The Nation Newspaper

Category: Maritime

  • NPA to promote SMEs

    The management of the Nigerian Ports Authority ( NPA)  has taken steps  to promote small and medium scale entrepreneurs and foreign investors in the country to boost the economy, its Managing Director, Ms Hadiza Bala Usman, has said.

    Speaking at the Kano International  Trade Fair last week, she said the authority sees entrepreneurship as an important engine of growth and would support those who have the capacity to develop and manage profitable businesses across the country.

    The theme of the trade fair is: “Attracting entrepreneurs and investors towards national economic growth.”

    The theme, she said, was appropriate because the country is going through ‘a turbulent’ economic recession and the Federal Government is encouraging every Nigerian to look ‘inward’ in a bid to create alternative ways of developing the economy apart from oil.

    The Federal Government, she added, has institutionalised policies geared towards attracting investors and focusing on the non-oil sector to encourage entrepreneurial participation to boost the nation’s depleting foreign reserves.

    Some small scale entrepreneurs who started small, Usman said, were assisted by the NPA to become big.

    NPA, Usman said, has also impacted positively on economic growth by assisting some notable entrepreneurs to expand their businesses and become major employers.

    Some of the beneficiaries of NPA’s gesture, she said, are  Otunba Obafemi Otudeko, Alhaji Wahab Folawiyo, Dr Samuel Adedoyin and Alhaji Aliko Dangote who has factories at the ports.

    NPA, Ms Usman said, is playing a major role in facilitating the Federal Government’s policies aimed at encouraging entrepreneurs and attracting investors.

    This, she said, is evident with the presence of private terminal operators in the ports.

    The huge investment made by the terminal operators, she said, have led to greater efficiency in cargo handling, port operations and increase in government’s revenue.

    She urged small and medium scale entrepreneurs to tap into the low export tariffs and other opportunities provided by the Federal Government through the NPA to boost the economy.

  • Shippers, NPA to unveil single window at ports

    Shippers, NPA to unveil single window at ports

    To promote trade, the Nigerian Shippers Council (NSC) and the Nigerian Ports Authority (NPA) will introduce the much-awaited Single Window (SW) platform at the ports to achieve 48-hour cargo clearance next year, it was learnt.

    This is coming against the backdrop of a directive by the Transport Minister, Rotimi Amaechi, to have a single window platform that will integrate all government agencies at the ports.

    “The adoption of the Single Window (SW) platform will strengthen the port industry by boosting efficiency and reducing cost and time which are the major objectives of port concession agreement signed by private terminal operators,” a senior official of the Federal Ministry of Finance (FMoF), who did not want to be named, said.

    SW is used by many countries to facilitate trade at their ports.

    The FMoF official said the adoption of SW would make Nigeria’s ports competitive in the international trade network.

    He urged the Federal Executive Council (FEC) to compel the Nigeria Customs Service and other agencies at the ports to key into the SW platform to facilitate trade and generate more revenue.

    He also urged the National Assembly to back SW with a law.

    The Federal Government, The Nation learnt, will generate additional $800 million annually from the ports and borders, if NSC and NPA introduce the platform.

    The amount that could be generated from the platform, the official said, made the NPA and the NSC to champion the introduction of the Single Window platform.

    The official identified sharp practices and charges for services not rendered as factors militating against the single window and 48-hour clearance, urging the ministers of Transport and Finance to address the problem.

    “We are aware that NPA and NSC are not happy over the past failure of 48-hour cargo clearance policy. Apart for the fact that the delays experienced in cargo clearance disrupted the production schedules of manufacturers as raw materials are not delivered in good time to their factories, they affected their revenue and were responsible for high level of corruption at the port as importers struggled to clear their cargoes under harsh conditions. This, again exacerbate inflation as goods were not quickly cleared from the port to meet relevant needs in the economy and that is why the need for the single window is imperative.

    Speaking with The Nation in his office on Friday, Belo said the single window is a laudable initiative, which a country like Nigeria ought to embrace to transform the ports.

    He said the platform would enhance trade competitiveness through improvement in import, export, transit procedures and information sharing system.

    The facility, he said, would ensure that there is a paperless Customs declaration, compliance and online approval.

    The current 100 per cent physical examination of goods, according to him, would be reduced and all government agencies at ports integrated.

    Bello added: “The single window facility will also need to be supported by legislation from the National Assembly.”

