In the News:
Local Port and Maritime News Headlines
Warri Port: NPA to commence Escravos break water, channel dredging in 2009
As part of measures to reactivate the presently dormant port in the oil rich town of Warri, the management of the Nigerian Ports Authority (NPA) has completed plans to commence work on the repairs of Escravos break water and the dredging of the channel in 2009.
Disclosing this recently, the Managing Director of NPA, Malllam Abdul Salam Mohammed, said that by next year the authority would commence the process for getting the necessary technical drawings for the break water.
According to Mohammed, “ I believe that by next year we will be able to have the necessary technical drawing for the break water. I hope that by next year, we may commence, I am not making a categorical statement because you will have to appoint a consultant.”
“Definitely, a contractor will also be appointed to give us information about the expected volume, the anticipated volume and also to prepare necessary bid materials. So there are a lot of pre-contract issues that we are in the process of addressing now”, he said.
Mohammed pointed out that the pre-contract issue would determine how fast the project is undertaken. He noted that the authority was committed to improving the capacity of all channels in the nation, noting that the management expects to achieve this in the next two years if their current tempo is maintained.
In his words, “lets say a maximum of two years, definitely if the tempo is maintained as it is, we will have a lot of things to say positively about the ports in Nigeria.”
“ I would like our ports to be the preferred ports in Africa, that customers would come, not because they feel that they have no option but because they feel that in coming to any port in Nigeria, they will have very efficient services, they will have such services at the least cost” he said.
“Also their cargo and vessels will be handled professionally and they will also be handled timely and in an efficient manner .So this is my dream for Nigerian ports”, he added.
Speaking on possible hindrances, Mohammed said that “we have misused our opportunities. We are a country full of opportunities but when you look at it closely, you’ll find that these opportunities have not been fully utilized .We have not utilized this opportunities not because of anything but because we have not been doing things right”
Seafarers development: NIMASA deploys 36 officers to states
As part of measures to actualise its aim of training 3,000 seafarers in five years, the management of the Nigerian Maritime Administration and Safety Agency (NIMASA) has appointed 36 of its senior officers from the rank of chief and above to serve as State Liaison Officers to coordinate the enlistment of youths in all the 36 states of the Federation.
Head of Public Affairs Unit of NIMASA, Hajia Lami Tumaka disclosed that the first phase of the National Seafarers Development Programme (NSDP) would kick off with the enlistment of 25 youths from each state. She said eligible youths for the programme must be between the ages of 17 and 22 and must possess at least five credits at GCE O/Level or WASCE obtained in not more than two sittings.
"Women are also encouraged to apply for the programme as at least 20% of the slot is reserved for them because we want to encourage as many women as possible to take up seafaring careers", Tumaka, who also doubles as the NSDP Liasion Officer for Niger state, said.
The youths who will be trained in select leading maritime academies across the world will be sponsored jointly by their State Governments and NIMASA. While the State Governments will pay 60% of the training cost, NIMASA will pay the balance of 40%. The training will last for four years.
Close down BPE’s operation, FG charged
The Federal government has been urged to close down the operation of the Bureau of Public Enterprises (BPE) because it has not only completed its job but has done a bad work on some of the establishment it has so far handled.
Chairman of the Senate Committee on Marine Transport, Gbemi Saraki, disclosed this in Abuja recently and asked why the Bureau is still operating if it has completed its assignments. She remarked that the agency has nothing doing and that’s why it is embarking on the packaging of the bill for the establishment of the National Transport commission (NTC) bill.
According to her, “what business has BPE with the NTC bill?” She explained that because of overhead cost of its operations, the Bureau ended up spending more than what it made from the concession exercise at the ports.
In agreement with the views of the Committee Chairman, a senior official of the Nigerian Port Authority who spoke with the magazine wondered why the Bureau is still in operation when it was supposed to have completed its duties. The NPA chieftain maintained that the BPE has out-lived its usefulness and as such government should direct it to round up its operations.
It would be recalled that the BPE during the regime of former President Olusegun Obasanjo had concessioned the terminals in the ports to private operators under controversial circumstances leading to the general outcry which greeted the exercise by stakeholders in the maritime industry.
Foreigners take over 97% of shipping freight component – Amiwero.
…Slams Shippers Council over NTC
Contrary to global norm, the multi billion naira freight component of the Nigeria’s shipping industry has gradually been taken over by foreign shipping majors following the concessioning of the ports by the immediate past government of President Olusegun Obasanjo.
