The Nation Newspaper

Category: Maritime

  • Customs to tackle fraud at ports

    THE Nigerian Customs Service (NCS), Tin Can Island Port Command, has devised means of arresting unscrupulous importers and clearing agents.

    NCSArea Controller Yusuf Bashar, it was gathered, directed his men to ensure that cargo examination was done twice at the terminals to prevent leakages and boost clearance.

    The exercise, the command’s Public Relations Officer (PRO), Mr Uche Ejesieme, said  began at the Ports and Cargo Terminal.

    Bashar has handed over a 40-ft container of suspected expired medical devices to the National Agency for Food and Drug Administration and Control (NAFDAC) for analysis.

    He also handed over two persons to the Standards Organisation of Nigeria (SON) for allegedly falsifying its Conformity Assessment Programme (SONCAP) document.

    The Apapa Area Command collected N34, 923,757,810.77 last month, making it its highest monthly generation so far this year.

  • Customs seizes 25,000 bags of rice

    Customs seizes 25,000 bags of rice

    The Nigeria Customs  Service (NCS)  has intensified its war against smugglers with the seizure of  over 25,000 bags of rice, it was learnt.

    The Federal Operations Unit (FOU) Zone ‘A’, Ikeja, it was gathered, has over 11,000 bags of the seized rice in its store; while its Tin-Can Island counterpart, Apapa,  impounded about 14,000 bags of illegally imported rice from China.

    The market value of the item, it was gathered, is between N450 million and N500 million based on the market price of between N18,000 and N20,000 per 50kg bag.

    A senior official of the Customs, who asked not to be named, told The Nation that over 11,000 bags of rice at the FOU, Ikeja, were seized at various locations within its zone.

    The seizure, it was gathered, is in line with the resolve of the Comptroller-General of Customs, Col. Hameed Ibrahim Ali to checkmate smugglers at the ports and border stations.

    Investigation around the Lagos ports and borders last week revealed that the Customs has moved against illegal importation of rice, illicit drugs, vegetable oil, textile, used clothes, confectionery, juices, used bags and other prohibited items.

    It was gathered that the rate of smuggling of rice and some other goods from Benin Republic into the country through the borders, has reduced based on the directive from the CGC to all the Commands to increase foot patrol along bush paths, as well as raise the level of intelligence gathering by its officers.

    When The Nation visited the borders last weekend, Customs officers from the Customs Headquarters were stationed on Sango-Ota/Owode-Idiroko road and Okoko/Agbara-Badagry Expressway with their vehicles roving the towns  around the border.

    When The Nation left for the Idiroko border  last Saturday, apart from the skeletal checkpoints mounted by the police on the road, Customs officers were seen at Abule-Egba, Sango toll gate, Ojore, Atan and Owode.

    At the Idiroko border, most vehicles were stopped by Customs officers who searched and seized contrabands, including small quantities of rice and cartons of frozen chicken from traders.

    Investigation, however, revealed that the smugglers are using motorcycles to ferry about 10 bags of smuggled rice from the bush around Seme to Badagry, Mowo, Agbara, Igbo Elerin, Okoko to Alaba-Rago, Oyingbo and Ido markets.

    Customs Public Relations Officer at the FOU, Ikeja, Mr Jerry Attah, said the CGC and the Area Controller Umar Mohammed Dahiru, had set in motion a system that makes the fight against smuggling more serious.

    He said the surveillance became possible because of the vehicles given to them.

    “The unit is working very hard to change its modus operandi to suit the exigencies of the moment and to ensure that it remains on top of the smugglers antics in all ramifications, particularly in terms of enhanced intelligence gathering network,” he said.

    Attah reiterated the unit’s commitment to ensuring smuggling and other anti-economic activities are stopped.

  • NSC seeks support for transit park

    The Nigerian Shippers’ Council (NSC) has urged South-east governors to support the development of a Truck Transit Park (TTP) in their area.

