The Nation Newspaper

Category: Maritime

  • River Benue dredging to cost N26b

    River Benue dredging to cost N26b

    • To be completed in two years

    The Federal Government has awarded a N26 billion con-tract for the dredging of lower River Benue to ease movement of cargoes from the ports to other parts of the country.

    Nigerian Inland Waterways Authority (NIWA), Acting Managing Director Mr Danladi Ibrahim, who broke the news in Lagos, said the contract was awarded to Messr Oyins Oil and Gas Limited.

    He said: “We have awarded the dredging of lower river Benue for a tune of N26 billion. Also, the dredging of the lower river Niger is completed and quite a number of boats and jetties are under construction. We are all aware that we have completed the Onitsha river port and it will be concessioned to the private sector to operate any time from now.

    “Baro is 95 per cent completed; Lokoja is about 60 per cent as well as Oguta port. We have awarded the construction of Markurdi river’s port and any moment from now, it will take off.”

    Ibrahim said the major challenge facing the agency was funds, unfolding the plans to transform the parastatal to make it financially independent in the next few years.

    The plans, according to him, include the development of a multi-story office complex in Lagos, for revenue generation; the introduction of hover-barge technology in their operation and carrying along critical stakeholders.

    He promised that NIWA would collaborate with the governments of the riverine states to provide efficient inland waterways services.

    “As it relates to the conflict between NIWA and some state governments, we have issues with many states like Lagos, Rivers and Bayelsa but we are ready to engage them and collaborate with them to promote out services.

    “What we intend to do this time around, is to collaborate with these states. Any moment from now, we will be visiting all the states’ governors that we have issues with and collaborate.

    “We believe that by collaborating, this issue will be resolved and inland waterways will be used optimally. Instead of engaging in legal tussles and conflicts, I don’t see any reason  states and Federal Government cannot collaborate to develop the economy,” Ibrahim said.

    Ibrahim said the agency was also collaborating with a Dubai-based company to develop its Lagos Area Office into a multi-purpose edifice to provide world-class service and comfort.

    “We intend to have a 45–storey office tower here in Lagos and in it, we will have about five floors of super shopping malls and 10 floors of car parks attached to it, because it is a kind of inter-modal transportation system, we will have a train station that will link this edifice.

    “The government intends to have a metro station here and there will also be a modern jetty. This will be in partnership with a company in Dubai on a public-private partnership arrangement,” he said, adding that jobs would be created in the sub-sector as management plans to encourage private sector investments in deploying Hover crafts and Hover barges  that can be used to transport travellers and cargoes from the ports,” he said.

     

  • Customs to sue rice importers over N20b duty

    Customs to sue rice importers over N20b duty

    The Nigeria Customs Service (NCS) may go to court to recover the N20 billion duty owed the Federal Government by rice importers, it has been learnt.

    It opted for legal action to deter other defaulters, sources said.

    Customs spokesman Wale Adeniyi said the agency had the government’s backing to recover the money, following the importers’ failure to meet the payment deadline.

    He said: “We are taking them to court very soon to ensure that the duty is fully paid.

    “We have briefed our lawyers and they are ready to take all the steps necessary to ensure that they are prosecuted. We are going to do everything necessary to compel them to pay. We may block them from our system so that they would not be able to process their papers or seal off their premises if we like.”

    The suit, it was learnt, may be filed next week at the Federal High Court in Abuja.

    The importers are: Olam, Stallion/Popular Foods, Bua, Millan Nigeria Limited, Ebony Agro, Atafi Rice Industries Limited and Arewa Rice Mill.

    A source at the Federal Ministry of Finance said Customs’ Comptroller-General Alhaji Dikko Abdullahi directed the legal unit to work with some Senior Advocates of Nigeria (SANs) to file the suit.

    Abdullahi also directed his officers to track down those involved in rice smuggling and other prohibited items.

    The directive followed last week’s decision by the Central Bank of Nigeria (CBN) to stop the sale of foreign exchange to importers of rice, poultry products, textile, tomato paste and other items.

    “Customs has vowed that it will no longer condone any form of duty evasion and rice smuggling across the country’s borders, irrespective of quantity and purpose of the carrier. New process and system reforms have been put in place by the management of the service to prevent the same duty evasion from happening again in the future. Customs is not just thinking about how to recover the unpaid duty but also how to prevent this from happening in the future.

