Category: Maritime

  • Importers, exporters urge Fed Govt to establish Maritime Bank

    Importers, exporters urge Fed Govt to establish Maritime Bank

    Finance Minister Mrs Kemi Adeosun and the Central Bank of Nigeria (CBN) have been urged to facilitate the establishment of a maritime bank to boost trade.

    Speaking at a forum organised by over 600 cargo owners, importers, exporters and shippers in Lagos, a maritime lawyer, Mr Dipo Alaka, pushed for the establishment of the bank with the Cabotage Vessel Finance Fund (CVFF) to address inadequate funding of the sector.

    Alaka said such bank had become imperative because only few banks were responding to cargo owners, importers, exporters and manufacturers’ needs.

    He said over 12 years after the passage of the Cabotage Act, the sector was still under-funded.

    The Federal Government, he said, should use the Cabotage funds domiciled with the Nigerian Maritime Administration and Safety Agency (NIMASA) to empower Nigerians wishing to acquire vessels.

    He called on Transportation Minister Rotimi Amaechi and NIMASA Director-General Dr. Dakuku Peterside to facilitate the establish-ment of the bank.

    A cargo owner from Belgium, Mr Rasheed Muritala, said the bank would eliminate the funding problems in ports’development and operations, ship building and acquisition, ship repairs, marine safety and environmental protection, among others.

    Muritala pointed out that the reason Nigeria could not compete in the supply of shipping services at the ports and in multi-modal transport services in the sub-region was yet to be addressed.

    He said despite banks’consolidation, they were yet to appreciate the maritime sector’s peculiarity and adequately support its funding.

    An industrialist, Chief Raphael Johnson, said it was time for the Federal Government, in collaboration with stakeholders, to drive the right policies that would enable Nigeria become a hub of ship finance companies as was presently the case in Singapore.

    He stated a confluence of critical stakeholders, government, shipowners and the finance sector was imperative to induce the much-needed development in indigenous shipping.

    Johnson said many stakeholders, government, banks, shipowners, who ventured into ship-financing either shied away from it or traded blames having had their “fingers severely burnt”.

    To move the industry forward, he said parties should return to the drawing board and provide for holistic, unbiased appraisals, deliberations and resolutions geared towards the advancement of the sector.

    “In Belgium, Netherlands, United Kingdom and the United States, they have maritime development banks that give out money to the industry at almost one  per cent interest rate. But contrary to what is obtainable in those countries, in Nigeria, you have banks giving loans at interest rates of between 20 and 25 per cent per annum,” he said, adding: “Nigerian banks must forgo short-term profits and support long-term maritime projects.”

    Banks, he  said, must take long-term view of funding projects and recognise the value that sustained investments would have on the sector.

     

  • Shippers Council hails Appeal Court’s verdict

    The Nigerian Shippers Council (NSC) is committed to ensuring efficiency at the ports so that they can compete with  those in neighbouring countries, its Executive Secretary, Hassan Bello, has said.

    Hailing last week’s Court of Appeal’s verdict which upheld the Council’s power as port regulator, Bello said approved charges and port services’ automation were necessary to drive the reform needed in the sector to attract more cargoes.

    He said ports’automation and the establishment of the Truck Transit Parks would enhance efficiency, adding that transparency would facilitate cargo clearance.

    “The judgment given last week by the Court of Appeal sitting in Lagos was commendable. It will stop arbitrary charges and promote business in our ports.

    “The automation of port processes is also necessary. If it is five days in port A and it is one day in port B, I will rather go to port B because it is the economies of scale that determine which port is used. We have made it possible for us to make that comparison within the sub-consciousness of the national discourse on the economy.

    “It is important for our ports to be efficient and our ports are picking up now. Corruption is what we have been talking about and there are many ways to kill corruption and one of them is automation because the moment you have automation, corruption will just disappear. With the introduction of their electronic payment platform, what took place in six days then, now takes place in six seconds.

    “Some of the delays have been eliminated by NPA and the agency is also trying to introduce other electronic system of doing things, the same thing with Customs,’’ Bello said.

    The NSC boss urged the government to take a deliberate action to address many challenges confronting the port system through consistent and predictable policies.

