The Nation Newspaper

Category: Maritime

  • Customs smashes smuggling ring in Ogun

    Customs smashes smuggling ring in Ogun

    The Nigeria Customs Service (NCS) Federal Operation Unit (FOU) Zone ‘A’, Ikeja, Lagos, has smashed a trans-border smuggling ring.

    The gang, which smuggles rice, used cars, women and children’s shoes, was ambushed by Customs officials at Ere in Ado-Odo Ota Local Government Area of Ogun State, following a tip-off by  Customs Intelligence Unit (CIU) officers.

    Rice worth over N35 million was said to have been seized from the gang last week.

    Customs officials, it was gathered, monitored the gang for over six days before clamping down on them at Ere.

    The FOU, sources said, deployed over 25 officers, who wer assisted by soldiers to deal with the gang.

    It was gathered that the team faced stiff resistance from the  smugglers, but its doggedness forced the smugglers to surrender.

    CIU officers from the unit have also turned the heat on smugglers at the border areas under their jurisdiction.

    The Area Controller of the Unit, Mohammed Uba Garba, said: “Based on information, we trailed and evacuated 3, 000 bags of smuggled rice from 10 houses along the waterside in Ere Village in Ado-Odo Local Government area of Ogun State.

    “Each of the houses has three exit doors for their nefarious activities. As we were evacuating the rice from one house to the other, the villagers were also busy packing the rice to the bush through other exits. That is to tell you the extent some people take risk while indulging in smuggling.’’

    He said his officers had strengthened their presence at the official checkpoints and swampy areas where vehicles cannot access.

    Last Saturday, some CIU officers were seen in mufti combing the bushes at Imeko area of Ogun State looking for smugglers’ hideouts.

    The team parades approved and unapproved routes in Lagos, Ogun, Oyo and Ondo states to checkmate  criminalities by the smugglers.

    A senior CIU officer, who spoke with The Nation under the condition of anonymity, said the anti-smuggling drive of the Customs was part of the government’s move to protect the economy and stem the influx of prohibited goods.

    He said: “By smuggling what Nigeria has the capacity to produce   locally like rice, we are inadvertently sustaining the employment of some unknown foreigners elsewhere, while keeping some of our able-bodied youths out of job.

    “The service is not unaware of the smugglers’ drive to beat us by applying unusual means, especially as we have efficiently and strategically positioned our officers on the bush paths and other likely routes they may wish to take. But the truth is that wherever the smugglers are, we are there monitoring their movement to arrest and prosecute them,” he said.

    The CIU officer said continuous education and enlightenment in the simplest forms of communication were among the strategies the Service has adopted to keep the locals informed and mobilised in supporting Customs’ efforts at a more economically viable and secured nation.

    He said some notable residents of the areas had also joined in expanding Customs’ intelligence network as it maximises their knowledge of the terrain to achieve  its aim, urging their youths to explore the many legitimate means of livelihoods outside smuggling.

    ‘’The desire of Customs is to reduce smuggling across the nation. That is why the Service has directed the Area Controllers to be meeting with the representatives of the various communities as part of its effort to build and sustain a robust Customs community relation. The agenda for these meetings include asking them to pass the anti smuggling message to the people,” the officer said.

    He added that the Service was  also passing the message to Nigerians, too, stressing people have been advised to obey the laws of the land, including import and export-related laws.

    “Smuggling is a crime and the more we educate people about it, the better. We achieve prevention through encouraging people to import normally and pay duty to the government.

    “We have been utilising every opportunity at various fora to enlighten the citizenry on the ills of smuggling and this is an area where we also seek collaboration with the mass media,” he said.

    Officers of the unit, a source said, have been positioned at strategic locations to deal with smugglers who might attempt to bring prohibited items into the country.

    CIU officers are employing measures to make smuggling unattractive and un-lucrative for those engaged in the illegal business.

    Officers of the unit, findings revealed, had stepped up their anti-smuggling efforts to boost the nation’s revenue.

    Officers of the unit carry out anti-smuggling campaigns in all areas, which hitherto provided a safe haven for smugglers and disrupts the economic activities of those patronising the smugglers in the area, the source said.

    The CIU officers have  achieved a commendable breakthrough in anti-smuggling in the area given the volume of seizures the unit has recorded.