    “Preventing duty evasion and smuggling in the future is not just a matter of justice but also a matter of economics and national interest. That is why Alhaji Dikko has created a single information technology (IT) platform to  see to the full implementation of the Pre-Arrival Assessment Report (PAAR) for all transactions at the ports and border stations across the country,” the official said.

    Adeniyi described as “welcome” CBN’s decision to stop forex sales to importers of rice and agricultural items that can be produced locally.

    He berated importers who spend trillions of naira yearly to import rice and other items that can be produced locally and still refuse to pay Customs duty.

    “Many of our youths are jobless and that is why Customs is in full support of the CBN’s decision to stop sales of forex to rice importers. The money they are using in importing rice can be used to develop the local rice industry. Although, it will affect our revenue generation, the overall interest of the country and its people supersede the amount we are going to generate,” Adeniyi said.

    The implementation of the policy, he said, would help to conserve foreign reserves, revive moribund industries and create employment.

    On the possibility of smugglers raising their game, Adeniyi said the service is battle ready for them.

    “Based on the decision of the CBN to stop sales of forex to rice importers, my Comptroller-General has directed an increase in the current  patrols on land and sea and ordered our commands across the country to fortify all approved check points and other areas where  operational vehicles could not access with highly committed  officers.

    “Our officers and men have been mandated to find out all the new hide-out of smugglers who specialise in bringing into the country all prohibited items through the land, sea and the swampy areas. The CGC has also instructed them to beam their searchlight on towns and villages around the border areas where smugglers might want to use to bring in rice in large and small  quantity,” Adeniyi said.

     

  • CRFFN to make N2b yearly from practising fees

    CRFFN to make N2b yearly from practising fees

    • As ANLCA kicks against sharing formula

    The Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) may make N2 billion yearly at the ports and land borders from collecting the Practitioners Operating Fees (POF).

    The Association of Nigeria Licensed Customs Agents (ANLCA), is against the equal sharing of POF among the five associations registered by CRFFN.

    Former Minister of Transport Senator Idris Umar granted CRFFN approval to collect the fees.

    The fees include N1.20 per kilogramme of air freight, N1,000 per 20-foot container, N2,000 per 40-foot container, N500 per car/jeep, N1,000 per 1×20 truck, N2,000 per 1×40 truck, N3.50 per tonne of general cargo and N1 per tonne of dry bulk cargo while the rate on wet cargo was negotiable.

    CRFFN is empowered to collect POF nationwide and to take 60 per cent of the total amount collected.

    The council is to give 35 per cent of the amount collected to ANLCA, National Association of Government Approved Freight Forwarders (NAGAFF), National Council of Managing Directors of Licenced Customs Agents (NCMDLCA), Association of Registered Freight Forwarders (AREFF) and the National Association of Air Freight Forwarders and Consolidators (NAFFAC). The remaining five per cent would be shared among registered freight forwarders.

    But the ANLCA President, Prince Olayiwola Shittu told The Nation that his association was against equal sharing of the 35 per cent among the associations , because of its position, its population and the amount his members would contribute to the fund.

    “It was wrong for the CRFFN to keep mute on how the 35 per cent would be shared by the associations. The fact is that majority of the POF would be collected from our members and they want us to go and share the money equally with associations that are going to contribute little or nothing to the fund because of their number.

    “What stops CRFFN from collecting the money from the fees for the remaining four associations and let us see the amount? Even in the Animal Farm, some are more equal than the other.

    “The money has to be shared based on the contribution of each association to the fund. If association A contributed 20 per cent to the fund and the Association B contributed five per cent, let A take 20 per cent in the sharing formula and association B take  five per cent. That is justice. You cannot reap where you don’t sow and that is the position of my association.

    “But my fear is that if we fail to follow this transparent  method, the government  may wake up one day, and hijack  the  project,  and  that would be the end of the  matter,” Shittu said.

    But speaking on behalf of his group, NAGAFF’s founder, Dr Bonifface Aniebonam, said the only alternative left for ANLCA is to go to court if they are opposed to the collection of the fees.