    He said investors needed certainty and ease of doing business which could be brought about by government’s intervention, especially in the gridlock at Apapa.

    According to him, no matter how efficient a terminal is, if there is no road to evacuate cargoes, how can you do it. So, there must be some level of intervention.

    “The ideas are to have an electronic passage to ensure that a truck is only in Apapa when it is needed to pick or drop cargo. Then the thank farms, we don’t need trailers tanker to go to tank farms because we have the pipeline which is also a means of transportation.

    “The moment we have these pipelines pumping to Mosimi and other flow stations, then we don’t need tankers in Apapa.

    “We cannot rely only on one access like road; port should be accessible by road, rail, inland water ways and pipelines because the port is not a storage place for cargo at all,’’ he said.

    Bello also said the NSC, in partnership with state governments,  would build Truck Transit Parks on major highways to address the challenge of trucks parking on the roads. He said the project, a  Public-Private Partnership (PPP), aimed at reducing road congestion and loss of cargoes.

    He said the parks would have hotels, restaurants, petrol stations and garrage for vehicles’ repair and maintenance.

     

  • Agents seek cut in interest rates

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

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

    Association of Nigerian Licensed Customs Agents ( ANLCA) President Prince Olayiwola Shittu said there should be policies to create linkages between the industry and other sectors, such as banking and manufacturing.

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

    A shipper, Akinderu-Fatai, said the purchase of modern vessels would provide jobs for millions  across the country.

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

    The country, he said, has not enjoyed benefits of transporting large quantities of cargoes because local ship owners lacked the capital.

    Akinderu-Fatai suggested that the Federal Government should integrate maritime education and training into the national university system so that Nigerians interested in seafarers’training could get the necessary education to promote the sector.

    Lamenting the lack of foreign exposure for better performance, he said many operators were bogged down with no experience, with little or no education.

    “There is a need for more government interventions aside the Cabotage Vessel Financing Fund (CVFF) to actively encourage the banking sector to support local ship owners to acquire modern fleet, which can sail anywhere in the world,” he said.

    An importer, Mr Timoty Adetoye  said 60 per cent of the inward and outward-bound sea trade in the West and Central Africa sub-regions passed through the nation’s waterways. He called on the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, and the Minister of Transport, Rotimi Amaechi, to assist in developing the industry.

    He said the country needed to expand its merchant fleet because of  the high volume of bulk liquid, gas and dry cargoes that passes through its waterways.

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

     

  • ‘Why Cabotage Act implementation failed’

    Lack of commitment by the Federal Government, banks’ failure to support indigenous shipowners to buy vessels and conspiracy by importers and some clearing agents have been listed as the bane of Cabotage Law implementation.

    At a stakeholders’forum in Lagos, a maritime lawyer, Mr Sesan Arowora, said the Coastal and Inland Shipping Act, 2003 was a protectionist law enacted to create exclusive areas of operations in the coastal trade for indigenous operators.

    Indigenous shipowners, he further said, have complained that the waiver clause has made implementation of the law difficult.

    He said the law could be easily implemented, if the Federal Government supported NIMASA, the agency saddled with enforcing the law.

    “This is the time for the Federal Government to give the necessary support to NIMASA and see to the implementation of the Cabotage Act.

    “There is no doubt that some powerful individuals in government are trying to frustrate the implementation of the law.

    “Nigerians are waiting to see the government that will see to the quick implementation of the law. Any government that is ready to enforce the law would make it compulsory that every ship that calls at our port should first declare its arrival to the Nigerian Ports Authority (NPA), NIMASA and the Navy. By doing so, it would become easy to implement the law,” he said.

    Arowora said the implementation should not be a problem.

    His words: “NIMASA does not even need to get to the jetty to arrest a vessel; it can ask a vessel to tell her its point of loading. So, if it is offshore Lagos or Cotonou, the agency can verify if it is on the list of Cabotage-registered vessels. Therefore, implementation should not be a major issue. From all indications, there must be a kind of conspiracy between the operators and people that grant approval for foreign vessels to come into the country,” he said.

    He said Nigerian shipowners ought to be supported by the government and banks to buy vessels to adequately carry out coastal trade.

