The Lagos Chamber of Commerce and Industry (LCCI), in collaboration with the Financial Derivatives Company, an economic consultancy firm, is set to hold a Public-Private dialogue on Port Efficiency & Maritime Sector Roadmap in Nigeria. In a statement made available by LCCI, it said the objective is to design a roadmap for the transformation of the Nigerian maritime sector.
The Stakeholders’ forum, which is billed to hold today by 9:30am in, Lagos, is expected to bring together key government agencies, major players at the ports, importers, exporters and other stakeholders to discuss the current state of the ports and proffer solutions to many problems militating against the growth and development of the sector and improve ease of doing business.
LCCI Maritime Ports Research conducted in the third quarter of this year said the efficiency of port operations is a major driver of trade and economic activities across countries. It regretted that users and operators at the ports have been facing lingering challenges and bottlenecks.”
It further stated that improving ports governance for greater efficiency has major implications for the development of non-oil sectors at this time. It noted that growth and promotion of trade and economic activities could only be pragmatic, when economies thrive to provide a conducive and friendly environment.
It reiterated that public authorities and the private sector have come to the realisation that the starting points for activating the diversification objective of the present government is fixing the ease of doing business at the nation’s ports.
The Federal Government yesterday took another step to boost the economy through the maritime sector with the approval of the construction of the Greenfield Port in Badagry, Lagos.
When the project, approved by the Federal Executive Council (FEC) yesterday is completed, it will pump no less than $2.558 billion into the economy, according to Minister of Transportation Rotimi Amaechi.
Amaechi, Minister of Information Lai Mohammed and Minister of Works, Power and Hosing Babatunde Fashola briefed reporters on the outcome of the FEC meeting, presided over by President Muhammadu Buhari.
Ameachi said there will be no government involvement in the project that it would take five years to construct it from the end OBC and FBC concessional agreement.
“In this period when we are looking for foreign exchange, it is going to bring a total of $2.558 billion into the system and federal and Lagos State government would not contribute financially other than the land given by the state government,” he said.
The FEC also approved the Multilateral Competent Authority Agreement to prevent tax evasion and avoidance by multinational companies, among other benefits.
Alhaji Mohammed said Nigeria has lost over N1 trillion to tax evasions by multilateral companies.
He said: “In respect of the first memo which is the memo for Multilateral Competent Agreement and the exchange of country by country report, the whole essence is to give the government a better grip on its tax laws and also to prevent tax evasions and avoidance by multinational companies.
“Where multinational companies operate in more than one country, it is quite easy for them to move profit from one territory to another territory where the tax laws is very favourable to them.
“And what has happened over the years is that the revenue companies have lost a lot of money. As at the last count over N1 trillion has been lost over a period of time and the revenue companies have found that they were losing more money in terms of tax evasion and avoidance than what they were even receiving as grants from multinational agencies.
“So this is a law that provides that if a company like MTN or Nestle for instance, is operating in Nigeria, not only must he file returns on his activities in Nigeria, he must also file returns on his activities in every other country that they are doing business so that you can see from there whether there is any attempt to hide figures.
“Apart from shoring up our finances, I think it is part of the fight against corruption and it also enhances transparency.”
He said the approval for Greenfield port facilities in Badagry is the first step to approving the establishment of a new sea port in the country.
The approval, he said, showed that Nigeria is still a very preferred investment destination in Africa despite the challenges it is facing.
Fashola said the Multinational competence authority agreement is consistent with the macroeconomic policy of government to fund its operation and economy with more tax incomes.
According to him, it will allow government to see how much taxable revenues are accruable to it especially from companies.
He said: “It is for transparency and accountability on the private side of the economy because transparency and accountability has been focused perhaps a little more on the public side of our national life.
“When you look at the profit that is coming from the private sector beaming the ray of transparency and accountability on revenues that should come into the public space and be used for national development only helps to strength the economy in the long run and bring probity across board.”
Noting that the Badagry port was long overdue, he said the ports in Nigeria are behind in terms of technology in the maritime industry.
