The Nation Newspaper

Tag: seaports

  • Reps pass amended Bill stripping SWDC of 3% seaports, airport, oil, gas revenues

    Reps pass amended Bill stripping SWDC of 3% seaports, airport, oil, gas revenues

    The House of Representatives has passed the amended South West Development Commission (SWDC) Bill striping the commission of revenue earned through the airport, seaport or gas companies operating in the Southwest region.

    Speaker Tajudeen Abbas had explained told members at Tuesday’s plenary when the Bill was considered that the reconsideration was due to an objection the President raised over certain provisions of the Bill.

    He said the President objected to the provisions because they were in conflict with the provisions of the Constitution.

    The new Bill, which was read for the third time and passed yesterday after its consideration and approval on Tuesday, would be sent back to the President for his assent.

    The Bill, seeks to “establish South West Development Commission charged with the responsibility, among other things, to receive and manage funds from allocation of the Federation Account, including donations and gifts for the reconstruction and rehabilitation of Infrastructural damages suffered in the region and to tackle the ecological, environmental and other developmental challenges in the Region and for related matters”.

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    The amendments to the Establishment Act sought to delete clauses 14(b, c, d and e).

    Clause 14(b), which provided that: “Three per cent of the annual budget of any federal seaport and airport operating in the South West,” was deleted.

    Similarly, Clause 14(c), which provided that: “Three per cent of the total annual budget of any oil producing company operating, on shore and off shore, in the South West States: including gas processing companies,” was also deleted.

    Also, Clause 14(d) provided that: “Three per cent of the total annual budget of any Solid mineral extracting mining company operating in the South West States.”

    Clause 14(e), which provided that: “50 per cent of monies due to member-states of the commission from the Ecological Fund,” was deleted.

    The law provides that “the commission shall establish and maintain a fund, the proceeds of which shall be used to defray all expenditures incurred by the commission”.

  • Apapa gridlock: Fed Govt to revive other seaports in few months

    •Ambode calls for relocation of tank farms, others

    Vice President Yemi Osinbajo  (SAN) yesterday said plans were underway for the decentralisation of the country’s seaports.

    Osinbajo spoke in Lagos at a stakeholders’ meeting to discuss the traffic congestion in Apapa and its consequences on the people and nation.

    According to him, the government had put in place maritime security arrangement for all areas, adding that the other ports (Calabar, Port Harcourt, Warri, Sapele, Koko) would be frequently used in a couple of months.

    Osinbajo said: “Security situations in the past hindered operations of the other ports in the country. But now, the government had approved maritime security arrangement for all areas and within a couple of months, these ports would be frequently used.”

    The Vice President also blamed the Federal Ministries of Works and Transportation as well as the Nigerian Ports Authority (NPA) for the worrisome situation of things in Apapa axis, noting that there was no excuse on the part of government.

    Osinbajo assured Nigerians that all approvals said to be delaying the repairs and building of the bad roads would be gotten within two weeks.

    He said: “We are working hard to get approvals to do all the roads, especially Oshodi-Apapa Expressway and Mile Two to Liverpool. We are trying to look at immediate steps that could be taken to speed up the process.

    “We will get all approvals within two weeks to do the work. We know the state of the road, especially Coconut, Tin Can Island, Warehouse, Leventis and Creek Road.

    “Also, the government has entered into talks with a new contractor for the refurbishment of the narrow gauge rail, which would take some of these containers out of port area.

    There was an earlier arrangement with General Electric (GE), but that did not yield result.”

    Lagos State Governor Akinwunmi Ambode described the situation as a national emergency, decrying the presence of 86 tank farms within Apapa.

    He urged the Federal Government to make other ports functional so that some importation would be moved there, thereby developing the Internally Generated Revenues  (IGRs) of the states.

    According to Ambode, although Lagos State was generating resources from the activities of ports, it was spending a lot of money, which could have been used in building hospitals, other social amenities for road and bridges repairs.

    Noting that the issue was not within his jurisdiction, Ambode said from information he received, the NPA, Ministry of Transportation and Nigerian Customs Service (NCS) should be urged to operate from the three port gates.

    Ambode said: “This issue is not within my jurisdiction. So, I  will plead with the NPA, Ministry of Transportation and Customs. From intelligence gathered, Customs only operate on one gate and there are three gates at the port.

    “This is making us not have good inflow and outflow. Allowing trucks to operate from the three gates will create efficiency in operation.

    “There is also need to talk to the Minister of Petroleum (Muhammadu Buhari) to review why there are 86 tank farms within Apapa and they have proceeded to approve another eight at Ijegun.

    “These are residential areas. Where are things like these done? It means there is a problem somewhere. How did we get to a stage where a residential axis is compounded with tank farms, ignoring the essential national security challenges that might arise from it?

    “We need to relocate these tank farms to border towns and then, we ensure our pipelines are working. With this, products can be moved from Atlas Cove to other places.

    “Moreover, most of these tank farms do not have loading bays. Do they? You cannot have six to eight outlets and tankers will be parking on or under bridges. How much do you pay in tax that you will now be inconveniencing others?”

    Minister for Transportation Rotimi Amaechi the solution to the bedlam was use of technology.

    Amaechi also supported the decentralisation of seaports, noting that concentrating import activities in Lagos was fuelling the problem.

    He said: “We have had stakeholder meetings. We have discovered that a similar problem was experienced in Iraq and Jordan. Also, all Nigerians cannot import through one place.

    “We have six ports across the country and so, if all of the imports come through Lagos, that certainly will not work. We cannot have these kinds of trucks we see on the road coming to the sea port.

    “We need to discipline the terminal operators because they are law unto themselves.”

    Setting the tone for the deliberation, the Commander, Nigerian Navy Ship (NNS) BEECROFT, Commodore Okon Eyo, said the gridlock was caused by use of rickety vehicles by transporters, indiscipline of road users and bad roads.

    Also at the meeting were representatives from the Ministry of Works and Housing, PTML, Apapa Residents Association, National Union of Petroleum and Natural Gas (NUPENG) workers, APMT, Nigerian Navy, the police and the Nigeria Customs Service (NCS) and AMARTO, among others.

     

     

    Port concession agreement may be revoked

    THE Federal Government might revoke the seaports concession agreement it entered into with terminal operators during ex-President Olusegun Obasanjo’s administration.

    Minster for Transportation Rotimi Amaechi said this yesterday during the stakeholders’ meeting on the lingering bedlam occasioned by activities of truck drivers to and from Apapa seaport.

    The meeting, which was chaired by Vice President Yemi Osinbajo (SAN), was held at the headquarters, Western Naval Command  (WNC), Apapa.

    According to Amaechi, he would submit the issue to the Federal Executive Council  (FEC) for a possible revocation of the concessions because the concessionaires were not sticking to the terms of operation.

    He said: “Concessioners not sticking to terms of agreement. We might have to go back to the FEC to ask for a revoke of the concessions. We are currently reviewing the concession agreement.”

    But, the stakeholders at the meeting blamed the shipping companies, tank farm owners as well as the Federal Ministry of Works for the congestion, noting that while the company and tank farm operators had refused to operate holding bays for their trucks, the ministry was too slow in repairing bad portions of the roads.

    They also accused the shipping firms of deliberately fuelling the traffic through its demurrage policy, which makes empty containers flood the roads so that they could beat deadlines and collect their money.

    According to the Managing Director, Nigerian Port Authority (NPA), Hajiya Hadiza Bala Usman, the shipping companies were acting in disregard of the law.

     

  • President to unveil single window at seaports, airports, border stations

    •The Nation rallies Maritime patrons

    President Muhammadu Buhari will soon unveil the much-awaited Single Window (SW) Platform at seaports, airports and border stations to facilitate trade and achieve 24-hour cargo clearance, it was learnt yesterday.

    This is coming against the backdrop of a directive by the President to have a single window platform that will integrate all government agencies at all the entry points into the country to promote trade and boost security.

    Transport Minister Rotimi Amaechi, who was represented by Maritime Services Director Sani Umar Galandachi, broke the news yesterday in Abuja, at the second edition of the stakeholders conference organised by The Nation in collaboration with Eipsilon Limited.