    “The National Single Window is the ultimate in port operation. But it must be multi-agencies integrated for it to be successful. The port is a transit point and our ports must be seen and used as such. That is why we have dry ports across the country to decongest the port and NPA as the landlord must have a say.”

    NPA’s General Manager, Public Affairs, Chief Michael Ajayi, said the Federal Government needed to have the political will to introduce a single window platform to reduce costs and increase the compliance level of importers and exporters.

    He said it was part of measures to be undertaken by the NPA to achieve the 48-hour cargo clearance early next year.

    “The benefits are immense, because on a micro level, it will boost the competitive advantage of our ports and its traders on the international markets while increasing government’s revenue, boost foreign direct investment, introduce simpler, faster clearance, and release processes,” he said.

    Government’s attention on the single window, Ajayi said, should be focused on the following:

    • reducing time and cost of doing business at ports;
    • simplification and automation of ports operations; and
    • reduction of the human interface and increased transparency among others.

  • Ambode urges ship owners to collaborate

    Governor Akinwunmi Ambode of Lagos State has urged ship owners to form a strong partnership that will transform the economy.

    He also spoke of his willingness to donate land to the Ship Owners Association of Nigeria (SOAN) to build their headquarters in Lagos.

    Speaking at a Gala Night organised by the group, at the weekend, Ambode, who was represented by his Special Adviser on Commerce, Mr Adeyemi Labinjo, urged the group to forward its request to his office for necessary consideration.

    “As a government, we are committed to doing everything in our capacity to ease the process of doing business because this is the only way to attract investment to critical sectors of the economy.

    “Let me use this opportunity to inform you that the maritime Industry is set to witness a major boost with the impressive progress we have recorded on the $2.6 billion Badagry Deep Sea project, which on completion will be the largest in Africa. We are encouraged by the interest shown by international investors who are willing to partner with the state government to make the project a reality.

    “The Nigeria maritime industry, of which the shipping sector plays a vital role in its development, is widely acknowledged to be in need of far reaching reforms in order to align with global best practices. The industry has great potentials to be a major revenue earner and driving force for economic growth and development.

    “For these potentials to be fully harnessed there must be a convergence of ideas among stakeholders including the Shipowners Association on how best to move the industry forward in the best interest of the economy and private investors.

    “I believe one of the basic issues revolve around the need for government to create the enabling environment through the design and implementation of appropriate policies, incentives and the provision of the required infrastructure,” Ambode said.

    He urged the ship owners to forge “a strong partnership and make necessary sacrifices that will bring about a quick turnaround of our economy.”

    The Minister of Transport, Rotimi Amaechi, who was represented by the Managing Director, Nigerian Ports Authority (NPA), Hadiza Bala Usman, inaugurated the SOAN’s 100 Cadets Training Berth Scheme on the occasion.

    He assured the group of the government’s readiness to create a conducive environment for them and other investors to do their business.

  • Lawyer urges NASS to pass maritime bills

    The National Assembly has been urged to review the Cabotage Law and pass pending maritime bills to end the domination of shipping business by foreign vessels.

    A lawyer and university don, Mr Dipo Alaka, who made the call at the week-end, said the delay in the passage of the Ports and Harbours bills, among others, was hampering the industry’s development.

    “So many people have advocated a review of some of our laws such as the Cabotage Act, the Local Content Act, the Shipping Policy Act and the Ports and Harbours Bill, and there has also been a call for reform in our port operations to meet international standard.

    “We would like the Cabotage Act to be reviewed by the National Assembly in a way that can lead to higher revenue generation for the federal government.

    “The country is losing a lot of revenue due to the non-implementation of the Caboatge Law as a result of domination of foreign vessels on our coastal waters.

    “If the Cabotage Act is reformed, it would assist in blocking revenue leakages to bring the economy out of the wood,” Alake said. He also urged the Federal Government to use the money from the maritime sector to diversify the economy in the face of dwindling revenue from oil.

    He said businesses have been affected by the reduction in cargo volume at the ports since the beginning of the year till date, adding that some policies of the government on importation have contributed to the low volume of cargo handled at the ports.

    According to him, the government needs to review import policies, especially on used vehicles and rice.

  • NPA partners Miami port

    The Nigerian Ports Authority (NPA) is partnering the port of Miami to boost the facilitation programme of the Federal Government.

