance, illegal transfers of cargoes from one terminal to the other . They alleged that the unlawful imposition of fees by the management of the Ports and Cargo Handling Services Limited a subsidiary of The SIFAX Group had led to hardship for shippers and freight forwarders. The protest took place in front of the  SIFAX Group’s Corporate Head Office.

    The Secretary of AREFFN KLT Branch ,  Stephen Chukwuka, accused  management of the Ports and Cargo Handling Services Limited of internationally electing not to do their duty of effectively facilitating the speedy transfer of Containers from their terminal because of selfish reasons. He said that  management of the terminal deliberately delay cargo clearance in other for cargoes to incur demurrage, which cost about N12, 500 per container daily.

    Chukwuka also accused the management of moving their containers from one terminal to the other and making them to pay the costs. Amongst his other allegations were that the management extorts from them N40, 000 for every container that leaves the P&CHSL terminal.

  • How to make port process manual work

    How to make port process manual work

    The Nigerian Shippers Council (NSC) has been empowered by the Federal Government to enforce the Nigerian Port Process Manual (NPPM). In this report, OLUWAKEMI DAUDA looks at the imperativeness of the new initiative and how it will help in reducing corruption and make the port attractive for business.

     

    For stakeholders in the maritime sector, the empowerment of the Nigerian Shippers Council (NSC) through the Nigerian Port Process Manual (NPPM) is a right step in the right direction. It is a very good initiative because it is a weapon for the fight against corruption and making the port efficient as the Federal Government looks towards improving the sector’s contribution to Gross Domestic Product (GDP).

    The manual is a collation of some processes extracted from the Standard Operating Procedures of Stakeholders in the sector to improve operations, service timelines, efficiency and accountability in the port, address vulnerabilities in the port system, and create an enabling environment for port users, operators and other stakeholders.

    With the appointment, the Council is saddled with overseeing ports operations, coordinating the implementation of the manual and ensuring strict compliance with the government rules in making the ports competitive and attractive for business.

    The NSC’s appointment, stakeholders agreed, would improve the anti-corruption ranking of the country before the international community.

    The Council, it was learnt, has also been empowered to sanction any agency, service providers and users of shipping services for non-compliance.

    Praising the NPPM, a former President, Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu, said: “It shows that the Federal Government is stringently and decisively moving against corrupt practices at the ports and promoting the ease of doing business.’’

    The manual includes: Dry bulk storage and handling, liquid bulk storage and transfer (loading/unloading), Non-bulk chemical storage and handling, port cargo handling equipment and rail truck operations engines,  oversight of terminal operators activities, management of hazardous and non-hazardous waste generated, general operations that can impact negatively on  neighbouring areas and the environment.

    Speaking at a stakeholders meeting in Abuja, the Minister of Transportation, Rotimi Amaechi, said his ministry was ready to support the Council to ensure compliance, enforcement and implementation of NPPM to reduce corruption in the sector.

    The minister described the Process Manual as one of the key indicators for the implementation of Executive Order 1 aimed at promoting transparency and efficiency in the business environment.

    He added that the implementation of the ports access manual would complement the modernisation of critical transport infrastructure introduced by the President Muhammadu Buhari administration to boost port operations.

    He said: “The maritime sector offers the best alternative for economic diversification as it has the potential for employment, investments, and as an outlet for the facilitation and strengthening of Nigeria’s international trade. Nigeria’s Shippers Council (NSC) is to drive the process and implementation of the Process Manual.

    “However, I urge regulatory authorities, operational agencies, service providers, users of shipping services and other stakeholders to support and comply with the government’s directives and the provisions of the NPPM. Power given to NSC by the government include: “The NSC being the lead agency for the implementation of the manual, shall coordinate the implementation of the manual and ensure strict compliance with the rules. NSC also reserves the right to handout sanctions to any agency, service providers and users of shipping services for noncompliance as provided under its economic regulatory mandate.

    “The Ministry shall lend its support to the NSC in ensuring compliance with the Manual by stakeholders, not only in the implementation of the manual but in other areas such as enforcement.’’

    Shippers Council calls for collaboration

     

    The Executive Secretary, NSC, Mr Hassan Bello, told The Nation: “We need the support and collaboration of regulatory agencies, service providers and consumers of shipping services on the implementation of NPPM.

    “The NSC does not see the appointment as conferring any superiority over other regulatory agencies or stakeholders but consider it as an act of service towards achieving government desire of eradicating corruption at the port to promote ease of doing business in the transportation industry in Nigeria.’’

    It would be recalled that the Federal Government had last December appointed the NSC as the lead agency for the implementation of the NPPM. At its launch at the Presidential Villa, Abuja, Vice President Yemi Osinbajo said its implementation will improve the anti-corruption ranking of the country before the international community.