    The theme of the event is: “Intermodal freight transport: Key to unfolding the potential of Nigerian seaports for speedy economic recovery and growth.

    A technical committee headed by Vice President Prof. Yemi Osinbajo and officials of ministries, departments and agencies that operate at the ports,  Amaechi said, has been constituted to drive the single window process and strengthen the maritime industry by boosting efficiency and reducing cost and time of doing business at ports.

    The minister added that the Buhari administration was determined to harness the potential of the transport sector so that it can have an overwhelming positive impact on the GDP,  influence the growth of the nation’s economy through market expansion, opportunities for foreign trade, competition, foreign exchange earnings, and serving strategic national interests like wealth creation and employment generation.

    President Buhari, Amaechi said, is also conscious of facilitating intermodal transport system by prioritising the rehabilitation,  upgrading, modernization and construction of the nation’s railway lines and roads, which are expected to be connected with the ports to promote inter-modalism.

    The Federal Ministry of Transportation, Amaechi said, is desirous of evolving a world class transportation system by positioning itself as a hub in West and Central Africa through the establishment of a safe, efficient, affordable and seamless intermodal transport system in line with global best practices.

    The government, is also creating an enabling environment for Public Private Partnership (PPP) by  embarking on major reforms, initiatives and laudable programmes.

    “Therefore, it is revealing that the Day’s theme is apt and would not have come at a better time than now, considering the efforts of the Federal Govenment to diversify and make other sectors function effectively and contribute to the national economy.

    “It may interest you to note that the Federal Government’s plan to implement a National Single Window Platform to harmonise trade procedures to drive revenue generation and strengthen national security at land borders, sea and air ports has reached advanced stage.

    “A technical committee under the chairmanship of the Vice President with membership from relevant ministries, departments and agencies that operate at the ports was constituted to drive the process. The technical committee co-chaired by the Nigeria Customs Service (NCS) and the Nigerian Ports Authority (NPA) recommended the establishment of the Special Purpose Vehicle (SPV) called the National Trade Platform (NTP) with three units, namely the single window (imports ans exports), scanning services and port community system,” Amaechi said.

    The interest of all stakeholders, the Minister said, is being harmonised by the government for realistic implementation .

    To ensurea cordial and harmonious relationship and reduce inter-maritime agency conflicts, the ministry has initiated routine meetings with its agencies to address concerns and ensure collaboration to develop the industry.

    According to the minister, to institutionalise all legal and regulatory reforms, the Federal Government, Amaechi said, seeking amendment or alteration of obsolete bills to achieve best practices.

    Anarchist went on: “The Federal Government has developed a 25 Years Railway Strategic Vision, which involves system transition, system modernisation and construction of new lines and extensions through public private partnership ( PPP) and system stabilisation.

    “This has resulted in the completion of Abuja-Kaduna standard gauge rail line, the ongoing construction of Lagos-Ibadan standard gauge line is expected to be completed by December this year and Itakpe -Ajaokuta -Warri rail line which is also expected to commence operation before the end of the year,” he said.

    Advertisement, the Minister said, has been placed for the construction of Eastern rail line from Port Harcourt to Maiduguri and other critical lines.

    The concession of Onitsha River Port, Amaechi said, is at advanced stage while that of Lokoja, Baro, Oguta River ports will boost commercial activities in communities along the Inland waterways when completed.

    Nigerian Ports Authority ( NPA) Managing Director Ms Hadiza Bala Usman  said the capacity of the port has increased from 3.7million  metric tons in the 70s to 77million metric tons in 2015, in spite of the recession. The figure, she said, is about 108 per cent increase over the total port design capacity.

    The Managing Director, who was represented by Executive Director Muhammmad Bello-Koko,  added that the container  throughput in the seaports has grown by over 100 per cent, gross tonnage has grown by over 200 per cent and export has also grown by over 500 per cent.

    Usman said, based on close linkage between sea port activities and economic development, the Buhari administration, through the NPA,  cannot afford to treat it with levity.

    The Federal Government, Usman said, is therefore reforming operations at the seaports for optimal performance,  and making the transport sector responsive and dynamic enough to boost speedy economic recovery and growth.

    Unnecessary delays, sharp practices and scam, Usman said, are being reduced drastically at the ports for goods to move freely, thereby making just in time (JIT) supply chain management to be effective.

    The NPA boss identified the following as some of the benefits of intermodal freight transport:

    * possibility of seamless door-to-door transport, which is the greatest advantage to shippers;

    *consolidation, particularly in the longer distance truck line move, as this leads to economies of scale;

    * possibility of transporting goods more economically in containers that can be moved on land by rail or truck and ob water by ship or barge. Containers save handling costs when freight must be transferred from one mode to another (e.g from ships to trucks(; also a truck-rail container movement can yield savings compared with truck alone if the cost of the transfer is offset by rail’s lower cost per ton mile. The movement of bulk commodities is also included in international modal freight transport; and

    *the enhancement of efficiency and integration within the supply chain could be transformed into improvement in cost, quality of service and delivery times.

    Customs Comptroller General Col. Hameed Ali (Retd.) identified sharp practices by importers and clearing agents as factors militating against quick cargo clearance and assured stakeholders that the Service would ensure that scanners are provided at sea ports, air ports and border stations between now and early next year to boost the trade facilitation programme of the Federal Government.

    Col. Ali assured stakeholders that the Buhari administration has  the political will to introduce a single window platform to reduce costs, increase compliance of importers and exporters and boost security.

    He said: “I  congratulate the Organizers for achieving this feat of bringing all stakeholders together to discuss an issue of great national importance. I have always believed that our port system  may be plagued with a myriad of problems, we stand stronger together, with a collective will to confront the knotty issues and proffer solutions.

    “Over the years, our port system have been adjudged poor performers by major Rating Agencies in terms of its competitiveness, charges paid for its   service,  and   efficiency.

    “In   terms   of   its   strategic   importance   to   the realisation   of   the   Economic   Growth   and   Recovery   Plan   (EGRP),   the Federal   Government   of   Nigeria   last   year,   issued   the   Ease   of   Doing Business Executive  Order  E01, with  far  reaching  measures  to improve business environment for Port operations. The Order imposes collective obligations   on   all   stakeholders   to   work   together   to   reduce   observed bottlenecks in our operations, achieve faster processing of cargo clearance, streamlining of procedures and fighting corrupt practices in our ports.

    “One year on, this conference offers us the opportunity to take stock of our performance and reflect on the progress made in our attempt to bring efficiency to the Ports. You may also recall that in the course of last one year, criminal elements attempted to exploit the weakness in the port systems to compromise our national security through the importation of arms and ammunition through Apapa and Tin-can Island Ports.

    “We therefore need to work together to present a united front against those characters waiting in the wings to compromise our system. We must leverage   on   opportunities   presented   by   new   technologies   to   fast   track

    compliant traders and punish the offenders. We have to strengthen our capacity   to   investigate   offenses   against   our   laws   and   impose   heavy sanctions that has deterrence factors on deviants.

    “We must all resolve that the selfish interests of few economic saboteurs should not be allowed to subjugate our collective will to bring sanity to our port system.

    “One way to  improve our performance is actually to carry out  an assessment of our operation, identify areas where we have made progress,and those where we still have some bottlenecks and delays. Following the methodology   of   the   World   Customs   Organisation   (WCO),   the   Nigeria Customs   Service   last   month,   in   collaboration   with   our   Stakeholders launched a Time Release Study project as a tool for trade facilitation.

    “The study is expected to scientifically measure the time taken for clearance of goods between the time of arrival and exit from the port. Using Apapa port as a pilot, the study will undertake an assessment of the clearance business process, collect survey data, analyze and publish the results. It is hoped that   the   study   will   chart   a   roadmap   for   collective   implementation   of measures to  achieve  faster clearance. I am happy to announce that the Working Group, comprising representatives of all stakeholders here was inaugurated yesterday, and is currently undergoing a training workshop in Lagos, under the guidance of the WCO,”the CGC said.