    The US International Trade Coordinator at the Department of Regulatory and Economy Resources (RER), Mr. Desmond Alufohai, and the Director, Government and International Relations (GIR) for port of Miami, Ms. Debra Owens, who met with the  NPA’s Managing Director, Ms. Hadiza Bala Usman, said they were at the Authority to explore opportunities in the mineral resources and agricultural sectors of the country.

    The team expressed its readiness to assist in the development and modernisation of infrastructure at the nation’s ports.

    The delegation also spoke of its determination to partner with the NPA on compliance and efficient port system

    The group said it would also assist the country to boost the economy by harnessing the immense opportunities in the export of farm produce and mineral resources to America.

    Ms. Usman said assured them that the Federal Government was desirous of partnering the port of Miami on tourism.

    She discussed the need for technological transfer in the standardisation of farm produce, preservation and packaging to meet international standards.

    At the Executive Business Networking Seminar organised by NIMPORT in Lagos, Ms. Usman, who was represented by the General Manager, Public Affairs, Chief Michael Kayode Ajayi, said the government was making efforts to reposition the ports in line with global trends.

    She directed terminal operators to invest more in up-to-date equipment that will make the  ports competitive and efficient.

    Growth in trade volumes, she said, is essential to boost investment and efficiency, saying the development and upgrade of port infrastructure are imperative.

    NPA’s vision, Usman said, is to be the leading port in Africa. The NPA would review, in line with global best practices, the agreement the terminal operators entered into with the Federal Government before the ports were concessioned to them in 2006.

    She said growing container markets in countries in North America, Europe and Asia Pacific  informed the upgrade of the port infrastructure in the country,  with container handling automation put in place to handle large carriers with up to 18,000 teu.

    This, she said, became imperative because manually operated Ruber Tyre Gantry (RTG) was no longer suitable to handle huge number of containers from one vessel.

    NPA, she said, must lead in modernisation of equipment, and infrastructure to respond to global trends.

    She thanked the organisers of the seminar for their steadfastness and consistency that have gone a long way in fostering mutually-beneficial business relationship between the government and the private sector.

  • History as largest vessel ever berths in Lagos

    History as largest vessel ever berths in Lagos

    SIXTY-two years after the ports came into being, the largest ship ever to call in the country last week berthed at the Tin-Can Island Port.

    The historic event took place at the Lagos Terminal of Ports and Cargo Handling Services Ltd, a subsidiary of SIFAX Group

    The container vessel, MSC SHAULA, is owned and operated by MSC Ship Management Hong Kong, the Asian division of Mediterranean Shipping Company (MSC), the second largest container shipping operator in the world. The vessel has a length of 275.04 metres and the length between perpendiculars stands at 263.00 metres.

    MSC SHAULA, built by the Hyundai Heavy Industries, has a cargo capacity of 4,651 TEUs; its draft and gross tonnage are 13.62 metres and 51,836 GRT.

    On the significance of the vessel, SIFAX Group Managing Director,   Mr. John Jenkins, said it was historic that the vessel berthed at their terminal.

    He said: “We are delighted that history was made with the arrival of this humongous vessel in the Nigerian waters. 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 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 ten years and has also attracted a number of discerning clients, including MSC, the operator of the vessel. What has been the unique selling proposition of the terminal is the quality of service that we provide.”

    Speaking on his experience, the captain of the ship, Captain Dinkar, 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.

  • Customs urged to adopt duty benchmark for used vehicles

    THE Nigeria Shippers Council (NSC) has advocated that the Nigeria Customs Service (NSS), Nigerian Ports Authority (NPA) as well as Nigerian Maritime Administration and Safety Agency (NIMASA), among others, should publish their charge and display it on their portals to ensure transparency at the ports.

    Besides, it will help the Federal Government to block revenue leakage and make them the  leading ports in West and Central Africa.

    The others are terminal operators, clearing agents and cargo handling firms.

    Speaking when officials of Crown Agents, officials of NPA and a consulting firm Crown Agents visited him in his office, NSC Executive Secretary, Mr Hassan Bello said, no one could predict what importers would pay when they bring goods to the ports. He urged the government to address the problem to improve service delivery and generate more revenue.

    The ports, he said, were competing with others in the sub-region, fueling the need to make all charges public.

    Bello asked management NPA  to design a plan for a model terminal to promote competition, boost efficiency and make the ports attractive.

