The Nation Newspaper

Category: Maritime

  • Work to begin on Lekki Deep seaport July

    Construction of Lekki Deep Sea Port in Lagos will begin in July, its Managing Director, Mr. Haresh Ascoani, has said

    The contractor, China Harbor Construction, he said, will move to the site that month.

    Ascoani spoke during a visit to the Free Trade Zone where the port is sited, with him were top Nigerian Ports Authority (NPA) officials led by their Managing Director Mallam Habib Abdullahi.

    The Federal Government, it was gathered, has committed about $118 million to the development of the port, which is e3xpected to cost $1.5 billion.

    Abdullahi said the government has not reneged on its commitments towards the project.

    The government, he said, initially paid N1 billion as part of its commitment to the project.

    He said the government’s stake in the project is $118 million, adding that balance is captured in NPA’s 2015 budget.

    ”The total amount of the Federal Government’s stake in this project is $118 million, what we had as at last year was N1 billion and we have already paid that. We have already started making payment on this, because there was an allegation that the Federal Government has not made payments, this is not correct, we have already paid part of our own dues as at last year.

    “For the year 2015, we have made enough provision to pay up the remaining amount that is due to us, it is still with the Senate, but we have already made an agreement with them and we will pay it up to the end of the year,” he said.

    When completed, Abdullahi said the project would be an eye- opener that will attract other investors, adding that it will also inspire the construction of other proposed deepsea ports like the Badagry Deepsea; also in Lagos, Olokola Port Project in Ogun State, the Ogidigben port project in Delta State, and the Ibom deepsea port in Akwa Ibom State.

    “It is going to drive the economy, it will bring economic growth to the nation. It will bring employment, it will bring export promotion and it is going to transform the economy of this country as promised by Mr. President,” he said.

    Ascoani said that some of the financial institutions backing the project include; African Development Bank, European Investment Bank, Standard Bank, Standard Chartered Bank and Diamond Bank; adding that there will be a financial close by September 2015.

    According to him, the port will take approximately 40 months to be built and when fully completed, the Lekki Free Trade Zone would be the largest industrial city in Nigeria.

    He added that investments that will be coming into the region when it is fully operational will exceed $25 billion.

    While we are building the port, industries will come up to build their projects knowing that the port is coming up, cumulatively it is all a 10-year programme.”

  • Customs seizes goods worth N5m

    The Monitoring Team headquarters of the Nigeria Customs Service (NCS), Idiroko Axis, led by Yahaya Usman, an Assistant Comptroller of Customs (ACC), has intercepted a man diesel truck carrying large quantity of prohibited goods on Lagos/Shagamu expressway.

    The truck was laden with 626 pieces of used tyres; 152 cartons of ceramic tiles; 11 pieces of plastic bowls; 266 pieces of flower ports and 86 bundles of plastic containers among other items estimated at N5 million, The Nation learnt.

    The patrol team, led by Yahaya Usman, an Assistant Comptroller of Customs (ACC), following a tip-off, trailed the truck to a low-risk area along the road before intercepting it to avert any operational hiccups.

    The Controller, Federal Operations Unit Zone ‘A’ Ikeja, Turaki Usman Adamu, told  The Nation that “the team led by Usman acted on a tip off and intercepted a Man diesel truck with registration no AGB 106 ZD along the Lagos/Shagamu expressway. In line with the practice of ensuring 100 per cent physical examination on such suspected vehicles; the truck was taken to the FOU office at Ikeja where examination was conducted and the prohibited items uncovered. From the physical examination, it was evident that all those other items were carefully conceal in 626 fairly used tyres.

    “The goods are in clear contravention of Sections 46 & 47 of the Customs & Excise Management act Cap C45, 2004 as amended.”

    Turaki said the seized items has a DPV of N4,684,260.00 and commended the team for their consistent operational exploits and determination to collaborate with the unit in fighting smuggling.

    On the incessant attacks on Customs operatives by hoodlums and street urchins in some of the volatile areas, Turaki pledged that the concept of Customs Community Cooperation (CCC) would be resuscitated and given top priority attention. This is in view of its tendency to create a platform for sensitisation and education of the public’s on the consequences of obstructing Customs operations.