    Stakeholders at the conference said the single window is a laudable initiative, which a country like Nigeria ought to embrace to transform the ports.

    Dr Obajuluwa Oluwasanmi said the single window platform would enhance trade competitiveness through improvement in import, export, transit procedures and information sharing system among the government agencies.

    The facility, he said, would ensure that there is a paperless Customs declaration, compliance and online approval on all exports and imports coming to the country.

    The current 100 per cent physical examination of goods, according to him, would be reduced and all government agencies at ports integrated.

    “The single window facility will also need to be supported by legislation from the National Assembly

    “The National Single Window is the ultimate in port operation. But it must be multi-agencies integrated for it to be successful. The port is a transit point and our ports must be seen and used as such. That is why we have dry ports across the country to decongest the port and NPA as the landlord must have a say.

    “The benefits are immense, because on a micro level, it will boost the competitive advantage of our ports and its traders on the international markets while increasing government’s revenue, boost foreign direct investment, introduce simpler, faster clearance, and release processes,” he said

    The Government’s attention on the single window, he said, should be focused on the following:

    *reducing time and cost of doing business at ports;

    *simplification and automation of ports operations; and

    *reduction of the human interface and increased transparency among others.

    The Managing Director and Editor -in-Chief  of The Nation Mr Victor Ifijeh,who was represented by the Chairman, Editorial Board Mr Sam Omatseye thanked the Minister, the Comptroller-General of Customs and the Chief Executives of NPA, NIMASA, the Nigerian Shippers Council, NIWA and other agencies for their support  and collaborate with the paper to organise the event.

    “We were all in Lagos last year to witness the first edition of this conference. Today, we are all here for the second edition as part of our efforts to move the transport sector forward and help in speedy economic recovery and growth of our country.

    “We all know the problems facing us as a nation and our economy.

    They have also been the subject of various talks. Nevertheless, until the problems are adequately addressed, the need for more engagements like we are having now will continue.

    For the Federal Government’s plans to introduce single window platform and provide scanners for Customs examination, the Editor-in-Chief said there was need for all agencies at ports to key into the trade facilitation programme of the Federal to  boost efficiency, reduce time and cost and make the ports competitive and attractive for business.

     

  • NAFDAC returns to seaports, borders

    THE National Agency for Food and Drug Administration and Control (NAFDAC) has returned to the seaports and borders.

    This is to effectively control importation of unregulated products, falsified and substandard drugs, unwholesome foods, narcotic drugs and hazardous chemical substances and foods.

    According to its director-general, Prof. Mojisola Adeyeye, the move was in collaboration with relevant Ministries, Departments and Agencies (MDAs) and with the active support of the Office of the National Security Adviser (ONSA), Presidential Enabling Business Environment Council (PEBEC) and Ministry of Transport .

    Prof. Adeyeye said NAFDAC received the notice yesterday,  in a letter dated March 29, 2018, from the office of Vice President, as part of the PEBEC reforms.

    Prof.  Adeyeye said thousands of Nigerians have died as a result of falsified and substandard medicines.

    She said: “Many are currently ill, most likely due to unwholesome foods, drugs and abuse of narcotics and controlled substances, such as codeine, tramadol, pentazocine, etc. These are partly due to exclusion of NAFDAC from our ports since 2011. The recent documentary on codeine abuse brought more attention to the issue.”

    The NAFDAC boss added that aside from the dangers posed to public health, involvement of Nigerian youths in abuse of drugs weakens national growth, economy and nation-building as a result of accompanied side effects of abuse, i.e., disruption of life goals, ideals and families.

    “Moreover, the threat to national security, due to criminality and terrorism that often result from such abuse is obvious,” she said.

    The agency hailed the Office of the NSA, the Chemical Society of Nigeria, the Pharmaceutical Manufacturing Group of the Manufacturers Association of Nigeria (PMGMAN), the Association of Food, Beverage and Tobacco Employers (AFBTE), Association of Pharmaceutical Importers of Nigeria (APIN) and other key stakeholders for recognising NAFDAC as a key player in the national security architecture as well as restoring the presence of its officials at designated ports of entry and land borders.

    “Our agency will work with the Nigerian Customs Service, the Shippers Council and other sister agencies in ensuring that foods, drugs, chemicals and other NAFDAC regulated products that pose danger to our population are controlled at the point of entry. NAFDAC at the ports will ensure that dangerous drugs or substances of abuse, many times falsely shipped as building materials, electrical appliances, computer accessories, etc. will be intercepted at the point of entry,” said Prof. Adeyeye.

     

     

    She said, in addition, the presence of NAFDAC at the ports and borders will reduce significantly the evasion of payments of statutory fees for importation of regulated products, thus increasing the agency’s internally generated revenue and that of the Federal Government.

     

     

     

     

     

     

     

     

  • ‘Govt to connect seaports, airports, container depots by rail’

    The Federal Government yesterday unveiled plans to connect seaports, airports and the inland container depots by rail.

    Minister of Transportation Rotimi Amaechi said this at the opening of 15th National Council on Transportation in Sokoto.

    He explained that it would reduce congestion at the ports, create jobs and significantly reduce the cost of transportation.

    The minister, who was represented by the Permanent Secretary, Sabiu Zakari, said: “The development of intermodal transportation would reduce the cost of transportation, the influx of people and trucks to port cities thereby reducing congestion at the ports.

    “It would also create jobs by the optimal utilisation of the various modes, develop modern transport infrastructure as the need arises and extend the life of the already existing  ones.”

    He added that it would reduce over-reliance on a single mode, as it is the case with road mode in Nigeria.

    Sokoto State Deputy Governor Ahmed Aliyu called for the extension of railway lines from Kaura Namoda in Zamfara State to Sokoto.

    Aliyu, who was represented by a permanent secretary, Alhaji Bello Abubakar, urged the Federal Government to establish Inland Dry Port in Illela Local Government Area due to the commercial activities in the area.

  • Arewa youths seek security at seaports

    Arewa youths at Seme border, Badagry, Lagos have urged the Federal Government to secure the nations seaports with a view to curb criminal activities at the points of the country’s sources of revenue.

    The youth, under the umbrella of the Arewa Youth Consultative Forum (AYCF), made the call in a statement signed by their chapter Chairman, Comrade Adamu Sambo, in which they lament the negligence of the government on the seaports.

    The group cited example of the recent discovery of 661 pump action riffles in a consignment which the landing Bill claimed contained steel door.

    They reminded the security agencies that their responsibilities include confirmation and physical examination of any items before the signing of any kind of goods out of the port.

    The forum hailed the Nigeria Customs Service (NCS) Controller-General (CG) for his continuous cleansing of the customs.

    They urged him to leave no stone unturned in his fight against corruption.

    The AYCF regretted that, seaports that are supposed to be a source of great revenue generation avenues has become a source of threat to the nation’s peace in terms of security.

    “Since the closure of land borders, another question begging for an answer is that has the government been able to ascertained maximum revenue generation at the sea ports since when the land borders have been closed?! The federal government should therefore go back to her record to see how much had been lost since the closure of the land borders,” the forum said.

     

     

     

     

     

  • How to make Nigerian seaports attain global standards

    How to make Nigerian seaports attain global standards

    MARITIME experts yesterday suggested how Nigerian seaports can attain world-class status and rank among the best. Their solutions were proffered at The Nation conference on “Fast-tracking Port Reforms.

    The conference was facilitated in Lagos at Civic Centre, on Ozumba Mbadiwe, Victoria Island, in conjunction with the Federal Ministry of Transportation and Epsilon Limited.

    The experts were drawn from key maritime sectors, including the Nigerian Ports Authority (NPA), Nigerian Shippers Council (NSC), Nigerian Maritime Administration and Safety Agency (NIMASA) and the National Inland Waterways Authority (NIWA).

    They urged the Federal Government to replicate the attention being given to the Apapa and Tin Can Island ports in Lagos to other ports across the country.

    According to them, developing other ports in the other sub-regions would decongest the Lagos ports, create jobs and increase government’s revenue.

    The stakeholders stressed the urgent need for the Federal Government to move away from being solely responsible for transforming the ports derelict infrastructure, to engaging the private sector and using the Public Private Partnership (PPP) model.