After the completion of the concession agreement, the foreign operators who took over 95 percent of port operations, have set up their freight forwarding units to handle goods coming through their terminals.
President of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Mr. Lucky Amiwero, who spoke with the magazine on the issue, said that APM Terminal, a subsidiary of Maersk Line who are in charge of the old Container Terminal, are in charge of over 80 percent of containerised goods coming into the country.
Amiwero explained that apart from Ports and Cargo Ltd which is owned by the Sifax group, an indigenous firm which handles about three percent of the nation’s throughput, all the others that handle the remaining 13 percent are foreign operators.
He said the others are Lagos and Niger Shipping, Five Star Logistics and Ports and Terminal Management Limited. The NCMDLCA boss noted that while all the others have a concession period of between 15 and 25 years, only Ports and Cargo have 10 years.
Amiwero expressed worry about the complete domination of the industry by foreigners noting that government has continued to lose un-quantified revenue to capital flight annually. He pointed out that while they continue to reap bountifully from the country, they are not bring any fresh investment apart from the initial one paid for concession.
Amiwero made special reference to APMT which said has not made any investment in that terminal apart from the entry fee of about $40 million and income from its operation since commencing operations.
He also expressed regret that even the transfer of containers to bonded terminals which is supposed to benefit these out dock facilities, does not. The NCMDLCA boss pointed out that the larger portion of all revenue collected from importers for the use of these facilities go back to the foreign terminal operators.
A tariff on current charges by APML Bonded Terminal which has a total N134,925.00 shows that N107.100 goes back to the terminal operator from where the consignment came, leaving the bonded terminal operator with a mere N27,820 for his problems.
In another development, Mr Amiwero, also faulted calls for the transformation of Nigeria Shippers’ Council (NSC) to the National Transport Commission (NTC).
Speaking in an exclusive interview with the magazine, Amiwero said that the NSC does not have what it takes to be the regulatory body for the industry as the management has not been able to discharge it statutory function of protecting the interest of shippers’ in the country.
The NCMDLCA boss who was reacting to reasons for indiscriminate increment of charges by concessionaires, identified the absence of a regulatory commission as the main cause and called for its speedy establishment.
He however observed that it would be a mistake to transform the NSC into the NTC because they “do not have what it takes.” He noted that NSC has not been what it used to be during the period Chief Adebayo Sarumi was at the helm of affairs there.
When he was reminded that the Council did not have the legal backing to check shipping company charges and the fact that it was actually dragged to court under Sarumi, he responded that the above did not stop Sarumi from bringing all sides to a round table where a Memorandum of Understanding (MoU) was signed.
With the MoU, he continued, Sarumi and the Council were able to control the activities of shipping companies and truck owners. This he said helped to regulate the sector then.
Speaking on the much advocated 48 hours clearance of goods from the nation’s seaports, Amiwero said that it was unrealisable with the present situation on ground, noting that too many problems were militating against its achievement.
He said that apart from the fact the infrastructure in the port are all decayed, there is no regulatory framework for the control of the commercial activities of port operations, especially as it relates to the concessionaires.
He also explained that inter-connectivity and inter-face between the various agencies to make processing of documents faster and better would not be possible without efficient power supply. According to him, the management of the Nigeria Customs Service (NCS) do not have the financial capacity to supply power and therefore called on the federal government to make provisions for the NCS to supply better electricity to power the system.
He also pointed out that the nation’s import system is not transparent. This he noted has led to back-log of imported cargoes at the port. He called on the federal government to come out with a clear-cut policy because what is obtainable presently is not in agreement with what is obtainable at the international level.
According to him, while the Customs and Excise Management Act (CEMA) is paper based, Destination Inspection (D/I) is electronic based. He further disclosed that there is no law backing the D/I, since the work of operation of the port which the law empowers the Nigerian Ports Authority (NPA) to do has been concessioned to private terminal operators.
Nigerian shipowners team up with others for African P&I Club
... to enforce foreign compliance
After years of planning, indigenous ship owners in the country are teaming up with their colleagues across the continent to establish a P&I club for the continent fashioned after the London P&I club. The London P&I club is a body set up by foreign shipowners to settle marine accidents amongst them.
Declaring the position of the local ship owners in Lagos recently, Captain D. O. Labinjo, Secretary of the Indigenous Shipowners Association of Nigeria (ISAN), said that the African P&I would soon commence.
