The Nation Newspaper

Category: Maritime

  • Shippers Council seeks removal of trade barrier

    The Nigerian Shippers (NSC) has called for the removal of trade barriers in Africa.

    Its Executive Secretary, Mr Hassan Bello, made the call during the inauguration of the Interim Working Committee of the West Africa Road Transport Union (WARTU) in Lagos.

    He said regional transportation required integration, harmonisation and standardisation.

    “This is the reason the meeting is being structured because the volume of trade within the African sub-region is not very high. The volume of trade within the Central African region is representing one per cent, comparing with that of Europe which stands at 70 per cent. We need to look at ways of improving trade within the sub-region and there are so many things to trade on among us, “he maintained.

    Bello noted that Nigeria’s trade was supported by the Economic Community of West African States (ECOWAS), laws and protocols which had been guiding the effective operation of trade in the region.

    According to him, the Council had been playing a critical role in ensuring that the institutions and bodies were supported in one way or the other.

    He also commended the National Road Transport Owners (NARTO) for its involvement in laudable activities.

    He expressed the Council’s readiness to give the newly-inaugurated committee the necessary support to meet its aspirations.

    In his inaugural address, WARTU President Mr Ogbogo Aloga, lauded the Council for the role it played in ensuring a level-playing ground among stake-holders.

    Aloga said the role of transportation in the African sub-region could not be over emphasised. This, he said, necessitated the inauguration of the WARTU committee.

    He was quoted in a statement issued by NSC as saying: “This is a welcome development because trade within the sub-region is already moribund and requires urgent restructuring of the trade to boost the inter-regional trade relationship.

    “The integration that is coming now is very important because it will also increase trade on African corridor and remove barrier among the countries,” he said.

    He said the newly-inaugurated body was set to address the issues affecting trade, such as communications, security, and exchange rate among ECOWAS countries.

     

  • Ministry official alleges neglect of Calabar Port

    Ministry official alleges neglect of Calabar Port

    From a money spinner, the Calabar Port is turning into a revenue loser following its littering with wrecks and an abandoned rig worth millions of dollars.

    When The Nation visited the port, activities were low. Two “critical” wrecks and the abandoned Delta Queen Rig were seen there.

    A senior official of the Ministry of Finance (FMoF), who pleaded not to be named, said the Federal Government and the Nigerian Ports Authority (NPA) should put the port into good use to revamp the economy.

    The port, he alleged, has become an avenue for siphoning public fund.

    He urgedPresident Muhammadu Buhari to direct the Minister of Transport, Mr Rotimi Amaechi, and the NPA to transform the port because of its importance to the nation.

    The official said the port used to ba a money spinner. He told The Nation that between 2008 and last year, NPA generated $117,178,000 and over N2.2 billion from the port.

    The breakdown of the amount generated in dollars and naira as exclusively obtained by The Nation is as follows: $26,529,000 and N203,438,000 in 2008.

    Between 2009 and 2011, it was $37,522,000 and N898,737,000. In 2012 and 2013, it made $26,946,000 and N581,109,000. Between 2014 and last year, the port realised $26,197,000 and N540,942,000.

    The official said: “It is sad that the multi-billion dollar investment at the port was rendered useless by the past management of the NPA.

    “The amount generated between 2008 and last year by the agency showed that if the NPA is compelled to pay adequate attention to the port, more revenue would accrue to the government.

    “If the several billions of naira collected by the NPA were judiciously invested in dredging the port, the channel will not remain shallow and difficult for big vessels to approach.

    “It is sad that up till today, its channel remains shallow, and investors at the port have continued to count their losses,” the official said.

    He accused some top past NPA officials of only interested in awarding contracts for dredging and re-dredging of the port without corresponding development of its infrastructure.

    He alleged that poor work was done on the dredging of the channel.

    The government, the official, lost a lot of revenue through the frequent dredging of the port.

    But The Nation investigation revealed that the port has a comparative distance advantage to the Northeast than any port in the country.

