Tag: Maritime

  • Maritime: In the grip of foreigners

    Maritime: In the grip of foreigners

    Those with a eye for business spot a lucrative trade when they see one. With their trained eyes, they have since identified maritime business as a money spinning venture. But there is a problem. Nigerians do not have the financial muscle to invest in it. They don’t also have the required personnel.

    Worried by the dearth of indigenous seafarers, stakeholders are concerned that Nigeria’s maritime trade is largely in the hands of foreigners. This can be seen in the volume of petroleum products transported by foreign vessels.

    Aside the ownership structure of most ocean liners, which is foreign dominated, mariners who are in the employ of the vessels, are of foreign stock. The ships are either manned by Philippines, Malaysians or Indians, leaving the few local hands in the lurch.

    Stakeholders have also pointed out that foreign seafarers engaged in the nation’s coastal trade earn between $1.5 and $2billion annually. To redress this, they said the government needs to create a conducive environment and partner private operators on ship building or acquisition for training to develop a robust pool of seafarers to replenish ageing seafarers and reposition the sector.

    Liquidation of NNSL

    Since the dissolution of the defunct Nigerian National Shipping Line (NNSL), investigation revealed that there has been a major gap in the training of seafarers in the last 15 to 18 years.

    The Managing Director, Badmus Shipping, Chief Fola Badmus said since the liquidation of the NNSL in 1995, the maritime industry has suffered a generational vacuum in the area of manpower training, making succession in the sector a herculean task. The vacuum created due to lack of training vessels, he argued, has created opportunity for foreigners to exploit the nation’s waters, leaving little or no job for Nigerians.

    Available data from the Nigerian Maritime Administration and safety Agency (NIMASA), showed that seafarers from Malaysia, the Philippines and India, who work on Nigerian waters, take home between $1.5 billion to $2 billion annually because of lack of certified indigenous manpower.

    The agency’s data also revealed that of the nation’s population of over 160 million, only 1,388 officers and ratings are registered; Ghana has 1,879 officers and 7,000 ratings.
    Badmus said the curriculum of the Maritime Academy of Nigeria (MAN), Oron, the only institute in the country for seafarers, is not designed to award internationally-recognised certificates. Similarly, because of the dearth of employment, graduates of the academy, he said, end up on the streets doing unrelated jobs.

    Expressing dissatisfaction, former National President of Master Mariners, Adewale Ishola, said in the 70s, there was yearly intake of cadets for training in institutions in the United Kingdom, Canada, Egypt and Singapore, adding that there was also a Memorandum of Understanding (MoU) to train Nigeria’s Deck Officers and Marine Engineers at the regional academy in Ghana, which, according to him, is no longer obtainable.

    He pointed out that even before the creation of the then National Maritime Authority, the Nigerian Ports Authority (NPA) was training cadets through the Ministry of Transport, as well as the Nigerian National Petroleum Corporation (NNPC). He said some of them graduated with Masters and as first class engineers, but regretted that there were no jobs for them, adding that most of them had to look elsewhere for jobs.

    The former Master Mariner said because there were not enough hands to fill the vacancies in oil and gas, foreigners were brought in for some jobs. He said the Nigerian Liquefied Natural Gas (NLNG) was only training cadets to suit its needs, adding that the country is in need of seamen who can handle all types of cargoes.
    He said there was the urgent need for government to bring on a new set of skilled hands to take over from those expected to retire soon.

    Of the 5,000 seafarers in the country, less than 1,000 are Nigerians, the remaining, he said, are foreigners.  He said over 250,000 vacancies exist for seafarers but Nigerians lack the capacity to fill them.

    The dominance of the sector by foreigners, he said, is among the challenges facing NIMASA. The agency told The Nation, it is working to ensure that Nigerians take their rightful positions in the international maritime business.

    Partnership to build vessels

    The Managing Director, Shipping and Logistic Training, Gbolahan Adesegun, said there are no vessels fully-equipped for cadet training, urging the government to take the issue of acquisition of vessels through private initiative seriously.

    The campaign for more seafarers, he said would become more effective if there is partnership with shipyards to develop their capacities to build ships locally for the Nigerian industry, otherwise, NIMASA will be working on a platform that is fragile, unrealistic and not cost effective.

    Adesegun said reasonable progress can only be made by strengthening the local ship capacity building initiative to ensure seafarers are developed to satisfy the needs of the industry.