He said: “There are bigger vessels now being built across the world that require larger depths and drafts berth. Now some of our competitors on the continent like Djibouti are building bigger ports, so if we don’t build this port, we risk becoming uncompetitive and we risk a threat to our maritime hub status in the sense that we may become a transshipment port instead of a port of original destination.”
Stressing that the work on the port started in 2012, he said that all its financing is coming from the private sector.
“Again that is consistent with what this government stands for in terms of allowing private capital and competence to come into the development of our infrastructure,” he added.
He said the Badagry port was delayed because of the refusal of the last administration to grant approval for it as the port development was under Federal Government control.
The redevelopment contract of Bullnose I, II and III terminals in Apapa, Port Complex by the Federal Ministry of Transportation and Nigerian Ports Authority (NPA) awarded to Eko Support Services (ESS) in 2008 at $124 million (about N40,920,000,000) is causing ripples in the maritime industry.
Maritime stakeholders said they were uncomfortable, not only with the cost of the contract, but also the process that led to the award of the project to ESS which they alleged was shrouded in secrecy.
The push for the redevelopment and the award of the contract which was through a letter from the Managing Director of NPA dated 3rd of June, 2008, to the then Minister of Water/Transportation, was said to have been done in response to Federal Government’s initiative for private sector participation in ports development.
But maritime watchers said that in line with due process and transparency, the initiative should have gone through a public tender to afford other interested private sector players the opportunity to bid. Officials of the Federal Ministry of Transportation last week declined comment on the issue. The NPA also refused to comment on the controversy over which some stakeholders are contemplating petitioning the Presidency, the ICPC, and the Bureau for Public Procurement which vets awards of contracts. They claimed that since it was government’s idea that the private sector should be involved, then it was only fair that the contract award and pricing, should also have been subjected to private sector participation.
A maritime industry insider said it would be difficult not to assume that the beneficiary firm was handpicked by the awarding authority. ‘’Obviously, the NPA handpicked ESS and went ahead and recommended the company for this project,” the insider said, wondering why the supervising ministry did not raise any issue on the process leading to submission of the proposal by only ESS.
It was learnt that in the proposal, ESS offered to handle the project at $127 million, but that following what the then NPA boss said was the approval of the proposal by a Technical Committee and vetting of the proposal by NPA’s Technical Channel Auditors, Messrs Coastal and Reclamation Engineering Services, (CARES), NPA recommended that the project be scaled down to $124 million, indicating a margin of just $3 million lower than what ESS proposed.
Said the insider: “Even by today’s standard, that redevelopment project could be achieved with a little over $50million,” stressing that a technical audit of what is on ground would tell you vividly that this is not a project that should cost what was allegedly approved.
Also being contested by ports observers is the fact that the project cost would be amortized through service boat charges in all the ports in Nigeria. “In simple term, said an investment analyst, NPA has awarded a Terminal redevelopment project to, as the insider put it, “ a so-called private player, with NPA providing the exorbitant and inflated cost of contract, through charges collected on behalf of NPA by the contractor,” adding, “yet NPA will not have control of the Terminal for 25 years.” What that means, the insider explained, is that the facility will be used exclusively by the same contractor for the quarter of a century.
Other stakeholders, in picking holes with the contract, pointed to loopholes with regards to the estimated cost of $124million recommended by CARES, with the proviso that it is accepted pending the determination of the actual cost from the final design; that the cost of financing of 16 per cent be applied to the cost of the project and hat the lease should be for an initial period of 25 years.
The stakeholders argued that the term which says $124million is accepted pending the determination of the actual cost from the final design is loose, What would then happen if the winners now make a detour, and insist from the final design analysis, that the cost has increased by 200 per cent, they queried?
They said on balance the development is quite troubling. “Since the money will be amortized from the service boat charges which belongs to NPA and is a sure stream of inflow, why should the cost be this high? they queried, saying the more crucial implication is that both the cost of the project plus the cost of financing put at 16 per cent would be borne by the Nigerian Ports Authority.
The Coalition of Port Dry Cargo Transport Operators yesterday disrupted activities at the Lagos Port Complex over the proposed N10, 000 annual truck levy by the Nigerian Ports Authority (NPA).
