The Nation Newspaper

Category: Maritime

  • Council seeks incentives for shippers

    The Nigerian Shippers Council (NSC), has called on the Federal Government to show enough political will and provide the necessary incentives for shippers to make the port a hub of maritime activities in the sub-region.

    Its Executive Secretary, Mr Hassan Bello said the country lost $25 billion to foreign ship owners between 2015 and 2017 adding that over $9.08 was paid as freight for dry and wet cargoes to foreign ship owners in 2015 due to the absence of Nigerian-owned fleet plying the international route.

    The NSC boss said that the trend had been recurring over the past few years, adding that in 2016, over $7.55 billion dollars was estimated as opportunity loss.

    According to him, $8.60 billion was freight opportunity loss from import and export of dry and wet cargos in 2017.

    “As a result of this the Federal Ministry of Transportation through the Minister of Transportation, Rotimi Amaechi, set up a committee for the Nigerian fleet implementation,” he said.

    According to him, the committee was to examine the possibility of using existing shipping companies to run a Nigerian fleet and provide guidelines on procedures of establishing a shipping company.

    He said that the ministry of budget and planning played an important role in fiscal policy direction of government..

     

  • ‘Why our ports are expensive’

    Why the country’s ports are considered the most expensive in West Africa? It is because of the multiple import charges, investigations show.

    These charges are hindering the government’s trade facilitation programme. But other sub-regional ports, such as Cotonou’s are thriving.

    Besides, tracing capability and speed, poor yard planning and spacing, online accessibility of pricing and quick debt note reconciliation, among others, also make the ports expensive.

    Others include low level of automation and integration of handling process by government agencies with major stakeholders such as terminal operators, importers, truck drivers and clearing agents; poor infrastructure investment profile by the government; unstreamlined movement of containers per crane, per hour from ships to stacking position and the trucks.

    Vice President, Association of Nigerian Licensed Customs Agents (ANLCA), Dr Kayode Farinto, blamed the high cost of cargo processing at the ports on these factors.

    Importers, Farinto said, clear many charges before taking their goods out of the ports, urging the government to address the problem and reduce the cost of doing business at the ports. Importers pay Customs duties and levies that are not uniform in most of the nation’s sea ports.

    Other tariff that make the ports expensive are the seven per cent development levy; one per cent comprehensive import supervision scheme; 0.5 per cent  ECOWAS Trade Liberation Scheme (ETLS); NIMASA/NPA Sea Protection Levy (SPL); haulage cost – transportation per TEU and terminal operator progressive stage charges. Importers also pay terminal operator documentation; terminal operator examination; terminal operator scan fee; terminal operator loading fee; terminal operator delivery; terminal operator handling and terminal operator labour fees.

    They also pay shipping line demurrage; shipping line agency; shipping line documentation; shipping lines telex release; shipping line container deposit fees; terminal operators two weeks additional advance rating period; shipping line two weeks additional advance rating period; shipping line minimum of one month grace for container deposit refund; freight forwarders professional fee – unstreamlined; and several inconsiderate charges at the bounded terminals, among others.

    The President, Lagos Shippers Association, Mr Jonathan Nicol, said the five per cent Value Added Tax (VAT) and the one per cent Pre-Arrival Assessment Report (PAAR) charge were some of the charges. The others are the 35 per cent Automobile Levy and the Common External Tariff Levy. According to him, the combined charges on one consignment affect shipper’s profit. He urged the Federal Government to address industrialists’ cry to reduce the charges.

    According to him, the Federal Ministry of Finance should provide leadership in managing the problems of the shipping community.

    The shippers’ boss said the government should think about the huge investments in building the seaports and maritime prospects in the next 20 years to attract more cargoes. Nicol also suggested that plans must be made to secure and promote local industries, the manufacturing sector and the shippers. He noted that it was the duty of the government to encourage private entrepreneurs to contribute to the economy’s growth.

    “When you add the costs of generating power in a factory with salaries, these costs cannot be by-passed whether you like it or not. You must provide power for your factory and you must pay staff salaries,” he said. Nicol said the bottlenecks at the ports wee responsible for the government’s appointment of the Nigerian Shippers’ Council as the economic regulator.

    He condemned the government’s inability to enforce the Coastal and Inland Shipping Act 2003 (Cabotage Act) to enable indigenous ship owners participate in crude oil lifting. He said the government should implement the law to allow indigenous shipping companies participate in oil business. A maritime lawyer, Mr Dipo Alaka, berated the government for not streamlining the charges.