    Gains from seafarers

    Secretary General of the Indigenous Ship owners Association of Nigeria (ISAN) Niyi Labinjo said Philippines, with a population of over 80 million, has maximised the benefits of developing its maritime labour sector. It supplies over 30 per cent or 300,000 of the 1.2 million world seafarers.

    From this, he said, Philippines earns over $5 billion for its economy from repatriated income.
    He said Filipino seafarers dominate the maritime labour market because of the concerted national efforts in that direction. They are among the country’s eight to 10 million migrant workers scattered across the world, whose remittances, as acknowledged even by the government, have helped buoy the economy.

    Every year, Filipino workers overseas, send home over $15 billion or 10 per cent of the Philippine’s gross domestic product (GDP). The GDP is the total value of goods and services produced by the country in a year.

    In some economies, Filipino sailors constitute more than 55 per cent of the maritime personnel.  Labinjo said seafarers’ development is a strategic programme of the Philippine government because of the tremendous earnings from maritime manpower export. He urged the government to emulate that country.

    Poor implementation of Cabotage Act

    According to ship owners, poor implementation of the Coastal and Inland Shipping Act (Cabotage), aimed at creating jobs for indigenous ship owners, has resulted in low involvement of indigenous firms in shipping business. They argued that the nation was losing huge revenue to capital flight.

    A major problem affecting the implementation of the Act, they said, is the dearth of manpower, brought about by training facilities and personnel. According to the ship owners, this is why the nation cannot successfully implement Cabotage as the law requires that all indigenous vessels be manned by Nigerians.

    Lack of training vessels

    Despite the country having a training academy in Oron, the gap in seafarers development remains worrisome.

    Graduates from Oron find it difficult to compete with their counterparts elsewhere. Stakeholders attribute this defect to lack of technical structure, ranging from lack of training vessels to other platforms required for the practical training of cadets from MAN, Oron.

    The General Manager, Public Affairs, Nigerian Ports Authority (NPA), Chief Michael Ajayi, said a feasible plan of funding for the academy is needed so as to churn out seafarers that can stand international competition.

    With globalisation, increased trade and maritime transport, there’s the need for at least 50,000 new maritime officers in the next five years, Ajayi said, adding that seafaring is a specialised endeavour which demands provision of key resources which cannot be compromised if the demand of the global maritime market is to be met.
    The implication of this is the deplorable state of training facilities at Oron, which has suffered neglect in terms of resources for quality maritime education.

    He said the poor state of affairs at the academy demanded that emphasis be placed on resources to ensure the highest standard of training.
    Ajayi, said it is expedient to establish more academies, adding that efforts should be made to improve the academy to boost manpower development.
    Ajayi said there is need for training if the nation wished to meet the maritime personnel needs, adding that the major challenge after training is completing the stipulated sea time.

    He said significant steps be taken to expand the capacity of the Oron Academy and provide navigational and seamanship training. The academy, he said, is in need of attention and much remained to be done to enable it deliver vital services to the industry.

    Job prospects

    The President, Association of Nigerian Licensed Customs Agents (ANLCA), Alhaji Olayiwola Shittu, said jobs abound on board vessels for cooks, carpenters, marine engineers, seamen and others with good remuneration.
    He said there are enormous opportunities in the maritime sector, adding that the country needs more seafarers to maximise benefits of the sector.
    Interest in maritime, he said would augur well for the industry.

    NIMASA’s role

    NIMASA Director-General Mr Patrick Akpobolokemi said about 50,000 seafaring jobs would be created for Nigerians.
    To address the matter, he said, over 75 persons have been sent abroad for seafaring training under collaborative arrangement between the Federal Government and those countries.

    NIMASA set up the training programme as a strategic intervention designed to address the short-medium term manpower requirements of the sector to create a large pool of seafarers in the next few years.

    The generational gap in the sector requires intervention because the seafarers’ pool had further depleted because of low life expectancy, death and expanded manning requirements, pointing out that the programme would reposition the economy by building a strong transport sector, especially through shipping because of its critical nature to the economy.

    Akpobolokemi said there was need to develop manpower and the country’s capacity, noting that Nigeria needs at least 50,000 seafarers to man vessels operating on Cabotage.