    “Synergy with critical stakeholders is panacea for mutual understanding and healthy relationship between the NCS and community dwellers, who sometimes tend to be ignorant of the socio-economic consequences of smuggling.

    He called for the support of Nigerians through genuine information/intelligence for the actualisation of this statutory mandate”.

    He stated that investigation is ongoing to unravel those behind the illegal importation with a view to ensuring that all their illicit supply chains are blocked. Turaki also promised to leave no stone unturned in his quest to completely eradicate smuggling in his area of coverage.

    The team’s leader expressed deep satisfaction with the Comptroller General of Customs, Alhaji Abdullahi Dikko and his management for their support and the confidence reposed in his team.

    Usman said since inception, the team has contributed immensely to the seizure profile of the service to justify the essence of its creation.

  • Importers abandon N1b containers, vehicles at port

    Importers abandon N1b containers, vehicles at port

    Over 120 containers and 96 vehicles worth over N1 billion have been abandoned at Tin-Can Island Port and other bonded terminals in Lagos, following the importers’ inability to clear them, it emerged last weekend.

    Source said the importers are finding it difficult to get loans to fund their business.

    The devaluation of the naira is also said to be affecting their operations.

    A source said the Nigeria Shippers’ Council (NSC) is not making things easy for the importers by not getting terminal operators and shipping firms to reduce their charges.

    The Vice Chairman, Association, Nigeria Licensed Customs Agents (ANLCA), Tin Can Chapter, Mrs Ada Akpunonu, said importers abandoned their goods for two main reasons:

    • the ports are the most expensive in West Africa; and

    • the unstable exchange rate.

    Banks, she said, have stopped lending to importers because of the fall of the naira and the increase in the prices of goods.

    “There is no doubt that activities at the ports have reduced because of the exchange rate.. The terminal operators and the shipping companies are also not helping matters. Our port is the most expensive in the sub-region. Most importers are not making profit and that is why they have decided to abandon their goods at the ports.

    ‘’At the Tin-Can port where I am the Vice Chairman, congestion has started to build-up. The Shippers’ Council has to something ditto the Federal Government. Many goods are trapped at the port; there is bound to be congestion, most of the importers borrowed money from the banks; before they collect their Bill of Lading, they must make the payment, but what is happening now is that, with the exchange rate, they are finding it difficult to get the balance and pay back to collect the papers and clear their cargoes.

    “Many importers with Bill of Lading are also finding it difficult to pay Customs duties because of the value of the naira and that is why goods worth billion of naira are trapped at the ports.

    “As it is now, there is no cargo that does not go into demurrage in Nigeria because the  shipping companies start collecting money immediately the cargo arrives at the port.” she said.

    She said importers pay N199 as official rate to a dollar for Customs’ transactions.

    A Customs officer, who pleaded anonymity, said many goods were trapped at the ports because of the new exchange rate and the fast-approaching general election.

    He said: “We are aware that many importers are finding it difficult to pay their duties, but there is nothing we can do because that is the revenue we are asked to collect by the government. Once an importer brings an item into our port, he must pay the necessary duty unless he or she was given waiver before the importation commences.

    “Except he pays the amount required by law, the only alternative opened to him is to abandon the goods. And that is why we are having so many containers, trucks and vehicles in the ports that have not been cleared by the importers. But my advice to them is to look for money, pay the duty and move their vehicles out of the ports before they become over-time cargo and confiscated by the government.

    “Some of the importers abandoned their goods because they believe that after the election the value of the naira will go up, but they have forgotten that the price of oil has gone down at the international market, which is affecting the value of the naira and prices of goods imported into the country,” the officer said.

    An importer, who pleaded for anonymity, said he took a loan to import some of the items that are trapped at the port.

    “The majority of us in the importation business take loans from the banks to remain in the trade. Once there is a delay in bringing the goods out of the port, our investment would suffer and we would not be able to pay staff salary talk less of employing new ones.

    “Don’t forget that before we can move the goods out of the port now or later, we pay a lot of money to the shipping company, the terminal operators and the truck drivers.