    “To make matters worse, importers and clearing agents are compelled to pay demurrage on containers for the numbers of days containers remain at the port, even when there is system breakdown caused by the service providers.

    “Importers used to pay for terminal handling charges, container cleaning charges, manifest amendment upon request by an importer, container deposit (refundable) and container demurrage,” he added.

     

  • Lawyers urge NPA, NIMASA to champion review of policy

    The Free-on-Board (FoB)  policy is causing the country a huge loss, maritime lawyers and ship owners, have said.

    They want the Managing Director, Nigerian Ports Authority (NPA), Ms Hadiza Usman and the Director-General, Nigerian Maritime Administration  Safety Agency (NIMASA), Dr Dakuku Peterside,  to champion review of the policy.

    FoB is a trade policy that allows a buyer to pay for the shipment and landing costs of the goods from the port of origin.

    A maritime lawyer, Mr Felix Adeyemo, said there was need for the Federal Government to adopt Cost, Insurance and Freight (CIF) for the lifting of crude oil.

    CIF, he said, gives the seller the right to arrange for the ferrying of goods by sea to a port of destination, and provide the buyer with the documents necessary to collect them from the carrier.

    Another maritime lawyer, Mr Muhammed Adegoroye, said a major part of the problems faced by indigenous owners was due to the failure to enforce NIMASA Act, 2007, 10 years after its enactment.

    He said Nigeria is the only country that is still using the FoB policy.

    A member of the Ship Owners Association, Mrs Margaret Orakuwsi, said the indigenous shipping firms have over the years been grappling with lack of cargo support, adding that this had made many of them to close shop, a development which led to unemployment years after the enactment of the act and other legislations, such as the Cabotage Act, 2003 and Nigerian Content Act 2010.

    “The policy is being used to the detriment of the economy,” she said.

    Mrs Orakuwsi, who is also a lawyer, said the adoption of either the CIF or FoB policy by the Federal Government should be based on how the policy is of advantage to the parties involved in the shipping.

    The intention of the Cabotage Act, she added, was to give indigenous shipping firms the support to enable them to compete with their foreign counterparts, who have usurped the cargoes on the international shipping route, the coastal and inland region.

     

  • NIMASA to make Nigeria African maritime hub

    The Director-General, Nigerian Maritime Administration Safety Agency (NIMASA), Dr Dakuku Peterside, has identified some factors that will lead to the emergence of Nigerian seaports as the highest-performing logistics hub in West and Central Africa.

    When this is achieved, the ports will become home to Africa’s largest trans-shipment container port, linked to other ports across the globe.

    Speaking with The Nation at the weekend, a senior official of the Federal Ministry of Finance (FMoF), who craved anonymity, said the senior management of the maritime industry, led by Peterside, the Managing Director, Nigerian Ports Authority (‘NPA), Ms Hadiza Bala Usman and the Executive Secretary, Nigerian Shippers Council, Mr Hassan Bello, are working tirelessly to improve the logistics network.

    The success so far recorded by the Port of Singapore, the FMoF official said, shows that, with a forward-thinking vision and much determination by those directing the affairs of the maritime trade, “a developing country like Nigeria with few resources can become a leading logistics hub.

    “Singapore’s achievements did not happen by chance, some people developed the initiatives. The result derived from a combination of forward-looking public policy and extensive private sector engagement. The experience has provided the necessary lessons for the Nigerian maritme industry,” the official said.

    The senior official noted that three  key factors that will lead to success based on the planned initiatives includethe size of the Nigerian local market which is expansive.

    “As Peterside is working closely with other maritime administrations in Africa and beyond, the port must also work closely with other ports and shipping lines to build one of the best maritime transport networks. The NPA and Shippers Council must quickly develop an extensive network of Free Trade Zone Agreements already signed by the Federal Government and initiate new ones with many trading partners to promote our access to major markets.

    “The government must encourage companies across the logistics chain to operate within the country so that they can get frequent and reliable connections to reach global markets within the shortest time possible.”

    Investigation revealed that, high-frequency connections will allow goods to reach other African countries faster through the Nigerian port than they would through direct shipments and that is one area said by the FMoF official that the country must tap into.

    “If you look at the current efforts of NIMASA, you will realise that it is in line with the initial efforts of the builders of the ports of Dubai and Singapore.

    “Over time, Singapore and Dubai’s logistics sector have succeeded in building enviable world-class infrastructure and processes that need to be emulated by Nigeria and other developing countries.