    “ANLCA is an organisation and they are at liberty to state their own position. ANLCA is one of the smallest groups, NAGAFF is bigger. The only unfortunate thing is that that President of ANLCA was part of the whole process up to the approval time. As for me, the CRFFN is an arm of the government and it has spoken. The only alternative they have is to go to court,” he said.

     

  • APM set to invest N70b in Lagos terminal

    APM set to invest N70b in Lagos terminal

    • To link Kano by rail

    The management of APM Terminals (APMT), Apapa, said it has invested about N70 billion in upgrading the facilities at its terminal.

    The operator also said it would soon commence evacuation of cargoes from Apapa port to Kano by rail as part of efforts to boost quick cargo clearance from the port.

    Its Chief Financial Officer, Sunil Bansal, who spoke when the Executive Secretary, Nigerian Shippers’ Council (NSC), Mr Hassan Bello visited the terminal, said the terminal remains the only terminal in Lagos connected to the rail line through to the hinterlands.

    He noted that when the rail tracks which will move cargoes from Lagos to Kano becomes fully operational, importers whose cargoes are destined for the hinterlands will no longer have to come to Lagos to clear their consignments.

    “We are ahead in the process of connecting Kano which is another business hub to Lagos by train. We expect to start operation very soon. We are having some little challenges but we are almost set to start. This is the only terminal in Lagos which is connected to rail through to the hinterland.

    “We have two lanes inside and two trains can come simultaneously and with this. Importers don’t need to come to Lagos to clear their cargo, it can be cleared at their doorstep. Those are the kind of investment and processing that we are coming with,” Bansal said.

    He said the company has so far invested about N70 billion in modernising and upgrading its terminal.

    “When we started the terminal nine years back, the dream was to make it a world class facility and we are happy to say the terminal is equivalent to any other terminal in Europe in terms of infrastructure and processes,” he said.

    The NSC boss lauded APM Terminals’ commitment to the development of the port especially in the areas of infrastructural development and acquisition of modern cargo handling equipment which he said has brought about efficiency and increased tonnage at the port.

    “We are  happy and appreciate the continued investment you have made in the operations of your terminal.When the port was concessioned to the private sector, it shows that the private sector is the engine room of development. We have also seen growth of increase in the tonnage which shows there is some efficiency,” Bello said.

    Bello said for terminals to achieve a sustainable increase in productivity, there is need for collaboration with relevant government agencies.

     

  • Nigeria to domesticate IMO laws

    Nigeria to domesticate IMO laws

    The Nigerian Maritime Administrator and Safety Agency (NIMASA)  has said the country has taken steps in the direction of domesticating five International Maritime Organisation (IMO) regulatory instruments, with the submission of the instruments of their assent to IMO’s London headquarters.

    NIMASA said it was able to achieve this feat as a result of its collaborative efforts with the Federal Ministry of Transport.

    Nigerian High Commissioner and Permanent Representative to the IMO, Dr Dalhatu Sarki Tafida,  who presented the instruments to the IMO Secretary-General, Koji Sekimizu on behalf of the Federal Government, listed the instruments to include  the Safety of Lives at Sea Protocol 1988 (as amended) and the Marine Pollution MARPOL Protocol of 1997.

    Others are the Protocol of 2005 on the Suppression of Unlawful Acts (SUA) Convention 1988, Protocol of 1988 on the SUA Convention Against Fixed Platforms on the Continental Shelf, and the Protocol of 1988 on the International Convention on Load Lines.

    “This submission is borne out of the desire of the Nigerian Government to curb the menace of piracy and promote shipping activities in Nigeria and the Gulf of Guinea in line with international best practices,’’ he said.

    Sekimizu expressed IMO’s pleasure on the submission of these core instruments, particularly three of which border on Ships Standard, SUA Convention and SUA Protocol, which are significant in tackling the menace of piracy.

    Sekimizu urged the government to continue the war against piracy in the Gulf of Guinea.

    Director-General of NIMASA, Dr Ziakede Patrick Akpobolokemi who was represented by the Executive Director, Maritime Safety and Shipping Development Capt. Bala Agaba, said with the deposition of the instruments of assent, the agency was obliged to enforce the provisions of the conventions to the letter, not only on Flag Ships but also Port State Administration.