The News Agency of Nigeria (NAN) reports that members of the union rejected the proposed levy, carried placards and barricaded some major roads leading to the premier port.
The placards had inscriptions like: “No to N10, 000 Per Truck Per Annum’’; “Yes to Safety Minimum Standard’’; “Enough of Levies, Fines and All Forms of Extortions’’, and “Dismantle Bottlenecks That Yield Corruption’’.
The Spokesman of the union, Mr Timothy Anosike, said the union totally rejected the N10, 000 levy, adding that members had paid a lot of levies which could not be accounted for.
The Federal Government has extended its agreements with some of the terminal operators due to their satisfactory performance and their improved level of investments, The Nation has learnt.
One of the affected concessionaires, it was gathered, is at Tin-Can Island Port, Apapa, Lagos.
The Managing Director, Nigerian Ports Authority (NPA) Mallam Habib Abdullahi confirmed the extension granted some of the terminal operators.
Abdulalahi, who spoke while receiving the Director-General, Infrastructure Concession and Regulatory Commission (ICRC), Aminu Diko in his office, last week did not name the beneficiary firms
He, however, praised the Commission for being alive to its responsibility, saying he would give it the opportunity to get first-hand information on the challenges of port concession and listen to observations from concessionaires.
While assuring the ICRC of cooperation, he directed the Monitoring and Compliance Division of NPA to submit a copy of its quarterly reports to the ICRC.
Abdullahi announced that a Public-Private-Partnership department would be established in NPA to cater for investors’ interests at the seaports.
To show its disdain for the project, the Jonah Jang administration demolished the Plateau State dry port buildings. Now, there is hope that Governor Simon Lalong will bring it back to life. YUSUFU AMINU IDEGU reports
There was joy in Plateau State when Jos, its capital, was chosen as the location of the Inland Container Depot or dry port, one of six such facilities approved by the Olusegun Obasanjo administration in 2004 for the geo-political zones, one for each. That of Northcentral was located in Heipang village due to its proximity to the Jos Airport.
A dry port is a land depot for handling goods and also for temporary storage of import and export items under the control of customs and other agencies authorised to clear goods for home use, warehousing for onward transit and outright export.
The Heipang dry port with a 20,000 metric tonnes capacity was reckoned to create jobs in the state. That was one of the reasons the locals danced when the project was approved, their joy increasing when building actually started. This was during the Michael Botmang administration, which wasted no time in providing the incentives for the smooth take-off of the project.
The contract was awarded to a construction firm known as Duncan Maritime Services owned by a Plateau citizen. The company quickly moved to site because Chief Botmang wanted the Jos depot to be the first among the six to be commissioned by Obasanjo.
The people’s joy was short-lived. Work eventually stopped when Botmang left office with the project unfinished. The Jang administration shunned the dry port; in time government bulldozers went to site and pulled down the structures, a development similar to the windmill project scenario in Animal Farm, where Napoleon urinated on the project prototype developed by a rival.
The coming of Jang in 2007 marked the beginning of the end of the project and hope of job seekers in the state. In the eight years of the Jang administration, he not only shunned the dry port project but also went further to demolish the existing structures at the project site. That singular action was to mark the frustrating end of the project and its potentials.
The former administration never hid its hatred for the inland depot project and the government then used any available fault against the contractor handling the project to kill it. For instance, on July 15, 2014, an agency of government, the Jos Metropolitan Development Board (JMDB) asked the 80 workers on site to vacate the site telling them that the construction they were doing was against the town planning of government. The agency threatened the workers with arrest if they failed to vacate the site within 24 hours.
The acting Project Manager, Nenfort Clifford Gonchen said, “Over 80 labourers working at the site were stopped by the staff of state government because they were threatening to arrest them. The labourers were roaming about the street when the company offered them the opportunity to end their plight, the state government could not offer them jobs but we did, what then is our offence?” he asked.
A week after, General Manager of JMDB General Musa Gambo Wuyep, ordered the labourers to stop work on the site, the government agency came with its bulldozers to demolish the ongoing construction on the claim that the contractor failed to comply with the conditions set out by the State Master Plan as well non-compliance with the Greater Jos Master Plan.