    The time has come, they said, for the private sector, through private equity, to buy into the market and explore the opportunities there, adding that a cocktail of financing would do the trick.

    The experts, who brainstormed in two-plenary sessions spanning over three hours, also called on Deposit Money Banks (DMBs), to play pivotal roles in the development of the maritime segment of the nation’s economy.

    They, specifically, called for the reactivation of the Maritime Development Bank to spearhead the move. Nigerian banks, they pointed out, should also do more to support the maritime sector.

    The Maritime Development Bank, the argued, has become imperative to aid local investment in the sector and strengthen local players against foreign competition.

    They said the foreign players doing businesses, including those prospecting, are at advantage vis-a-vis their Nigerian counterparts, as they have cheaper access to funds from abroad.

    The discussants, including the Managing Director of the Nigerian Railways Corporation, Fidet Okhiria, Cajefam C. Agu, who stood in for the Executive Secretary/Chie Executive Officer,  Nigerian Shippers Council, Hassan Bello, the General Manager, Legal Services, Nigerian Ports Authority  Eniola Williams, Danladi Ibrahim of NIMA, who represented the Managing Director,  Boss Gida Mustapha and a representative of the Independent Corrupt Practices Commission, Mrs. R. A. Okodua, who presented a paper on: “Corruption risk assessment in the ports sector in Nigeria”.

    He said it was time for Nigeria to reform its ports processes to make them competitive so they could be attractive to users, warning that failure to do so would make the ports to continue to yield ground to the neighbouring ports of the West African sub-region.

    In the discussion sessions, chaired by Dr. Kehinde Bolaji, Team Leader, Governance and Peace Building Unit, United Nations Development Programme (UNDP) and Gabriel Amalu, the participants, drew attention to the existing disparities in tariff and charges among government agencies operating in the ports.

    They called for the streamlining of the charges and the enthronement of a single window for the clearance of goods and cargoes.

    Besides, they said the enforcement of a single window will further enhance the ease of doing business.

    The discussants also called for better coordination among the agencies, as well as the de-politicisation of ports’ operations. They stressed the need for professionalism and the need to move ports operations from human interference to more of engagement of technology.

    Their argument was that a continuous human contact in the clearing process would fester corruption, stating that government’s efforts to stamp out corruption from the ports should be driven by conscious efforts by shifting emphasis to automation.

    There was also the call on the government to engage smaller vessels to move goods from the Lagos ports to the other sub-regional ports and the hinterland now that the River Niger is being dredged.

    They stressed the need for the construction of a super-highway from the Lagos ports and the improvement on the ports access roads to ease movement of goods from the Apapa and Tin Can Island Ports.

    “There is the need to build a Nigerian superhighway that would drive marine traffic, decongest the Lagos ports and give life to the Eastern ports, the discussants’ posited”, they suggested.

    Nigeria, according to them, should develop its ports capacity to the status of a hub and grow traffic for the different ports for global vessels.

    Nigeria, as an internal commercial hub should boast of both world-class inland waterway and inland rail.

    These two sectors, they stressed, should be urgently worked upon, as well as the need for stable policy framework for the maritime sector.

    The Nation Editorial Board chairman, Sam Omatseye, announced the creation of an Advisory Committee with membership drawn from the Transportation Ministry, NPA, NIMASA, and the National Association of Chambers of Commerce, Mines and Agriculture (NACCIMA), to ensure the implementation of the conference recommendations.

  • Deep seaports: Prospects and challenges

    Deep seaports: Prospects and challenges

    A Lagos lawyer, Chijioke Emeka, examines the legal framework for deep seaports development and the economy at a workshop on Maritime Law organised by the Nigerian Institute of Advanced Legal Studies (NIALS)

    More than 86 per cent of Nigeria-bound cargoes pass through the ports in Lagos. The industries within Lagos and its environs are a major attraction. The role of industries cannot be ruled out. Industries need modern ports to move their equipment. Apart from Lagos, how many states can boast of the presence of industries? You cannot rule out the role of industries in port operations and efficiencies.

    Deep seaports are transit points. What is the reason for developing a deep seaport in Bayelsa, Akwa Ibom and Delta states? We must do things professionally and not politically. There are critical factors to consider when developing a port. A deep seaport is expensive to maintain. A port must be competitive. We have enough ports already. Most of the ports are not viable. Let’s develop our roads and rail network.”

    Perhaps the jostle by States for deep seaport hosting may be explained by the reality of the implications of the fact that Nigeria currently accounts for 76 per cent of all maritime trade moving around West Africa. It requires no clairvoyance to project that whoever hosts a viable deep seaport along Nigeria’s coastline will likely host the cargo hub serving port for ports along the entire sea way from far West down the entire belly of Africa, ending at Central African maritime curve.

    Challenges to deep seaport development in Nigeria

    The development of deep seaports in Nigeria is not without possible challenges. These may include:

    Financial constraints

    The cost of a Greenfield deep seaport project can be enormous. The huge financial implications can be a set-back to such mega projects. The Ibaka Deepwater Port is estimated to cost at about $2billion. Cost recovery estimations on such a project must be robust. Recovery for long-term gestation projects like a seaport can be slow. Financing can therefore be a significant challenge, which may only be overcome by considerable guarantees coming from government partners.

    This is why the PPP model, already at work in the ongoing Lekki Port, can be a solution to seamless financing of such mega projects. The private sector-government synergy is expected to interplay to provide robust funding from big local lenders, the global financial system and the International Finance Corporation, as the case may be.

     

    Political interference

    Political interference can be a challenge to deep seaports development. There are known instances in the past where political interference scuttled private sector efforts at projects at the commanding heights of the economy. Even with concession agreements, once political expedience dictates interference, concession contracts have usually been unable to protect concessionaires from political weight propelled by virtual sovereign immunity and impunity.

    This is one of the reasons a regime of robust legal framework is required to back up the development of deep seaports.

     

    Lack of adequate legal framework and regulatory regime

    While the jostle for participation in deep seaport development rages, the project still lacks a formidable legal framework. Deep seaports require distinctive guidelines for their construction and operation.

    The Nigerian Ports Authority Act 1999, the principal legal framework for ports has not envisaged deep seaports development. The Ports and Harbours Bill currently before the National Assembly has not made significant provisions on regulatory requirements for deep seaports. The Bill only made a broad reference to development of Greenfield port and the required approvals for same.

    Experts suggest solidly rooted guidelines in the form of legislation as necessary for effective development and operation of deep seaports. There is need for benchmarks to be set and operational issues relating to licensing, marine environmental management and navigation, environmental review criteria, pipeline safety and operation, application of international agreements, common user infrastructure and sharing, record-keeping, inspections, supervisory roles, and termination of licenses, amongst others, clarified [Akabogu, E.; ibid].

    Ibaka was already under threat of Court actions over alleged violation of intellectual property rights in its conceptualisation. An alumnus of the Nigerian Institute of Policy and Strategic Studies (NIPPS), Kuru, Andrew Okoja, retired Navy Rear Admiral, had claimed that the concept which gave birth to the project was his original idea. The retired naval officer claimed to have developed the concept while undergoing Senior Executive Course in NIPSS in 1993 for the development of a deep seaport in the eastern seaboard of Nigeria. Both NPA and Akwa Ibom State Government were threatened with law suits by Okoja and his NIPSS class.

    The ownership, construction and operation of the deep seaports are guided by law and ethics. The introduction of the Deep Water Port Act 1974 (DWPA) in the USA and the amendments in 1984, 1990, 1995 and 1996 furnished conditions to meet the necessary requirements for deep water ports. as deducing adverse effects on the marine environment, which might come about as an aftermath of the development of such ports and submitting detailed plans, including financial, technical information, location and the capacity for construction and operation and maintenance of the proposed deepwater ports.

    In 2000, due to the Amendments in 1996, the importation of natural gas, which would utilize offshore structures, was proposed by industry to the U.S. Coast Guard. Prior to this, the DWPA solely considered crude oil and did not specifically allow the importation of natural gas. Subsequent to dialogue in clarifying jurisdictional roles and procedures for the application process, Coast Guard proceeded with proposing legislative changes to the DWPA. The 9/11 terrorist attacks changed the focus of the entire country with regard to public safety.