    Its Chief Executive Officer, Hassan Bello, made the call at the yearly lecture of the Onitsha Chamber of Commerce, Industry, Mines and Agriculture (ONICCIMA), titled: ‘The perspective’ in Onitsha, Anambra State.

    Speaking on the theme: Sustenance of Nigeria’s economic growth through port reforms: The case of Onitsha port, Bello, who was represented by the Director, Inland Trade Services, Mr. Akintunde Makinde, said TTP was vital to the maritime industry.

    This, according to him, will help to create employment, provide socio-economic services, and improve Internally Generated Revenue (IGR) for state governments, while enhancing transit trade with land-locked neighbouring countries.

    Also, he said, the TTP, a state-of-the-art facility, should be situated off the busy highways to provide temporary place of rest where truck drivers would park their vehicles in a healthy environment, get accommodation, fuel, food, rest rooms and even service their vehicles.

    The NSC as the Economic Port Regulator, he said, is to consult, coordinate, moderate, and harmonise the various processes and procedures to achieve best practices.

    He stressed that the important place occupied by the Eastern Zone in Nigeria’s international trade cannot be over emphasised, hence, NSC would continue to view the zone as a viable partner in the shipping and international trade.

    He said port reforms, no doubt, are of benefit to the economy and that of the Southeast in particular, in view of the zone’s stake in the sector.

    “We shall remain open, independent, neutral and consultative while all our decisions will be based on the buy-in of stakeholders at all times. I want to place on record the fact that NSC views the actualisation of the Inland Dry Ports (IDP), Container Freight Station (CFS), Truck Transit Park (TTP), and the River Port projects as of paramount importance to the advancement of the economy of the Southeast Zone. Hence, we will not relent in all our efforts towards ensuring their realisation in the nearest future. To achieve these, our goals, we need your support to weather the storm in all our endeavours.”

    Meanwhile, Bello, told The Nation that an increase in the budgetary allocation to the council is inevitable, in view of the new role given to it about one and half years ago.

    “You may recall that this added function to Nigerian Shippers’ Council was given about one and a half years back.

    “With that, the Nigerian Shippers’ Council must seek more funding for it to enable it executes its mandate as an Economic Regulator.

    “But what is more important to us is to see that the maritime industry has become a revenue earner to Nigeria.

    “The sector has become another alternative for revenue for Nigeria and in that case, we encourage all the stakeholders to come together and initiate reforms in their respected jurisdictions so that the maritime industry would be strategically placed to provide employment to Nigerians, to provide revenue for Nigeria, to create wealth and also to encourage the provision of modern transport infrastructure,” he added.

  • SIFAX launches RORO at Ports & Cargo terminal

    SIFAX Group, a multinational corporation with diverse interests and operator of Ports & Cargo Handling Services Limited terminal, Tin Can Island Port, Lagos, has launched its one-stop shop vehicle import service, aimed at transforming the Roll-in and Roll-out (RORO) industry into a model in Africa.

    The service, it was gathered, is a joint-venture between SIFAX Group, foremost international shipping agent, Auto Export Shipping (AES) and Hyundai Glovis, the logistics arm of Hyundai KIA Automotive Group.

    At the reception for the first vessel, MV Glovis Supreme, at the Ports & Cargo terminal, SIFAX Group Managing Director, Mr. John Jenkins, said the RORO service was part of the expansion strategy of the company, adding that its experience in handling such service in the past with its customer-focused philosophy have positioned it to make a success of the service.

    “SIFAX Group has a policy of exploring various opportunities to deepen our impact in the country’s economy. This partnership is designed to bring innovation, excellent service and unparalleled customer satisfaction to the RORO business in the country. Expansion of our service base is one of the key elements of SIFAX Group business strategy for 2016.

    “The service will be a one-stop shop one, which will include port terminal services, stevedoring, ship agency and off-dock services. I am happy to say that our partners, agents and consignees are in for a swell time due to the volume of preparations that has gone into this new business.” Hw said.

    In his speech, the Managing Director, Ports & Cargo Handling Services Limited,  Alhaji Mohammed Bulangu, said that the terminal, is a multi-purpose terminal which can handle general cargo, containers and RORO vessels.