    “That is why the current management of NIMASA  like those who led the ports of Singapore and  Dubai to a world-class level, is now thinking ahead, and coming up with several initiatives to build our ports for the future and ensure that they can compete favourably in every part of the logistics chain.

    “We need a policy that will make it possible for our ports to be able to process several millions of standard shipping containers, making it the biggest integrated facility in the West and Central Africa,” the official said.

    NIMASA, the former President, Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu said, needs to explore driverless automated guided vehicles, leveraging smart sensors to detect shipping anomalies such as piracy, and data analytics to predict danger and traffic congestion spots.

    Nigeria, Shittu said, has grown to have Logistics Park at the sea ports and the Inland Dry Ports for time-sensitive cargo, the cold-chain centers for perishables, and regional express facilities to accommodate burgeoning e-commerce activity.

    “We are happy that NIMASA is currently providing its staff necessary and regular training to ensure they can keep up with the new technologies and have the right skills to examine and detect different cargo types that are coming to our ports.

    “To facilitate trade, the Federal Government is planning to launch the first National Single Window in the next few months, which will digitise and streamline trade permit approval processes. With many government agencies planning to key into the platform, this will require the Federal Government to change its mindset from controlling trade to trade facilitation.

    “By the time the National Single Window comes into operation, cargo clearance would be done and approved electronically within minutes, using one e-document. According to the Vice President, Prof Yemi Osinbajo, an enhanced National Single Window is currently in the pipeline, and it will assist integrating as many business-to-business transactions as possible into one single digital platform.

    “Nigeria needs the national single window to promote private sector competition and encouraged industry players to be com-mercially nimble, and helped make the nation’s logistics sector more attractive and efficient,” Shittu said.

  • Maersk’s new booking platform

    Maersk Line has introduced a platform that will make container booking easy for its customers, reduce delay and boost efficiency at ports.

    Booking confirmation by Maersk customers, it was gathered, can now be completed within seconds compared to previous waiting times of up to two hours.

    Booking containers through the Maersk Company is now like booking for air tickets.

    The Chief Commercial Officer, A.P. Moller – Maersk, Vincent Clerc, said eliminating the delay  is a top priority for Maersk as it triggers uncertainty and extra workload in managing supply chains for customers.

    “We are now making it as easy for our customers to book a container as booking a flight ticket. Instant booking confirmation makes it faster, easier and simpler for customers to interact with Maersk.

    “It is a milestone for the entire industry and a concrete example of how we are bringing our strategy to life when we improve the customer experience through seamless digital offerings,” he said.

    With the new solution, he said, customers get visibility of sailing options with available vessel space, a list of depots with empty containers to choose from and a choice of relevant value adding services. More importantly, he said, they get certainty that a booking will not be cancelled at a later stage.

    The commercial officer note that due to  lack of vessel space or equipment availability, about 10 per cent of bookings placed in Maersk’s systems were previously either rejected or confirmed for an alternative sailing, often spurring customers to follow up with questions and requests for changes.

    Such follow-up inquiries, he said, have accounted for 15 per cent of all Maersk customer service calls and chats – and close to 200.000 emails every month.

    Instant bookings on-the-go with the release of instant booking confirmation, Maersk is also introducing online booking via the Maersk App.

    Enabling instant bookings directly from the mobile phone, it was gathered, is another functionality that has long been high on Maersk customers’ wish-lists, especially in emerging markets.

    Its Global Head of Customer Experience & Service, Sonny Dahl, said: “Maersk operates in several markets where mobile phones make up the primary working tool for the workforce. Here, Instant Booking Confirmation straight from the mobile phone will be a huge improvement for our customers’ supply chain managers – it will further enable trade in these markets,”

    Instant booking confirmation, it was learnt, is available in beta for all customers through the online booking modules of the Maersk Line, Sea Land and Safmarine brands.

    The functionality currently covers dry cargo shipments. Refrigerated cargo, dangerous cargo (IMDG) and inland container yards are expected to be added during 2019.

  • Shippers Council unveils standard for trucks

    The Nigerian Shippers’ Council (NSC) has unveiled the Standard Operating Procedures (SOP) to regulate the haulage industry.

    Its Executive Secretary, Mr.  Hassan Bello, said the SOP is to sanitise the haulage Industry which has become an all-comers’ affair without regard for standard and ethics in the business

    “We are going to have conditions for operating a haulage company. We are going to have a minimum of six trucks for a company, companies have a registered office, have insurance for goods on transit, have a tracking device, among others.