    He said: “An effective successful systemic intervention in the port sector will rapidly change the narrative, the perception and the ranking of Nigeria in the CPI. The Process Manual on Port Operations is expected to be one of the key indicators for the effective implementation of Executive Order 01 issued essentially to promote transparency and efficiency in the business environment, and designed to facilitate the ease of doing business.

    “The Process Manual is a step-by-step trajectory of processes at the ports. It outlines the actors and timelines for each process; it guides the user by highlighting all required documentation, payments, timelines and the responsible agencies. It equally guides the port operators by detailing the implementation sequence and provides clarity on the time required for each process.”

  • For better ports management

    For better ports management

    Last week, the Nigerian Port Authority (NPA) started an e-call-up system. Stakeholders say the agency needs to expand container free-flow system by introducing a Port Management Information System (PMIS) that will provide seamless communication among truckers, service providers, importers and others to make the ports more efficient, OLUWAKEMI DAUDA reports.

     

    IT was one problem too many. The congestion around Apapa and its environs in Lagos State had become a menace, not only to the areas, but also the entire industry, contributing to its near-collapse.

    However, relief came last week when in a bid to solve the problem, the management of the Nigeria Ports Authority (NPA) commenced the implementation of the much-awaited e-call-up system for articulated vehicles accessing the port to pick cargoes and containers.

    But stakeholders said NPA, in collaboration with other agencies at the port, should, in addition, introduce a Port Management Information System (PMIS) to provide intercommunication for truckers, service providers, importers and others.

    Its Assistant General Manager, Corporate and Strategic Communications Mr. Nasiru Ibrahim, explained that the e-truck call-up system was designed for truck movement management and access to and from the Lagos Ports Complex and the Tin Can Island Ports.

    Providing articulated vehicles access to free flow – a container delivery method need to be made available to make cargo clearance easy and increase container throughout with minimal investment.

    Port operations involve pulling containers off ships and placing them randomly into long rows. Truckers arrive at the terminal with a specific container number, and operators have to dig that container out of the pile. On average, three containers must be moved out of the way for every one container delivered.

    But imagine if specific containers weren’t assigned to a driver until after one was loaded onto his truck. This would allow the ports to peel off the first available container and place it on the next available driver and chassis, much like a taxi line at the airport.

    Dead moves are eliminated and truck turn times are reduced. Findings have shown that free-flow containers will reduce trucker turn-around times by more than 50 percent.

    High-volume shippers with 50 or more containers on a vessel regularly free-flow containers. Because the containers have the same drop-off location, it doesn’t matter which container a trucker receives, and no special technology is needed to coordinate the drivers.

    After receiving a container, the driver would enter its number into his phone, and its delivery and routing information would appear on his screen. The delivery could be directed to a distribution centre or to an off-site yard at a later time.

    The shipper would receive status notifications when the container has been picked up, the driver is about to arrive, and the container has been delivered.

    After the driver drops the container, his phone would direct him to the empty closest to its Last Free Day (or in a first-in-first-out manner) to return empties to the ports. If no empties are available at the drop-off location, the driver’s phone routes him to a nearby yard that has empties to return (preferably to a terminal they are picking up from next).

    Throughout the process, any stakeholder could pull up a map on their phone or computer and see the driver’s precise location. In this way, technology-enabled free flow would not only move more containers out of the ports efficiently, it would also provide greater transparency for shippers and carriers.

    Requirements

    All trucks doing business at the two Lagos ports are required to park at the approved truck parks until they are called up into the port through the Eto app.

    Ibrahim told The Nation that an e-platform has been created for ease of assessment by truckers, adding that the app will be responsible for the scheduling, entry and exit of all trucks into the ports in few days time.

    “Therefore, transporters, trucks owners and truck drivers will be required to download the Eto app from Google play store or sign up at http://eto.ttp.com.ng before the commencement date to enable them register accordingly.

    “In addition to this, cargo owners are advised to ensure that empty containers can only be returned to the ports through the approved holding bays of shipping companies using the Eto platform.’’

    Movement of containers to holding bays

    The image maker said it is the responsibility of the shipping firm to move empty containers from their holding bay to the port. All cargo owners have to do is drop their empty containers at the holding bay of the shipping company.

    “The shipping company will then make the bookings on the Eto platform to return empty containers to the Port.

    “The management of the NPA solicits the cooperation of transporters, truck drivers, cargo owners, clearing agents, shipping companies and all port users in the implementation of the project, which will bring order and sanity to the ports access roads.

    “Non-compliance to the use of Eto and its guidelines will result in denial of access into the Ports, impounding of trucks and withdrawal of registration/ licence.

    NSC reacts on digitalisation

    At the end of last year, the Nigerian Shippers Council (NSC) had announced that cargo clearing and other port transactions would be carried out online by first quarter of this year.