    “Over the years, we have come to do more of containerised cargo, even though this is a multi-purpose terminal. However, the reality of the current economic situation, the need to increase revenue base and business volume, employ more staff and deliver array of top-notch services, among others, have compelled us to resume our RORO services. The terminal has all the required facilities, equipment and manpower to meet and satisfy all expectations,” Bulangu said.

    Findings revealed that the new  service will connect five ports in the United States to Nigeria with a link of 19-day transit time. The route will connect Galveston, Jacksonville, Baltimore, Newmark, Boston, all in the United States of America to Lagos (Tin Can Island). Each vessel that will berth at the Ports and Cargo Terminal will import over 1,000 second hand cars and trucks. The maiden vessel, MV Glovis Supreme, came with 1,448 cars/vans and 88 trucks, making a total of 1,536 vehicles on her maiden voyage to the Lagos terminal.

  • How Nigeria can earn $16b from export yearly, by NPA chief

    How Nigeria can earn $16b from export yearly, by NPA chief

    The Federal Government can make about $16 billion yearly if the Nigerian Ports Authority (NPA) explores markets in West Africa and embarks on trade facilitation programmes that will boost exports, The Nation has learnt.

    The NPA, it was gathered, needs to synergise with companies such as UAC, Unilever and others to realise this objective.

    The Chief Public Relations Officer, Calabar Port, Chijioke Ukadike, in a presentation to NPA Managing Director Ms. Hadiza Usman and three Executive Directors (EDs), who visited the p ort last week, said if NPA ups its ante to contribute at least five per cent to the imports of each of the 16 coastal countries, “then we shall be looking at injecting over $16 billion into the nation’s economy annually, and this is beside revenues from port charges.”

    Relying on data from the World Fact Book of the Central Intelligence Agency (CIA), Ukadike said the 17 countries lying along the West/Central Africa coastlines up to southern Africa had an estimated total import value of $324.88 billion as at 2014.

    A breakdown showed that Nigeria contributes 11.7 per cent to Senegalese import; 23 per cent to Cote d’Ivoire, 11 per cent to Ghana and 19 per cent to Cameroon.

    He said NPA should encourage agriculture and food production, such as palm oil, groundnuts, cocoa and other items for export to other regional countries. Ghana, he noted, recently overtook Nigeria in yam export, wondering what has happened to the famous Ogoja yam.

    Ukadike said Indonesia is the world’s highest producer of palm oil; producing 33.5 million tonnes from over six million hectares of palm plantation, adding that palm oil constitutes 11 per cent of Indonesia’s export earnings of $5.billion.

    “Many of us do not know that palm oil is an essential ingredient in the production of many types of chocolates, chewing gums, lipstick, washing powder, doughnuts soaps and other items,” Ukadike said, adding that young people must seek to build their capacity in maritime competence so as to take full advantage of the Cabotage Law, which gives exclusive provision for Nigerian owned and manned vessels along our coast.

    Ms.Adiza, while addressing reporters after the presentation, said  NPA would soon commence the recruitment of younger professionals into the service in view of its ageing officers. She admitted that there is a lot of skills and knowledge that need to be transferred before over 50 per cent of NPA’s officers will proceed on retirement as from next year.

    Ms. Usman said the agency would embark on the recruitment drive and look at the organisational structure to determine how the recruitment would be carried out. “We met an arrangement on ground concerning the decision to recruit as the present workforce is ageing.

    “We want to recruit specialists, mariners, critical operational staff. These are those positions that we will be targeting. We encourage every member of the public to be on the look-out,” she said.

    The 10-year old port concession agreement, according to her, is due for review, adding: “We would reach out to the ICRC and they would be part of the review.”

    She said many agencies, including the Nigerian National Petroleum Corporation (NNPC) are indebted to the NPA, adding that the management would proceed aggressively to recover all the debts.

    Investigation conducted by The Nation revealed that the NNPC is owing the NPA about N5 billion.

