Last week, Onne Port in Rivers State made history when it received the biggest container vessel to ever visit the country.
The vessel, investigation revealed, berthed at the port with export goods to convince importers that large container ships could berth at the port.
The Nigerian Ports Authority (NPA) said the Maerskline Stardelhorn vessel, with a length of 300 metres and width of 48 metres, was received at the Federal Ocean Terminal, Onne at 1620 hours on August 15. The vessel, it was learnt, has the capacity of 9,971(TEUs).
Liner shipping, such as Maerskline Stardelhorn vessel, is a network of scheduled service which transports cargo from Singapore, China, Europe and United States to countries like Nigeria and Ghana, among others. The movement is low cost and with greater energy efficiency than any other form of international transportation.
Stakeholders said liner shipping is the most-efficient mode of transport for goods. “In one year, a single large containership like the one that berthed in Onne last week, can carry over 200,000 container loads of cargo, while individual ships vary in size and carrying capacity can transport over 9,000 containers of goods and products on a single voyage. That is why we are happy that after many years, the Maerskline vessel berthed in Onne, despite the challenges of the channel leading to the port which is very shallow,” said an importer, Mr. Felix Friday.
Friday echoed the frustrations of other stakeholders in the maritime industry when he said: “The dependence on the Lagos ports is no longer good for maritime trade. It is overburdening the city and its vibrant residents, as well as amenities, especially roads and bridges.”
The motor vehicle importer said the parlous state of the nation’s premier ports in Apapa, Lagos, which has been hurting businesses, has necessitated the move by the NPA to make eastern ports attractive for business.
He said the management of the Nigerian Ports Authority (NPA) had no alternative than to look towards the eastern ports, and develop them as alternatives to the Lagos ports.
His call, which resonates with not a few operators and other critical stakeholders, it was gathered, became necessary in view of the intractable gridlock in and around Apapa ports, which has become a pain in the neck of the Federal Government, NPA, port users, investors and the city’s residents.
A clearing agent, Mr. Lekan Adetowubo, said the decision of NPA to berth the large vessel in Onne, was prompted by the need to show the capacity of other viable, but largely under-utilised ports outside Lagos, which, in the thinking of industry operators and stakeholders, should be made attractive for business to reduce the pressure on Lagos.
For instance, apart from Lagos ports, there are seaports at Warri, Koko, Onne, Port Harcourt, Calabar and Ibom Deep Seaport at Ibaka, Akwa Ibom State, which is still at the design stage. There are also numerous inland dry ports and fuel depots.
Unfortunately, the main problem with these ports, The Nation learnt, is that the river channels leading to them are too narrow to accommodate large vessels before the efforts exhibited by the NPA. Earlier, shipping firms found it more convenient to take their vessels to Lagos than to eastern ports because of the unending restiveness in the area.
The situation, it was also gathered, worsened after the concession of the ports started in 2006. This was sequel to the withdrawal of the 30 per cent incentive granted vessel owners to use the eastern ports when the Federal Government controlled the ports.
Apart from the Onne Port, most of the ports servicing the Southeast, Southsouth and the eastern flank of the North are less attractive because most importers don’t take their cargo there..
NPA’s General Manager, Corporate & Strategic Communications), Mr Adams Jatto, said the management of agency was making efforts to ensure that the channels into the ports were dredged, their facilities upgraded and incentives provided to enable many eastern ports take up more of the maritime business.
The Vice-President, Association of Nigerian Licensed Customs Agents (ANLCA), Dr. Kayode Farinto, said the fear of paying for delays of vessels, shallow waters and activities of sea robbers were the reasons importers and clearing agents were not patronising eastern ports.
He said the challenges that had crippled the activities in Calabar, Warri, Port Harcourt and Onne ports had made trade facilitation and life difficult for importers using the ports “and that was why the current management of NPA had to take the initiative of berthing the Maerskline Stardelhorn vessel at Onne Port to shift the attention of importers to the region.”
Other challenges
Apart from shallow channels, which make bigger vessels unable to access the port, decrepit port infrastructure is said to have led to the dwindling revenue fortunes of the NPA and other government agencies at the ports.