     

  • Can EU’s presence restore security?

    Can EU’s presence restore security?

    The European Union (EU) has moved to stem rising criminalities in the Gulf of Guinea, a lucrative maritime trading route stretching across 20 countries in the African West Coast. What are the implications of this initiative for the continent, which is saddled with providing security in the region, MUYIWA LUCAS writes.

     

    THE Gulf of Guinea (GoG) has attained notoriety for piracy and other criminal activities in the industry.

    At present, the region has been dubbed “the most dangerous sea in the world for piracy”, owing to criminalities in it by the International Maritime Bureau (IMB).

    Notwithstanding the pronouncements of the country’s industry safety regulators and other security agencies saddled with keeping the waters safe, which at best, has remained mere lip service. This month alone, at least two deadly attacks on vessels have been recorded in the GoG, with the latest happening last Saturday.

    According to reports, the MV Mozart, a Turkish cargo ship, was boarded by pirates 100 nautical miles northwest of Sao Tome, Sao Time and Principe, at 0525 on January 23, 2021. The MV Mozart, which sails under a Liberian flag, was traveling from Lagos to Cape Town, South Africa, when the attack took place. One crew member was killed and 15 others were taken hostage by the pirates after a struggle on board.

    Impact

    Piracy in the GoG is assuming an unprecedented dimension, especially now that kidnapping seem to have become a lucrative business. According to the IMB, there is a steady increase in kidnappings over recent years in this region, after the criminals on the waters realised that companies would pay handsomely to secure the release of their kidnapped personnel.

    The activities of pirates in the GoG are said to be taking a toll on trading, especially in cost. For instance, vessels and shipping lines that still ply the route now charge a premium for freighting, including placing a higher premium on insurance costs due to the designation of the GoG route as “high risk”.

    Global concern

    The Gulf of Guinea, which stretches off the coasts of Nigeria, Guinea, Togo, Benin and Cameroon, borders more than 20 countries and has been a source of worry for global stakeholders in the industry. These concerns led to an initiative in 2008- the “Operation Atalanta,” a European mission to secure the region’s water for shipping. The initiative recorded good success, leading to a decline in pirates attacks on vessels. Sadly, the problem is on the rise again.

    For instance, according to data from the IMB yearly piracy report, in 2019, there were 228 pirates’ attacks on vessels, while figures issued earlier this month saw an increase of piracy and armed robbery incidents in 2020, with the Gulf of Guinea the hotspot as kidnappings off West Africa approach Somalia levels from a decade ago.

    ”The latest statistics confirm the increased capabilities of pirates in the Gulf of Guinea with more and more attacks taking place further from the coast. This is a worrying trend that can only be resolved through increased information exchange and coordination between vessels reporting and response agencies in the Gulf of Guinea region. Despite prompt action by navies in the region, there remains an urgent need to address this crime, which continues to have a direct impact on the safety and security of innocent seafarers,” said Michael Howlett, director of the IMB.

    In 2013, 25 countries in the region developed the “Yaounde Code”, which established coordination on piracy and other maritime crimes. Nigeria has its own “Deep Blue” initiative to develop maritime surveillance and security, and last year secured its first conviction under a new anti-piracy law.

    New initiative

    Indeed, global regulators and stakeholders are not folding their arms in ridding the GoG of criminal activities. For instance, though the Nigerian regulator takes pride in its “Deep Blue Project” equipment contracted to Israeli contractors at $195 million to tackle the GoG menace and other maritime security-related issues, the Council of EU, worried at the field day pirates and other criminals enjoy in the region, has resolved to take over the security of the GoG. In reaching the decision, the EU said its action is to protect its members’ interests aimed at tackling the menace in the region.

    Deliberating under the subject: “Council conclusions on launching the pilot case of the coordinated maritime presences in the Gulf of Guinea” the EU Council noted the strategic importance of the Gulf of Guinea region and reaffirmed its long-standing determination to support West and Central African states in their efforts to address the challenges to maritime security, including organised crime.

    The Union though commended the West and Central African states, which bear the primary responsibility for combating maritime crime in the region, recalling that the countries made political commitments in June 2013 under the “Code of Conduct concerning the repression of piracy, armed robbery against ships, and illicit maritime activity in West and Central Africa”. These commitments, the EU further noted, have been pivotal in the progressive establishment of the Yaoundé Architecture to improve coordination and cooperation on maritime security.

    However, the EU maintained that the Gulf of Guinea continues to face a challenging environment in which piracy, armed robbery at sea, kidnapping of seafarers, illegal, unreported, and unregulated (IUU) fishing, smuggling and trafficking of drugs and arms, as well as transnational organised crime pose a major threat to maritime security. These activities, it further observed, is adversely affecting freedom of navigation, thus endangering major trade routes, jeopardising the sustainable development of the entire region and the economic livelihood of the population, and leading to the deterioration of the environment and biodiversity.