    “The delay we are facing was caused by the government policy to devalue the naira and not calling the terminal operators and shipping companies to order,” he said.

  • Pay more attention to maritime, agents urge govt

    THE Federal Government has been urged to pay more attention to the maritime sector to boost the economy.

    The President, Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu, said the government should ensure that more facilities were put in place at the ports to improve revenue generation.

    He said the access roads to Onne Port should be rehabilitated because it is a major revenue earner.

    “There is the need to enhance the welfare of the goose that lays the golden eggs. There should be efforts to do intervention in the maritime sector like in the aviation,’’ he said.

    The ANLCA chief said the Cabotage Fund would have been used to improve inland water transportation if it had been disbursed by Nigerian Maritime Administration and Safety Agency (NIMASA). He said the fund would have enabled indigenous shipping firms to key into shipping business while waiting for products to be able to buy ocean going vessels.

    Shittu appealed to the government to carry stakeholders along while formulating policies that affect them.

    “The government’s policy on used vehicles will have adverse effects on the economy if not properly handled.

    “We need to let the government know how many of our members will lose their jobs and how smuggling will increase if nothing is done on the policy,’’ he said.

    Shittu said 90 per cent of the imports of the terminals built for Roll- on-Roll-Out (RORO) were for used vehicles.

    He said since the price of imported vehicles had risen by 100 per cent, people would have no choice than to smuggle in vehicles.

    This, he said, would affect revenue generation by the ports, especially the Tin Can Port, Lagos where touts and ‘port rats’ are disturbing people.

    Shittu said many unwanted persons enter the port daily despite the recent efforts by Customs.

    He said the call became necessary because the sector was seen as the second largest source of revenue for the country after the oil and gas industry.

    Besides, he said multinationals and others pay taxes or duties and import charges to the government.

    He said poor facilities, sea piracy and insecurity could scare away investors and hamper ports operations, adding that importers and clearing agents also suffer the same fate.

    According to Shittu, huge traffic on ports road and insecurity are some of the major problems the government must address if it intends to sustain investment growth in the sector.

    “The high level of insecurity in the nation’s seaports has become so widespread that every importer must have at one time or the other experienced losses arising from theft within or on the roads that lead to the ports. As a Nigerian, I think it is not too much to ask the government to secure our ports,” he added.

    In another development, maritime lawyers have urged the government to adopt policies to promote the sector.

    Speaking with reporters in Lagos, the lawyers said the dearth of human and material capacities in the sector is worrisome.

    They called on government agencies at the ports to complement stakeholders’efforts in capacity-building, noting that businesses blink first in the event of any government’s policy breakdown.

    A maritime lawyer and consultant, Mr. Frank Simpson, said the dream of the youth, who seek employment, could only be realised through job creation via the sector and human capacity building.

    He said the country could be the number one maritime nation in Africa, if human capacity building was taken seriously.

  • Terminal operators face hard times after naira devaluation

    Seaport Terminal Operators Association of Nigeria (STOAN) members are facing hard times, following the devaluation of the naira.

    Their Chairman, Princess Vicky Haastrup, said at these is a lull in business because of the high exchange rate of the dollar to the naira. The exchange rate, she said, has shot Terminal Handling Charges (THC) up by 58 per cent, urging the government to address the problem.

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

    “Most of our commitments are in dollars whereas, we charge in naira but due to the devaluation of the naira, you’ll see that what we charge today is effectively 42 per cent of its value in 2006 when you convert same to a dollar. This is necessary for us because we, as terminal operators, now need more naira to fulfill our dollar commitments.

    “It might be recalled that in 2006, $1 exchanged for about N130, but today it is more than N220 to a dollar, which implies a significant decline of about 65 per cent in the value of the national currency since port concession,” she said.

    “Vessel call dropped by half in the first month of this year. Volume also dropped significantly by an average of 27 per cent across the various terminals. Some terminals suffered more drop in volume than that rate,” she said.

    The STOAN chair said that only 29 vessels were declared for the Lagos Pilotage District (LPD) between the last week of February and the first week of this month.

    “This number includes tankers, container vessels, general cargo vessels and all. It is very unusual. Ordinarily, about 60 vessels would be declared within the same period,” she said.