    He noted that in the last 10 years, the NPA operated the landlord model of port operation without the much-needed competition among private operators.

    “Nigeria loses cargoes to ports of neighbouring countries because many importers don’t know the actual amount they are going to pay when they bring their goods to the ports.

    “The era of imposing arbitrary charges that have often been described by importers, exporters and clearing agents as uncharitable will end if all the agencies and the operators are mandated by the Federal Government to make their charges public.

    “NPA, as the landlord must check excessive charges against importers to reduce prices of imported goods and make the ports competitive and attractive for business,” a source said.

    The source quoted  Bello as saying that the ports must be efficient. “He wants all agencies operating in the ports which include the NPA, the was  Plant Quarantine, NIMASA, and others to up their game,” the source added.

    It was gathered that the meeting resolved that  the Comptroller-General of Customs, Col. Hameed Ali (rtd) must curb the excesses of his men and ensure the adoption of a duty benchmark on fairly used vehicles, Tokunbo.

    “For years, the Customs has operated without a benchmark for used vehicles. The agency fixes duty at will, depending on who is importing.

    “Some officers are exploiting the absence of a clear cut policy on benchmark to extort importers and their agents despite Ali’s warnings against corruption.

    “For selfish reasons, some Customs officers are also working against making the ports attractive for business. Therefore, the Federal Government need to design anti-corruption policies that will stem the loss of cargoes from Nigeria to neighbouring countries.

    “The absence of a benchmark has created opportunities for Customs officials to take bribes from importers and their clearing agents.

    “Despite the age limit imposed on imported Tokunbo vehicles, it is sad that no Nigerian bringing any type of the approved vehicle into the country knows the actual amount he or she is going to pay as Customs duty.

    “But the situation is not so in our neighbouring ports. At Apapa and Tin-Can ports, direct interaction between clearing agents and Customs officials is on the high side since most clearing documentation on used vehicles are not processed online,” the source said.

    Clearance documentations, according to the source, are submitted physically.

    The source continued:”This high level of corruption in our ports will affect the efforts of the current management of NPA to reposition the ports for better efficiency and the hub in the sub-region. Corrupt practices are also jeopardising the ability of the NSC to secure commercial opportunities in cargo transport to nearby landlocked countries.

    “Despite the successful ports concession programme, the concession benefit is hampered by corruption, poor infrastructure and the high cost of doing business.”

    The source blamed  the ports’ bureaucracy for the problem, saying: “The bribery takes two forms: Collusive corruption, where the clearing agents and Customs officials benefit from an illicit deal, such as paying to evade duty, and coercive bribery or extortion, which benefit only corrupt Customs official.”

  • Apapa gridlock worries NPA

    The Managing Director, Nigerian Ports Authority (NPA), Ms Hadiza Bala Usman, has expressed concern over the Apapa gridlock, which hinders access to the ports.

    At a stakeholders’meeting in her office, she said the bad roads were killing trade facilitation  and affecting the delivery of cargoes.

    She said ports infrastructure must be revamped to revive to the economy.

    NPA, according to her, was not happy that measures adopted so far have not  yielded result. She promised what she called positive action soon.

    Usman said the quick rehabilitation of the road was her team’s  priority in salvaging the economy.

    Receiving the report on traffic decongestion of Apapa  and  environ,  she appealed to Dangote Construction Nig. Ltd and  Flour Mills Nig. Ltd to expedite action on reconstruction of Wharf road as the rain is almost over.

    Usman appealed to the Minister of Power, Works and Housing, Mr Babatunde Fashola, and members of the National Assembly to include the reconstruction of Creek Road linking Tin Can Island port in the 2017 budget. This, she said, would hasten the completion of the trailer park opposite the Tin-Can Port.

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

    She urged port users to submit to security checks at the gates leading to the ports and warned all unauthorised persons ports to stay off the ports or face sanctions.

    NPA, she said, would soon introduce measures that will make it impossible for those without genuine business to access the ports.

  • Fashola urged to address Apapa gridlock

    Fashola urged to address Apapa gridlock

    The Association of Nigerian Licensed Customs Agents (ANLCA) and importers have urged the Minister of Power,Works and Housing, Mr Babatunde Raji Fashola, to come up with a master plan to address the intractable Apapa, Lagos, gridlock.