    In this context, the EU pledged its commitment to increasing work with the coastal States of the Gulf of Guinea and the organisations of the Yaoundé Architecture, through greater European operational engagement, including ensuring continuity, restiveness, complementarity and synergy between member states’ actions in this strategic area, also having in mind cooperation with the maritime industry.

    “Recalling both the EU’s Maritime Security Strategy and the related Action Plan, as well as the EU’s Strategy on the Gulf of Guinea and its related Action Plan, following the Council Conclusions of 17 June 2020, the Council hereby launches the pilot case of the Coordinated Maritime Presences (CMP) concept in the Gulf of Guinea. While being distinct from the CSDP missions and operations, the pilot case of this new EU initiative, reflecting the Union’s growing role as a maritime security provider, can provide a substantial contribution to addressing the security challenges in the Gulf of Guinea,” the resolution said.

    With this framework, the EU Council, therefore, establishes the Gulf of Guinea as a Maritime Area of Interest (MAI) and welcomes the establishment of the Maritime Area of Interest Coordination Cell (MAICC); recognises the importance for the Member States to further improve the coordination of actions carried out by their assets deployed in the MAI under national command, on a voluntary basis.

    The Council will also ensure political control and provide strategic guidance on the implementation of the CMP pilot case; highlight the importance of enhancing the voluntary sharing of maritime security information among member states and partners in the CMP pilot case if and when deemed appropriate to improve maritime domain awareness in the MAI.

    Furthermore, it said based on lessons learned from the implementation of the CMP concept, the Council will examine the possibility of applying this concept in other maritime areas of EU interest and will revert to the implementation of the pilot case of the CMP concept in the Gulf of Guinea by January 2022.

     

     

  • NAGAFF to tackle SON, NAFDAC

    NAGAFF to tackle SON, NAFDAC

    The National Association of Government Approved Freight Forwarders (NAGAFF) have warned that it will tackle some government agencies like the Standard Organisation (SON) and National Agency for Food and Drugs Administration and Control (NAFDAC).

    NAGAFF blamed the agencies for frustrating some stakeholders.

    He said some agencies frustrated port operations last year.

    National Coordinator, 100 percent Compliance Team, NAGAFF, Ibrahim Tanko, lamented that operations of the two agencies through samples collection from consignments at the Lagos seaports, had made the nation to lose a whooping N6billion daily, adding that the process negates trade facilitation.

    Tanko, who frowned at the activities of personnel from the two agencies of government, threatened that the compliance team would engage, resist and interrogate their operations from next month, in a bid to promote trade facilitation and boost government revenue drive.

    He reiterated that 100 percent Compliance Team would ensure that samples that were subjected to laboratory test by the agencies must be returned to the shippers, accusing personnel of SON and NAFDAC for illicit practices.

    On customs operations, he affirmed that issues of multiple alerts and Customs Intelligence Units interception of consignments at the seaports in Lagos would be tackled, noting that letters had been written to the Area Controllers of Apapa and Tin Can Island Port.

    Tanko stressed that freight forwarding subsector will experience a huge turnaround of vessel  but urged the agencies of government to collaborate with the practitioners.

  • How viable are river ports?

    How viable are river ports?

    The statement by the Minister of Transportation, Rotimi Amaechi that the construction of more river ports is a waste of public funds has received applause. In this report, OLUWAKEMI DAUDA looks at the viability of the ports.

     

    River ports have one objective: Provision of income for the government, immakes possible the docking and handling, storage and transfer of cargo. Ports are designed to handle a wide variety of types of cargo: bulk or loose, breakbulk in packages (bundles, crates, barrels, and pallets.”

    Port planning

    Navigation issues have long had a place in water resources planning. Building and maintaining harbours, ports, and waterways is necessary to the economic health of communities and the nation as a whole. Findings have shown that there are river ports in Onitsha, Baro, Lokoja and Oguta.

    Onitsha Rivers Port in Anambra State was constructed at the cost of N4billion, while Baro Port in Niger State was put in place with N6billion.

    The port is equipped with mobile harbour cranes, transit sheds, administrative blocks, fire hydrant systems, water treatment plants, reach stackers, 100KVA power generating sets and forklifts of various tonnages.

    Built in 2013 the Onitsha River Port was handed over to the Infrastructure Concession Regulatory Commission (ICRC) for concession by National Inland Waterways Authority (NIWA) to save shippers about N100 billion yearly from the costs of cargo clearance at the Lagos ports.

    But till date, no concessionaire has been appointed to manage it. As such, some of its facilities are rusting daily.

    Similarly, ever since the Baro Port was inaugurated by the Federal Government, no activities have taken place there due to the bad road leading to the river port.