    “For instance, due to the auto-policy, the number of cars/vans discharged in Lagos dropped from 27,000 units in January, last year, to 8,000 units in January, this year.

    “It must be noted though that in the first half of 2014, the volume of vehicles imported was extremely high in anticipation of the introduction of the new duty regime on vehicles. Average number of cars/vans for previous years was in the range of 20,000 units per month. We are talking of more than 60 per cent drop in volume here.

    “For trucks, the volume dropped from 2,700 units in January 2014 to 1,700 units in 2015. The number of trucks discharged in 2014 was in line with the figures of previous years.

    “But in Cotonou port, the total number of cars/vans discharged in January 2015 was 30,000 units against 20,000 units discharged in January 2014. This represents a 50 per cent growth. Similar trends have been registered also for trucks.

    “This means Cotonou is gaining from Nigeria’s loss due to the auto policy as more importers are discharging there to avoid paying the 70 per cent duty and levy in Nigeria. These vehicles will eventually find their way into the Nigerian market,” she said.

    Haastrup said the same fate had befallen general cargo terminal operators, especially those handling rice and fish.

    “Terminal operators generally are facing a tough time here. This certainly is not the best of time for our operations.

    “Notwithstanding these challenges though, our members remain committed to deepening reforms at the ports. We have achieved tremendous success in the ports and at our various terminals with well over USD1billion invested collectively by terminal operators and this has resulted in a more efficient port operation. We will continue with the success story.

    “The congestion and vessel queue which we successfully eliminated upon takeover in 2006; upgrading of port facilities and the continuous transformation of our ports in line with the vision of President Goodluck Jonathan are major milestones in the history of the seaports,” she said.

  • Operators draw battle line with NIMASA over Cabotage fund

    Operators draw battle line with NIMASA over Cabotage fund

    SHIP OWNERS have drawn the battle line with the Nigerian Maritime Administration and Safety Agency (NIMASA) over the management of the Cabotage Vessel Financing Fund (CVFF).

    They are agitating that the management of the fund be transferred from NIMASA to a maritime bank.

    The firms are alleging that the CVFF has grown to billions of dollars without any of them benefiting from it.

    Their counsel Olisa Agbakoba (SAN) told The Nation that his clients were unhappy that NIMASA has not used the money to empower them to create jobs.

    He lamented that most contributors do not know the actual fund in NIMASA’s care, saying it was time the agency made the amount public since it is not the source of the fund, but just the collector.

    A maritime bank, Agbakoba said, would be more appropriate to handle the CVFF, adding that NIMASA should not be the repository of the fund.

    “The only way the government can support the sector is funding, but since the first National Maritime Authority (NMA) Act was created up till NIMASA, all the money that have been allocated for the CVFF, not a dime has been released, showing that there is a problem,” he said.

    Agbakoba wondered how many can say the NMA or NIMASA supported them to buy a ship.

    “ If we don’t have funding, we will have a weak sector; so our role is to continue to put it on the top of the agenda and that is the essence of this briefing,” he said, adding that NIMASA should tell Nigerians the actual size of the fund and why the money has not been disbursed all these years.

    Agbakoba also said there was the need for practitioners to call on the parties jostling for power to declare their plans for the sector before they are voted into power.

    “The first thing to do is for the sector to push for a very senior minister; if we do this, he will be close to the president and it will help to shape the relevant policies.

    “The other thing is to have a very effective maritime institution, NIMASA is too huge and doing many things; it is doing maritime safety and security, shipping development, Cabotage, seafarers and so on, and yet it is not doing it effectively. The only way it can be effective is to ask what they can do well, which is maritime safety and security, other jobs should be taken away from them,” Agbakoba said.

    Also, Lagos State Shippers Association President, Rev Jonathan Nicol, urged NIMASA to disburse the fund and take steps to streamline and profile Nigerian ship owners.

  • Shippers bemoan high port charges

    THE Shippers Association of Lagos State (SALS) has attributed the high cost of clearing goods at the ports to multiple charges.

    Its President, Mr Jonathan Nicol, listed the five per cent Value Added Tax (VAT) and the one per cent Pre-Arrival Assessment Report (PAAR) charge as some of the charges.