The ISAN scribe explained that the association decided to form the African version of the London P&I club because of the insistence of foreign ship owners that they produce the P&I club certification before they could do business with them even here in Nigeria.
It would be recalled that the plan for the establishment of the African version was first disclosed by the Chairman of ISAN, Chief Isaac Jolapamo some months back. Jolapamo had said then that the association was consulting with other African countries and hoped that the club would commence operations sometime last year.
Also speaking on the issue, President of the Nigerian Chamber of Shipping (NCS), Olorogun Oscar Ibru, said when the club finally begins operation, they would insist that all vessels bringing products to the country must have the African certification.
Ibru pointed out that the NCS was not happy with the dominance of the sector by foreigners and that was why they would continue to pursue their advocacy for the empowerment of indigenous operators in the industry.
According to him, “The chamber will be encouraged to step up its advisory role to governments with a view to giving strong policy advocacy to the government. In line with this, we will liaise more closely with the industry technical regulators (like NIMASA, NPA, DPR, NNPC and NASS Transport/Marine Committees) to assist in positioning the country on a better footing in world shipping”.
Cabotage, a blessing turned burden for indigenous shipowners
Stakeholders in the maritime sector gathered several times for months in 2002 discussing and strategizing on the best way to reap maximum benefits from shipping trade within the nation’s coastal waters.
Their efforts finally paid off a year later when the Cabotage bill was signed into law by former President Olusegun Obasanjo. The purpose of the law is to empower indigenous operators to own ships and to be given priority in the carriage of goods within the nation’s coastal waters.
The four basic areas covered by the law are: every vessel trading within the nation’s territorial water must be owned by Nigerians; it must be crewed by Nigerians; it must be built in Nigeria; and it must carry Nigerian flag.
To reap from the law, indigenous shipowners had come together under the aegis of Indigenous Shipowners Association of Nigeria (ISAN), led by Chief Isaac Jolapamo as Chairman.
However, the celebration and joy with which industry operators greeted the supposedly beneficial law, not only to indigenous shipowners but also for the country’s economy, gradually waned, as the reality on ground proved otherwise.
The first problem faced by operators was the inclusion of the waiver clause in the law which was not discussed or mentioned during the formation stages leading to the passage of the bill at the National Assembly.
The clause empowers the Minister of Transport to grant waiver to any ship which does not meet the above criteria if indigenous operators do not have the deployable capacity.
There were complaints that the waiver was being abused in favour of foreign ship owners who have capitalised on it to dominate the Cabotage trade in country.
What started gradually with complaints from operators and denial on the part of government, finally grew to an outcry by ISAN and other operators who lamented the fact that they were worse off than before the law came into effect.
Chairman of ISAN, Chief Isaac Jolapamo, had said in a previous interview that the nation’s coastal water were being dominated by foreign flagged vessels whom he described then as cowboys…. (A fuller spotlight is being packaged for publication in the next edition).
Tin-can Port Customs rakes in N9.1b in March.
The Nigeria Customs Service (NCS), Tin-can Island Command, has raked into the federation account a total of N9.1 billion in the month of March, Customs Area Comptroller (CAC), Ibrahim Mera, has said.
The Customs boss who disclosed this in Lagos, noted that the N9.1 billion collected in the month of March is about 300 percent increase in the revenue collection of the command in the month of February which was N3.9 billion.
He also explained that the command have so far issued Debit Note (D/N) to some importers which resulted in the collection of several hundred million naira into government coffers.
According to him, D/N issued on one Single Goods Declaration (SGD) alone brought between N200 – N300 million naira to government while another issued on Risk Assessment Report (RAR) fetched the government N259 million.
He pointed out that the Command under him would pay zero tolerance to the issue of flying of containers and Machined Outside documents which he said has be-deviled it for a long time.
It would be recalled that the Command recently stalled attempts by unscrupulous importers and their agents to clear 11 containers from the port with fake documents.
The 11 containers was said to have passed all the relevant checks using the fake documents before officials of the NCS at the gate apprehended the consignments. The CAC said that the agents had forged the signature of all officials of the Service and had beaten all other checks before they were apprehended.
The Customs boss explained that though they have not been able to compute the Duty Paid Value (DPV) of the content of the containers as at the time of this report, he disclosed that those involved have been charged to court and have been sentenced to three years imprisonment with an option of N2 million fines.
