Stakeholders believe that reviving four ports in Delta State can reposition the state for economic and infrastructural transformation under the leadership of President Bola Tinubu. This effort is essential to ensure that the citizens of the state can fully enjoy the benefits of democracy. In this report, ELO EDREMODA explores the challenges and prospects associated with Delta’s four ports.
Even though Delta State has been in opposition for an extended period, the imperative to rejuvenate the state’s economy and infrastructure has become absolutely crucial in the current administration. During the 16 years under the Peoples’ Democratic Party (PDP) government, many residents believe the state suffered from a lack of progress in all the federal government establishments domiciled in the state.
In addition to its substantial crude oil reserves, Delta State boasts an extensive coastline that extends into the Atlantic Ocean. Several decades ago, the state’s residents were actively involved in the thriving operations of ports located in Warri, Sapele, Koko, and Burutu regions. Agricultural products such as oil palm, rubber and timber were the primary exports. Presently, the state has two operational ports: Warri and Koko. Until recently, the Koko port, similar to the Sapele and Burutu ports, had been left abandoned.
However, a few individuals initiated ceramic tiles exports, sparking renewed interest in this natural water port. The Nigerian Shippers’ Council (NSC) recently conducted a seminar in Effurun, analyzing the port’s potential, especially for agricultural exports. Conversely, it has been reported that both the Warri Old and New Ports are not currently involved in any product exports. Despite being operated by four concessionaires, these ports remain significantly underutilised. Factors such as shallow channels, damaged breakwaters, security concerns, high freight rates, additional expenses incurred due to local pilot fees, and limited pilotage hours have led entrepreneurs to prefer importing or exporting through ports in Lagos.
“If anybody had needed to bring his cargo here, such as some construction companies, government agencies, what the individual need to do is charter a vessel. Recently, a one-liner comes once a month or two months through Julius Berger terminal and it’s only from Europe. It doesn’t go to Asian countries such as China. Of course, you know that’s where Nigerians do business,” Sir Chidi Njoku, Chairman, the Daily Berthing Committee (DBC), Delta Ports said.
The collapse and struggle for revival
Around 7:00 a.m. every day in the mid to late 1990s, a loud horn indicating the arrival of a ship would echo repeatedly across the oil city of Warri. The authorities and some stakeholders say the Warri crisis, which became full-blown in the late 1990s, contributed largely to the collapse of the port, as importers reportedly tagged the area “danger zone.” “The problem began with the Warri crisis. It is easier to destroy than to build. Vessel owners were scared. That misconception has not been erased,” Njoku said.
In recent years, there has been clamour for the resuscitation of the Warri port. It was learnt that the Federal Government, in response to the calls, has twice contracted dredging of the channel in the past six years. However, findings reveal the job was poorly done. “They brought a dredger and, within three months, they removed it. They told us the permissible draft is six metres, but vessels that don’t even have up to that are also grounded. That tells you how bad the channel is,” a source privy to the last dredging work stated.
Another source who spoke on some problems faced by importers said: “Because of the peculiarities of Delta ports, we have two sets of pilots- the NPA-trained pilots and locals trained by the NPA. When a vessel reports arrival, the locals who are the first contact will enter and navigate it to Bennet Island before NPA pilots will board. We pay them as high as N200,000 to bring in a vessel, and the same amount when the vessel leaves. That’s N400,000 for one vessel to the local pilot. All these things are additional costs. At other ports, there is nothing like a local pilot.
“In Warri Port, there is no piloting at night because of the risk (of attacks) and shipping is all about time. If it exceeds the calculated time, one would pay charges for demurrage, some $5,000, $8,000 every day.”
Dousing speculations of a purported plot to ruin the port, an NPA official who spoke in confidence said: “Between 2017 and 2023, the Federal Government has awarded two remedial dredging contracts to sweep the Escravos channel. Those who think the port wants to be ruined don’t know what it takes to keep the place. Maintenance yearly takes about $20 million. So, it’s not true.” The official further recalled that in the yesteryear when the port boomed, with four to five metres draft, vessels could ferry through the channel. “People now use bigger vessels. Also, ships are built with angular bottoms these days; hence the need for more depth.”
However, stakeholders have countered some assertions by the authorities. Reacting to the issue of crude oil pipes traversing the channel and preventing big ships from calling at the port, the Secretary of Itsekiri Leaders of Thought (ILoT), Sir Amorighoye Mene said it was a “lack of foresight” on the part of the players.
The Fiyewei of Gbaramatu Kingdom, Chief Godspower Gbenekama, attributed the “lack of political will” on the part of the government to the “slow-paced” work at the port.