    The others are the 35 per cent Automobile Levy and the Common External Tariffs (CET) levy.

    According to Nicol, these charges affect his colleagues’ capital.

    The shippers urged the Federal Government to address the problems of industrialists and manufacturers, who constitute the shippers to reduce the costs of doing business at the ports.

    He also urged the Federal Ministry of Finance to provide leadership in managing the problems of the shipping community.

    Nicol said the government should rethink the huge investments in building deep seaports as well as maritime prospects in the next 20 years to attract more cargoes.

    He suggested that adequate plans be made by the government to secure and promote the local industries, the manufacturing sector and the shippers.

    He said the government should be concerned with the unstable tariff’ regime and the uncontrollable charges by shipping firms and terminaloperators.

    He noted that it was the duty of the government to encourage private entrepreneurs toward sustainable contribution to developing the economy.

    “When you add the costs of generating power in a factory with salaries, these costs cannot be by-passed whether you like it or not.

    “You must provide power for your factory and you must pay staff salaries,’’ he said.

    Nicol said the bottlenecks at the ports were the reason behind the government’s appointment of the Nigerian Shippers’ Council (NSC) as the economic regulator.

    Nicol said the shippers were more committed to supporting the government’s revenue generation goal in the industry.

  • Govt urged to pay attention to free trade zones

    The Federal Government has been urged to develop the free zones for the economy’s growth.

    The Executive Secretary, African Free Zone Association (AFZA), Mr Chris Ndibe, who made the call in Abuja, said well developed free zones could generate millions of jobs for the youth.

    “If free zones are adequately promoted and proper incentives given, investors will be encouraged to invest in the zones which will in turn provide more jobs for Nigerians.’’

    He decried the low level of awareness in the public about free zones, adding that promotion was very important to their development.

    “If Dubai, as developed as it is, still advertises the free zones; Turkey also doing same, why can’t we do same.

    “I cannot remember when last I saw any advert on the Nigerian free zone on the television; I cannot remember how many times I have seen the distribution of in-house journals about free zone.

    “I cannot remember how many times seminars and workshops were organised about free zones for stakeholders to know that this thing exists.

    “If you don’t take promotion seriously and be ready to give incentives that can bring investors into the country, then, your guess is as good as mine.”

    Ndibe said the level of investment was very low, considering that Nigeria currently had about 27 free zones in the country with only about eight being functional while all others had become moribund.

    He said there were a number of zones that had existed for many years without recording a single investment because they were never advertised.

    “I have always said it that, give the free zone the incentives that it requires, people will be falling on themselves to establish in this country because we already have power distribution challenge.

    “If you establish free zone that is power efficient, water efficient with all the state-of-art facilities in place and importation of raw materials and operational machinery tax-free, people will cash in.

    “This is because the return on investment in this country is very high but if they have the backing of government in what they are doing, the sky is the starting point,” he said.

    According to Ndibe, a lot of investors come to Nigeria to invest, but they leave because they are not encouraged by what they see.

    He said the free zones in Dubai were not better than those in Calabar or all others in the country.

    “Yet, people invest heavily in them.’’

    Ndibe urged the Federal Government to make adequate budgetary provision for the training and retraining of officers to take the free zones to the next level.

    He called for encouragement and assistance of the General Electric (GE) which had invested in the Calabar free zone last year.

  • 1,500 cartons of frozen foods seized

    THE Nigeria Customs Service (NCS), Federal Operations Unit (FOU), Zone ‘C’ in Owerri, the Imo State capital, has seized 1,500 cartons of imported frozen chicken and turkey.

    It made the seizure six days after taking delivery of 20 patrol vehicles from the Comptroller-General of Customs (CGC), Dikko Abdullahi, to boost its anti-smuggling campaign.

    The Duty Paid Value (DPV) of the  items, it was gathered, is about N16.2 million.

    Its Area Controller, David Dimka, told The Nation that the frozen foods and the vehicles conveying the items were impounded on the Warri-Asaba axis.

    Dimka said those arrested would be charged to court soon.