    The river port was constructed to boost commerce in the northern part of the country but its access road from the Gegu Express way in Kogi State is not motorable because of neglect by the government.

    It was learnt that Baro Port contract was first awarded in 2011 for N2.56billion by the Federal Executive Council to a Chinese company, Messrs CGGC Global Project, but was inflated to N6 billion because of delay.

    The port was expected to create at least 2,000 direct jobs and thousands indirect jobs when its contract was awarded

    “When you look at the economic benefits taunted by the government, the river ports being constructed in some parts of the country, you will be wondering why many of the river ports have remained dormant despite the huge amount of money spent on them,” said a senior Customs officer who does not want his name in print.

    The senior official said NIWA needs to tell Nigerians the truth and why concession of Onitsha River Port is not attractive to investors.

    “There is nothing to show for huge amount of money claimed to have been spent on the project.

    “Eight years after its inauguration, it is sad that the Onitsha Port has not served its purpose,” the official said.

    Worried by the viability of river ports in the country, the Minister of Transportation, Rotimi Amaechi, said the construction of ports across the country’s rivers was a waste of public funds.

    Amaechi said if the lower River Niger was not dredged, no vessel would sail to Baro port. According to him, “I had this conversation with my friend, Senator Goje about the viability of the river ports that we have, including Onitsha, Baro, Lokoja and Oguta river ports, and I felt that it was a waste of funds. The reason is that for you to have those river ports functioning, you must have to dredge River Niger. For now, even if you dredge, it is still 2.5 to three metres draft, which determines the vessel that can go there and the minimum you can have is a six-metre vessel. There is absolutely no vessel that will come in there at 2.5 to three metres draft.”

    Ameachi explained that many times the barge could not move cargoes to Baro either from Warri or Port Harcourt Port because Lagos is too far?

    He noted: “For the man who imports through Lagos or Port Harcourt, if he puts it on a train, he arrives the same day, and there is no issue of insecurity unlike the man who has taken the cargo from Port Harcourt seaport to Baro by barge.

    “They wanted the port constructed, so we completed it. My responsibility is to construct a Baro port and I have constructed it. As Minister, I did engage the public that these are the problems we will face when we finish this Baro Port,” Amaechi said.

    Also, a maritime lawyer, My Muhammed Oluwaseyi, regretted that the multi-billion naira Baro River Port was yet to commence operation years after it was inaugurated by President Muhammadu Buhari.

     

    Foreign trade is important to the economy

    Foreign trade is important to the economy and the international movement of goods and materials has highlighted the significance of harbor access and development issues. Natural harbours, typically in bays, estuaries and river mouths, occur where land and water converges in such a way as to protect ships from wind and waves as they enter and dock. Harbors can also be constructed using jetties and breakwaters to provide protection for ships.

    About 90 per cent of all the nation’s trade passes through its major ports and that is why operators are calling on the government to concentrate its efforts on deep seaport.

    “Well-maintained channels are vital to the success of any port. Navigation planning must consider many factors, including channel width and depth, shipping and navigation technologies, terminal facilities, climate, seasonal variations, currents, tides, and physical limitations of a waterway (such as bottom conditions). Planners seek to determine the best locations for channels, harbors, and canals. Recent developments in hydraulic modeling have greatly aided these planning efforts. The overall goal of these planning projects is to maximise the benefits of the port to a community.

     

    Available land

    Most of the river ports were constructed in geographically favourable locations to expedite the transfer of goods. Active dockside communities emerged and thrived as waterborne trade flourished. The use of available land for landside facilities development is acceptable, meeting few obstacles because such expansion is in the name of economic prosperity.

     

     

  • ‘How 48-hour clearance  can be achieved’

    ‘How 48-hour clearance can be achieved’

    By  Muyiwa Lucas

     

    The need for prompt cargo clearance at the  seaports has remained in the realm of dreams defying solutions.

    While the government policy of 48-hour clearance has remained a tall order, the Nigeria Customs Service (NCS) remains convinced that it  can be achieved provided every stakeholder is willing to comply with simple process, especially by making correct declaration of their cargo.

    But the Customs Area Controller (CAC) for Port Harcourt Area II Command, Onne, Rivers State, Comptroller Auwal Mohammed, said the the only way cargo clearance could be made effective is by ensuring that importers declare their consignment fully.

    According to Mohammed, the NICIS II on which the Service runs its process, makes it possible for an importer to clear his goods even before the consignment lands.

    “All it requires is for the importer to open his Form M, get his Bill of Laden and invoice from his exporter abroad, then apply to the ruling centre where PAAR will be issued to you and you will have your tax base there. With his tax base, the importer should be able to pay correct duty using appropriate classification. Pre- Arrival Assessment Report (PAAR) will give the classification of your item based on your document you present to them. What will remain immediately your container lands is physical examination to make sure that what you declared and paid for tallies with the quantity description and the classification of goods you have in your container. It will not take 24 hours before Customs will conduct proper examination and if it tallies with what you declared, your cargo will be released to you. This saves time and avoid stress,” he explained.