     

  • Bad roads threaten $5b ports investments

    • Buhari, N/Assembly urged to visit Lagos ports

    Over $5 billion investments  at the Apapa and Tin Can Island ports in Lagos are being threatened by bad roads, The Nation has learnt.

    The roads need urgent attention to reduce revenue losses at the ports.

    Terminal operators, Customs officials, port users, truck drivers, Nigeria Ports Authority (NPA) management, residents and other stakeholders, who spoke with The Nation, said they were sad over the state of the roads. They urged President Muhammadu Buhari and the National Assembly leaders to visit the ports.

    A senior official of one of the terminals, said: “Your paper reported last week that terminal operators owe the Nigerian Ports Authority several billions of naira but you have forgotten that our own investments which are over $5 billion is in danger because of the perennial gridlock on Apapa roads.

    “Part of the agreement we had with the Federal Government before the ports were concessioned to us was that the government would fix the infrastructure and we shall invest in port by bringing in modern equipment which we have done but the government is yet to its own part and that is affecting our business and out returns to the government.

    “As sensitive and people’s oriented government, there is need for President Buhari and the leadership of the National Assembly to visit the port before this government will celebrate its 100 days in office to access the situation and end cargo divert to ports of neighbouring countries because of the gridlock on the road,” he said.

    He said many operators have abandoned Apapa, Mile 2 and Ijora road, going to the ports via water.

    “But that has increased the vehicular traffic on the Third Mainland Bridge because we would first drive to CMS before taking boats to Apapa.

    “The implication of that to the Federal and state governments, and bridge is high because if many people decide to abandon the Apapa roads and start to do what we are doing,  the bridge will suffer and the cost of  re-fixing it would be huge for the government by the time it starts shaking from foundation because of huge traffic passing through it every day,” the official said.

    Investigation revealed that from Second Rainbow Bus Stop to Tin Can Island Port second gate and from Ijora Bridge to Apapa Port, the gridlock has become endemic because the  pot holes on the roads have increased because of the rains.

    During the visit to the Tin Can Island Port last Friday, NPA’s General Manager, Western Ports, Chief Michael Ajayi, terminal operators, truck drivers and other users lamented the deplorable condition of the access roads to the two ports, urging the Federal Government to fix the roads.

    Assuring them of the government’s commitment to fixing the roads, Ajayi said the state of the road was affecting cargo dwell time  and Customs revenue.

    The former image maker of NPA also said ships’ waiting and turnaround time and cargo dwelling time have been negatively affected because of the deplorable roads.

    “I am sure the administration will fix the road. By the time that is done, your groanings and the hardship you are facing on these roads would be over. This is a new government and we have to wait for it to settle down. At the moment, we are handicapped because the roads fall within the purview of the Federal Ministry of Works but I am sure that the problem would be addressed by the new government.

    Officers, who spoke under the condition of anonymity, said Customs may not meet its revenue target this year because of the roads.

    “Even the revenue target from the two ports, I doubt if we would be able to meet it because of the roads,” he added.

    The officer said the situation has also affected berthing ships, making it difficult for importers to take delivery of their goods on time.

    He said the problem was the biggest challenge facing government agencies, adding that with the rainy season, the situation has degenerated.

     

  • Customs spends over N30b on training, equipment

    • ANLCA, others praise Service on anti-smuggling war

    The Nigeria Customs Service (NCS) has spent over N30 billion on infrastructure, equipment and personnel training for enhanced performance, it has been learnt.

    A senior official of the Federal Ministry of Finance, who pleaded not to be named, told The Nation that Customs spent the money to stop smugglers from destroying the economy.

    The official also said the Customs, last year, made 7,519 seizures valued at N8.78 billion. About 246 persons were arrested out of which 26 were convicted.

    Customs, he said, fought smuggling more intensely in 2014 than 2013.

    Investigation by The Nation showed that Customs officers have strengthened their presence at checkpoints, border stations, water ways and swampy areas where vehicles cannot access in a determined bid to stop smugglers.

    The official urged the Buhari administration to support Customs to bring the smugglers down.

    Customs, a source said, has acquired over 700 patrol vehicles, 6,000 A-K 47 assault rifles, patrol-boats, ocean-going vessels, two helicopters and air-craft for aerial surveillance of the nation’s borders and waters ways to put the smugglers under check.