    “Any company that does not have the capacity to own six trucks will not be allowed to operate. Its implementation will be gradually done.

    “Even now, there are some good trucking companies, but we need to have more of them. Nigeria is going to have a lot of project cargo in import and export but we need the trucking system to be organised.

    “We are expecting that in three years time, everything would have taken shape. Besides, the trucks are going to have competition from the rail. For now, to take a truck from Lagos to Yola, it costs N1million. By rail will give you may be N300,000.

    “However, haulage is important to the economy. Germany with all its sophistication, 30 per cent of their carriage is by trucks. So when we have the roads done we are going to re-fleet the trucks. We are going to have conditions for operating a haulage company,” Bello said.

    But the Secretary of National Association of Road Transport Owners (NARTO), Mr Aloga Ogbogo the government regulation must be holistic.

    “We should look at the issue of training and re-training of drivers, granting of financial assistance to the operators, and transportation should not be an all-comers’ affair. Again, we are talking of regulation when we don’t have a standard truck park. The only space we have has been sold to a company.

    “The government is not even playing its role as a regulator. For instance, look at Apapa port access roads. The government licensed 63 tank farms and each has the capacity to take 200 trucks. Before granting the licence there should have been a condition for the provision of a holding bay for each of them,” Bello said.

  • NIMASA goes tough on dangerous imports

    The  Nigerian Maritime Administration and Safety Agency (NIMASA) has vowed to deal with those involved in the shipment of dangerous goods to the country.

    The agency, sources said, is to implement safety codes on dangerous goods to enhance safety in the marine environment.

    Its Director of Operations, Mr Rotimi Fashakin, said the indiscriminate dumping of dangerous goods in the marine environment has been a growing concern and a threat to human health and the environment.

    He said the IMDG Code was a convention under the auspices of the International Maritime Organisation (IMO) to which Nigeria is a signatory.

    He recalled the negative effect that the dumping into Koko Port in Delta in 1988 of 18,000 barrels of hazardous waste from Italy and recent similar cases on the area.

    He said there was the need to pay special attention to the negative effects that dumping of dangerous goods in the environment could cause the residents.

    “The special requirements in the transportation of IMDG are to eliminate or minimise the risk of injury to people.

    “Over the years, the maritime sector in many countries had taken measures to regulate the transportation of dangerous drugs through identification, labelling and stowage of such goods,” Fashakin said.

    He said that the measure for international regulation on transporting dangerous goods was ratified by the 1929 International Conference on Safety of Life at Sea and adopted in the 1948 Conference.

    He added that the usefulness of most IMDG, especially, to industries had made them inalienable from man hence the desire for them.

    “This session is, therefore, part of Nigeria’s readiness to effectively perform its statutory responsibilities of implementing the IMDG Code on transporting dangerous goods in order to guarantee the health of its citizens,” he said.

    Also, Dr Felicia Mogo, NIMASA’s Head of Marine Environment Management Department, who facilitated the session, said that the code was meant to enhance the safe carriage of dangerous goods.

    She advised port users to be patriotic in their dealings in order to save the country from danger.

  • Firm acquires N5b trucks to clear ship waste

    TO fulfill its mandate as contained in the agreement it signed with the Federal Government, the African Circle Pollution Management Limited (ACPML) has acquired 16 new trucks to evacuate waste generated by ships calling at the sea ports.

    The trucks are valued at over N5 billion.

    The trucks, fitted with latest technology features, were manufactured by Mercedes Benz.

    The trucks are to enhance the operations of the company at seaports in Lagos, Calabar, Port Harcourt, Warri and Onne.

    The procurement of the trucks was in line with the requirements of Maritime Pollution (MARPOL) 73/78, one of the key guidelines of the global maritime watchdog, the International Maritime Organisation (IMO) which has its headquarters in London, United Kingdom.

    With the provisions of MARPOL 73/78, the management of the Nigerian Ports Authority (NPA) is mandated by IMO to provide adequate waste reception facilities for waste generated in vessels calling in Nigerian ports.

    Unveiling the trucks at Tin Can Island Port Complex, Apapa, Lagos, NPA Managing Director of Ms. Hadiza Bala Usman commended ACPML for the strides it has made since it signed the Build, Operate and Transfer (BOT) agreement with the Federal Government.

    Ms Usman, who was represented on the occasion by NPA General Manager, Security, Mr. Nasir Anas Mohammed stated the trucks would go a long way in enhancing the company’s operations.