  • Importers spend N2.29t on textile, rice, fish others

    Importers of textile materials, rice, fish, wheat and sugar spend close to N2.29 trillion to bring the commodities to Nigeria, yearly, The Nation has learnt.

    A senior official of the Federal Ministry of Finance, who spoke on condition of anonymity, condemned the high rate of smuggling of the items into the country. The official said textile materials’ importers spend close to N1.29 trillion annually to ferry the items into the country.

    The official, who described those involved in smuggling as economic saboteurs, said smuggled textile materials have continued to flood the markets despite the efforts of the Nigeria Customs Service to curb the menace.

    He said: “From Lagos to Ibadan, Kano, Kaduna and Katsina,  the smuggled textile materials are there. The smugglers are not only undermining the local industry, they also deprive the Federal Government of the needed revenue.

    “Anybody that is involved in smuggling of textile materials, agricultural produce and other items are guilty of economic sabotage. Smuggling is inimical to the national interest, economic growth and rapid development.

    “With the huge number of casualties suffered so far by the Nigeria Customs Service, it shows that smugglers have not only become more aggressive, but creative and determined to continue with their illicit business and that is why Nigerians need to support Customs in its war against smugglers by giving them useful information,” the official said.

    Also, the Executive Secretary, Agricultural Research Council of Nigeria (ARCN), Prof. Baba Abubakar, said rice, fish, wheat, fish and sugar importers spend N1 trillion annually.

    Abubakar, who was represented by the Acting Director, Partnership and Linkages Programme, Yarama Ndirpaya, disclosed this during a seminar on Agricultural Biotechnology in Abuja.

    He said Nigeria was the largest importer of US hard red and white wheat to the tune of N635 billion yearly; world’s number two importer of rice at N356 billion; spends N217 billion on sugar and N97 billion on fish imports every year.

    This, he said, was unacceptable. “Nigeria spends over N1 trillion on the top four food imports annually. And farmers have limited capacity and use techniques that adversely affect soil fertility, water and biodiversity. Human-induced climate change compounds the issue,” he said.

  • N1b power equipment rust at bonded terminals

    N1b power equipment rust at bonded terminals

    The Federal Government may probe the N1 billion power equipment abandoned at bonded terminals in Lagos, The Nation has learnt.

    Their abandonment is believed to have stalled the power projects in some states.

    A senior official of the Federal Ministry of Transportation said over 200 containers laden with the equipment belonging to the defunct Power Holding Company of Nigeria (PHCN) were abandoned at various bonded terminals in Lagos.

    The equipment is worth over N1 billion, the official said, noting that had they been installed, there would have  been improvement in power supply.

    About 80 of the containers, findings revealed, have been abandoned at a particular bonded terminal for over six years.

    A senior official of the Nigeria Customs Service (NCS),who pleaded not to be named, said the remaining 120 containers littered other bonded terminals in the nation’s commercial capital. The official alleged that some of the equipment imported by the Transmission Company of Nigeria (TCN) are rusting at the terminals.

    “The practice of abandoning power equipment at these terminals is pure economic sabotage and the Federal Government must treat the officials responsible for the act as such, because the country, in the last two years, imported electricity equipment and tools valued at about $6.71 billion from China and other countries to boost power supply in the country.

    “The equipment included electric power generators, transformers, circuit breakers, switchboards, conductors, power capacitors, power converters and electricity meters. Others include distribution boards, power plant valves, power storage devices, switchgears, turbines and voltage regulators. Figures from the World Trade Organisation (WTO) showed that some power equipment valued at $2.89 billion were shipped from China to Nigeria between 2014 and last year.”

    The official said other items that came from the US valued at $321 million are among the stockpile of abandoned equioment.

    Others are the goods from the United Kingdom with goods valued at $773.8 million; India, $399.1 million; South Africa, $230.3 million; Sweden, $260.4 million and the Republic of Korea, $122.5 million.

    The offical also said many of the containers loaded with electricity equipment lying uncleared at the bonded terminals belong to the defunct PHCN. Some of the containers were transferred to Ikorodu Terminal as overtime cargoes, it was learned.