    Findings, however, revealed that some of the strategies adopted by the unit in its crusade included intelligence gathering system, recruitment of useful informants and 24-hour surveillance along smuggling corridors to reduce saboteurs’ activities.

    The CIU officers have sent many smugglers out of business with of their unique approach.

  • NPA advises officers, truck drivers on safety standards

    • As new image maker resumes

    The Managing Director, Nigerian Ports Authority (NPA), Ms Hadiza Bala Usman, has directed officials to ensure that truck drivers at the seaports observed the Minimum Safety Standards (MSS) in their operations.

    Ms Usman gave the directive at the opening of a capacity building workshop for the drivers, organised by the NPA and the Federal Road Safety Corps (FRSC).

    Represented by the General Manager, Health, Safety and Environment (HSE), Mr. Ahmed Yusuf, Ms Usman said the agency would continue to collaborate with agencies at the ports to build an effective synergy that would ensure that trucks doing business at the ports complied with  minimum safety standards.

    Ms Usman, while commending the organisers of the workshop, urged the participants to practise what they learnt from the event.

    In his welcome address, the Lagos State Sector Commander of the FRSC, Mr. Hyginus Omeje, said the MSS was first introduced in the oil and gas sector when the FRSC commenced the implementation of the scheme

    Omeje, represented by the Legal Officer of the Command, Bonaventure Nnamani, lauded the NPA for the partnership and also enjoined participants to open their minds to safety standards.

    The NPA has signed a Memorandum of Understanding (MoU) with the FRSC on the implementation of MSS for trucks operating at the ports.

    The MoU empowers NPA and FRSC to raise Joint Inspection and Certification (JIC) teams to oversee its full implementation.

    Meanwhile, the new General Manager, Corporate and Strategic Communications Division of the NPA, Alhaji Aliyu Abdullahi Goje, has assumed duties.

    Goje was the general manager, Eastern Zone, before his redeployment to the division.

    He began his  career with the Borno State Government as Land Officer in the Ministry of Land and Survey, shortly after his National Youth Service Corps (NYSC) assignment in 1983, and rose to  Deputy Director in charge of Land Administration in 1992.

    He transferred his service to the NPA in August 1993 as traffic manager, and has since managed the Traffic Department effectively.

    He was senior traffic manager in Lagos Port Complex, assistant general manager at Eastern and Western Zones, and port manager, Onne Port Complex, among others.

    The Borno State indigene attended the University of Maiduguri and Bayero University, Kano where he bagged Bachelor of Science Degree (B.Sc.) in Geography and a Masters in Land Resources.

    He has attended several management courses in and outside Nigeria, among which are Port and Shipping Management, Logistics, Transportation and Port Training in New York; a performance culture in a concessioning system, South Africa; Strategic Management and Policy.

    In an interactive session with the officials of the division, Goje directed his officers to key into the management thrust, which is anchored on “Excellence of Service” prioritising a most“effective synergy with team work as our theme”.

    According to the new image maker, result is key in the activities of the divisions, adding that this must be geared towards the NPA brand appreciation through commendable information management and dissemination.

    “I have high hopes we will deliver on our targets and responsibilities,” he said, adding, “As professionals, we have to think of the best way to ensure we sustain plausible publicity mileage for the NPA and its management utilising technology and innovations.’’

  • How terminal operators increase govt revenue at ports 

    How terminal operators increase govt revenue at ports 

    A lot has changed at the ports since the Federal Government concessioned the terminals in 2006, a senior official of the Federal Ministry of Finance (FMoF), has said.

    The Nigerian Ports Authority (NPA), through the private terminal operators, the official said, has been running the ports effectively, saying NPA generated $140 million in 2005 before the concession and over $450 million from the Lagos Ports in 2014.

    Speaking with The Nation, the official said the government revenue has increased geometrically since the concession.

    The official, who asked his name be veiled, said government concessioned the ports to generate more revenue and allow for greater flexibility, efficiency and better services to importers and other port users by resolving some of the major challenges confronting ports operations.

    The turnaround time in 2005, at the Lagos Port complex and Tin-Can port, he said, was 10.0; vessel waiting time was 3.0, addinig that between 2014 and 2016, the turnaround time and vessel waiting time have reduced to 4.0 and 1.3 and zero level in 2017.