    “The A-K 47 rifles were purchased by Customs to equip its officers and men for the war against smugglers and to stem nefarious importers of small arms.

    “The drop in seizures from smugglers since the beginning of the year is as a result of the enhanced vigour with which the anti-smuggling campaign has been carried out by Customs officials.

    “In Ogun State for instance, in the first four months of the year, the command recorded 361 seizures with Duty Paid Value (DPV) N319,967,32, as against 485 seizures with DPV of N508,942,136 made same period last year, which indicates a sharp drop of smuggling in the region.

    “During the period, the command generated N2,356,937,173.89 as against  the N1,985,420,606.16 collected same period in 2014, with a difference of N371,516,567.73.

    The official said it was wrong for anyone to import goods without paying duty.

    “Customs is faced with the enormous task of not only generating revenue to the Federal Government, but fighting crime-related activities, such as smuggling and importation of unwholesome products, through the nation’s porous borders into the country.

    “Most of our landed borders are hives of activities as the Customs commands have had to wage war against unauthorised importation and smuggling of products including rice, textile materials, vehicles, foot wares and other exportation of other goods that are prohibited from export,” the official said.

    Customs’ National Public Relations Officer (PRO) Mr Wale Adeniyi said: “We are investing in massively on infrastructure. We have acquired patrol boats, ocean going vessels; we have got over 500 patrol vehicle to fight smugglers.

    “We also engage in capacity building for our officers and men, we have change the face of our training, mostly training that has to do with arm smuggling. We are partnering with army and have regular training with them.

    “We are also exploring the relationship we have with other Customs administrations, increased our border patrol based on the agreement we have with them. We are also training other agencies of the government. We have our aircraft that is doing air surveillance, we have to re-strategies to dismantle internal check points.

    Adeniyi added that the Service was training officials of other agencies of the government to boost their operation.

    Another official of the service, who does not want his name in print, said: “Before, when our officers and men confront these smugglers, they jump into water and our officers also jump into the water in an attempt to catch them and eventually got killed. The number of our officers that have died in the hands of smugglers is huge and that is why many of us are happy over the man power development in the service.

    “Smuggling is a worldwide phenomenon, even the most powerful countries of the world are still fighting smuggling up till today and they have not succeeded in eliminating cankerworm.

    “The best any Customs service or administration can do is to minimise it to the barest minimum,” the officer said.

    Meanwhile, the President, Association of Nigeria Licensed Customs Agents (ANLCA) Prince Olayiwola Shittu has praised the Customs Service for reducing smuggling.

    He spoke at a stakeholders’ forum  in Lagos. Shittu said there was a significant drop in smuggling.

    “Smugglers are ingenious people. America is still fighting smuggling. Officers and men of the Nigeria Customs Service have suffered many casualties in the hands of smugglers because they have superior fire power.

    “As the Army is trying to reduce the impact of the Boko Haram in the north, smugglers are the Boko Haram Customs has to face all over the country. Therefore, they need the total support of the current administration to carry out their core function of trade facilitation, revenue generation and to combat smuggling,” Shittu said.

     

  • NIMASA DG bags Ph.D

    Nigerian Maritime Admin- istration and Safety Agency (NIMASA) Director-General Dr Ziakede Patrick Akpobolokemi has been awarded a Doctor of Philosophy (Ph.D) in Strategic Marketing Initiatives and Business Performance of Nigeria Maritime Sub-Sector by the University of Port Harcourt.

    The NIMASA boss was among the 38 conferred with the doctorate during the university’s 30th convocation.

    Speaking at the ceremony, Dr Akpobolokemi thanked the university for providing a conducive environment for him to complete his research.

    He said the academic certificate was part of his quest to strengthen his capacity to provide service to the maritime sector.

    Akpobolokemi explained further that his area of specialisation provided him valuable opportunities as his research documented the best practices in strategic Marketing Performance Management (MPM) based on the survey results of various firms and institutions in the maritime sector locally and internationally.

     

  • Jumbo pay for dockworkers

    The Seaport Terminal Opera-tors Association of Nigeria (STOAN) has increased the salaries and welfare package of dockworkers to boost their productivity.