    Following 9/11, potential security threats were analysed throughout the US in all forms of transportation and industries. Soon Congress implemented another law, the Maritime Transportation Security Act 2002 (MTSA). Congress assessed the risks that affected the maritime environment that included the potential hazards of LNG. In November 2002, the President signed the MTSA formally amending the DWPA to extend the definition of deepwater ports to include natural gas facilities, implement measures to improve vessel and facility security.

    Overtime, agitation on port controls and regulation have favoured reforms that saw to privatisation and concessions of ports to free port activities to competition and effectiveness.

    Even with the gains of these reforms, it has been cautioned that care should be taken to ensure that foreign investors do not prejudice the interests of cabotage operators when it becomes suitable to them for business or anti-trust purposes.

    Following the US example, Nigeria should find a meeting point between free market in the deep seaport enterprise, and effective legal and regulatory regime that would protect the concessionaires and the country.

    Short and long run safety regulations

    There are several safety issues associated with deep seaports. In the US, the DWPA encouraged the promotion of the deep water ports as a safe and efficient medium of oil transportation with minimised tanker traffic and associated risks. For the sake of safety measures latest technologies available are used in the construction and operation of the deep water ports which also impose economic, social and environmental effects in the national interest.

    The concerned deep seaports authorities are responsible for oil spill prevention, containment and cleanup, effect on oceanographic currents patterns, potential dangers from waves, winds, weather, and geological conditions etc. There have been concerns that Nigeria may be easy destination for hazardous cargo. It is believed that a deep seaport that attracts Panamax and Post-Panamax vessels may even increase the possibility. These are part of the concerns for safety, both in the short and long run.

     

    Poor existing road and rail network

    Although deepwater ports will be most favourable to importers of liquid bulk cargo, implications of evacuation could pose some challenges. Though a detailed system of pipelines is expected to be a core part of the project design, individual companies may have to link up to the system from the landing point to wherever they will locate their storage tanks. For many that have existing facilities already in built-up and congested areas like Apapa, costs on such additional investment may be discouraging. Current security issues affecting existing pipelines are also important to note and prepare against.

    A major challenge to Ibaka might be the need for effective road network for inland cargo movement. A massive construction programme of heavy-duty, year-round-motorable, integrated road networks, specifically targeted as distributive channels, must be developed alongside the deep seaport. A railway design should also be explored for more effective transportation. Also, the nearby Ibom International airport at Okobo may be harnessed for inland air movement of cargo, especially to the North Central and North East.

    For Lekki Port, with the bloated urban density issues in mainland Lagos resulting in intractable traffic gridlocks, more robust engineering ingenuity is expected to be deployed to develop seamless evacuation access for the massive cargo expected from non-regional hub cargo traffic.

    Poor power capacity

    As Africa’s population giant, Nigeria has missed huge opportunities in real sector direct foreign investments with her persistent power challenges. With the yet intractable energy challenge in Nigeria, aside from road networks, electricity is expected to be a challenge not only to the deep seaports but for the projected surrounding businesses and new urban settlements that would attend the ports. With the ongoing reforms and concessions by the Federal Government in the power sector, the challenge of power may well be on its way out of Nigeria.

    Also the plan to site Independent Power Plants in the proposed Ibaka Industrial City may be the answer to likely energy challenges of the deep seaports.

    Poor viability assessment culture and moribund businesses

    Nigeria’s landscape is littered with many large scale projects that commenced with great hopes and promises and ended up white elephants. Apart from post-development mismanagement, the reason for the dash of hopes is placing political considerations above honest viability assessments of the sustenance of such projects as short-time and long time business models.

    It has been suggested that promoters of Ibaka Deep Seaport should examine the Calabar Port for answers to its challenges. Posers should be raised whether, apart from its shallow draft and dredging issues, the port is affected by other factors that have robbed it of viability advantage like its neighbour in Port Harcourt. As a cargo hub much of its cargoes are expected to be delivered to neighbouring ports by lighters and may not be affected by shore logistic problems. Yet, for the purpose of achieving the aspect of its business plan that targets gateway status to inland states of the Southeast, Northcentral states and Northeast states, these questions are necessary to cover the spectrum. This is because Calabar challenges may become Ibaka’s challenges, subject to results of an investigation on honest viability assessment.

    A deep seaport is not a social infrastructure. It is a large and complex business venture that should only be embarked upon with demonstrable viability as self-sustaining and profitable business.

    Food for thought

    From 2006 the Panama Canal, the Atlantic/Pacific shipping gateway, has been undergoing expansion at the cost of $5.3 billion. The expansion is expected to be completed in 2015 and the expended sum projected to be recovered within 11 years; because it is business.

    Summary and recommendations

    A Deep Seaport is measured in terms of its increased depth of draft with attendant capacity to host and handle larger heavily loaded (economical) vessels.

    The global trend that saw naval architects and engineers pursuing a predilection for larger designs of carriers; is the incentive for deeper seaports, expected to accommodate Panamax and Post-Panamax ships.

    With population advantage and with almost 80 per cent of regional cargo traffic being Nigeria-bound, Nigeria is the natural hub of maritime industry in the region and cannot be left behind in the jostle for efficient deep seaports.

    Deep seaports are capital intensive in development and maintenance. Their viability indicators must include access to population, industrial and trade activities. Thus Nigeria does not need more than Lekki and Ibaka deep seaports, at least for now and in the nearest future.

    The other suggested deep seaport locations at Badagry in Lagos State, Olokola in Ondo State, Ogidigben near Escravos in Delta State, Agge in Bayelsa State, Bonny in Rivers State, Calabar in Cross River State etc may turn into white elephant projects and should be rested for future developments.

    With the advantage of massive control power of regional cargo movement, Nigeria stands a huge chance of attaining the regional transshipment base with Lekki Deep Seaport; while Ibaka Deep Seaport would attain the oil and gas hub for much of the Atlantic stretch and an important global supply terminal.

    Funding constraints, political interference, lack of sufficient legal and regulatory framework, safety concerns, requirement of massive infrastructural support like roads and railway network, poor power capacity, poor viability assessment culture etc, are identified as factors that militate against deep seaport development in Nigeria. The challenges are however surmountable.

    Legal and regulatory framework for deep seaports development, ownership, operations, safety and security issues should be clearly set out. A middle ground should be found between a free market with regulatory framework for safety, sustainability and the larger national interest.

    A comprehensive inland river ports development will be a huge cargo transportation network support for deep seaports. Energy should be channeled towards developing a good network of river ports and jetties along Nigeria’s navigable waters.

    Deep seaport activities will impact positively on Nigeria’s economy, but to reap the benefits, parameters must be set right. Great opportunities for huge can be missed when mismanaged.

    •Emeka, a maritime practitioner and Principal Counsel, Auxano Law Consult in Lagos.

     

     

     

     

     

     

  • Deep seaports: Prospects and challenges

    Deep seaports: Prospects and challenges

    A Lagos lawyer, Chijioke Emeka, examines the legal framework for deep seaports development and the economy at a workshop on Maritime Law organised by the Nigerian Institute of Advanced Legal Studies (NIALS) 

    At the 2011 Nigerian Ports Consultative Council (NPCC) Summit in Uyo, which  has as theme “Unlocking maritime potential of Akwa Ibom State for accelerated development in Nigeria”, the NPCC expressed the sentiment that because of the proposed Ibaka port, the industrial, commercial and maritime landscape of Akwa Ibom State will never be the same again; and that all indicators of empowerment, youth and professional employment, wealth creation and entrepreneurship will become visible in the entire spectrum of the state.
    Stakeholders see the proposed deep seaport in the Lekki maritime corridor as first a timely intervention for the congestion in Lagos ports and a proper positioning for Nigeria as a hub in West and Central Africa. The deep seaport will not only enhance public revenue earnings in port activities and charges, but promote the production and earning scales in the real sector, the formal sector and the organised private sector; all factors that will promote the economy.