    While the distance between Cross River and Taraba states is 711km and the transit time is nine hours, 58 minutes; the distance from Port/Harcourt, Warri and Lagos to Taraba is 773km, 901km and 1,160km, and  it takes 10 hours, 49 minutes; 12 hours, 4 minutes and 14 hours 24 minutes from each of the states to Taraba.

    Findings also revealed that the distance from Cross River to Gombe  state is 983km and the transit time is 13hrs,58mins;  the distance from Port/Harcourt, Warri and Lagos to Gombe is 1,060km, 1,034km and 1,240km respectively, and  it takes 14hrs, 15mins; 14hrs, 40mins and 16hrs 39mins from each of the states to Gombe.

    Also, the distance from Calabar to Bauchi is 910km and the transit time 13 hours, 14 minutes. Whereas the distance from Port Harcourt, Warri and Lagos to Bauchi is 965km, 939km and 1,145km, and  it takes 13 hours, 10 minutes; 13 hours, 36 minutes and 15 hours 34 minutes from each of the states to Bauchi.

    Investigation further showed that the distance between Calabar and Adamawa is 865km with 11 hours, 57 minutes transit time. But the distance from Port Harcourt, Warri and Lagos to Adamawa is 927km, 1,055km and 1,314km, and  it takes 12 hours, 49 minutes; 14 hours, 4 minutes and 16 hours 23 minutes from the states to Adamawa.

    The story is the same from Calabar to Borno and Yobe states.

    “There is no gain saying that Calabar Port is very strategic to the economic development of Nigeria particularly the Northcentral, Southsouth and Southeast regions of the country.

    “Besides, when functional, it will increase the volume of vessel traffic and cargo throughput in the port, decongest Lagos ports and reduce cost of doing business for Calabar-based businessmen who spend additional transport cost to take delivery of their consignments in Lagos and Onne ports.

    “The port is strategically located for imports and exports for distribution to other ports along the West/Central and Southern African coastline. The location of Calabar Free Trade Zone (CFTZ) in close proximity with the port speaks volumes for itself,” the official said.

    He identified erosion, the length and the dredging of the 84km channel, the wrecks, the abandoned rig, insufficient tugs and pilot cutters, the deplorable Calabar/Itu/Aba road and the low height limitation of the Ikom bridge as the port’s major challenges, which should be fixed by the government to turn it to profit.

  • Firm names Sifax as agent

    SIFAX Shipping Company Limited, an arm of SIFAX Group, has been appointed as the new agent of Auto Export Shipping (AES) in Nigeria and Ghana.

    AES is a non-vessel common carrier, which handles shippers’ exports of vehicles, including automobiles, trucks, and mobile industrial equipment via roll on/roll off vessel services from United States ports to various ports in West Africa.

    According to AES President, Mr. Pete Bottino, the appointment of Sifax, which takes effect from September 1, is a testimony of SIFAX Shipping’s track record of excellent service and ingenious business acumen that have seen the company work for some of the biggest clients in the industry.

    His words: “AES is pleased to announce our business relationship with SIFAX Shipping Company Limited. The company will serve as our releasing agent in Nigeria and Ghana for all our RORO Shipments to Lagos and Tema, which will be operated by Hyundai Glovis, one of the leading global shipping lines. As a leading player in the maritime industry across West Africa, we are convinced in the ability of SIFAX Shipping to deliver quality service and meet all expectations.”

    The company’s Group Managing Director, Mr. John Jenkins, thanked AES for the opportunity to partner with it, adding that SIFAX Shipping would exhibit the tradition of delivering best value which all SIFAX Group subsidiaries are noted for.

    “I have the implicit confidence that all the stakeholders in this new business deal – Hyundai Glovis, AES, agents and consignees will enjoy the best of excellent service that has marked out our company as the option of first choice in all the countries that we operate,” he said.

  • NPA redeploys managers

    The Managing Director, Nigerian Ports Authority (NPA) Ms Hadiza Bala Usman, has named new managers for the six major seaports across the country.