    The CAC contended that if this process was adhered  to, and proper declaration made, there was no reason the 48-hour clearance would not be achieved because once Customs confirmed that the declaration tallied with what was in the container, it would be released to the terminal operators, who also take their charges and give you another release, which Customs would acknowledge and issue the final exit clearance to the importer.

    Explainingfurther, Mohammed said there must be  proper declaration in the national interest because where such exists, the country’s problems, particularly in relation to Customs revenue generation, would be solved.

    He said delays and bottlenecks arose where there were  no true declarations which he tags “lack of compliance.” This area, he said, required a carrot-and-stick approach to get the best out of stakeholders.

    For instance, Mohammed said in Onne Command, the compliance level is at about 60 per cent.

    He added that the seizures recorded at the command were fallouts of the 40 percent non- compliance, which he hoped would be improved upon.

    “I also urged stakeholders to try as much as possible to be well acquainted with the import prohibition list. So, all intending importers and their agents should bear in mind that ignorance of the law is not an excuse,” he said.

    Mohammed, under whose tenure the Command has record the highest monthly revenue collection of N13 billion in the 37-year-old Command, closed last year with a revenue collection of N118.9 billion.

     

  • Onne Customs generates N118.9b revenue

    Onne Customs generates N118.9b revenue

    By Muyiwa Lucas

    The Port Harcourt Area II Command of the Nigeria Customs Service (NCS) has declared N118,959,214,999.53 as generated revenue for last year. It also declared a total duty paid value of seizures amounting to N1,008,266,282.53.

    This was made known by the Customs Area Controller of the command, Auwal Mohammed, at a briefing on the Command’s performance for last year.

    Mohammed said the command achieved its highest monthly collection of N13billion despite challenges of COVID-19 and #EndSARs protests that affected businesses globally. He commended terminal operators at the port for their support towards increased revenue and efficiency.

    For instance, Mohammed described the cargo handling crane owned by West African Container Terminal (WACT) as the best in Nigeria, which he said has helped for greater efficiency at the facility.

    He added that plans to install scanner in Onne would increase the command’s productivity, efficiency and capacity to detect concealments faster

    “In the face of several challenges that impacted on shipping and port activities last year, our operatives were resilient, being at work always, even during the COVID-19 Pandemic outbreak and the nationwide lockdown that followed.

    “Last year, this Command collected a total of ?118,959,214,999.53k. This figure is ?11,623,072,175.04 higher than the ?107,336,142,824.29 collected from January to December of 2019.

    He attributed the increase in collection to the due diligence and zero tolerance for compromise on the part of officers and men of the Command. “We have never let our guards down even before the announcement of a second wave of the virus and we didn’t allow it impact adversely on our functions. We have also made remarkable increase from our ?94,044,676,428.17 that was collected in 2018.

    “It is worthy of note that under my watch, the Command achieved N13 billion monthly collection for the first time in its 37-year history.

    Read Also: ‘Customs generated N1.6tr in 2020’

    On enforcement and anti-smuggling, Muhammed said a total of 37 seizures with total duty paid value (DPV) of N1,008,266,282.53. Two suspects were arrested in connection with some of the seizures, which are 6,249,900 tablets of tramadol; 5,615 kegs of 25 liter of vegetable oil; 817 bags of 50kg of rice; 3,047 bales of second hand clothings; 86 bales of used hand bags; 35 bales of used shoes; 1,460 pieces of used tyres; 6,500 pies of aluminium zinc; 1,738 cartons of foreign soaps; 650 pieces of canvas; 2 units of Hiace bus; 3,440 pieces of donkey hides/skin; 67 bales of fabrics; 8 units of truck; 331 pieces of unprocessed wood; 76 pieces of doors; 641 bags of white cements; 110 pieces of car fan; 100 pieces of motor radiator, among others

    “We recorded a total quantity of 2,577,803.31 metric tonnes of cargoes with free onboard value (FOB) of $63,497,688.03. We also recorded N278,883,780.13 under the Nigerian Export Supervision Scheme (NESS).

    He explained that the Command’s engagements had reinforced the promotion of ease of doing business, trade facilitation with emphasis on sincere declarations as a way of saving time and making legitimate profits.

    Muhammed reinforced the importance of compliance and due process to stakeholders, saying it is vital for cargo clearance, exit, import and export, as it remains the best way importers would enjoy trade facilitation, ease of business.

    “I urge them once again to keep abreast with the extant import and export prohibition lists, avoid duty evasion and imbibe the virtue of transparency at all times,” he said.