    “The first batch of cadets is now onboard undergoing sea-time training. The initiative was a wake up call towards meeting the demand of the global shortage of seafarers. Nigeria decided to take a bold step with the intention to work towards meeting the demand as well as wealth creation, by training more Nigerian youths and supporting their gainful employment in line with Mr. President’s transformation agenda.

    “You see, even if you restrict yourself to the Nigerian coastal trade or the cabotage, we have over 50,000 jobs and because of lack of capacity, most of these jobs are being taken by foreigners. NIMASA has started the development of seafaring. We have started the National Seafarers’ Development, where each state is to participate by putting 25 seafarers per annum. NIMASA pays 40 per cent of the cost of their training, while the states that send them pay the remaining 60 per cent.

    “Because we realise that one of the problems we have is seafarers’ training institute, the agency is at the moment exploiting areas where partnership will be made with seafarers institutions to develop. So far, we have only one, MAN, Oron, which is not capable of providing all our personal needs, so, we are training overseas.
    “Also, the University of Lagos, Niger Delta University and the University of Technology, Minna, will have seafarers training programmes. A substantial amount of money has been voted for that purpose in those institutions,” he said.

  • Workers petition Presidency over oil firms’ operations

    Workers petition Presidency over oil firms’ operations

    Maritime Workers Union of Nigeria (MWUN) has petitioned the Presidency over activities of some oil and shipping companies, resulting in the loss of revenue to the nation, as well as the union.

    In the petition routed through the Minister of Transport, it named Shell Petroleun Development Company, Pacific Drilling, Noble Drilling, Trans Ocean Sedes Forex, Red Transport and Megatop Nigeria, among the culprits.

    The petition, signed by the President-General and Secretary-General, Comrades Tony Nted and Aham Ubani, called on government to call the affected companies to order failing which the union would shut down the maritime sector.

    The petition reads in part: “We have observed with pain and disbelief the open show of impunity by some seeming powerful agents, Shipping Companies and multinationals, which specialise in anchoring and operating their vessels off-shore/midstream in naked contravention of the given conditions governing off-shore/midstream operations in our territorial waters.

    “All ships/vessels are expected to berth and operate at the conventional Sea Ports, at the hard Quays. In very exceptional cases however, ships/vessels that cannot berth at the conventional ports for declared reasons, must as of law, obtain the direct approval of the Minister of Transport; pay all statutory NPA dues and stevedoring bills; must ensure the presence of Customs, Navy, relevant Security Agencies at the point of operations to ensure that the State Security is not compromised, and the Stevedoring Companies notified for supply of the appropriate labour force – the registered Dockworkers for the operations.”

    It alleged that some of these companies operate off-shore/midstream without the mandatory approval of the Minister of Transport. They have also refused to pay the statutory NPA charges and stevedoring bills, thereby giving rise to loss of employment to Dockworkers and loss of revenue to the Government.

    “It is disheartening to note that while hiding under the cover of challenging the enforcement of these approved conditions in the Law Courts against NPA management, the Companies have not relented in perpetuating these illegal acts that encourage revenue leakages, non-payment of NPA statutory Port Charges, NIMASA levies, under-declaration of tonnage, stevedoring bills and loss/denial of gainful employment to Dockworkers, among others.”

    “These companies for example, are Pacific Drilling, Noble Drilling, Trans Ocean Sedes Forex, Shell Petroleum Development Company of Nigeria, Red Transport and Megatop Nigeria and host of others. We therefore call on the Federal Government as a matter of urgency to investigate closely, the activities of these defiant Off-Shore operators and put a stop to illegal off-shore operations.

    “We as an Industrial Union, whose members – the Dockworkers daily lament the loss/denial of income ,by such dubious Off-Shore Operations, wish to alert the nation that the continued failure to restore sanity and appropriate discipline in future Off-Shore/midstream Operations will attract total withdrawal of the services of our members from all the conventional Sea Ports. We have shown enough restraint on this issue and can no longer accommodate any further breach.”

  • Suspected stolen tokunbo vehicles flood market

    Hundreds of used vehicles, popularly known as tokunbo, believed to have been stolen abroad, have found their way into the country, according to security reports.

    A syndicate, which specialised in the importation of such vehicles from the United States (US), has been smashed by the American police, it was learnt.

    A top security official said most members of the syndicate were from the Middle East and Lebanon, adding that they have collaborators among importers and auto traders in West Africa.

    Our investigation, showed that there are ships which freight stolen cargoes to West Africa. Majority of the cargoes berth at the ports of some neighbouring countries.