    Mohammed, who test drove one of the trucks, said they would help Nigeria to meet the requirements of the IMO as regards the evacuation of waste generated by ships.

    The Acting Co-ordinating Officer, ACPML, Mr. Ahmadu Fidi Ahmadu, said the firm procured the trucks to meet the increase in demand for its services.

    He disclosed that while eight of the trucks would be used in the ports in Lagos, the other eight would be utilised in Onne Port Complex, Onne, Rivers State.

    According to him, the choice of Mercedes Benz was informed by the fact that it is known for efficiency, performance and safety. We usually have service level agreements (SLAs) with an authorised distributor/dealer for training, service and support for our personnel.

    The District Manager, ACPML, Mrs. Latifat Ibrahim stated that the firm has the support of the Federal Ministry of Transportation and the NPA in the discharge of its mandate.

    Commending them for their support and co-operation over the years, she reiterated the readiness of ACPML to live up to expectations of stakeholders in its areas of operation.

  • ‘Govt should audit terminal operators’

    PRESIDENT Muhammadu Buhari has been urged to constitute a committee that will take an inventory of the number of cargo equipment at the ports to eradicate redundancy, boost efficiency and make the ports competitive in the sub-region.

    The exercise has become necessary because of the unattractiveness of the nation’s sea ports.

    Stakeholders are convinced that for Buhari to succeed in repositioning the sea ports for greater efficiency, there is a need for him to mandate the Ministry of Transport, Nigerian Ports Authority (NPA) and Bureau of Public Enterprises (BPE) to conduct a performance audit of the con-cessioned seaports to determine their progress and challenges since 2006.

    Almost 13 years after the ports were concessioned to private operators, importers and clearing agents claim that most of them have failed to keep to the terms of agreement.

    According to the Vice-President, Association of Nigerian Licensed Customs Agents (ANLCA), Dr Kayode Farinto, most of the concessionaires have failed to “develop, market and promote cargo throughput and cargo-related business of the lease property.

    Farinto said the concessionaires make huge amount from service charges and over N10 billion annually from storage and demurrage charges on importers and clearing agents without a corresponding improvement on their terminals.

    He regretted that 13 years after the ports concession agreement was signed by the NPA and the operators, some operators have not added value to their services and terminals.

    He explained that most of the terminals were stocked with old equipment inherited from the NPA, adding that the inherited buildings are dilapidated and serving no purpose apart from occupying space that would have been converted for cargo delivery and process procedure.

    Huge demurrage and other sundry factors, he said, are making the ports uncompetitive and unattractive for business, urging the President Buhari to address the problem.

    Farinto said: “The un-competitiveness of the ports, Farinto said, has made it difficult for them to attain world-class status.

    “This is the correct time for President Muhammadu Buhari and the Federal Executive Council to constitute a committee that will take inventory of all the equipment at the ports.

    “Mr President must also direct the Managing Director of NPA, Ms Hadiza Bala-Usman, to carry out the performance audit of each of the terminals to show the areas where they have deliberately violated the concession agreement they signed with the government.

    “NPA, in collaboration with the Nigerian Shippers Council (NSC) need to take inventory of the number of cargo equipment in each of the terminals to show how the operators have been running the ports.

    “There is an urgent need for NPA to publish data on operations equipment of each of the terminal operators and see how they have boosted efficiency at ports.”

    He added that equipment such as cranes, forklifts, straddle carriers, reach stackers and other vital equipment available at each berth facility (quay apron, yards, terminals, sheds and warehouses), their number, technical charac-teristics, first service year and expected life time “need to be known by the government and the public, in whose interest they claimed to be operating the port.

    While carrying out the inventory, he said senior media officers from the Presidency must be involved, and equipment code marked on its parts for easy identification.

    Also speaking with The Nation at the weekend, a senior official of the Federal Ministry of Transportation (FMoT), who craved anonymity, said there was need for the ‘NPA to carry out performance audit of the port.

    “Performance measurement and improvement are essential activities that Port Authorities uses to enhance their productivity and competitive position. Certain indicators concerning port services and operations can be evaluated from financial and operational points of view, to serve the overall port management, especially the middle-management in its day-today strategy implementation.

    “Among various performance monitoring systems helping the port authority to achieve its strategic objectives include the Balanced Scorecard (BSc), which serves to create, select and present performance to highlight the main performance indicators (PI) used today by port authorities, and to underline the BSc contribution on improving port efficiency.