The Community leader of Heipang, the host community, Mr. Iliya Dalyop Mwadkon a retired Justice, made effort to mediate and ensure the project remained only hit the rocks as government bulldozers went to work to demolish the structures to formally bring the project to an end. Mr Mwadkwon faulted the government on the demolition saying, “the state government did not consider the immediate benefit of the project to the host community before taking the harsh action. This demolition is a great set back to the community and the state at large.
The youth leader of Heipang community Monday Davou Gyang said, “The workers who are youths of the community were idle before they were employed by the contractor, now they have all lost their jobs because of government action; is government expecting these jobless youths to go and steal and go into all sorts of crime?”
The feeling of the host community notwithstanding, the Group General Manager, Duncan Group of Companies, Dr. Godfrey Bawa Shitgurum ran to court to seek justice over government’s demolition of his properties. Dr. Shitgurum is already claiming billions of naira.
Dr Shitgurum alleged in a press conference that the state government did not notify him of the demolition.
He said, “There was a threat by the plateau state government to demolish the properties, and we went to court to seek injunction to stop the state government from implementing their threat. But in spite of the Federal High Court injunction restraining the state government under Jonah Jang and the Jos Metropolitan Development Board JMDB, the duo still went ahead to demolished structures at the site of the Inland Container Deport.
“The injunction was served and received by JMDB and the Plateau State Ministry of Justice on Monday july 21st, 2014 by one Christiana G Bot of JMDB and Huwa Samuel of the State ministry of justice respectively.
“It has become imperative for us at Duncan maritime ventures limited to state our position following the destruction of our facilities at the Jos Inland Container Depot Heipang by the Plateau state government through its agency the Jos Metropolitan Development Board (JMDB) with the view to putting the record straight and disabuse certain misconception.”
“Since the inception of the Jos ICD project, transactions have been between Duncan maritime Ventures limited and the Federal government of Nigeria through the Nigerian Shippers’ Council a parastatal of the federal ministry of transport and at no point had they have any direct contact with the Plateau state Government adding that they are surprised that without any information from either the ministry of transport or the Nigerian Shipper’s council, the JMDB moved into site to carry out the demolition.
He said, “Among items destroyed were the gate complex which was 86% completion and the administrative block 45% completion, over 26,000 blocks, timber and several items which could have completed this job were destroyed in the exercise.
He said, “The federal Government’s idea of setting up ICDs is aimed at bringing the facilities closer the other majority of Nigerians at the hinterland, as well as (reduce the cost of clearing goods, lower the prices of commodities, reduce unemployment rate, facilitate additional development in the benefiting states among others.
“Because of the importance attached to this project, the Federal Executive Council (FEC) of 15th March 2006 approved its commencement on a Build Owned Operate and Transfer (BOOT) agreement in six location including Heipang; and backed it legally with Federal Republic of Nigeria official gazette no 30 vol 94 of May 21st 2007.
“To further facilitate the execution of the project, FG through the Nigerian Shippers Council contacted the respective state governments for land, saying after negotiation, the Plateau State government handed over the Heipang site to the Federal Government vide a letter PSG/1100/vol.II/308 dated 24th September 2007 and signed by Nanle Dashen, Commissioner,
Land Survey and Town Planning” for the use of the federal government of Nigeria.
“At this point we commenced work at the site until the recent sad development where our efforts were pulled down without any justifiable reason. There is no gainsaying the fact that, we lost properties worth millions of Naira from the destruction while the implication of this destruction has greater effect on the citizens.
“The Heipang ICD would have served many states in the Northcentral zone and some other parts of the Northeast. Its economic benefits in Plateau State are many. Apart from generating revenue for the state and creating employment for its teeming indigenous communities, it would have served as a commercial centre of the state as well as given the state a new lease of life.
“We lack the power to stop the state government, but we are placing our hope on the judiciary to do justice on this matter, we are law abiding company, we don’t take law into our hands because we trust the Nigeria judiciary to act accordingly on this matter,” said Dr. Shitgurum.