    Increased Ports and Terminals Handling Capacity
    A deep seaport will impact positively on the overall cargo handling capacity of Nigerian ports and thereby increase Nigeria’s Gross Domestic Product (GDP). Maritime transportation is one of the key sectors of the economy. Yet, it is a fact that this lucrative sector has not been fully harnessed in preference to the oil sector. The handling capacity of ports in Nigeria is put at 60 million metric tonnes, while demand and usage is about 100 million metric tonnes, and they are expected to rise with the increasing population, urban expansion and attendant demand for more markets.
    The cargo throughput handled in the ports in 2010 increased from 66,908,322 metric tonnes in 2009 to 74,910,282 metric tones in 2010, indicating a 12 per cent increase. Thus, Nigeria needs better designed port facilities in tune with increased cargo traffic, for the global competition. The emphasis is shifting to larger more economical vessels that require deeper harbour drafts. Global logistics trends have made the need for deep seaports more imperative.
    The last two decades have witnessed a major shift in the exploration and production focus of IOCs, with deep offshore frontiers becoming more attractive and widespread. This has naturally affected the dynamics of crude oil carriage, just as more efficient means of petroleum products and LNG supply and distribution are sought from the downstream segment of the industry. Crucially, logistics services for these new frontier developments define the core of operations, costs and efficiency, with bigger vessels infinitely more able to leverage on scales and further thereto, on costs. The foregoing defines today’s shipping and oil and gas reality in Nigeria, and paints the canvass for deepwater ports in bold relief.

    Urban, commercial and industrial hub
    The other proposed Greenfield port development at Ibaka also portends great economic benefits for Nigeria when completed. Historically, port cities are known to become commercial hubs and population centres, with a collateral development of related infrastructure and businesses due to port activities.
    Increasingly, space for further port development within the ports has been limited in places like Lagos, while demand for port services and commercial shipping interface has increased. Ibaka, therefore,promises urban expansion and industrialisation. The broader plan to develop an Ibaka Industrial City, if realised, promises a boost in industries, commerce and urban development.

    Multiplier effects on the informal sector
    The promise of ‘urbanisation and industrial impact’ expected from the proposed Ibaka Industrial City, led the Akwa Ibom State Governor to promise the Oron people, Ibaka Port local hosts, that the state would build 1,500 housing units in Ibaka in readiness for the influx of the jet set community expected to descend on the region to operate the port and utilise the nearby international airport. He advised the locals to also build houses which they could offer at commercial prices to the new tenants. The Governor tasked the locals to be ready to “play host to visitors and workers in these international transport facilities and in turn benefit from their economic activity”.
    This is a demonstration of the capacity of deep seaports to affect per capita earning even in the informal sector. Deep seaports would no doubt impact positively on the economy. But to reap the benefits, Nigeria must start out early to get it right. Benefit of even the hugest opportunities can be missed when mismanaged.

    Prospects of deep seaport
    development in Nigeria
    The prospects of deep seaport development is very bright. This is with particular emphasis on the ongoing Lekki Deep Seaport by Tolaram, and the Ibaka Deep Seaport. The adopted Public-Private Partnership (PPP) model that encourages private development of the proposed ports enhances the prospects for the deep seaports.
    This dispenses with limitations and problems associated with public managed enterprises. In fact, the idea of the government as a ‘businessman’ is already spent globally. The private development initiative on one hand frees the projects for funding from the international financial system on purely business model arrangements, and also assures a level of the strategic government financial support and goodwill. It also brings class and international standards of operations into play with businessmen committed to meeting completion milestones and operational efficiency with business returns in mind. The prospects are indeed high.

    The Lekki Deep Seaport (Tolaram Port@Lekki)
    Located in the Lagos Free Trade Zone, the proposed port has deepwater berths with a 670- metre turning circle and a harbour basin 14 metres deep, the Lekki Deep Seaport has the following advantages:
    •Rising demand for container capacity levels in Lagos expected to reach over 2.5 million TEUs by next year.
    •Significant growth in sectors, such as finished goods, within Nigeria and the regions that are linked to high levels of containerisation.
    •Potential to transform into the first major transshipment hub in the region, servicing the regional sea routes and the hinterland
    •First-mover advantage in providing deepwater facilities to support large container volumes, liquids and dry bulk cargo
    •Downstream procession facilities contributing to the need for liquid bulk facilities.
    The development of the Lekki Port is being undertaken by Lekki Port LFTZ Enterprise (LPLE) , a special purpose vehicle promoted by the Tolaram Group. It is expected to comprise three shareholders, the Nigerian Ports Authority (NPA), the Lagos State Government and an Investment Holding Company incorporated to hold the non-Nigerian governmental interests in LPLE. The Sponsors, the Tolaram Group, is expected to hold a beneficial interest of up to 45 per cent in the project while the NPA and Lagos State Government are expected to hold 20 per cent each.
    The LPLE entered into a Concession Agreement with NPA on April 21, 2011 for the rights to build and operate a deep-sea port in Ibeju Lekki. The deal was granted under the NPA Act. The concession and the Act form the legal and regulatory basis for the construction and operation of the port. With ultimate responsibility under the concession, the LPLE will manage the interfaces between NPA, the port operations manager and three industry specialist terminal operators. The LPLE and International Container Terminal Service, Inc. (ICTSI) had signed a Sub-Concession Agreement for the development and operation of the container terminal at the port. Work is ongoing on the project slated for completion next year.

    Ibaka Deep Seaport
    The relevance of Ibaka in the equation is its unique natural draft of over 15 metres and vantage position at the eastern-most board of the maritime space. Thus, with a broad plan for accessibility in terms of good rail and road network inland, it can handle the import and exports potentials of large portions of the eastern and north-central and north eastern states. This is apart from its sub-regional potentials with its maritime contiguity with Central Africa.
    The area designated for the project has the longest coastline and just five kilometres to Uyo capital city. With a depth of between 15 and 18 metres water channel and 129 kilometres stretch of land, it has some of the best port features that could be found anywhere in the world. Local expectations are that with the Ibaka Deep Seaport, Nigeria will have a seaport that will not require perennial dredging, which will serve countries in the Gulf of Guinea. The peaceful nature of the community and availability of undeveloped land will make the area a self-sustaining industrial city when the port is completed. In addition to the port, the area will also harbour independent power plants, refinery and industries. It is expected to employ 100,000 Nigerians, strengthen our country’s position in oil and gas sector in the world. It is also expected to be the nation’s gateway to the rest of the world through the Gulf of Guinea.
    “It sounds great and unbelievable, but achievable”, said the State Governor, Godswill Akpabio, who promised that his government would award a contract for the dualisation of the road leading to the proposed port, “to correct the mistake in Apapa”, adding that in partnership with the Federal Government, a multimodal transport system would be built to include rail lines linking Port Harcourt and Calabar.
    With Akwa Ibom as Nigeria’s largest oil and gas base, Ibaka will be at the nerve-centre of E&P. It strategically sits within an accessible location within the Gulf of Guinea for ocean traffic from all directions. Logistics services in support of deep offshore E&P can be more readily deployed. This will include repairs of rigs, dry-docking of very large carriers and mobilisation of heavy equipment. These services will be useful even for E&P activity further down in Angolan waters. These add to the over-all viability of Ibaka.