    “Much as it is estimated that marine transportation offshore alone has a potential annual revenue profit of millions of naira as against coastal trade in commodity and products, it is believed that harnessing the opportunities of effective implementation of Cabotage will provide a springboard for indigenous operators to acquire requisite capacity and expertise to launch themselves into global shipping.

    “The target is for Nigerian carriers to have a share of about $4 billion per annum gross value of freight in and out of Nigeria. Only 20 per cent share of the market will stimulate the local economy to the tune of about $600 million gross per annum,” Ariwora said.

    Olive Venture Chairman Mr Samson Ojikutu said the cabotage regime covers ship building, ship ownership, manning and registration. Unlike the Cabotage Law in other nations, he noted that Nigeria’s Cabotage Law provides for waivers.

    Ojikutu said the government should stir maritime development, by using its agencies to do so.

     

  • Wike gives C of O to Academy

    Wike gives C of O to Academy

    Rivers State Governor          Nyesom Wike has given a certificate of occupancy (CofO) to the promoters of Charkin Maritime Academy (CMA), Port Harcourt, in fulfilment of his promise.

    To encourage investment in the oil and gas rich state, Wike had during the formal unveiling of the first ever land ship in the country, MV Rivers Pride, last year, approved a Cof O for the land where the land ship is situated at Ozuoba, on the East-West Road, Port Harcourt. The land ship was built by CMA, an indigenous and privately-owned maritime training institution.

    Apparently pleased with the strides made by the academy, Wike said the Rivers State government would do everything to assist the maritime training institution to grow to an enviable height for the benefits of the indigenes of the state in particular and Nigerians in general.

    He lauded the management of the academy for the achievements recorded since it was established.

    CMA Chairman and Chief Executive Officer (CEO), Sir Charles K. Wami, who disclosed this in a chat with newsmen in Lagos said the C of O has been handed over to CMA.

    Wami lauded Wike for fulfilling his promise to the academy, pointing out that with the development, many investors will take the state government serious in its drive to encourage investors to invest in the state.

    According to him, the fulfillment of the governor’s promise to CMA will spur him and the academy’s management to do more in the years ahead. “To say the least, we are very pleased with this development. You are aware that it was during the unveiling of the first ever land ship in Nigeria that the governor made the promise. Today, we are happy that the governor has kept to his promise by giving us the certificate of occupancy. We are very grateful,”he said.

    He explained that the support of the state government would enable the training school attain set goals and objectives.

    He pointed out that the academy needs the encouragement of all stakeholders to continue to provide maritime education and training of international repute.

    “The school has a trend of rendering and improving on high quality training to guarantee competence in a conducive and friendly environment. It is a one-stop-shop for marine, oil and gas training”, he said.

    The land ship comprises full mission navigational bridge simulator; ECDIS Simulation Room; GMDSS (Navigation) Simulation Room which conforms to the 2010 Manila Amendments by the global maritime watchdog, the International Maritime Organisation (IMO); and the basic dynamic positioning class.

    Other components of the land ship are advance dynamic positioning and examination class; nautical institute examination room; and the drilling system crane simulator.

    The school has the approval of local and international regulatory agencies across the globe. These include NIMASA, Department of Petroleum Resources (DPR), OPITO, United Kingdom, and the International Well Control Forum (IWCF), United Kingdom.

    Others are the Nautical Institute (NI), Oil and Gas Training Association of Nigeria (OGTAN), International Association of Safety and Survival Training (IASST), United Kingdom, and the Petroleum Technology Association of Nigerian (PETAN).

    Besides the fact that it is a member of British Safety Council among others, it is also affiliated to the Regional Maritime University, Accra, Ghana.

     

     

  • ‘Empty containers occupy over 40% of Lagos ports’

    ‘Empty containers occupy over 40% of Lagos ports’

    Nigerian Ports Authority (NPA) Managing Director Ms Hadiza Bala Usman has ordered terminal operators at the Lagos ports to declare the number of empty containers there. Over 40 per cent of the space at the ports is believed to be occupied by empty containers.

    The NPA, the Nigerian Maritime Administration and Safety Agency (NIMASA), the Nigerian Shippers Council  and the Nigeria Customs Service, it was alleged, do not have a record of the number of empty containers in most of the terminals across the country.