    He said: “Concession is a process whereby the concession grantor gives the right to operate facility and/or deliver a service of public interest to a merchant concession-aire, against the commitment assumed by the concessionaire to build and manage the subject of the concession, or to manage the delivery of service at the conces-sionaire’s own risk.”

    Before the 2006 concession, the official said, the ports demonstrated very low levels of efficiency, which resulted in long turnaround times for ships and increased container dwell time.

    In today’s global commerce, he said, seaports play an important role of being many nations’ major gateway for international trade and are a good instrument for measuring the economic health of a nation.

    “The ports have considerable influence on the volume and conditions of trade as well as the capacity for economic development of nations still developing.

    “In our country, greater percentage of international trade is routed through the sea, and given our huge population, it is believed that our economy accounts for over 70 per cent of all seaborne trade in the West African sub-region. Hence, the country’s ports are increasingly challenged to meet the pressure mounted from movement of ships and cargo in and out of the ports.

    “The Federal Government embarked on the concession of the ports basically to solve the protracted problems of inefficiency, corruption, mismanagement and huge debts that characterised the ports, then.

    “The rationale behind the concession includes the $34 million indebtedness of the NPA, the redundancy of 24 out of 83 managers as well as its poor management structure. Emphatically, concession of the ports refers to lease of port terminals and re-organisation of stevedoring companies. About 110 applications were received in December 2003 and out of 94 pre-qualified concessionaires, only 20 were granted approval to operate seaport terminals for between 10 to 25 years,” the official said.

    Since the concession was done, the official said: The cost of port services is now competitive; the turnaround time has improved;the percentage of berth occupancy rate has improved;the infrastructural facilities have improved significantly andthe security around the seaports has improved.

    The official, however, lamented the poor access roads to the Lagos ports and urged President Muhammadu Buhari and the Minister of Transportation to address the perennial gridlock in Apapa.

    The spokesman of the terminal operators, Mr Bolaji Akinola, said the concessionaires are working vigorously  with the current management of NPA to ensure that the ports become “the leading ports in Africa, to deliver efficient port service in a safe, secure and customer-friendly environment.Our core value as terminal operators includes efficiency, safety, security, customer friendly and new innovations”.

    Akinola said Nigerians have forgotten that before the concession, the “turnaround time for ships was too long and usually calculated in weeks, sometimes months, depending on the cargo being loaded or discharged; cargo-handling plants and equipment owned by the NPA were few and mostly unserviceable, leading to shipping companies hiring these machines from private sector sources after having paid for it.

    Dwell time for goods in ports, he said, was prolonged due to poor port management. “There was congestion in the port; corruption was high among contractors and various service providers at the port; the ports were rated as one of the costliest seaports in the world, as a result of the compounded problems.

    “Many port premises and quay aprons had fallen to disuse and failed road sections inside the ports made movement of goods within port grounds cumbersome and very slow; following the seaport congestion, complaints of untrace-able or missing cargoes were being regularly leveled against the NPA,” Akinola said, adding that the security inside the ports was said to have been compromised by the activities of camp-boys, wharf-rats and other miscreants operating inside the ports.

    Association of Nigerian Licensed Customs Agents (ANLCA), Publicity Secretary, Dr Kayode Farinto, said with the huge equipment at the ports and the introduction of standard in the type of vehicles that can enter the ports, “NPA and the terminal operators have brought efficiency to the ports through the port reform.”

     

  • Commitment, conspiracy bane of Cabotage Act

    Three factors were identified last week, as the bane of Cabotage law implementation in the country.

    Firstly, lack of commitment by the side of Federal Government to assist local ship owners.

    Secondly, the failure of the banks in supporting indigenous shipowners to buy sufficient vessels to adequately carry out coastal trade.

    Thirdly, conspiracy among importers and some clearing agents to always deceive security agents at the ports.

    These operators said, are sabotaging the implementation of Cabotage Law.

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

    Indigenous ship owners, he further said, have complained that the waiver clause has helped make implementation of the law difficult.

    The implementation of the law would have been very easy, but for lack of commitment on the side of government and conspiracy between agents, importers and other port users.

    He said the law can be easily implemented if the Federal Government supports NIMASA, the agency saddled with the responsibility of enforcing the law, and champion the move to do so.