Governor Lalong
That was the battle at the Jos dry port under former Governor Jang tenure, that administration fought the federal government that initiate the port, it fought the contractor handling the construction as well as the site laborers. However, with the outster of that administration and the coming of APC administration of Governor Lalong, it appears the dry port will be revived for its huge potential to the state.
A delegation of the federal and state government visited the site to inspect the demolition and the extent of loss incurred by the company. This is with a view to reviving the project and see to its logical conclusion. The delegation comprises of the zonal coordinator of Nigerian Shippers Council North-central Mr Bali Kparbong, the port Project Manager Mr Nenfort Gonchen and Mr. John Dafan, the Chief of Staff to Governor Lalong.
Mr. Kparbong said, “The dry inland container depot remains the only strong revenue drive Plateau State could boast of, I therefore belief strongly this project must be brought back to light so as to ensure the federal government achieved its aims of initiating the dry ports. All we need now is the support and encouragement from the host government which was lacking. We call on the APC-led government in the state to support us in ensuring the completion of this project. It is not time to trade blame, we should put the past behind us, the federal and the state government need to come together and complete this project for the benefit of mankind.
The Nigerian Ports Authority (NPA) may become the leading port in West and Central Africa, following the berthing of the huge vessel in Lagos, The Nation has learnt. The ships are bigger than the vessels which hitherto berth at the port.
NPA, it was gathered, has developed its Information Communication Technology (ICT) facilities to meet ports operations demands.
With the automation of its operations, NPA is now monitoring shipping firms, the concessionaires and other port users to ensure compliance with rules and also track revenues.
NPA General Manager, Public Affairs, Capt Iheanacho Ebubeogu, said the authority has fashioned a roadmap to ensure it attains the leading port status by providing a safe, secure and world-class customer friendly environment for port users.
Top officials, he said, had embraced the new technology and innovation to realise NPA’s vision.
“Nothing happens by chance. Somebody or group of people dreamt about what is happening in Dubai, Singapore and other major ports of the world some years back and that is why the Executive Directors, General Managers, Assistant General Managers, Port Managers and other staff are following the direction outlined in the NPA’s vision and mission so that we become the best and the leading port in Africa as championed by our Managing Director (MD), Mallam Habib Abdullahi,” he said.
NPA, in line with its monitoring and compliance function, Ebube-ogu said, would ensure that all terminal operators improve on ICT infrastructure and acquisition of modern equipment for cargo handling.
He said NPA has operated the landlord model of port operation since 2006, after the terminals were concessioned to private operators.
To him, the introduction of the Electronic Payment System and the Electronic Ship Entry Notice (E-Sen) are a first step towards the automation of NPA’s processes.
A clearing agent, Mr Segun Ogunsanu, who spoke at the week-end, confirmed the development.
“NPA has improved tremendously, efficiency in port operations as well as giving value to operators and port users.
“The Revenue Invoicing Management System and Customer Portal introduced recently have started lowering operational costs and shorten the time for documentation. The platforms are fully integrate the electronic flow of information and are also fully integrated with all its existing solutions.
‘’The benefits accruing from the electronic platforms, according to Ogunsanu, include improved customer service delivery; easy access to customer accounts status; view of all transactions and status in respect of bills; electronic upload of manifest; e-invoice and e-receipt generation.’’
He continued: “The electronic platform is an excellent initiative. There is no doubt that it will improve efficiency and save so much time and costs. We say kudos to NPA management.
“The introduction of the e-platforms by the management of NPA would boost their revenue base and make the agency contribute meaningfully to the Federal Government purse.’’
The Federal Road Maintenance Agency (FERMA) has warned that illegal structures on drainage channels in Apapa/Tin Can Island Port, Lagos, could cause flooding.
Mr Shakunle Oyekunle, a representative of the agency spoke with the News Agency of Nigeria (NAN) in Lagos at the weekend when he visited the ongoing rehabilitation sites on the Apapa/Tin Can Island Port section of Apapa/Oshodi Expressway.
He said the illegal structures will block the waterways, cause flooding and constant degeneration of the dual-carriage road.
Oyekunle said the agency decided to address the root cause of flooding along the axis due to predictions of heavy rainfall and flooding by the Nigerian Meteorological Agency (NIMET).