  • Adalikwu is Nigeria’s candidate for MOWCA office

    Adalikwu is Nigeria’s candidate for MOWCA office

    By Muyiwa Lucas

     

    THE Federal Government has nominated Dr. Paul Adalikwu,  director, Maritime Safety and Security, Federal Ministry of Transportation, as the candidate for the Secretary-General of the Maritime Organisation for West and Central Africa (MOWCA).

    Adalikwu’s nomination, which got President Muhammadu Buhari’s nod, means that for the first time, Nigeria is indicating interest to produce the head of the 45-year-old organisation.

    Election into the office, which is expected to come within first quarter of 2021, will involve the participation of 25-member countries drawn from both regions of West and Central Africa.

    The Nigerian candidate is at the fore of efforts to establish a Regional Maritime Development Bank (RMDB) to be hosted by Nigeria. This multilateral financial institution is expected to address the  challenges of funding for maritime related commercial projects and deepen the regions’ capacity to harness the benefits of the blue economy.

    Adalikwu, an alumnus of the University of Calabar, also holds a Doctorate Degree in Public Administration and Management from Hamlin’s University, St Paul, Minnesota, United States.

    He is vast in maritime, tourism and policy matters. He was in the nucleus of the 2019 Global Maritime Security Conference hosted by Nigeria in Abuja and has input in the government’s efforts to procure and contract an Israeli firm for improved maritime security.

    “Through Nigeria, my leadership as the Secretary-General of MOWCA will restore the confidence of it’s 25- member countries that the organisation is capable of mobilising and delivering on its core mandate of promoting maritime safety.

    “MOWCA under my watch will also ensure marine environment protection by developing effective emergency plans for the prevention and control of pollution; strengthen the efficiency of maritime administrations and implement flag state and port state control measures,” Adalikwu said.

     

     

     

     

  • Wanted: Commission on proposed Badagry Deep Seaport

    Wanted: Commission on proposed Badagry Deep Seaport

    The announcement by the Director-General, Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Bashir Jamoh that the foundation of the Badagry Deep Seaport will be laid this month is exciting stakeholders in the industry. However, they are seeking a Maritime Infrastructure Commission to actualise the project. OLUWAKEMI DAUDA reports.

     

    AT the moment, one issue seems paramount to the Director-General, Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Bashir Jamoh. It is the development of the $2.6billion Badagry Deep Seaport aimed at boosting international trade. After several delays, the foundation-laying ceremony has been billed for this month.

    However, stakeholders, who spoke with The Nation, advised the Federal Government to set up a Maritime Infrastructure Commission (MIC) to make the proposed port, which had been in the pipeline, a reality.

    The global maritime trend is fast moving in the direction of deep seaports. Deep seaports are also referred to as “deep water ports”. In the global maritime industry, out of  about 100  seaport developments being executed, 60 to 75 per cent are deep seaports or terminals. The balance is believed to be mostly inland waterway ports and jetties. The statistics alone readily makes deep seaport development the issue in the maritime infrastructure sector. The global scramble for deep seaports is linked to the increasing embrace maritime architects and  engineers of very large carriers,  which  are  considered  “economical vessels”.

    With its huge maritime potential, stakeholders said the country could not take the back seat in the scramble for deep seaports in the global maritime industry.

    “Even with poor indigenous vessel’s involvement, Nigerian huge container, dry and wet bulk cargo traffic is a regional force, well-known to even regional competitors. With the intense competition on the regional maritime space, the imperative to maintain the lead and attain an undisputed hub status in the region as a transshipment centre, is more compelling, hence the justification for the call made by Jamoh on the development of Badagry Deep Seaport.

    During a courtesy visit to the paramount ruler of Badagry Kingdom, De-Wheno Aholu Menu Toyi 1, the Akran of Badagry, Jamoh said the Badagry Deep Seaport project in Lagos State is a strategic step to the development of the country as a global maritime hub.

    A deep sea port

    A deep seaport is defined as any port that can accommodate a fully laden Panamax ship4, or even a Post-Panamax ship. A “Panamax port” is, therefore, a deep seaport that can  accommodate  a  fully  laden Panamax  ship  or Post-Panamax  ship.

    Proposed Deep Seaports

    Since the Federal Government announced plans for development of some deep seaports in Nigeria, several names have since cropped up. They include the Lekki Deep Seaport in Lagos State, Ibaka Deep Seaport in Akwa Ibom State, Badagry Deep Seaport in Lagos State, Olokola Deep Seaport in Ondo State, Ogidigben Deep Seaport near Escravos in Delta State, and Agge Deep Seaport in Bayelsa State, as well as Bonny and Calabar seaports in Rivers and Cross River states. It is not clear which ones are Federal Government’s and which are under state government and private sector driven.