    “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. “NIMASA does not even need to get to the jetty to arrest a vessel; she can ask a vessel 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, 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 Nigerian ship owners must be supported by the government and banks to buy sufficient 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.

    Another operator and Chairman, Olive Venture, Mr Samson Ojikutu, said the Cabotage regime covers ship building, ship ownership, manning and registration. Unlike the Cabotage Law in most other maritime nations of the world, he however, observed that Nigeria’s Cabotage law provides for waivers.

    Ojikutu said the government should stir maritime development in the country, by using its agencies to coordinate and regulate the industry.

     

  • ‘Concession scanning services at ports,’ govt told

    The SIFAX Group, a multinational corporation with diverse interests in maritime, aviation, haulage and logistics, oil & gas and hospitality, has urged the Federal Government to concession scanning services at the seaports to boost efficiency and generate more revenue.

    At the Nigerian-British Chamber of Commerce’s Advocacy Round-table with the theme: “The Role of Concessions in Fixing the Trans-portation Sector,” Executive Director, SIFAX Haulage & Logistics Limited, Major Henry Ajetun-mobi (rtd), said there was a need for the Federal Government to deepen the involvement of the private sector in the transportation industry to improve the level of efficiency in the sector.

    Using the ports’ concession, as a case study, which has been adjudged a huge success, Ajetunmobi said concession of scanning services remained the most practicable option available to the Federal Government to address the infrastructural challenge in the industry.

    He said: “The current economic reality makes it clear to all that the Federal Government cannot solely address the infrastructural deficit in the country’s transpor-tation sector. This deficit has negatively affected service delivery and ultimately, its contribution to the economy. This is the right time for the govern-ment to concession critical infrastructure in the sector, especially at the seaports.

    “Of utmost importance is the scanning service. Most scanners at the ports are either completely broken down or functioning below installed capacity. This situation has subjected the Nigerian Customs Service and other agencies to 100 per cent physical examination of cargoes, which does not only waste time but also more favourable to the smugglers too. We have waited anxiously for the scanners and it is not forthcoming. I want the government to consider concessioning the scanning service to investors as this will really make the port reform system more efficient,” he said.

  • NPA, stakeholders flay contractors handling Apapa Road

    NPA, stakeholders flay contractors handling Apapa Road

    • FEC urged to visit port

    Nigerian Ports Authority (NPA) Managing Director Ms Hadiza Bala Usman and stakeholders in the maritime industry have expressed dis-pleasure with the slow pace of work by contractors handling the Apapa Road.

    The two-kilometre road starts from the Lagos Port Complex,  Apapa to Ijora Bridge end of Western Avenue.

    Ms Usman said the contractors needed to bring more equipment to site and increase the number of moles used to fast-track the completion of the road as specified in the terms of agreement with the Federal Government.

    Addressing reporters, after over three hours inspection of the level of work and the quality of job done so far by the contractors, she bemoaned the snail speed at which the contractors were carrying out the project. She assured port users, truck owners/drivers and Apapa residents that the Federal Government, through the NPA, would see to the quick completion of the road to alleviate their suffering.

    The NPA, she said, is collaborating with the Ministry of Power, Works and Housing and the Bureau of Public Enterprise  (BPE) to ensure that funding for the relocation of gas pipes and other utilities  delaying the quick delivery of the two-kilometre road are made available to the contractors.

    “The contractors have not been able to reach optimal performance. They are still within one to two per cent completion. I have made them to understand that their level of performance is unacceptable. They need to increase the tempo of their work and deploy more efficiently. I have assured them that I am committed to seeing that relocation fund is released to them. But the level of the work as we have seen it now is not in the manner that we want. Therefore, we have made it clear to the contractors the equipment they need to complete their job on time.

    “NPA will ensure that the two-kilometre road is completed within the period stipulated. The concerns we have raised would be resolved as we have put in place a robust monitoring mechanism,” Ms Usman said.

    Residents of the area and motorists, who expressed their delight over the visit  to the site, said there was a need for the total regeneration of the roads by the government.

    There were complaints from port users, truck drivers and Apapa residents and its environ over the parlous state of many roads in the area, and the inability of the contractors to mobilise enough equipment to site.

    Apart from the complaints over the slow pace of work and the untold hardship to motorists, residents and motorists waste quality man hours as a result of gridlock caused by the reconstruction. Apart from the problem on major roads leading to the Lagos ports, many roads in Apapa have become so bad with many failed sections, most of which have become death-traps.