    With this figure, the Customs official said, any official of the government who had the effrontery of abandoning power equipment bought with tax-payers money at the various terminals in Lagos must be punished to serve as deterrent to others.

    “Worried by the neglect of the power equipment, in July 2014, the Federal Government secured the release of 248 containers rusting at the Lagos and Tin Can Island ports to Transmission Company of Nigeria (TCN).

    “The containers were meant for the Independent Power Project (IPP) and were imported by the defunct Power Holding Company of Nigeria (PHCN). Also, in 2011, the PHCN abandoned 250 containers, containing vital equipment to boost power generation in the country.

    “Of the containers, 140 were abandoned at the Ports and Cargo Terminal in Tin Can Port, while 110 others were moved to Ikorodu terminal as over time cargoes. Also, in 2015, some power equipment in 27 containers was abandoned at the Lagos Port Complex.

    The consignments, the official disclosed, were the remnant of the 69 imported into the country between July and August 2014. A source at a shipping line that ferried the equipment to the port revealed that the consignee of the goods, a Romania firm, Dextron Engineering Company Limited, incurred a demurrage of N100 million on the cargoes.

    “The company was contracted by TCN to handle power project in Kaduna. The source told this newspaper that the shipping line that allegedly brought the containers to the port had written several letters to TCN to clear the cargoes, but there was no response,” the official said.

    Also a senior official of one of the terminals where containers were abandoned who does not want his name in print said the government needs to probe and recover the abandoned containers to maximise resources and minimise waste.

    “These containers may remain in our terminal forever and nobody would be bothered unless the Federal Government takes the necessary action. The equipment belongs to the Federal Government of Nigeria and it must be used for the benefit of the general public,” the official said.

    He said it was part of the expectations of the government that, by 2020, the country would have the capacity to produce 20,000 megawatts of electricity. This would be a huge leap for Nigeria and the administration in the power sector.

  • Bello pledges support for concessionaires

    The Federal Government will not impose harsh policies on port concessionnaires, the Executive Secretary of Nigerian Shippers’ Council (NSC), Hassan Bello, has assured.

    He told The Nation at the week-end that the Council was given the mandate of Economic Port Regulator (EPR) by the Federal Government to set standard practices as well as streamline operations at the ports.

    He urged terminal operators and others in the industry to key into the automation system of the agency to facilitate trade and promote efficiency at the ports. He added that the ports were not performing optimally because of lack of automation.

    He said the system would bring more revenue to the Federal Government, reduce human contact and  corrupt practices among agencies.

    Describing the ports as competitive, Bello said this would necessitate effective automation, adding that investors would be willing to transact business if the ports are friendly.

    “The Nigeria Shippers Council is the father of all, and we have taken the problems of terminal operators to the Federal Government and we have argued that government should not impose injurious policies that will affect their operations.

    “And I hope the terminal operators would understand this and collaborate with us in moving the maritime sector forward,” he said.

     

  • ‘Take concession fees in naira’

    The Federal Government has been urged to allow terminal operators pay their throughput charges in naira instead of dollar to enable them stay in business.

    The port concessionaires pay  the Nigerian Ports Authority (NPA) in dollars as stipulated in their agreement with the Federal Government.

    The Group Managing Director, SIFAX Group, owners of Ports and Cargo Terminal at the Tin Can Island Port, John Jenkins, said the exchange rate is putting them on the edge and affecting their business.

    He said the company recorded between 20 per cent and 25 per cent performance decline in the first half of this year because the business is slow.

    Jenkins said the company has been badly affected by the economic policies of the government in the area of sourcing foreign currency by its customers.

    In the first half of the year, he said the terminal recorded 10 per cent drop in container business and 50 per cent drop in volumes of goods when compared with the last year’s figure.

    Jenkins also said another subsidiary of the group, SIFAX Haulage and Logistics Limited, with over 50 trucks, recorded a 20 per cent decline in volume in the first half of the year, despite signing new business deals with some new clients.