    Speaking with The Nation in Lagos, a senior official of the Federal Ministry of Transport (FMoT), who  pleaded not to be named, urged the government to stop operators from using the terminals as storage facilities.

    Transport Minister Rotimi Amaechi and the NPA, the  official said, must direct the operators to  publish weekly the number of cargo, laden and empty containers at the ports.

    Most of the operators, the official alleged, are conniving with some unscrupulous NPA officials and shipping companies to keep the containers at their terminals to create the impression that the ports are busy.

    An importer, Chief Onasanya Ladejobi, expressed concern over the Apapa gridlock, which hinders access to the ports.

    Chief Ladejobi said the bad roads were hampering trade and affecting delivery of cargoes.

    He said the empty containers must be moved to their ports of origin and  ports infrastructure be revamped to revive the economy.

    The business community,  according to him, was not happy that measures adopted have not  yielded result to free the roads leading to Lagos Port Complex (LPC) and the Tin-Can Island Port.

    The business community and port users, he said, are waiting for what he called “positive action” from Amaechi soon, adding that the quick rehabilitation of the road must be one of the minister’s major priorities in salvaging the economy.

    The Federal Government, states and stakeholders, he said, should work together to find lasting solution to the problem.

    Ladejobi called for the promotion of exportation of agro-allied products to free the ports and boost the economy, noting that he was not happy that about 90 per cent of container traffic left the ports empty.

    The importer urged the public and private sectors to support government’s efforts at diversifying the economy.

    X-raying the ports’ last quarter operations, he said  there was an urgent need to complement the NPA’s efforts at massive investments in infrastructural renewal and automation of port operations by generating enough export cargo to move empty containers out of the ports.

    The NPA, he said, must collaborate with the Nigerian Export Promotion Council (NEPC) and Abuja Commodities & Exchange Commission in the promotion of solid minerals and agro-allied products to boost the economy.

    The Federal Ministry of Solid Minerals Development and Nigerian Chambers of Commerce, Industry, Mines and Agriculture (NACIMA), he said, must also work with the NPA in tandem with the Federal Government policy on export promotion.

     

  • Stakeholders seek change of ‘faulty’ shipping policy

    UNLESS the shipping policy    is reviewed, foreign companies will continue to benefit from it at the expense of their local counterparts, stakeholders have said.

    The policy, they said, could hinder the Cabotage law implementation. They  urged the Minister of Transport, Rotimi Amaechi, to change the policy to boost revenue generation.

    Speaking at a forum organised by importers and clearing agents in Lagos, Sea Logistics Managing Director, Mr. Rufus Olanipekun, expressed concern that foreign shipping lines would continue to exploit the country because of the selfish interest of a few and lack of shipping policy that identifies the strategic challenges of the sector.

    Olanipekun said there had been lapses in enforcing the Cabotage Law and domesticating all international treaties and conventions that relate to the sector.

    He regretted that the Cabotage regime was yet to be implemented to meet stakeholders’ expectations.

    Olanipekun also said there was a  gap between the Act and the system, which is yet to empower indigenous operators to take advantage of the law.

    Federal Government’s performance on trade facilitation, high port charges, infrastructure, safety at sea, protection of the marine environment and enhancement of maritime law and security, Olanipekun said, fell below expectation, adding that the ports were performing below expectation.

    The Federal Government, he said, should do more to reduce piracy and armed robbery on the waterways, adding that foreign shipping companies were dominating the industry.

    Another stakeholder and JM Investment Chairman, Mr James Joseph, said conspiracy had hindered the Cabotage Law implementation.

    Its implementation, he said,  would have been easier, but for conspiracy between some officials of the Ministry of Transport and foreign ship owners.

    Joseph said the law can be easily implemented, if the Minister of Transport musters enough political will to do so.

    “The Minister of Transport needs to see to the full implementation of the Cabotage law before he leaves office. We are aware that some individuals within and outside the government are trying to frustrate the implementation.

    “My suggestion to the minister is that he should make sure every ship that calls at the ports first declare arrival to the Nigerian Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA) and the Navy. By doing so, it would become easier to implement the law,” he said, adding that poor policy implementation  is the bane of the sector.