He said: “We tried to locate the problem and we discovered that most of the cross drains along this section is silted as a result of illegal structures built on the other end of the road occupied by sand dealers.
“The sand dealers are occupying those places illegally; the area where the major surface water on the road is supposed to flow straight into the canal is being hampered by these people. Their activities are destroying most of the Federal Government infrastructure, including roads on this axis, and we cannot allow it to continue because the two major ports in the country are here.
“We will continue to carry out constant de-silting of the drains and rehabilitation work to make the roads good and stop traffic congestion.”
He said the surface and underground drainage channels on both carriageways will be cleared regularly to avert flooding.
According to him, the agency will liaise with the Nigerian Ports Authority (NPA) on how to evacuate the illegal occupants.
Oyekunle assured that FERMA will restore all the critical sections on the highway after the drains had been cleaned up, lamentng that water had destroyed the road pavement.
He expressed happiness that the ongoing Apapa Trailer Park project was nearing completion as it addresses the challenge of indiscriminate parking of articulated vehicles.
He observed that indiscriminate parking of vehicles could also aggravate flooding and road degeneration.
The Nigerian Shippers’ Council (NSC) yesterday urged the Federal Government to provide a more conducive atmosphere to achieve the new port order.
The Executive Secretary of the NSC, Mr Hassan Bello, made the plea during a two-day training programme on effective media practice for maritime journalists with the theme, “A New Port Order: A New Maritime Media,’’ in Lagos.
The new port order is designed to ensure that the nation’s ports become as efficient as what could be obtained in other advanced countries.
An efficient port order discourages diversion of ships to neighbouring countries, increases vessel and cargo traffic and generates more revenue for government and service providers.
Bello said the need for good maritime reports could not be over-emphasised because the media were among the change agents of operations in the industry.
“If maritime reporters are performing their roles effectively, everybody in the sector will do the right thing at the appropriate time,” Bello said according to the News Agency of Nigeria (NAN).
“Maritime reporters need to upgrade their knowledge of the familiar trends in the industry and should report critically,’’ Bello said.
He also said that for quick and positive results of the new port order, procedures should be carried out appropriately as being done globally.
The NSC chief also stressed the need to introduce automation into the system, saying this would reduce delay in all chains of shipping until the consignments get to the owner.
The Executive Secretary said there had been reduction in delay in shipping processes, adding that Nigerian ports need to be competitive to attract more shippers who would use them as preferred destinations.
“Before we can achieve new port order, Nigerian ports must be efficient.
“Nigeria has 860 km nautical miles with 26 terminal operators and the competition needs to be supervised,” Bello said.
He said there should be a moderator to checkmate the operations of the terminal operators as well as the shipping companies.
Bello said there must be equilibrium in operations which would stimulate positive competition and efficiency in the port system.
The Managing Director, Calabar Channel Management Limited (CCM), Mr. Bart Van Eenoo, has urged those who lost out in the bid for the dredging of the Calabar Port, which his company won to be honourable in defeat and support it for early completion of the project for the benefit of Nigerians.
CCM is the Nigerian Ports Authority (NPA)’s Special Purpose Vehicle (SPV) comprising a consortium of companies led by Niger Global Engineering & Technical Company Limited with world number one dredging company-Royal Boskalis and Westminster Dredging that is dredging the Port and is expected to maintain the Calabar navigation Channel.
A statement issued ostensibly in reaction to call by Nigerian Shippers Council to probe the dredging contract, explained that there was nothing fishy about the contract as “the entire contract followed due process, obtained all the necessary approvals and vetting of the agreement by the Office of the Attorney General of the Federation (AGF) before its execution”.
He said the losers in concert with a cabal in the sector were not happy with the progress made by his company to dredge the Calabar Port which in the past, remained a drain on the national treasury and have resorted to the campaign of calumny and falsehood.
He said activities at the Calabar Channel were similar to those at the Bonny and Lagos Channels and wondered why the losers would single out “Calabar Channel to constantly put it in bad light even when the contract is being executed by a consortium made up of world class dredging companies.