    The gridlock, according to the stakeholders, has bocome a common feature of the area with its toll on trucks, cars and other vehicles whuch often break down.

    At a forum organised by the importers and clearing agents in Lagos, at the week-end, the group  urged Fashola to call a stakeholders’ meeting where he would unfold his plan  to address the gridlock.

    Fashola, as a former Governor of Lagos State, the National President of ANLCA, Prince Olayiwola Shittu said, needs to tell Lagosians what the Federal Government intends to do over the pathetic condition of the roads.

    The Federal Government, Shittu said, makes billions of naira from the ports daily.

    Investigation by The Nation revealed that Apapa and Tin-Can Customs generate, respectively, over N1 billion daily from the ports. The amount excludes what NPA, NIMASA, SON, Shippers Council and other agencies make.

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

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

    “The roads leading to the Apapa ports have collapsed and Lagosians and other port users expect Fashola as a former governor of the state to bring the issue to the front burner at the Federal Executive Council (FEC) meeting. But there is no evidence that he has done that because the roads have become worse than before his appointment. And this was the man that was telling the former President Jonathan to solve the problem when he was the governor. But now that he is the minister in charge of the road, why is he not addressing the issue?

    “In Apapa alone, there are about 60 petroleum tank farms for storage of 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 like freight, clearing and forwarding easily make Apapa a hub of maritime activities.”

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

    Apart from manufacturing companies like Dangote Sugar Refinery, BUA Group, Honeywell, he lamented that other businesses have shut down because of the gridlock.

    “The real problem is that government is making a huge amount of money from the ports without the necessary infrastructural development. It is sad that many businesses have closed down because the owners cannot get to their offices and Fashola is happy to be there as Minister without addressing the problem.

    “No wonder, tanker drivers are now moving their trucks into residential buildings. The result is the chaotic situation we are facing in the area which we want Fashola as the minister saddled with that responsibility to address.

    The Publicity Secretary of motor vehicle importers in the area, Mr Felix Ayinla, also urged Fashola to rehabilitate the roads and address the perennial gridlock.

    He noted that the problem has impacted on cargo turn-around time and the cost of doing business.

    “Nobody needs to tell Fashola that Lagos port is the gateway to the nation’s economy and that he must see it as such. What we expect from him and the Federal Government is to open up the roads leading to the Lagos ports to make it attractive for business. Why must we face difficulties in moving goods in and out of the ports?

    “The Federal government has what it takes to make our ports the hub in the sub-region and now is the time for Fashola to lead the country in achieving that,” he added.

  • Monitor wreck removal, govt told

    Minister of Transport Rotimi Amaechi has been urged to direct the board and  management of the Nigerian Ports Authority (NPA) to monitor the company that will be awarded the contracts for the removal of wrecks and abandoned vessels from  channels leading to the ports.

    A senior official of the Federal Ministry of Finance (FMoF), who craved for anonymity, told The Nation , that there is  need for the board and management of NPA to re-examine previous contracts awarded for the dredging of the channels and removal of wrecks and abandoned vessels.

    The official said the projects required proper monitoring because the government had sunk, and would still spend a “huge’’ amount of tax payers’ money on them.

    He alleged that, in the past, the contracts were awarded by the NPA but, in most cases, the dredging was not carried out according to specification, and the wrecks were not removed even after the government had paid.

    “When you give them the contract to dredge the channel or remove the wreck, it is the government that will pay for it; but when they don’t remove the wreck, the government will not will not know if there is no proper monitoring and the people will suffer for it,’’ he said.

    The official said the NPA would experience remarkable improvement if monitoring was replicated in other areas of its responsibilities.

    “Nigeria, being a huge maritime nation, can only maintain a hub status when projects are handled professionally to meet the needs they are designed for,’’ he said.

    Investigation revealed that NPA and the Nigerian Maritime Administration and Safety Agency (NIMASA), in 2009, got the Federal Government’s approval to remove wrecks from the waters for N3.4 billion.

    Twenty-four of the wrecks were said to be obstructing navigation.

    “Despite the huge amount of money spent by the government, when the board and the management of the NPA visited Lagos, Calabar, Port Harcourt and Warri ports recently, they discovered that there are a lot of wrecks to be removed from the channels. Dredging and removal of wrecks are capital intensive and that is why NPA needs monitoring and compliance team that would be effective and not the one that will compromise. That is the team we want the minister and NPA to constitute,” the official said.