    Hub status may remains elusive

    Although the stakeholders agreed with Jamoh that the country could not obtain the hub status without the completion of some of the deep seaports projects across the country, they, however, want the Federal Government to review its policy to accommodate the peculiarities of maritime infrastructure.

    “The best way to go is to set up a Maritime Infrastructure Commission that will take care of  maritime infrastructure issues,” said a former General Manager, Public Affairs, Nigerian Ports Authority (NPA),  Chief Michael Kayode Ajayi.

    “Can Nigeria, therefore, be left behind in the jostle for efficient deep seaports? Deep seaport activities will impact positively on our economy, but to reap the benefits, what are the parameters that must be set right? Great opportunities for such huge benefits can be missed if mismanaged. So, where should the lines be drawn between white elephant ‘political seaports’ and the capital-intensive commercial undertaking which deep seaports projects in Lagos represent? Ajayi asked.

    He said Nigeria’s quest to become the hub of maritime activities in the West and Central African sub-region would remain elusive without a serious commitment by the government and promoters of deep seaports projects.

    For instance, Ajayi said the port must have rail connection and have port facilities that can accommodate large vessels with draught of at least 15metres and that can carry up to 10,000 TEUs.

    “Without deep seaports, our hope of being a hub will not materialise. It is a common knowledge that the ports, especially Apapa and Tin Can ports in the Lagos axis, are overstretched with the attendant inordinate delays in cargo handling and processing. With capacity for 60 million metric tonnes of cargo handling, the ports run at 100 million metric tonnes. This is expected to increase,” Ajayi said.

    A maritime lawyer Dr Dipo Alaka identified the inability of the Nigeria Customs Service (NCS) to provide the scanners and a transhipment tariff as major factors hampering the use of the seaports for transhipment of cargoes to landlocked countries across the region.

    Describing the investment ratio of 60:20:20 among the private sector, Federal and state governments in the development of some deep seaports as inadequate, he said:“About 50 per cent of the port cost is taken by the breakwater.

    “The government and investors must not be reluctant to pay for breakwater. For instance, the Federal Government, through the NPA, should provide breakwater and channel. These constitute the infrastructure for safe navigation on which compulsory pilotage is being charged. The 40 per cent of government exposure is not enough to build the infrastructure. This is one of the main problems of deep seaports development.

    “The government should review this policy to accommodate the peculiarities of maritime infrastructure. The best way to go is to set up a Maritime Infrastructure Commission to take care of all maritime infrastructure issues.”

    ‘Nigerian Ports are below global average’

    Alaka said the ports are below the global average on three key productivity measures and called for a quick investment in world class infrastructure, strengthen Regulatory Frameworks, enhance institutional cooperation, implementation of one-stop portals like the national single window and adequate Investment in human capital.

    In his words, “Our ports have fallen far behind our global peers on key performance indicators. Cargo spends several weeks in ports, compared to less than a week in large ports in Europe, Latin America and Asia. We are below the global average on three key productivity measures of ports: gross moves per hour, berth moves per hour and man-hours per move.”

    The don urged government agencies to implement integrated and sustainable solutions to the identified challenges.

    “There must be effective implementation of the Merchant Shipping Act, NIMASA and the Cabotage Act by ensuring that regulating the maritime sector with the use of these instruments does not hinder efficiency and negatively affect business operations in the Ports,” he said.

    The maritime lawyer also supports the establishment of a Maritime Infrastructure Commission.

    The Badagry Deep Sea Port project is being executed through a public-private partnership supervised by the Federal Ministry of Transportation, Federal Ministry of Trade and Investment, and Lagos State Government, as well as a private consortium of APM Terminals, Orlean Invest, Oando, Terminal Investment Limited (TIL), and Macquarie.

    The deep seaport is located in the Gberefun area of Badagry, along the Lagos-Badagry Expressway, about 55 kilometres (34 miles) west of the Apapa and Tin Can Island Port complexes.

    The port is proposed to be about four kilometres of quay and 620 hectares of dedicated port facilities. It will also include facilities for handling containers, dry bulk, liquid bulk, roll-on-roll-off, and general cargo, as well as oil and gas operations support.

    The port will have about 480 hectares of Industrial and Logistic Park Zone.

    According to Jamoh, “Nigeria is strategically located at a significant point in the Atlantic Ocean, with about 853 kilometres coastline, which gives us a geographic advantage to become a maritime hub for not only the West and Central African region, but also the entire maritime trading world. And with over 70 per cent of cargo bound for West and Central Africa destined for Nigeria, we also have a huge commercial advantage.

    “The Badagry Deep Seaport, planned to be Africa’s biggest and most advanced seaport when it becomes operational, would help to maximise this extraordinary maritime potential. This is more so given the strategic place of Badagry in the region.”