At least 400 directly employed people resumed daily at the Warri NPA Complex. A minimal level of activity was observed during a visit to the complex on Tuesday October 3. A small ship was docked at the port. But efforts to speak with the authorities were unsuccessful. When approached, the Head of Public Affairs Unit explained that only officials at the NPA headquarters could talk to the press.
Why Warri Port should be resuscitated
The strategic location of the port and its proximity to the Northern and Eastern regions of the country make it viable. Also, the multiplier effect of a functional port is bound to improve the economy and livelihood of Warri residents: it would stimulate businesses, create employment; boost investors’ confidence and so on. Stakeholders, who spoke with our correspondent expressed disappointment that the ports have become subjects of electioneering promises.
Nevertheless, there is hope that the President Tinubu administration would toe a different line by putting the ports into full-scale operation. “The government knows Warri Port is more centralised. We have been saying and making presentations on these things, to the former NPA MD, Hadiza and the present one, Koko. But everything ends there. So, they know what they are doing. Because if the government really wants to do it, what will it take them? Even though they say the breakwater is a capital-intensive project, the money is there and they know they are going to recoup it,” the Delta Ports DBC Chairman said.
Chief Gbenekama harped on the need to involve locals in issues concerning the area. According to him, the Escravos bar is silted and there was a contract awarded by a former Minister of Transportation in collaboration with the NPA. For the reason that locals were not involved, they didn’t dredge the real channel, but a shallow place that has now silted. I think the NPA is failing in the area of dredging of the bars. Once it is done in the right way, we will not face what we are facing.
“In general, I think there is no political will to make these ports work. If there is, these ports are money-spinning ventures that can give both the federal and state governments enough revenue. I think the political class of Delta State, especially people of Ijaw, Itsekiri and Urhobo extraction should see reviving these ports as their primary responsibility. The Ijaw, the Itsekiri and the Urhobo are a good percentage of people that feed the country,” he said.
In the same manner, Sir Mene urged the government to “clear all administrative and bureaucratic bottlenecks” to make the ports operational. “Of course, the issue of concession has not worked. There is a need to look at this device as being deployed over the years and rejig them.” The ILoT scribe added: “With the Renewed Hope agenda of the Tinubu administration, we know that his government is here to right all the wrongs of the past. So, we are very hopeful that those two ports (Warri and Koko) will become operational.”
He stressed the need for the government to incur the cost of fixing the Warri Port, stating thus: “If you do the cost-benefit analysis, you will see that both on the short and long-term, it would be wise to incur this cost because, at the end of the day, it would benefit our economy more. I believe that it is a cost that has been left unattended for too long and this is the right time to tackle that.” On insecurity, he said: “We have been talking to ourselves and our brothers to give peace a chance, particularly in the high waters, to stop kidnapping and all that. The only way to go about it if we want the money to come is to halt all sorts of insecurity in the region so that the investors can begin to invest their resources.”
Importers seek waivers, lament high cost of operations
Stakeholders in the business circle seek waivers from the NPA, given the peculiarities of the port. “Because we spend so much time, you grant incentives. If you are shipping to Europe, the freight charges are the same, all you need do is mention the port. That is not the case here. The charge to Lagos is different; proceeding to Warri, you pay more.
“Despite that this port is underutilised and we beg vessels to come here, NPA uses the same rate for Lagos here. They are not giving concessions. In shipping, time is money. It takes a vessel about six hours after reporting arrival at the breakwater, to get to the port. In Lagos, it takes about 20 minutes. These things increase cost. We have serious limitations of the draft. The channel needs to be dredged. A vessel is grounded as we speak. What is the cause? The breakwater, built to stop wreckage from entering the channel, is broken. It is a big problem,” an importer who spoke in confidence said.
The Federal Government, through the NPA Managing Director, Mohammed Bello-Koko, a few months ago said surveys on the about seven-kilometre breakwater estimated to gulp over $100 million, have been concluded. He has also assured the people of collaboration with the Nigerian Navy to ensure security in the area. The Executive Secretary of the NSC, Emmanuel Jime, identified gains of a “virile export sector” to the Nigerian economy as more foreign exchange earnings, stabilised exchange rate, strengthening of the naira and promotion of industrial activities.
The Delta State Government, through the Ministry of Transport at the NSC seminar, said it is looking forward to partnerships on ways to promote exportation and importation through the ports across the state. Stakeholders are “praying” that the usual rigmarole that accompanies the government’s promises does not play out.