    “You and I are aware of what the dollar rate was in 2006 when we took over the ports and what it is today, and yet we are still compelled to continue paying the same charges without review.

    “Government needs to review it reasonably; they need to feel the pains of the business operators so that we can continue to do our duty to the society. The day there is a default, it is always big news.

    “Electricity is a challenge; we rely solely on diesel to power all our heavy equipment and generators for 24 hours operations. This has greatly increased the cost of doing business and drastically reduced our profit margin.

    “The access roads to the ports are in a deplorable state and this has created a source of worry to stakeholders in the industry,” he said.

    Also, the Managing Director of Ports and Cargo Terminal, Mr. Muhammed Bulangu assured that despite the decrease in profit, the terminal remains committed to rendering the best services to its customers.

    Bulangu said the terminal has embarked on aggressive marketing campaign to sell her services.

    “As the flagship of the group, if we sneeze, the other subsidiaries will catch cold. The throughput and revenue have dropped, we are not doing optimally, but what we are doing is trying to ensure that we render the best services possible to our clients by reducing the turn-around time of vessels and ensuring that we encourage customers to clear their cargoes when they arrive without delay,” he said.

    Bulangu appealed to the Federal Government to fix the Tin Can Island Port access road. He noted that the road was built 40 years ago and urged the government to carry out the necessary repairs on the road to its revenue.

    Its Executive Director Administration and Human Resources Mrs Folake Rogers also said the company in the first half of the year has devoted considerate time and efforts to human capacity building and training of its senior and junior staff.

    She noted that key executive appointments were made internally within the period and that the move has added value to the workforce of the company.

  • Smuggling threatens rice production sufficiency

    Smuggling threatens rice production sufficiency

    Nigeria’s bid to be self-sufficient in rice production is being threatened by smugglers, The Nation has learnt.

    Lagos and Ogun states are flooded with smuggled rice daily. From Idi-Iroko to Owode, Alapoti, Atan and Sango Ota, all in Ogun State, smugglers are using bush paths to smuggle the commodity.

    The smugglers, Idi-Iroko border sources said, are cashing in on the high price of the item, which is Nigeria’s staple food, to smuggle the item.

    Many of the smugglers, it was gathered, are smiling to the banks with their huge financial returns.

    The illicit rice business, investigation revealed, is booming because the Federal Government has discouraged rice importation through the land borders, while it is alleged that   some Customs officers are conniving with the smugglers.

    Investigation revealed that the smuggled rice is kept on top of motor cycles, passenger buses and specially refurbished vehicles heading for Lagos, Ifo and Sango area of Ogun State.

    A rice trader at the popular Lusada Market in Ado-Odo Ota area of Ogun state, who refused to give her name, narrated the reason they are dealing on imported rice from Cotonou.

    “I lost a lot of money when the vehicle bringing my rice to Lagos was impounded by Customs in April along Seme border. The period was a very bad one to me. But in June, my friend introduced me to a man who will help me in the rice business through the Ado-Odo area and I decided to try it. “My experience is that there is not much Customs attention on rice in this area, and the profit we make is higher.

    “If you use Seme axis, the highest profit anybody can make on rice is between N200 and N250 per 50kg bag, while we make between N1,000 and N1,350 on 50kg bags of rice through Lusada area,” she said.

    She said rice is a staple food in the country and its demand is so high that ‘business people’ continue to travel long distances from inland towns and risk being arrested to smuggle rice into those axis.

    Every Wednesday, Thursday and Friday, she said men and women flock to Cotonou and other neighbouring countries to buy rice and smuggle them in mostly on Sundays.

    Investigation conducted by The Nation at the week-end revealed that there are no Customs cheek-points between Agbara and Atan and from Lusada to Alapoti and Ado-Odo Ota areas of Ogun State.

    Findings also revealed that there is no effective policing of all the paths leading to the border by Customs to check the menace.

    Customs investigation also revealed that a lot needs to be done  to track down the rice smugglers and stop their illicit business by embarking on effective border patrol as the smugglers are using various vehicles to bring the items to town.