The Customs boss noted that while two of the containers were stuffed with furniture, one other had textile materials as its content. The other nine containers he noted were stuffed with assorted exotic vehicles.
Mera said by impounding the nine containers recently, the Command has been able to send a clear message to those who may have the intention to indulge in the same practice but however expressed the hope that the above would dissuade them.
Iheanacho challenges FG on complete seafarers training
The Federal Government has been called upon to ensure completion of the seafaring training programme for youths in the country, if it desires to tap from the multi-billion dollar potentials in the sector.
Giving the advise in Enugu recently, Executive Secretary of the Nigerian Shipping Companies Association (NSCA), Capt. Emmanuel Iheanacho, in a lecture at the enlightenment programme embarked upon by the management of the Nigeria Maritime Administration and Safety Agency (NIMASA) for youths in the eastern region of the country, said while the enlightenment programme was commendable and in the right direction, it was imperative that arrangements be made to also provide practical sailing time for young seafarers.
He advocated for a private/public partnership as against the old practice where vessels for training are bought and managed by the public sector. Ihenacho explained that the benefits derivable from seafaring are enormous and that is why countries continuously workout ways of getting maximum benefits from the sector.
He noted, for instance, the "Seafaring Alternative Investment For Life (SAIL) Scholarship initiative being currently pursued by the Singaporeans which aims to develop Masters and Chief Engineer officers who sail on Singaporean vessels and to eventually transit ashore to man critical high level appointments in the maritime industry.
There is also the Hong Kong government's Seagoing Incentive Training Scheme run by the government in collaboration with the Shipowner's association which is similarly geared towards producing future managers for the nation's ports and shipping industry, he explained.
He also noted that the Indians and the Phillipinos all have similar proactive programmes which are dedicated to the development of the shipping manpower potentials of these countries. NIMASA could usefully make reference to any of these models in the development of its current plans.
The NIMASA objective according to Ihenacho, “can only be achieved through the establishment of primary basic seafarer training, retraining of those already in work and the improvement in crew working conditions generally. It is in this regard that we welcome and lend our support to the current initiative by NIMASA and urge the agency to diligently pursue the current policy to the point where we not only achieve self sufficiency in the availability of well trained, STCW-certified Nigerian crews to man Nigerian flag vessels, but we must also aim to fully realize the potential of exporting any excess crewing services to foreign flagged shipping operators.”
Controversy over propose CRFFN e-payment
One week after the disclosure of proposed partnership with the World Bank for introduction of e-payment in all transaction at the nation’s ports by the Council for the Regulation of Freight Forwarding (CRFFN), controversy as to the efficiency of the scheme began brewing.
Some operators who spoke with the magazine on the issue expressed fears that the scheme may be exploited to defraud the federal government of accruable revenue.
They argued that like all other corrective programmes embarked upon by government, the e-payment would be just another failed projected through which government would again lose revenue that would have been used for other facilities for Nigerians.
Reacting to the above, Chairman of CRFFN, Tony Nwabunike, explained that contrary to dissenting views, the project whose package is to be provided by the World Bank would be linked to the Ministry of Finance, the Auditor-General’s office, Central Bank of Nigeria (CBN), Internal Revenue office and all other relevant government arm with making money for government.
This he continued is in addition to connectivity with the Nigeria Customs Service (NCS), Nigerian Ports Authority (NPA), the various ports Shipping companies, freight forwarding outfits and others; and therefore any payment would be automatically received by all those connected to the system.
He noted that government is cheated of its accruable fund through none payment of duty on goods which are mostly contraband for which NPA and other charges are paid but fake documents are used for duty processing.
When this happens, he continues, there is formally no way to know because there is lack of authentic verification but with the e-payment to be introduced by government bearing government approval, every payment would be recorded automatically until the entire payment to the be made for that consignment is completed.
He also said the project would help in no small way to curb the importation of contraband goods because it would become difficult to get them out of the ports.
River Niger Dredging: Group faults FG’s N4b order to Agencies.
The directive by the federal government to the management of the Nigerian Ports Authority (NPA) and Nigeria Maritime Administration and Safety Agency (NIMASA) to contribute N1 billion each for the dredging of the River Niger has been faulted by the leadership of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA).