While the Calabar Port suffers from shallow draught, the Onne Port is contending with insecurity, such as pirate attacks and sea-robbery.
Other identified challenges include deplorable berths, dearth of finger mooring jetties to berth NPA crafts, lack of operational vehicles and fire hydrants at quays.
Cargo handling equipment and the port quays areas are also inadequate to make trade facilitation efficient.
Also, while high siltation at the Calabar Port has impeded safe navigation, the Port Harcourt Port suffered pirate attacks, which made the port unattractive to foreign shipping lines.
Because of these challenges, no fewer than 754 vessels, it was learnt, deserted the eastern ports between 2013 and 2018 before the efforts of the NPA to make the ports attractive once again.
Specifically, vessels that berthed at the ports reduced from 2,268 vessels in 2013 to 1,514 in 2016.
According to the National Bureau of Statistics (NBS), vessels that berthed at the Delta Port fell from 609 in 2013 to 433 in 2016, while the Gross Registered Tonnage at the port also dropped from 8,687,160 in 2013 to 6,177,809 in 2018.
High level of insecurity
An importer, Mr. Robert Francis, said shipment of cargoes from China to Lagos, which used to cost about $1,500, costs between $4,500 and $5,000 because of insecurity and high salinity of the sea. He therefore urged youths in the area to give peace a chance to make the ports attractive and competitive.
“In addition, vessels calling at Onne Port in Rivers State also slammed $45,000 (N16.2 million) on importers for an average of six hours per night for delay to berth. The delay, which is estimated at $7,500 per hour, is said to be caused by incessant robbery and shallow port channels,” he said.
Worried by the problems, Transportation Minister, Rotimi Amaechi, at a stakeholders’ interactive session in Warri before the global pandemic, said one of the factors militating against the success of the sector was insecurity in the Niger Delta region, which he said, was also hampering the growth and development of the region.
He said Niger Delta was not working because of the people in the area. His words: “How many Lagosians are on the water in Lagos? None. The reason vessels will not come to the Eastern ports is because there is no war insurance on vessels because of restiveness in the region.
“War insurance means if the goods cost N10,000 in Lagos, it will get to N20,000 here because there is extra cost on it. There is insecurity in Lagos, but not as bad as it is in the Eastern ports.”
A senior government official, Mr. Chidi Izuwah, also expressed worry over the inability of vessels to sail at night at Onne Port. He regretted that vessels could not sail out of the port as it is done in Lagos Ports.
Low utilisation of eastern ports
NPA Managing Director, Hadiza Bala-Usman, regretted the low utilisation of the Eastern Ports. She said for the Eastern Ports to attract cargo, NPA has improved on infrastructure that would aid port transaction in the zone.
NPA, she said, has awarded the contract for the dredging of Warri Port to make the zone attractive for business. Her words: “There is no need for shippers to en route their cargoes to places where they will find it difficult to reach their warehouses and end users.
“There has been this issue of restiveness in the area, and no investor will like to toy with his or her goods, hence they prefer Lagos Ports where security is guaranteed unlike in the eastern ports.
“Calabar Port is strategically located to service the Northeast and the Northwest, but the link roads to the area from Calabar are bad. Articulated vehicles cannot ply the route.”
The Nation learnt that the Onne Port has been a source of concern to stakeholders, especially shipping firms. For instance, night voyage is absolutely prohibited at Onne Port due to insecurity fuelled by pirate attacks.
The National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) President, Lucky Amiwero, said Nigeria had lost its leadership position to other countries not only because of security lapses, but also because of shallow draft.
NPA takes the right steps
Aware of the perennial gridlock in Lagos and determined to change the narrative, the NPA management said it is working with professionals in the sector to make the Eastern ports attractive for business.
Last year, the NPA deployed equipment worth over $30 million in Onne Port. The measure, which was taken by Ms Bala-Usman, it was gathered, was to boost efficiency, security and make the port attractive for business. Onne Port Complex is one of the key ports under the NPA. It is situated on the Bonny River Estuary along Ogu Creek.