    “No government agency needs to go to the jetty to arrest a ship. NIMASA, for instance, can ask any ship to tell her its point of loading. So, if it is offshore Lagos or offshore Cotonou, the agency can then verify if it is on the list of Cabotage registered vessels. Therefore, if the Minister is determined, implementation should not be a problem,”he said.

    According to Joseph, Nigerian ship owners must be supported with good policies by the government and banks to enable them buy vessels to carry out coastal trade.

    The Coastal and Inland Shipping Act, 2003, he said, is a protectionist law enacted to create exclusive areas of operation in the coastal trade for indigenous operators.

    “Much as it is estimated that marine transportation offshore alone has a potential annual revenue/profit of millions of naira as against coastal trade in commodity and products, it is believed that harnessing the opportunities of effective implementation of Cabotage will provide a springboard for indigenous operators to acquire requisite capacity and expertise in launching them into global shipping,” he added.

     

  • ‘Prioritise equipment provision at dry ports’

    ‘Prioritise equipment provision at dry ports’

    Importers, exporters and the Association of Nigerian Licensed Customs Agents (ANLCA) have urged the Federal Government to prioritise the provision of scanners and other equipment at the new Inland Dry Port (IDP) in Kakuri, Kaduna State.

    They said this became necessary because of the rise in illegal arms import and insecurity in the North.

    Speaking with The Nation after the inauguration of the IDP by President Muhammadu Buhari, ANLCA National Publicity Secretary Dr Kayode Farito gave kudos to the Nigerian Shippers Council (NSC) for championing the establishment of IDPs across the country.

    He, however, said the Federal Government and the concession-aire of the dry port must  be fast in providing scanners and  cargo delivery equipment, adding that non-availability of such equipment would result in the 100 per cent physical examination of cargoes by the Nigeria Customs Service (NCS).

    Subjecting containers to 100 per cent examination by the Customs at the IDPS, he said, could compromise national security.

    Besides, he said the non-provision of scanners and other equipment would affect the government’s Ease of Doing Business policy.

    Operators of the Kaduna IDP and others, ANLCA said, must ensure that their equipment were  ‘’automated” to meet the requirements of the Executive Order on Ease of doing Business.

    He said automation was necessary to drive the reform in the sector to attract more cargoes to the IDPs.

    According to him, automation would enhance efficiency and reduce waste. He added that openness would help the system and process of cargo clearance.

    The ANLCA chief said people would be attracted to the inland dry ports with increased volumes of cargo, which would then enhance revenue generation.

    The group gave kudos to NSC for introducing initiatives that were in tandem with global best practices to ensure that both sea and inland dry ports remain efficient, transparent and accountable.

    NSC, he said, should create a platform that would accommodate all government agencies at the port for easy transaction and assist other agencies and terminal operators to fashion a robust template for operations at the inland ports and the sea ports. Under the new arrangement, revenue leakages, must be blocked while improving operational revenue.

    He commended the facility at the Kaduna dry port and urged both the importers and exporters in the north to patronise the dry port.

    At the opening of the dry port, President Buhari said the dry port was the first.

    He lauded the management of the Shippers Council for initiating the project, urging importers, exporters, seaport terminal operators, clearing agents, haulage drivers and other stakeholders to make use of its world-class facilities.

    The dry port is an inland intermodal terminal connected by road, rail and air to a seaport and operate as a centre for trans-shipment of sea cargo to inland destinations.

    President Buhari said he was delighted to be at the forum because the port will serve as port of origin for exporters and destination for importers, generate employment, decongest the Lagos port, contribute to the easy of doing business and boost the economy.

    With the inauguration of the dry port, the President said, the congestion and gridlock at the Lagos port would be eliminated.

    While also commending the Shippers Council for promoting the dry port, Amaechi said the Kaduna dry port was gazetted on May 26, 2015 by the Federal Governmental as  a port of origin and port of destination.

    The port, he said, was the first port to be licensed to receive cargo from Lagos seaports.

    The idea to establish the dry port, he said, was informed by the need to decongest the Lagos ports and provide relief for the busy Apapa road.

    He urged shippers from the north  to do business at the port, rather of  travelling to Lagos, Port Harcourt and Calabar to receive their cargo.

    He urged the shippers from Kaduna and other parts of the North to take advantage of the merits at the port for revenue generation and wealth creation.