    The agreement for the increase, it was gathered, was signed last weekend, by STOAN and the Maritime Workers Union of Nigeria (MWUN).

    STOAN Chairman Princess Vicky Haastrup said the reviewed package would cover two years; from June 1, last year to May 31, next year. She added that all arrears under the new package would be paid this week.

    Haastrup, who expressed satisfaction with the reform in the industry, said terminal operators would continue to make 10 per cent contribution of their emolument for each dockworker in their employment towards the dockwork-ers’ retirement fund while each dockworker would contribute eight per cent in line with the Pension Commission Act.

    The review of the dockworkers wages, the Princess said, was in tandem with the promise by the concessionaires to improve the conditions of the workers.

    “When we took over operation of the terminal at the onset of the port concession programme in 2006, we promised to not only modernise the port but to also improve the working conditions of port workers and I am happy to report that we have continued to deliver excellent results in both directions,” Haastrup said.

    She noted that the increase was the highpoint of negotiation between STOAN and representatives of MWUN under a collective bargaining agreement.

    Under the agreement, the dockworkers will enjoy a wage increase ranging from five per cent to as much as 10 per cent depending on the type of cargo handled.

    “Another good news for the dockworkers is the payment of attendant arrears which took effect from the end of the lifespan of the previous agreement which was 1st of June 2014. This translates to one year arrears of agreed percentage which the terminal operators will pay by 15th June 2015,” Haastrup said.

    She said workers enjoy better working condition than before.

    Praising the leadership of MWUN for exhibiting maturity and patriotism during the negotiations, she called on dockworkers to reciprocate the terminal operators’ good gesture being committed to their jobs and by shunning acts that could be inimical to the smooth running of the ports.

    Haastrup said despite the challenging environment, the terminal operators would continue to invest and modernise the seaports to achieve the Federal Government’s objectives for port reforms.

    She reaffirmed her earlier call for an urgent solution to the perennial Apapa gridlock, adding that it is adversely affecting port operation and the economy.

    The chairman also called for the reduction of the number of agencies at the ports as well as the streamlining of clearing processes to reduce cargo dwell time.

     

  • Importers abandon over N10b goods at Lagos terminal

    Importers abandon over N10b goods at Lagos terminal

    IMPORTERS have abandoned goods worth over N10 billion at the Ikorodu Lighter Terminal (ILT) in Lagos, The Nation has learnt.

    The goods, it was gathered, were moved to the terminal to decongest the Lagos Ports.

    Most of the goods, sources at the Federal Ministry of Finance said, were declared by the officials of Nigerian Ports Authority (NPA) and the Nigeria Customs Service (NCS) as overtime cargoes.

    No fewer than 7,000 over time cargo (containers), the official alleged, were transferred and abandoned by the NPA and Customs at the ILT in the last three years.

    To move the goods to Ikorodu, the ministry official claimed, NPA spent over N300 million.

    The bulk of the containers were evacuated from the Lagos port complex, Tin Can Island Container Terminal (TICT) and others.

    A senior Customs official, who craved anonymity, said in 2013, over 2,500 containers were declared unclaimed at TICT. Over 4,500 unclaimed containers were moved to Ikorodu in 2012.

    The movement, the official said, was caused by a response to complaints by terminal operators about the choking facilities at their terminals based on the refusal of importers to clear their cargoes months after their arrival in the country.

    The Customs official also alleged that the worth of goods at the ILT may be well over N10 billion, adding that there was nothing wrong if the Buhari administration decided to take an inventory of goods.

    “From all intent and purposes, this government is new and it is an administration that based its campaign on change. So, part of the benefits of the change is for the new government to take stock of all abandoned cargoes in our ports and terminals to prevent unnecessary leakages,” the official said.

    The National President, Association, Nigeria Licensed Customs Agents (ANLCA), Alhaji Olayiwola Shittu, said importers abandon their goods for two main reasons: the ports are the most expensive in West Africa; and the unstable exchange rate.

    Banks, Shittu said, have stopped lending to importers because of the instability of the naira in the last few years and the increase in the prices of goods at local and international markets.

    The National Public Relations Officer of Customs, Mr Wale Adeniyi, did not reply to a text message sent to him before going to press.