    “To improve the quality of its services and operations, NPA should consider their ports as part of a multimodal transport, while needing efforts concentrated in: identifying the information and data requested to prepare the key performance indicators; locating the sources, type and range of data required; storing, retrieving and processing the required data; monitoring the improvement process and maintaining the best results obtained,” he said.

  • NIMASA urged to build shipyard

    How can the Nigerian Maritime Administration and Safety Agency (NIMASA) boost the nation’s capacity in the maritime trade?

    It is by championing the development of an ultra-modern shipyard, say some maritime lawyers and stakeholders in the industry.

    Speaking with The Nation, a maritime lawyer and university teacher, Mr Dipo Alaka, said there is a need for NIMASA to build a shipyard to create jobs and arrest capital flight. He noted that millions of dollars are  spent to procure vessels abroad.

    According to him, cadets graduating from the Maritime Academy of Nigeria (MAN) in Oron, Akwa Ibom State, can do their practicals in the shipyard.

    NIMASA, he emphasised, should put in more efforts to acquire ship building and repair capability to boost the economy.

    To make the shipyard viable, he said NIMASA must ensure that the private sector is involved in its management. “Now that NIMASA has acquired its dry docking facility, the agency needs to promote ship yard facilities.

    “The acquisition of dry docking by NIMASA will not only create employment opportunities, but also arrest capital flight as many vessels calling at the ports will have a facility for dry docking instead of going elsewhere to do it.

    “Nigeria should learn some lessons from the ugly experience, so as not to repeat the mistakes of the past.

    “In October 2013, the former  Minister of Transport, Senator Idris Umar, after a meeting of the Federal Executive Council, announced that the Council had approved N58.6 billion for the construction of shipbuilding facilities in Delta State.

    “Barely seven months later, the ground-breaking ceremony for the shipyard was performed by former President Goodluck Jonathan. Up till today, nothing has been heard concerning the plans and the process leading to the execution of the project,”Alaka said.

    He went on: “NIMASA needs to tell us how much manpower has been trained to handle the shipyard? Is the project conceived as the answer to the ship building and repair needs of the country or as a dockyard for the training of cadets?

    “Where was the place of the private sector in a venture the Federal Government sunk a whopping N58.6 billion?

    “These are some of the questions that must be asked in order not to see billions of Naira going down the drain while Nigeria continues to go around as far as shipbuilding capability was concerned.

    “NIMASA needs to facilitate the development of modern shipyards in Nigeria and operate them with the use of labour and local content as much as feasible. Most importantly, we need to know I’d the ship yard agreement had provision for marine engineering technology transfer programme from the builders,” Alaka said.

    NIMASA, another maritime lawyer, Mr Solomon Ibidapo, said, must be ready to provide ship repair services before graduating to ship building and the agency should provide incentives for any company that desired to invest in shipyards.

    A senior official of the Federal Ministry of Transportation (FMoT) who does not want to be named said NIMASA was desirous of developing a shipyard and assist in the construction of ocean-going vessels in future.

    “This would, ultimately, lead to the establishment of a train – the- trainer programme for more employees to be trained in Nigeria. NIMASA was expected to facilitate government incentives to ensure the success of the project, encourage the building and maintenance of vessels to be done in Nigeria, and provide a stable and transparent regulatory regime to guarantee the sustainable success of the project on a long-term,” the FMoT official said.

    The vision behind the shipyard and dockyard project, the official said: “Is to have a world-class building and repair facility that will be commercially viable to transform the nation’s economy. The project is being developed in two phases. Phase one is the ship building facility to handle smaller vessels and maintain ships plying the nation’s inland waterways while the second phase is planned for a facility that will handle ocean-going vessels and offshore installations which will serve the oil and gas industry.”

    “The ship and dockyard facility is a response to a major infrastruc-tural capacity gap that has negatively affected the sector’s performance. An important pillar of our cabotage regime is the possession of indigenous capacity to build and maintain vessels for the cabotage trade. Having an in-country capacity for shipbuilding and maintenance is very crucial for the attainment of the cabotage policy objectives. It is in pursuit of this critical requirement that we conceived the shipyard/dockyard facility.

    “Another important reason for undertaking the project is that the ship and dockyard facility will support the training of graduates by providing opportunity for the practical training of naval architects, marine, communication and control engineers.

    “In the past, ship repair facilities available in our ports could only render limited services and consequently, most of the repairs on  vessels were carried out outside, thus resulting in substantial drain on the country’s foreign exchange reserves and that is why the call on NIMASA to promote ship yard facilities is acceptable and genuine,” the official added,” the official said.