    Sources close to NPA told The Nation that only Umar Abubaar Garba was retained but he was redeployed from Delta to Rivers port.

    In a memo dated September 14, 2016, the Onne Port Manager Durowaiye Ayodele, was directed to report to the General Manager, Western Ports, Lagos “for duty”.

    The other managers, it was gathered, were redeployed to the NPA Headquarters in Lagos.

    They are Noah Mathew Alaba (Tin Can Island Port), Aisha Ali-Ibrahim (Lagos Port Complex,Apapa), Okeke Simeon Okeke (Delta Port), Alhassan Ismaila Abubakar (Onne Port) and  Olufunmilayo Olotu (Calabar Port).

    The former Calabar Port Manager,  Ogundele Oluseyi, moves to Eastern Ports as Assistant General Manager (AGM), Utilities.The former Tin Can Island Port Manager, Babatunde Longe, moves to NPA Headquarters as AGM, Operations.

    The former manager, Lagos Port Complex (LPC), Apapa, Ezeoke Eunice Ngozi, was redeployed to Western Ports as AGM, Operations. The former Rivers Port manger, Abdulrahman Lamin, was moved to NPA headquarters as AGM, Commercial.

  • NPA wasted $10b revenue, claims ministry official

    NPA wasted $10b revenue, claims ministry official

    The Nigerian Ports Authority (NPA) generated about $10 billion from the Lagos ports between 2006 and last year without anything to show for it, it has been learnt.

    A senior official of the Federal Ministry of Finance (FMoF) told The Nation that the revenue excluded the over N150 billion collected from the Lagos Port Complex (LPC) and Tin-Can Island Port.

    The official lamented that there was nothing to show for the “huge proceeds” in terms of infrastructure development at the ports.

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

    The NPA, the official said, generated over $147 million in 2006 and collected over $105 million. From 2007 to 2009, he said, 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 LPC and Tin-Can Island Port,  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.

    To generate more revenue, the official urged the NPA management to plug all loopholes and embark on programmes that will make the ports more effective and efficient.

    According to him, the government would realise its dream of boosting the economy and creating jobs if the loopholes are plugged.

    The official said the Minister of Transport, Rotimi Amaechi, must compel the NPA to fashion out a strategy to increase its revenue.

    The NPA, the official said, needs to ensure that the terminal operators boost their operations to generate more funds.

    The ports, he said, must be turned into an enterprise that will yield more revenue for government through improved vessel calls and enhanced volume of cargoes coming into the country.

    “Things are expected to look upward, with the automation of NPA’s operations and its adoption of electronic system. Under its current arrangement, it is expected that revenue leakages would be blocked and operational revenue improved.

    “We hope the management of the agency will be able to track where the revenue is leaking and make meaningful contributions to the government purse.

    “What the NPA needs now is the trade facilitation role of other government agencies. There is need for the government to ensure that the Customs and other agencies complement the NPA to boost government revenue,” the official said.

  • ‘Why Nigeria should have ship repair facility’

    ‘Why Nigeria should have ship repair facility’

    The Director-General, Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Dakuku Peterside, has been urged to promote indigenous ship repairs and dry docking.

    The President, Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu, who made the call, said it was regretable that Nigeria has no functional ship repairs and dry docking firms.

    Shittu told The Nation that Nigeria accounts for over 70 per cent of the ships coming to Africa, stating that no fewer than 5,000 vessels called at the nation’s seaports last year. He said with modern repairs’ facilities, the sector could rake in billions of naira and also create jobs.

    Most of the vessels operating on Nigeria’s territorial waters, he said, go to the neighbouring countries for dry docking and other routine maintenance, adding that this is at a huge loss to the country.

    Shittu bemoaned the rate of pollution of the nation’s territorial waters and urged NIMASA to address the issue of illegal fishing and dumping of hazardous wastes in the waters.

    He  said the dumping of toxic wastes in the maritime domain and the increasing crimes on the coastline require the collaboration and commitment of the Federal Government and NIMASA, with foreign partners to build a safe maritime sector.