    “The items, imported frozen chicken and turkey, were preserved with dangerous chemicals that are injurious and harmful for human consumption and quite detrimental to the nation’s economy. Nigerians should avoid it despite the fact that it is cheap because it is highly contaminated and adversely affects the kidney if consumed,” he warned.

    The Customs chief said other items seized by his unit included 454 bales of second hand cloths with a DPV of N43.5million and vehicles.

    He wondered why some individuals had remained adamant and unrepentant in smuggling despite the consequence of their action when caught.

    “While a total of 40 seizures were made last month, today (within the first week of a new month), we have 19 seizures and we will stop at nothing to see that smugglers are brought to their knees because the Customs of yester year is not the Nigeria Customs of today and because we have all it takes to deal with smugglers. Enough is Enough,” he warned.

    Armed with the logistics and incentives for maximum performance, Dimka assured that the Customs was battle-ready to penetrate all nooks and crannies of the country, including the most difficult terrains to dislodge smugglers from their hideouts.

    He said 20 suspects, who were nabbed last month, would soon be charged to court after investigations.

  • Firm sues govt over directive to NPA, NIMASA, NIWA on funds

    Firm sues govt over directive to NPA, NIMASA, NIWA on funds

    A sHipping firm has launched a legal battle against the Federal Government over its directive to some maritime agencies to pay their money into the Consolidated Revenue Fund (CRF).

    Elshcon Nigeria Limited is contending that the directive to the Nigerian Ports Authority (NPA), the Nigerian Maritime Administration and Safety Agency (NIMASA) and the National Inland Waterways Authority (NIWA) negates their enabling laws. Minister of Finance, Dr. Ngozi Okonjo-Iweala directed NPA, NIMASA and NIWA, among other agencies, to close their accounts and transfer them into the Treasury Single Account (TSA) before the end of last month.

    Elshcon’s counsel Mike Igbokwe (SAN) said the directive should have excluded NPA, NIMASA, and NIWA – in line with their enabling laws.

    In a suit filed before Justice Ibrahim Buba of the Federal High Court in Lagos, last week, the Attorney-General of the Federation, the Accountant-General of the Federation and the Minister of Finance are named as defendants.

    After filing the suit, it was gathered, Igbokwe wrote to NIMASA, NPA and NIWA, not to take any action in furtherance of the directives pending the determination of the case.

    Igbokwe told The Nation that he wrote the agencies in order not to stifle the court from exercising its jurisdiction on the pending case before its determination.

    “The essence of the letter is to draw the attention of the agencies to some of the relevant judgments of the Supreme Court showing the attitude of courts in such circumstances as this and as they relate to persons that are ‘servants and agents’ of the parties to the suit that may knowingly assist the parties in stultifying the exercise of the court’s jurisdiction on the matter because as sought in the motion and originating summons, the substance of the matter is that the defendants are to be restrained in whatever method they may use in committing the prohibited acts.

    “It is also to ensure that the rule of law prevails, abuse of court process is avoided and the court is not presented with a fait accompli by any of the defendants or its agents or servants since the agencies have become aware of the reliefs on the motion on notice and originating summons filed by our client and that they are not just pending, but a date has been fixed for the hearing of the said Motion,” he said.

    Igbokwe added: “The Supreme Court held that any action or conduct of one or the other of the parties to the action taken whilst an application is pending in court for the obvious or subtle purpose of stultifying the exercise by the court of its jurisdiction and its duty to consider the application on its merits, must not be countenanced by the court and the court would ensure that at the stage of the proceedings, it is not possible for any party to present it with a fait accompli.

    “The same court also held that the court still has jurisdiction to commit any person, whether as a servant or agent of the party restrained or even a stranger, who knowingly assists in the breach of the injunction of the defendants.”

    Igbokwe said the plaintiff has applied ex parte for an order restraining the 1st Defendant either or his agents from implementing the directives pending the determination of the case.

    The plaintiff, it was learnt, is seeking six reliefs, including an order that the defendants should stop forthwith, the implementation of the directives.

    The court has directed the plaintiff to serve the defendants the motion for interlocutory injunction and originating summons. It also granted accelerated hearing of the case which comes up on  Thursday.