    The port, according to Amaechi, will facilitate delivery of cargo from importers and exporters;  fast-track transport development through the hinterland, improves transport infrastructure and decongest the seaports, facilitate cargo delivery to hinterlands and other landlocked Nigeria’s neighbours, such as Chad, Niger, Northern Camerou, and Bukina Faso.

    Amaechi said the dry port project was conceived as part of a solution to the problem of hinterland shipers’inadequate access to seaports and frequent congestion.

    The minister also said frequent congestion at seaports led to loss of cargo in transit on land mode, urging stakeholders to make use of the facility.

    Kaduna State Governor, Nasiru el Rufai, thanked the President for taken off time to open the port,  assuring Nigerians that the facility at the port would be put into good use.

    The project, he said, was a tripartite arrangement between the Federal, the state and the concession- aire.

    In an interview with The Nation, NSC Executive Secretary/Chief Executive Officer, Mr Hassan Bello said he was happy that President Buhari was in Kaduna to open the world-class project. He lauded the the Kaduna government for the successful upgrading of the bonded terminal to a Inland Dry Port with full status of Port of Origin and final destination.

    Another stakeholder, Mr Abulwaheed Onigbanjo, praised the standard of work at the terminal. He called on importers, exporters and other stakeholders to patronise the port.

    Also, an importer Sadiq Salau  commended the promoters of the dry port.

    “In China or Hong Kong, you can have your container released to you in two hours once it arrives the port and this is at a cost equivalent of between N5,000 and N10,000 whereas in our seaports, for your container to be released, it takes several days to weeks and costs several hundreds of thousands of naira or more than a million naira in some cases, despite the government’s effort at reformation.

    “In Asia, everything works systematically and you can plan successfully. But here, there are lots of policy somersaults; things are not organised for sustainable growth and most importers in Nigeria find it difficult to cope with this kind of system after experiencing the best way things are done in other countries and that is why we are clamoring that the tariffs at the inland dry ports be made attractive through the deployment of all necessary equipment to facilitate trade,” he said.

    One of the promoters of the dry port, Tope Borishade, said the port can handle 29,000 TEU of containers yearly in the first phase and may double it when fully completed.

    “It is also estimated to generate 5000 direct employment at the commencement of operation,” Borishade said.

     

  • High hope as Federal Govt is set to kick-start Ibom Port

    The Federal and the Akwa Ibom State governments are
    set to execute the Ibom Deep Seaport (IDSP) project, an official has said.

    The project, it was gathered, is one of the most promising Public- Private Partnership (PPP) infrastructure initiatives in the country because of the unique investment opportunities it will offer international seaport developers and operators.

    A senior official of the Federal Ministry of Transportation (FMoT), who craved for anonymity, told The Nation at the weekend that the port could drive inclusive economic growth in Nigeria and the West and Central African sub-region.

    The procurement process for the port, the official said,  is scheduled to take off this month, with the advertisement of the Request for Qualification (RFQ) from reputable private sector port operators for developing the deep seaport in partnership with the Akwa Ibom State and the Federal governments.

    The official said: “ The port strategically located in the Southeast of Akwa Ibom State, the approximate coordinates of the port scaled from the British Admiralty Chart No. 1387 are Latitude 4° 32’ 35’’ N; Longitude 8° 14’ 7’’ E and UTM coordinates 415168 m E; 502,199 m N (UTM Zone 32N). The 2,565 hectares Greenfield port area is designed for New Panamax Class vessels with 18.24mchannel; turning basin and berth depth (16.72m) and quay length of about 7.5 km. When fully developed, the container terminals will accommodate up to 13 New Panamax Class container vessels and two very large feeder vessels.

    “The IDSP is positioned to offer a value proposition superior to other seaports in the region.Available data indicate that the various seaports serving the West and Central African sub-region are reaching saturation and the need for viable alternatives has become critical for major shipping lines sailing these routes.

    “Due to its proximity to target markets in West and Central Africa, neighbouring hinterland countries and major shipping lines calling West and Central Africa, large gateway market size to attract direct vessel services and sizeable transshipment cargo hinterland for feeder shipping network connection. The transshipment container market for the port is estimated to grow from about 1.2 million TEUs in 2021 to about 4 million TEUs in 2040.’’