    ‘Political’ deep seaports
    Apart from Lekki and Ibaka, the other deep seaport locations being thrown around are hard to be reconciled with in terms of collective and individual viability prognosis. To start with, Nigeria does not need more than one or at most two deep seaports. It does not make any economic or even common sense to add other location names to Lekki and Ibaka. Nigeria does not need two deep seaports in Lagos, Ondo State, Delta State, Bayelsa State and and Akwa Ibom State each, coming to six!
    Even a deep seaport at Calabar is also named in some circles, bringing the number to about seven!
    Of course, the protagonists of a Calabar Deep Seaport might not have inquired into why the Calabar Port operates below optimum and whether a deep seaport would be different. With the nearby Federal Lighter Terminal at Onne, in Rivers State, and the proposed deep seaport at Ibaka, what will be the economic basis for the second Calabar port? The scramble for unviable deep seaports have also seen some people proposing a Bonny Deep Seaport in Rivers State, which would place the number at eight along Nigerian waters!
    The only reason Nigeria would discuss deep seaports in Lagos, Badagry, Olokola, Ogidigben, Agge, Bonny, Ibaka and Calabar is if they have become a political issue in the mould of the so-called ‘dividends of democracy’ to be started as white elephant projects for political report cards. The political dimension to development, usually expressed in the cliché building bridges where there are no waters must have been responsible for the scramble to develop ‘international’ airports in every state. Without honest professional viability considerations, they end up not affording 10 per cent of promised ‘50,000 jobs’ or even sufficient flight operations to pass for sustainable business.
    In reality, Lekki and Ibaka are more than enough for Nigeria. Ordinarily, one deep seaport would have been sufficient while effort would be geared towards upgrading the ports and widening their capacities. Also, attention would be directed towards developing the existing and new Inland River ports on Nigeria’s huge network of inland navigable waters and getting them operate optimally. Most of the existing ports are either not busy or not operational at all. It will be more beneficial to the economy to channel energy to development and restoration needs of Onitsha Port, Baro Port (Niger State), Oguta, Jamata (Lokoja) and dredging of River Benue to host a river port in Makurdi.
    There have been criticisms over the plan to develop several deep seaports in Nigeria. Describing most of the proposed ports as “political ports” that may not stand the test of time, the managing director of a prominent firm operating in the sector advised the governors of the three Southsouth states of Akwa Ibom, Delta and Bayelsa to carry out what he described as “genuine feasibility” studies before taking further action. He believed that the three states could collaborate to develop a Niger Delta deep seaport as part of measures to cut costs and ensure viability.

    He said: “Developing a deep sea port in Bayelsa, Delta and Akwa Ibom states is a waste of scarce resources. A deep seaport is not a motor park that must be in every state. Large ships naturally go to viable ports. I’m worried. People in this zone should be worried. Where is the market for the proposed deep seaports? Where are the industries? Why can’t people learn from past mistakes? The three governors are from the same party. I expect them to come together in the interest of the poor and helpless people in their states instead of embarking on capital-intensive projects that may not be in the interest of their people.”
    Also, President, National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Lucky Amiwero, criticised plans for multiple deep seaports. “This is politics. But I want to advise the government to give consideration to professionalism and not politics. We need one deep seaport for mega ships in Nigeria. Seventy-six per cent of cargoes in West Africa sub-region are for Nigeria.
    More than 86 per cent of Nigeria-bound cargoes pass through the ports in Lagos. The industries within Lagos and its environs are a major attraction. The role of industries cannot be ruled out. Industries need modern ports to move their equipment. Apart from Lagos, how many states can boast of the presence of industries? You cannot rule out the role of industries in port operations and efficiencies.
    Deep seaports are transit points. What is the reason for developing a deep seaport in Bayelsa, Akwa Ibom and Delta states? We must do things professionally and not politically. There are critical factors to consider when developing a port. A deep seaport is expensive to maintain. A port must be competitive. We have enough ports already. Most of the ports are not viable. Let’s develop our roads and rail network.”

    Perhaps the jostle by States for deep seaport hosting may be explained by the reality of the implications of the fact that Nigeria currently accounts for 76% of all maritime trade moving around West Africa. [Chilaka, E., Proposed Ibaka Deep Sea port – How Feasible? http://www.ddhmag.com/ibakaport.htm] It requires no clairvoyance to project that whoever hosts a viable deep seaport along Nigeria’s coastline will likely host the cargo hub serving port for ports along the entire sea way from far West down the entire belly of Africa, ending at Central African maritime curve.
    5.00 CHALLENGES TO DEEP SEAPORT DEVELOPMENT IN NIGERIA

    The development of deep seaports in Nigeria is not without possible challenges. These may include:

    Financial Constraints

    The cost of a Greenfield deep seaport project can be enormous. The huge financial implications can be a set-back to such mega projects. The Ibaka Deepwater Port is estimated to cost at about US$2billion. Cost recovery estimations on such a project must be robust. Recovery for long-term gestation projects like a seaport can be slow. Financing can therefore be a significant challenge, which may only be overcome by considerable guarantees coming from government partners.

    This is why the PPP model, already at work in the ongoing Lekki Port, can be a solution to seamless financing of such mega projects. The private sector-government synergy is expected to interplay to provide robust funding from big local lenders, the global financial system and the International Finance Corporation, as the case may be.
    Political Interference

    Political interference can be a challenge to deep seaports development. There are known instances in the past where political interference scuttled private sector efforts at projects at the commanding heights of the economy. Even with concession agreements, once political expedience dictates interference, concession contracts have usually been unable to protect concessionaires from political weight propelled by virtual sovereign immunity and impunity.

    This is one of the reasons a regime of robust legal framework is required to back up the development of deep seaports.
    Lack of Adequate Legal Framework and Regulatory Regime

    While the jostle for participation in deep seaport development rages, the project still lacks a formidable legal framework. Deep seaports require distinctive guidelines for their construction and operation.

    The Nigerian Ports Authority Act 1999, the principal legal framework for ports has not envisaged deep seaports development. The Ports and Harbours Bill currently before the National Assembly has not made significant provisions on regulatory requirements for deep seaports. The Bill only made a broad reference to development of Greenfield port and the required approvals for same.

    Experts suggest solidly rooted guidelines in the form of legislation as necessary for effective development and operation of deep seaports. There is need for benchmarks to be set and operational issues relating to licensing, marine environmental management and navigation, environmental review criteria, pipeline safety and operation, application of international agreements, common user infrastructure and sharing, record-keeping, inspections, supervisory roles, and termination of licenses, amongst others, clarified [Akabogu, E.; ibid].

    Ibaka was already under threat of Court actions over alleged violation of intellectual property rights in its conceptualization. An alumnus of the Nigerian Institute of Policy and Strategic Studies (NIPPS), Kuru, Andrew Okoja, retired Navy Rear Admiral, had claimed that the concept which gave birth to the project was his original idea. The retired naval officer claimed to have developed the concept while undergoing Senior Executive Course in NIPSS in 1993 for the development of a deep seaport in the eastern seaboard of Nigeria. Both NPA and Akwa Ibom State Government were threatened with law suits by Okoja and his NIPSS class. [http://amehnews.com/national/maritime/multiple-court-actions-menacing-ibaka-deep-seaport-project/]
    The ownership, construction and operation of the deep seaports are guided by law and ethics. The introduction of the Deep Water Port Act 1974 (DWPA) in the USA and the amendments in 1984, 1990, 1995 and 1996 furnished conditions to meet the necessary requirements for deep water ports. as deducing adverse effects on the marine environment, which might come about as an aftermath of the development of such ports and submitting detailed plans, including financial, technical information, location and the capacity for construction and operation and maintenance of the proposed deepwater ports.
    In 2000, due to the Amendments in 1996, the importation of natural gas, which would utilize offshore structures, was proposed by industry to the U.S. Coast Guard. Prior to this, the DWPA solely considered crude oil and did not specifically allow the importation of natural gas. Subsequent to dialogue in clarifying jurisdictional roles and procedures for the application process, Coast Guard proceeded with proposing legislative changes to the DWPA. The 9/11 terrorist attacks changed the focus of the entire country with regard to public safety.
    Following 9/11, potential security threats were analyzed throughout the US in all forms of transportation and industries. Soon Congress implemented another law, the Maritime Transportation Security Act 2002 (MTSA). Congress assessed the risks that affected the maritime environment that included the potential hazards of LNG. In November 2002, the President signed the MTSA formally amending the DWPA to extend the definition of deepwater ports to include natural gas facilities, implement measures to improve vessel and facility security. [Kusano, K.; The Deepwater Port Act: Understanding the Licensing Process]
    Overtime, agitation on port controls and regulation have favoured reforms that saw to privatization and concessions of ports to free port activities to competition and effectiveness. [Wilson, I.; Legal and Regulatory Framework for Concessioning in Ports Operation: The Maritime Newsletter Vol. 2, pp. 195 – 198] Even with the gains of these reforms, it has been cautioned that care should be taken to ensure that foreign investors do not prejudice the interests of cabotage operators when it becomes suitable to them for business or anti-trust purposes. [Akabogu E. with Onyiuke, V.; Maritime Cabotage in Nigeria, p. 72]

    Following the US example, Nigeria should find a meeting point between free market in the deep seaport enterprise, and effective legal and regulatory regime that would protect the concessionaires and the country.
    Short and Long Run Safety Regulations
    There are several safety issues associated with deep seaports. In the US, the DWPA encouraged the promotion of the deep water ports as a safe and efficient medium of oil transportation with minimized tanker traffic and associated risks. For the sake of safety measures latest technologies available are used in the construction and operation of the deep water ports which also impose economic, social and environmental effects in the national interest.
    The concerned deep seaports authorities are responsible for oil spill prevention, containment and cleanup, effect on oceanographic currents patterns, potential dangers from waves, winds, weather, and geological conditions etc. There have been concerns that Nigeria may be easy destination for hazardous cargo. It is believed that a deep seaport that attracts Panamax and Post-Panamax vessels may even increase the possibility. These are part of the concerns for safety, both in the short and long run.