    An Apapa resident, Mrs. Kikelomo Aderoju, said residents suffer untold hardship everyday passing through the Ijora-Apapa and Mile 2-Tin-Can Port Road, adding that the situation has got worse since the contractor was mobilised  for the reconstruction of the road, from the Lagos port complex to Western Avenue.

    She urged the Federal Executive Council (FEC) to visit the area to alleviate their suffering.

    Vice President Yemi Osinbajo, Mrs. Aderoju said, has to lead other members of FEC to the Lagos seaports to see how bad the roads are.

    Mrs. Aderoju, like other residents, said the visit would enable the Federal Government to assess the state of the Apapa and Tin-Can Island ports.

    They accused the contractor handling the project of not doing enough to deliver the road on time.

    Some of the stakeholders are members of the Bible Society of Nigeria (BSN), who asked the government to fix the roads and reduce users’ suffering

    The group said it was no longer news that the Apapa/Oshodi Expressway and the Ijora/Apapa Road were deplorable and begging for quick attention by the contractor handling them.

    The group’s Secretary-General and Chief Executive Officer, Dare Ajiboye, said the roads posed dangers to life and also have negative effects on trade and commerce.

    “The appalling state of these roads does not project a good image for our country. Foreigners, who come into the country through the ports will not see these roads and give us the respect we deserve as a nation. The stress of going in and out of Apapa and its attendant health challenges have adverse effects on the productivity of the nation,” he said.

    The Association of Nigerian Licensed Customs Agents (ANLCA) President,  Prince Olayiwola Shittu, said the revenue from the port for a month was enough to fix the roads.

    Shittu urged the Federal Government to rehabilitate the roads and resolve other challenges to make the ports more attractive and competitive.

    NPA, Shittu said, generated over $147 million in 2006 and collected over $105 million. From 2007 to 2009, he said, the NPA generated $979,010,266 and collected $689,683,545.

    According to findings, NPA made $852,623,584 from 2010 to 2012 and collected $816,184,072 from the Lagos ports.

    At the Lagos port Complex and Tin-Can Island Port, the NPA generated $311,838,719 and collected $351,153,963 in 2013; $852,269,943 in 2014, while $754,362,679 was remitted to its domiciliary account.

    Apart from the huge amount of money generated by the NPA, Apapa and Tin-Can Customs Commands generate over N1 billion daily, from the ports. The amount excludes what the National Agency Ffor Foods Administration Control (NAFDAC), Port Health, Nigerian Maritime Administration and Safety Agency (NIMASA), Standard Organisation of Nigeria (SON), Shippers Council and other agencies realise.

    Shittu said vehicular congestion, which causes gridlock, has added to the cost of clearing goods, aside driving away businesses from the area.

    He alleged that importers were diverting cargoes to neighbouring countries because of the gridlock, while new investors were being discouraged from the area and residents had started looking for homes outside Apapa.

    “The roads leading to the Apapa ports have collapsed and Lagosians and other port users expect the contractor handling the Apapa road project to do it the way the NPA Managing Director has demanded at several fora.

    “In Apapa alone, there are about 60 tank farms for storing petroleum products, which account for 90 per cent of the total imported products into the country. All these, as well as other maritime-related businesses such as freight, clearing and forwarding easily make Apapa a hub of maritime activities,” he said.

    Apapa, Shittu said, is not only reputed for maritime activities, manufacturers take advantage of the ports to site companies in the suburb.

    Apart from manufacturing companies, such as Dangote Sugar Refinery, BUA Group, and Honey-well, he lamented that other businesses have shut down because of the gridlock.

    “The real problem is that government is making huge money from the ports without the necessary infrastructural development,” he said.

     

  • SIFAX gets first MV Maritime Challenger

    Operators of Ports & Cargo Handling Services Limited, a subsidiary of SIFAX Group and operator of Terminal C, Tin Can Island Port, Lagos, has received a new vessel, MV Maritime Challenger, at the terminal.

    The new bulk carrier, which made its first voyage to any port in the world, sailed from Singapore. It is owned and operated by the IMC Shipping, China, a leading dry bulk shipping service provider, with over half a decade experience plying international waters and major trading routes in the Asia-Pacific. It serves markets in South America and Africa, focusing on major and minor bulk cargoes.