    The official continued: “Another defining feature of the port is its location within the Ibom Industrial City – a designated Free Trade Zone replete with fiscal incentives. The Free Trade Zone status ensures that operations and investors in the deep seaport enjoy special regulatoryand fiscal incentive regimes  that will enhance competitiveness and allow for cost saving.

    “The project will optimise the synergies of the other businesses to be situated within the industrial city that is being developed in parallel (such as agriculture, oil and gas, petrochemicals, marine-related industries, auto assembly plants, power plants, as well as real estate developments), and power plant and the industrial development at Ikot Abasi.

    “With the prevailing gap in functional seaports in West Africa coupled with the demonstrated commitment of both the Federal and the Akwa Ibom State governments to create an enabling environment for private sector investors to exploit the opportunities in the industry, the Ibom Deep Seaport presents a compelling investment case that cannot be ignored by investors.

    “The procurement process for the IDSP Project is scheduled to commence this month with the advertisement of the Request for Qualification (RFQ) from reputable private sector port developer/operators for the development of the Deep Seaport in partnership with the Akwa Ibom State Government and the Federal Government,” the official said.

    Global Maritime and Port Services Pte Ltd (GMAPS) of Singapore, the civil servant said,  is the Transaction Advisor while the PwC, Nigeria, is the Project Manager for the project.

     

  • ‘Give more attention to maritime’

    ‘Give more attention to maritime’

    The Federal Government has been urged to pay more attention to the maritime sector this year.

    The Association of Nigerian Licensed Customs Agents (ANLCA) President, Alhaji Olayiwola Shittu, said the government should ensure that more facilities were put in place at the ports to improve revenue generation.

    In an interview with The Nation, he said the problem of access roads to the Lagos ports, which is generating billions of naira, should also be resolved.

    “There is the need to enhance the welfare of the goose that lays the golden eggs. There should be efforts to intervene in the maritime sector like in aviation,’’ he said.

    The ANLCA chief said the Cabotage Fund would have been used to improve inland water transportation, if it had been disbursed last year. He said the fund would have enabled indigenous shipping firms to key into shipping business while waiting for products to buy ocean going vessels.

    Shittu appealed to the government to carry stakeholders along while formulating policies that affect them.

    “The government’s policy on used vehicles is having adverse effects on our members because the rate has dropped significantly.

    “We need to let the government know  many of our members have lost their jobs and car smuggling is on the increase based on the policy,’’ he said.

    Shittu said 90 per cent of the imports of the terminals built for Roll- on-Roll-Out (RORO) were for used vehicles.

    He said since the price of imported vehicles had risen by 100 per cent, people would have no choice than to smuggle in vehicles.

    This, he said, would affect revenue generation by the ports, especially the Tin Can Port, Lagos where touts and ‘port rats’ are disturbing people.

    Shittu said many unwanted persons enter the port daily, despite the recent efforts by Customs.

    He said the call became necessary because the sector was seen as the second largest source of revenue for the country after the oil and gas industry.

    Besides, he said multinationals and others pay taxes or duties and import charges to the government.

    He said poor facilities, sea piracy and insecuritycould scare away investors and hamper ports operations.

    He said importers and clearing agents were not left out of the menace as many of them have also suffered.

    He said huge traffic on the major roads to and within the ports and insecurity are some of the major problems that need to be addressed by the Federal Government intends to sustain investment growth in the sector.

    “The high level of insecurity in the nation’s seaports has become so widespread that every importer must have at one time or the other experienced losses arising from theft within or on the roads that lead to the ports. As a Nigerian, I think it is not too much to ask the government to secure our ports,” he added.

    In another development, maritime lawyers have urged the Federal Government to put policies in place to promote the industry.

    Speaking with reporters in Lagos, the lawyers said the dearth of human and material capacities has become a source of worry in the sector.

    They called on relevant government agencies at the ports to complement stakeholders’ efforts in capacity-building, noting that businesses blink first in the event of any government’s policy breakdown.

    A maritime lawyer and consultant, Mr. Frank Simpson, said the dream of the youth, who seek employment, is only realised through job creation via the sector and human capacity building.

    He said the country could be the number one maritime nation in Africa, if human capacity building was taken seriously.