    Poor Existing Road and Rail Network

    Although deepwater ports will be most favourable to importers of liquid bulk cargo, implications of evacuation could pose some challenges. Though a detailed system of pipelines is expected to be a core part of the project design, individual companies may have to link up to the system from the landing point to wherever they will locate their storage tanks. For many that have existing facilities already in built-up and congested areas like Apapa, costs on such additional investment may be discouraging. Current security issues affecting existing pipelines are also important to note and prepare against. [Akabogu, E., ibid.]
    A major challenge to Ibaka might be the need for effective road network for inland cargo movement. A massive construction programme of heavy-duty, year-round-motorable, integrated road networks, specifically targeted as distributive channels, must be developed alongside the deep seaport. A railway design should also be explored for more effective transportation. [Chilaka, E., ibid.] Also the nearby Ibom International airport at Okobo may be harnessed for inland air movement of cargo, especially to the North Central and North East.
    For Lekki Port, with the bloated urban density issues in mainland Lagos resulting in intractable traffic gridlocks, more robust engineering ingenuity is expected to be deployed to develop seamless evacuation access for the massive cargo expected from non-regional hub cargo traffic.

    Poor Power Capacity

    As Africa’s population giant, Nigeria has missed huge opportunities in real sector direct foreign investments with her persistent power challenges. With the yet intractable energy challenge in Nigeria, aside from road networks, electricity is expected to be a challenge not only to the deep seaports but for the projected surrounding businesses and new urban settlements that would attend the ports. With the ongoing reforms and concessions by the Federal Government in the power sector, the challenge of power may well be on its way out of Nigeria.

    Also the plan to site Independent Power Plants in the proposed Ibaka Industrial City may be the answer to likely energy challenges of the deep seaports.
    Poor Viability Assessment Culture and Moribund Businesses

    Nigeria’s landscape is littered with many large scale projects that commenced with great hopes and promises and ended up white elephants. Apart from post-development mismanagement, the reason for the dash of hopes is placing political considerations above honest viability assessments of the sustenance of such projects as short-time and long time business models.

    It has been suggested that promoters of Ibaka Deep Seaport should examine the Calabar Port for answers to its challenges. Posers should be raised whether, apart from its shallow draft and dredging issues, the port is affected by other factors that have robbed it of viability advantage like its neighbour in Port Harcourt. As a cargo hub much of its cargoes are expected to be delivered to neighbouring ports by lighters and may not be affected by shore logistic problems. Yet, for the purpose of achieving the aspect of its business plan that targets gateway status to inland States of the South East, North Central States and North East States, these questions are necessary to cover the spectrum. [Chilaka, E.; http://www.ddhmag.com/ibakaport.htm] This is because Calabar challenges may become Ibaka’s challenges, subject to results of an investigation on honest viability assessment.

    A deep seaport is not a social infrastructure. It is a large and complex business venture that should only be embarked upon with demonstrable viability as self-sustaining and profitable business.

    Food for Thought: From 2006 the Panama Canal, the Atlantic/Pacific shipping gateway, has been undergoing expansion at the cost of US$5.3 billion. The expansion is expected to be completed in 2015 and the expended sum projected to be recovered within 11 years; because it is business.
    6.00 SUMMARY AND RECOMMENDATIONS

    6.1 A Deep Seaport is measured in terms of its increased depth of draft with attendant capacity to host and handle larger heavily loaded (economical) vessels.

    6.2 The global trend that saw naval architects and engineers pursuing a predilection for larger designs of carriers; is the incentive for deeper seaports, expected to accommodate Panamax and Post-Panamax ships.

    6.3 With population advantage and with almost 80% of regional cargo traffic being Nigeria-bound, Nigeria is the natural hub of maritime industry in the region and cannot be left behind in the jostle for efficient deep seaports.

    6.4 Deep seaports are capital intensive in development and maintenance. Their viability indicators must include access to population, industrial and trade activities. Thus Nigeria does not need more than Lekki and Ibaka deep seaports, at least for now and in the nearest future.

    6.5 The other suggested deep seaport locations at Badagry in Lagos State, Olokola in Ondo State, Ogidigben near Escravos in Delta State, Agge in Bayelsa State, Bonny in Rivers State, Calabar in Cross River State etc may turn into white elephant projects and should be rested for future developments.

    6.6 With the advantage of massive control power of regional cargo movement, Nigeria stands a huge chance of attaining the regional transshipment base with Lekki Deep Seaport; while Ibaka Deep Seaport would attain the oil and gas hub for much of the Atlantic stretch and an important global supply terminal.

    6.7 Funding constraints, political interference, lack of sufficient legal and regulatory framework, safety concerns, requirement of massive infrastructural support like roads and railway network, poor power capacity, poor viability assessment culture etc, are identified as factors that militate against deep seaport development in Nigeria. The challenges are however surmountable.

    6.8 Legal and regulatory framework for deep seaports development, ownership, operations, safety and security issues should be clearly set out. A middle ground should be found between a free market with regulatory framework for safety, sustainability and the larger national interest.

    6.9 A comprehensive inland river ports development will be a huge cargo transportation network support for deep seaports. Energy should be channeled towards developing a good network of river ports and jetties along Nigeria’s navigable waters.

    6.10 Deep seaport activities will impact positively on Nigeria’s economy, but to reap the benefits, parameters must be set right. Great opportunities for huge can be missed when mismanaged.
    Emeka, a maritime practitioner and Principal Counsel at Auxano Law Consult, a multidimensional law firm in Lago

     

     

  • Dockworkers issue two-week ultimatum to close seaports

    Port Harcourt dockworkers under the aegis of the Maritime Workers Union of Nigeria yesterday protested against alleged inability of their employer to honour the welfare agreement.

    They issued a two- week ultimatum to their employer to implement the agreement, which they said was signed by the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA).

    The protesters, who blocked the popular Njenmaze Street leading to Abonnema Wharf, accused NPA and NIMASA of neglecting them by failing to implement the agreement they signed.

    They said it was sad that NIMASA was collaborating with their employer to frustrate them.

    Mr. Godstime Atulegu, who led the protesters, said there was an agreement to set up minimum standards for the dockworkers, which were agreed upon.

    He said: “We agreed that the minimum gross wage for any employed dockworkers shall be N33, 000. That an increase of 10 per cent shall be added to all general/bulk cargo. We also told them that the unit payment per laden for 20-40 containers shall be N1, 000.

    “We agreed that the employer shall contribute in favour of each dockworker on their payroll, 7.5 per cent of workers’ monthly emolument as pension fund contribution toward the employee’s retirement. We reached many agreements with them, but they have abandoned us to suffer.”

    “There is no going back on the plan to shut down the seaport if by the expiration of the ultimatum, nothing happens. We urge President Goodluck Jonathan to intervene.”

    Contacted on the phone, the General Manager, Nigeria Ports Authority, Port Harcourt branch, Mr. Sunny Nwobe, said he was out of the country and not aware of the protest.