    The vessel has an installed capacity of about 39,744 tonnes of cargo, in its first call at the terminal. It brought major and minor bulk cargoes. Some of the items it brought included chemicals (pure ammonium nitrate), fluid transport tank, fibre ceiling, pulp wood, coils, pallets, tractors and trucks. Seamless pie and hot rolled sheets, construction equipment and materials, wheel loader, sodium sulphate, are the other items on the vessel.

    Speaking on the significance of the new carrier, SIFAX Group Managing Director, Mr. John Jenkins, said the need to put the terminal to full use and increase the company’s revenue base were the reasons for its renewed interest in general cargo.

    “We are delighted that history has been made again at our terminal with the arrival of this brand new vessel that embarked on its first ever voyage to any port. The voyage was from Asia to the Nigerian waters, and ends with its berth at our terminal. Ports & Cargo terminal has demonstrated over the years its leadership capability in the country’s maritime industry, particularly in the area of efficient port terminal management coupled with excellent customer service.

    “The company has made a huge investment in infrastructure and equipment at the terminal in the last 10 years and has, therefore, attracted a number of discerning clients, including IMC, the operator of the vessel. What has been the unique selling proposition of the terminal is the quality of service that we provide.

    “While we have concentrated heavily on the container business over the years, the terminal is actually a multi-purpose one that can conveniently handle other kinds of vessels. It is with this belief in our ability and opportunities that our unique terminal provides that we have decided to also develop the general cargo/bulk side of our business. This new line is a testimony of our commitment to excel in this business,”he said.

    Also speaking, the General Manager, Ports &Cargo Handling Services Limited, Mr. Mustapha Mohammed, assured IMC Shipping and other prospective clients of the company’s readiness to provide excellent terminal operations that would exceed their expectations.

    Speaking on his experience, the captain of the ship, Captain Tang Jiang Tao, noted that he has received warm welcome from the Ports & Cargo terminal staff as well as other government regulatory agencies like Nigerian Ports Authority, among others.

    He also expressed his delight at the impressive equipment at the terminal. “We are delighted to take this ship on its first voyage from Asia to Nigeria and I must say that we are very impressed by what Ports & Cargo has offered us in terms of competent hands and quality service delivery. I and my crew will be happy to call the terminal again,” he said.

     

  • Lawyers, stakeholders fault FoB policy

    Lawyers, stakeholders fault FoB policy

    Lawyers and stakeholders in the industry have urged the Federal Government to change its Free-on-Board (FoB) policy to Cost-Insurance and Freights (CIF).

    The FoB terms, they claimed, hinder the Cabotage Law implementation.

    They said the Ministry of Transportation and the Nigerian Maritime Administration and Safety Agency (NIMASA) should intensify efforts to tackle the challenges in the industry.

    Speaking at a forum held by importers, clearing agents and Shipping Correspondent Associa-tion of Nigeria (SCAN) in Lagos, at the weekend, Sea Logistics Managing Director Mr. Rufus Olanipekun said replacing Nigeria’s trade  terms would help in rediscovering the insurance industry.

    He expressed concern that foreign shipping lines would continue to exploit the country because of the selfish interest of a few, and lack of a functional shipping policy that identifies the strategic challenges of the sector.

    Olanipekun said there were lapses in enforcing the Cabotage Law and domesticating international treaties and conventions in the sector,  lamenting that the regime was yet to be implemented to meet the expectations of stakeholders.

    He also identified a gap in the Act, which is yet to empower indigenous operators to take advantage of the Cabotage.

    The performance of the Federal Government on trade facilitation, high port charges, infrastructure, safety at sea, protection of the marine environment and enhancement of maritime law and security, Olanipekun said, are below expectation. He added the ports were performing below expectation, despite their concession.

    Olanipekun said foreign shipping companies were still dominating the industry.

    The Chairman, Board of Trustee  of SCAN Mr Bolaji Akinola said the Federal Government should do more to make the ports attractive to business and reduce piracy  on the waterways.

    Another maritime lawyer, Emeka Akabogu, agreed with Olanipekun on chaning to CIF and its impact on the insurance sector.

    “NIMASA changing Nigeria Freight trade from FoB To CIF will help if they are committed to it and not paying lip service,” he argued.