    On arrival at those ports, they are cleared and sold to Nigerian traders, who offload them on buyers in Lagos, Abuja, Kano and Port Harcourt.

    A used car trader in Lagos, Mr Frances Okuwdili, said some traders buy from those in Cotonou and sell to buyers in the country.

    Okuwdili denied the allegation by American security and judges that stolen vehicles are shipped to Tin Can Port, Lagos.

    He alleged that dealers in stolen vehicles operate from other ports in the sub-region.

    A senior Customs officer at Tin-Can Port, said people whose cars were stolen abroad know their vehicles are in Nigeria. He said the cars enter through the porous borders.

    He said: “I can tell you that majority of those stolen vehicles are not shipped directly to Lagos ports as some people are claiming.They first ship the vehicles to ports in neighbouring countries. From there, the vehicles are taken by road through bush paths to the Nigerian market.

    “One of the ports in our neighbouring countries handles between 80 and 90 per cent of stolen imported vehicles, while Lome Port of Togo and the Tin Can port in Lagos receive about five per cent each. But, the Americans believe such vehicles come in through Tin Can Island Port; that is not true.”

  • Congestion looms over arbitrary port charges

    Congestion is looming at the ports over arbitrary charges by shipping companies and terminal operators.
    Importers are worried that if the trend is not checked, it may kill business at the ports.

    The importers alleged that the charges do not conform with international standard.

    They blamed the concessioning of the port to private owners for the development.

    Investigation showed that some of the terminal operators collect between N4,000 and N5,000 on a container per day, while shipping companies charge as much as N8, 800 per day.

    The implication of the charges, importers said, is that if a container stays for 10 days at the port, they may be forced to pay as much as N200,000 to clear their goods.

    President of the National Association of Government Approved Freight Forwarders (NAGGAF) Mr Eugene Nweke, said the arbitrary charges had become a recurrent decimal at the ports.

    Nweke said the seven per cent port levy being imposed on the shippers was meant for the concessionaires to put the port in shape.

    “Since the concession of the port about six years ago, shippers still pay the seven per cent port levy, which is an arbitrary charge,” he said.

    He said Terminal Handling Charges (THC) were supposed to be paid by the shipping companies to the terminal operators.

    “Terminal handling charges had been charged and paid by the carriers to the terminal operators, but the terminal operators still come back to collect the charges from the shippers,” he alleged.

    He said the Nigerian Shippers’ Council (NSC) had the mandate to publish charges and urged them to do so from time to time.

    Chairman, Shipping and Logistics Services Limited, Mr Johnson Adebayo alleged that there are formal and informal charges at the ports, adding that the informal charges are more than the formal charges.

    He said the single window system introduced by the Nigeria Customs Service (NCS) may solve the arbitrary charges in the industry if other stakeholders at the ports key into the programme.

    Adebayo urged the Federal Government and the Nigerian Ports Authority (NPA) to find a lasting solution to the problem of arbitrary charges.

    National Co-ordinator of Save Nigerian Freight Forwarders Mr Chiazo Peter told The Nation that there was need for the NSC to operate independently, based on the law that established it.

    “NSC should be the voice of the sector, because they are the shippers. They have the right to regulate charges levied on import and export,” he said.

    A clearing agent, Mr Kayode Ogunsanu blamed the council for not carrying out its mandatory function on regulation of charges by the shipping companies.

    Ogunsanu said the terminal and shipping charges paid by importers did not conform with international standard.

    Executive Secretary, NSC, Capt. Adamu Biu, said the charges had become a problem in the sector, and that the council was studying it to come out with a recommendation to solve the problem.

    He said issues of shipping charges, terminal and container charges would be looked into.

  • Shippers, trawler owners cry out over piracy

    The Shippers Association of Lagos (SAL) has cried out over the rising insecurity on the waterways.

    The waterways, it said, had become a haven for robbery, urging the Nigeria Maritime Administration and Safety Agency (NIMASA) to secure the terrain.

    SAL General Secretary Mr Jonathan Nicol said NIMASA must collaborate with the law enforcement agencies to tackle the problem.

    Nicol urged NIMASA to do more to secure goods and ships on waterways.

    “NIMASA should use helicopter regularly to checkmate these pirates and also seek the protection of the Navy, Customs and the police on the issue.

    “If the Federal Government fails to do this, it means we are going to lose so much revenue from that sector,” Nicol said.