    The ANLCA chief pointed out that security experts around Africa have developed theories to check the increasing dumping of hazardous wastes and the menacing piracy, adding that Singapore, Indonesia, Malaysia, the Philippines and Thailand have set the stage for cooperation between states, both in information exchange and mobilisation of resources.

    He observed that the insecurity on Africa’s waterways forced insurers to hike rates for ships passing through the region.

    Shittu said: “This significant maritime presence requires that ship repairs with dry docks of varying capacities be established to cope with the maintenance requirement of these vessels. Classification society rules and the good maintenance of ships require that ships be dry docked every 30 months on the average for routine surveys.

    “Special surveys are required at every alternative docking that is once in three years. As the age of a vessel increases, so does the amount of repair work needed. Aside from routine docking, vessels need to come to propeller and ship hull, or damaged caused by ropes or debris, and also mechanical breakdown.

    “Sadly, the ship repairs industry in Nigeria is under-developed and its potential untapped. This is largely because the government has not paid meaningful attention to this sector of the economy.

    “As a result of the shortage of adequate ship repair facilities, most of the vessels operating in Nigeria waters proceed to neighbouring countries for scheduled dry docking and other routine maintenance works. This is at huge financial loss to the country, while at the same time denying employment opportunities for Nigerians,’’ he said.

    Shittu said he supported the move by the Minister of Transport, Rotimi Amaechi to establish a new national shipping line. He, however, said there was need for the government to support the private sector by providing enabling environment.

  • Firm set to reduce freight cost

    The Management of  Simplified Corporate Logistics (SCL), a global procurement, handling, clearing and forwarding service firm, has promised to reduce the cost of clearing goods from the sea ports.

    The firm, it was gathered, helps importers and exporters to improve their cargo logistics, improve their efficiency and reduce the freight costs up to 70 per cent.

    Speaking in Lagos, its founder and Chief Executive Officer, Nduka Udeh, said the firm also assists shippers to handle their foreign exchange (forex) needs to reduce the long processing time.

    “Nigerian businesses of recent have been hit by a steep hike in the price of ordering, handling and clearing goods from overseas. What Simplified Corporate Logistics does is that it removes the risk factor from businesses. We make it our responsibility to source for forex to carry out transactions so our customers only pay in naira.

    “Then we guide them through the entire clearing process and handle the documentation on their behalf so that they reduce incurred fines and charges to the barest minimum. Our process is so efficient that we can guarantee clearance of goods within a few days.

    ”We also source for the items our customers want from trusted manufacturers globally, and get them at the best prices – thanks to our partnership with several auction companies in the USA. Most significantly, we offer a cargo consolidation service that can save our customers up to 70 per cent in freight costs. We believe that it is the cost and efficiency savings that will propel the Nigerian small and medium enterprises into the future.

    “We offer a full service cargo logistics package for exporters and importters, including global procurement, warehousing locally and internationally, clearing, documentation review to ensure Customs and regulatory compliance.

    “Simplified Corporate Logistics takes risk away completely from businesses complexity associated with import and export by handling their forex needs to reduce the long processing times.

    “We also provide a transparent Customs clearing procedure and offer a cargo consolidation service that will save businesses up to 70 per cent on freight costs,” he said.

  • Students urged to embrace maritime

    Students of the University of Lagos (UNILAG), Akoka, and other tertiary institutions have been urged to tap into opportunities in the maritime sector.

    Speaking at a conference, organised for the Vice Chairman of Sifax Group, Dr Taiwo Afolabi, by UNILAG’s Law Faculty, former President of the Nigerian Trawler Owners Association (NITOA), Mrs Margret Orakwusi, urged students to show interest in the sector because of its benefit to them.

    The theme of the conference was: “Africa’s Maritime Capital: Nigeria and Her Potentials”.

    To turn the potentials to tangible economic benefits, Afolabi urged the government to provide conducive environment for investors and ensure massive development of port infrastructure

    Nigeria, he said, has huge untapped maritime potentials, urging the students to tap into them.