    He added that insurance companies could underwrite marine, which experts believe is capital intensive.

    For him, irrespective of the type of insurance we are talking about, he said there are insurance companies that can underwrite for a vessel on a voyage, hull of a vessel or underwrite the cargo onboard a vessel.

    He explained that an insurance company need not underwrite a policy, and that at times an insurance company works with reinsurance scompanies and reinsurance could be local or foreign, because what the companies need is appetite. When there is appetite, he further said, the firms will undertake any volume of risk as far as it is highly placed and taken through business review section.

    “There are underwriters across the world who are looking for such risk so the local insurance take such risk, involve the reinsurance and they would cover adequately,” the lawyer said.

    JM investment Chairman Mr. James Joseph said conspiracy was hindering Cabotage implementation

    He said the implementation of the law would have been easier, but for the conspiracy by some past officials of the Ministry of Transport and foreign ship owners.

    Joseph said the law could be implemented, if the Minister of Transport mustered 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 should first declare its arrival to the Nigerian Ports Authority (NPA), NIMASA and the Navy. By doing so, it would be easy to implement the law,” he said.

    Poor policy implementation, he said, 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.”

    Joseph said Nigerian ship owners should be supported with good policies by the government and banks, so they could buy vessels to carry out coastal trade.

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

    “Much as it is estimated that marine transportation offshore alone has a potential yearly 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.

    “The target is for Nigerian carriers to have a share of about $4.5 billion per year 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 year,” Joseph said.

    The Cabotage regime, he said, covers ship building, ship ownership, manning and registration. Unlike the Cabotage Law in most   nations of the world, he observed, Nigeria’s Cabotage law provides for waivers.

    ‘’Indigenous operators have complained that the waiver clause has helped make implementation of the law difficult, inefficient and faulty,”  Joseph added.

     

  • Shippers to Fed Govt: pay attention to port infrastructure

    The Shippers’Association of Lagos State (SALS) has urged the Federal Government to pay more attention to port infrastructure.

    The government, the group said, should reposition the ports to meet international best practices.

    Its President, Mr. Jonathan Nicol, gave the charge in a chat with The Nation..

    He called for the resuscitation of the informal sector of cargo management.

    According to him, the informal sector will contribute about 45 per cent of the total cargo throughput (imports and exports). He said there was the need to rebuild the dead infrastructure at the ports to enable individuals in the sector to assist in nation-building.

    He said despite the low import caused by the falling of the naira, the Customs revenue collection has continued to increase.

    Nicol added that without members of the group, there would be no cargo at the port and Customs revenue would be affected.

    Also, a maritime lawyer, Mr. Dipo Alaka, has urged shippers and importers not to be discouraged by the economic downturn, saying the country was undergoing reforms, and that trade across the seaports would pick up before the end of the year.

    “Until now, there was a lull in importation, but even at that, the revenue is increasing. We expect that when there is no importation, revenues should fall but rather it is increasing and this is because of your good works,’’ he said.

    Alaka said there was the need for operators to embrace maritime arbitration to resolve issues which emanate from their business.

    He said arbitrators had been in existence for more than 10 years, adding that the arbitrators had assisted several port operators to solve disputes.

    “We are dedicating a week in May to offer free services in solving disputes in the maritime industry,’’ he said.

     

  • Customs seizes N1.4b contraband in Kaduna

    The Zone B of the Nigeria Customs Service, Kaduna, has intercepted smuggled items worth over N1.4 billion.

    Its Controller, Aminu Dahiru,  said 1,357 items were seized between January and last month.

    Some of the items are second hand vehicles and clothes, trucks load of rice, vegetable oil, tin tomatoes, illicit drugs, mosquito coil, tyres, furniture and drones.

    The controller stressed that the command would continue to mount surveillance and adopt measures to make smuggling impossible in the area.

    “We have declared war against smuggling and have deployed competent officers to man all identified illegal routes used by smugglers to bring in unwholesome goods into the country.

    “We have taken concrete measures to stop illegal importation of banned goods to contribute our quota in the promotion of Made-in-Nigerian goods,” he said.

    Dahiru said the zone had streamlined its mode of operations and equipped its men to operate optimally. He also sought the cooperation of stakeholders and traditional rulers in mobilising border communities to support the service in protecting the economy.