    He said the loss of lives and rising attacks by armed robbers and pirates on Nigerian waters compared to other West African countries, was regrettable.
    “We have had quite a lot of complaints from fishermen that they were being raided by pirates, some have lost their lives and one of the two fishing companies has left Nigerian shores to Ghana.

    “Ghana is doing very fine; it has quite close to 100 fishing trawlers, operating within her territorial waters,” Nicol said.

    The Trawler Owners Association (NITOA) has suggested radar and satellite technology as part of the measures NIMASA should look into in finding a solution to the problem.

    The President of NITOA, Mr Joseph Overo, and the former president, Mrs Margaret Orakwusi, called on the National Assembly to urgently look at the Anti-Piracy Bill before it as many indigenous companies have been crippled and many children orphaned because sea pirates activities.

    A representative of the Directorate of Fisheries, Mrs Bola Kupolati, identified radar technology and effective information sharing as the solution to the incessant high-jacking and robbery of shipping trawlers and oil vessels.

    She lamented that trawler owners have been discouraged from reporting cases of attacks on their vessels because nothing has been done by NIMASA and the Nigerian Navy about the cases so far.

    The number of reported cases is not correct as many fishing companies have stopped reporting because of the attacks while many have been run out of business with the frequent attacks.

    “Nigeria’s food security is being affected; our foreign exchange is being affected because these activities lead to capital flight as more foreign vessels now do most of the jobs,” she said

    But NIMASA’s Deputy Director, Public Affairs, Hajia Lami Tumaka, said the agency was addressing the security challenges on the waterways.

    She said NIMASA was discussing with Nigcomsat Nigeria Limited for the integration of NIMASA into its satellite information to secure the waters.

    Hajia Tumaka added that the agency had initiated some interim measures to enhance security within and outside the nation’s territorial waters.

    She said the agency was working with security agencies such as the Air Force, Navy, Army and Police to ensure that the waterways are safe for freighting and fishing.

    Mrs Tumaka advised trawler owners to ensure that they pay adequate attention to the remuneration of their crew because many are badly paid, noting that poor pay usually leads them into criminal activities, such as selling their first catch at sea and subsequently drawing the attention of pirates.

  • ANLCA opposes CRFFN fee collection

    The Association of Nigeria Licensed Customs Agent (ANLCA) has condemned the approval given to the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) by the Minister of Transport to collect practising fees at the ports.It threatened to shut down the ports.

    Its president, Alhaji Olayiwola Shittu, has resigned his membership of CRFFN to back his association’s demand.

    Speaking with The Nation in his office, Shittu said ANCLA opposed the collection of practising fees by the CRFFN because “it is inimical to the growth of the association and will render the association penniless.”

    The ANLCA chief said to show faith with his constituency, he has resigned his membership from the council.

    “I can not carry out this fight and remain in the council, it doesn’t make sense,” he said.

    He said ANLCA had sent a letter to the CRFFN rejecting the offer by the council to give the association some amount yearly instead of giving it a percentage of the collected money.

    “We are not giving them any option. We will also write to the minister telling him of our own interpretation of transaction fees and why we object to it.

    “The fourth is that we shall go to court; we will take CRFFN to court and if the government goes ahead to enforce the dues collection we will shut down the ports,” Shittu said.

  • NEMA seeks wrecks removal

    The National Emergency Management Agency (NEMA) has reiterated the need to remove wrecked ships from the Nigerian coastlines as a precautionary measure against maritime disaster.

    Its Director of Planning and Research and Forecasting, Dr Charles Agbo, gave the advice while inspecting the Kuramo Beach after the ocean surge in Lagos that claimed many lives.

    Agbo said the Federal Government was committed to preventing maritime disaster at all cost.

    According to him, the first step towards that is to ensure the removal of all wrecked ships from the coastal areas.

    The director said, “The Federal Government has ordered the removal of all wrecked ships in the Nigeria coastal area.

    “That order will be enforced to reduce ocean surge and we urge everyone to comply.”

    Agbo also said there were many wrecked ships on the coastline, especially at the Oniru Beach.

    “We are at the peak period of rainfall and anything that can cause disaster should be avoided.

    “There will be more assessment of the coastal areas from time to time, to stem the incidence of rising ocean tide,’’ he said.

    He advised all those involved in maritime activities to be very observant and careful to prevent further disaster.