    Afolabi, who was represented by the Executive Director, Human Resources and Administration, Dr Fola Rogers-Saliu, urged the Federal Government to pay attention to the development of the maritime sector.

    “I consider the theme uniquely relevant to the realities of Nigeria’s present economic condition where the twin problems of the prevailing sharp decline in crude oil earnings in the international market and the cataclysmic plunge of the exchange rate of the Naira to the dollar have brought the national economy to an all-time low.

    ”This situation has compelled the need for an inclusive search for an alternative route to national revival and rebirth, forcing upon us a movement away from decades of fixation on the traditional black gold to the maritime – the emerging glittering “blue gold’. Diligent and sustained exploitation of the vast maritime resource endowments of this sector, may prove to be that very” low-hanging fruit” that Nigeria needs at a time such as we are in today,” Afolabi said.

    He said the conference was designed to ignite students’ interest in the opportunities in the maritime industry and a forum to  bring together students, experts and stakeholders in the industry for networking and knowledge sharing.

    Over 1,500 students from UNILAG and other institutions attended the event.

  • NPA boss finds multi-billion naira equipment abandoned

    NPA boss finds multi-billion naira equipment abandoned

    Nigerian Ports Authority (NPA) Managing Director Ms Hadiza Bala Usman has stumbled on equipment worth billions of naira allegedly abandoned at the Continental Shipyard in Apapa, Lagos.

    Ms Usman made the discovery when she visited the Lagos ports. Some of the equipment were allegedly abandoned by NPA when the ports were conces-sioned in 2006; others were said to have been abandoned in 2010.

    The abandoned equipment include the multi-million dollar floating dock, the slipway,  two pilot cutters and vital shipping equipment.

    The floating dock, it was gathered, could provide over 2,000 jobs; the slipway and the others could  provide about 2,500 jobs.

    A senior NPA official said: “The floating dock has not been operational since 2010. The then management said pump and valve malfunctioning was the the reason the 6,000 tonnes floating dock could not pass its routine test of submerging and emerging.

    “The routine test is usually carried out on two major occasions on the dock, namely after routine maintenance and or repairs or before lifting of ship for repairs, inspection or maintenance.

    “NPA Floating Dock is a watertight structure designed to submerge sufficiently, by admission of water into its pontoon tanks to admit a vessel. The tanks are then pumped out, the dock and vessel will then rise until the latter is clear entirely of the water.

    “In the course of restoring the emergence of the Floating Dock, one of its securing pins to the mooring dolphin snapped off and the dock generated momentum under the influence of hydro dynamic pressure caused by flood tides. This in turn caused the second pin to snap and the dock drifted under tidal influence and went to beach opposite Waziri jetty.’’

    The official alleged that past NPA management did not adopt measures for the floating dock’s use.

    “Despite that the contract for the repair of the floating dock was awarded by the past management of the NPA and a huge amount of money spent on it, we later discovered that there was no blockage of all the possible avenues that water can enter the engine and pump rooms of the dock as well as the closure of all, in and outlet valves of the dock and there was no diving inspection of the dock to identify any existing holes and malfunctioning valves.

    “What we want the new management to do is to lead the way on how the multi-million dollar floating dock and the slipway can be restored to generate more revenue and employ many Nigerians,” the official said.

  • Dialogue is key, says NSC boss

    The Nigerian Shippers Council (NSC) Executive Secretary, Mr Hassan Bello, has urged private terminal operators to embrace dialogue in resolving some  challenges at the ports.

    At a seminar organised by the Maritime Reporters Association of Nigeria (MARAN) in Lagos, Bello said the Council, as the economic regulator, would continue to protect operators and others at the ports.

    The theme of the event was: The gains and the pains of 10 years of port concession in Nigeria.

    Bello said the increase in cargo throughput, reduction in turnaround time of vessels and massive private sector investments were signs that the exercise was successful.

    He decried the attitude of some operators who violated concession agreements, urging that steps be taken to transform their terminals.