President of the NCMDLCA, Mr Lucky Amewiro, who spoke with our correspondent on the issue, explained that while it was not out of place to ask the NPA to contribute to the dredging of the river, it was wrong to ask NIMASA whose function is capacity development of the shipping industry, to contribute to the fund.
Already, we can reveal authoritatively that the NIMASA management has contributed the first installment of N750 million for the purpose. However, it was not clear at press time how much NPA has contributed for the dredging project.
Head Public Relations unit of NIMASA, Hajia Lami Tumaka, speaking with our correspondent, confirmed that the agency has so far remitted N750 million for the purpose as a result of a government directive to the management.
But efforts to get the head of Public affairs unit of NPA, Mr Musa Iliya, on how much the authority had so far remitted for the project approved abortive, as he did not pick calls to his phone.
It would be recalled that the federal government late last year signed a N46 billion contract with five companies to dredge the lower part of the River Niger, from Warri in Delta State to Baro in Niger State.
Fish scarcity looms as trawler owners abandons Nigeria
The price of fish in the country would go up following a decision of trawler owners to move their operations to neighboring countries as a result of the rise in attacks against fishing trawlers in recent weeks.
President of the Merchant Navy Officers Association of Nigeria (MNOAN), Captain Thomas Kemewerigha, who disclosed this to DDH said “fishing companies have started moving from the country because of the renewed attack on their vessels.”
Kemewerigha explained that the attack on FT Star1 and the killing of the ship’s Captain Pius Itumogbe, coupled with several such attacks in the last couple of weeks, were responsible for the decision of the fishing companies.
The MNOAN boss said after the attack on about four vessels this year, fish trawler operators decided to commence harvesting outside Nigerian waters but the ships were also attacked on their way back into the country.
He noted that despite several conferences held on the issue of piracy and all the decisions reached, there seems to be no solution in sight on the frequent piracy attacks.
According to him, “There was piracy conference in Abuja; so many things were said. At the end of the day nothing came out. Just last week, we had an attack on fishing Trawler, “Star 1”trawler belonging to one of the vessel owners in this country. A captain was killed, he is still in the mortuary, a lot of crew were equally injured. I think government really has to come out and do something tangible to curb this because a lot of more serious things are bound to equally happen after this. If the Navy could come out to tell the whole world that they cannot match up with the pirates because of platform, it means the custodians of the territorial waters have given up hope”.
He said no fewer than 10 ship captains have been killed in recent times.
In his words “here is an industry that is not only employing Nigerians but it is equally earning foreign exchange for this great nation. Yet, the cost of sailing a vessel for 45 days is very high because of the high price of diesel. If the government wants to kill the industry, let them kill it and increase the unemployment rate. To sail a vessel for 45 days would cost you about N9million. What would you get from the sea that you would sell and get your money back? You are paying the crew, you are feeding them, you are buying water. At the end of the day pirates will attack you at sea, loot all you cargo and your electronics and kill your crew”.
Voice of America which also reported the recent increase in piracy attack on Nigerian waters said that the pirates attacked at night, with their speedboat roaring out of the waves, firing their AK-47s. The crew realized they were under attack when their trawler was peppered with a hale of bullets.
Some of the crew on board the fishing trawlers that have previously been attacked narrated their ordeal
"They got us at about 1.30 a.m., they came on board, they came with a speed boat, nine of them all armed. They came looking for money. They ate our food and looted the ship of anything of value, including the captain's shoes.”
Port Fraud: Operator blames Govt’s half hazard Customs reform
The recent discovery of over N3 billion alleged rice import fraud at the Lagos Ports by the Vaswani Brothers in connivance with some top Customs Officers has been blamed on government’s half hazard reforms of the Service in the past.
Disclosing this in an interview with DDH, Peter Nwokocha, a customs clearing agent, said the two previous reforms and the frequent leadership changes are not only affecting the morale of the personnel of the Service but are also leading them to cut corners due to uncertainty.
Nwokocha explained that the frequent changes has resulted in the sacking of some personnel of the Service in the past and the fact the such changes, like the one recently embarked upon by the current Comptroller General, Nwadialo, is seen by the officers as their opportunity to make something for themselves and their mentors.
He stressed that the recent case of alleged fraud at the Lagos port may not be unconnected with the changes made by the immediate past Customs boss. He pointed out that another reason that is affecting personnel morale presently is the issue of triple promotions given to some officers in 2006.
Nwokocha noted that that action which was approved then by a member of the Customs Board as against the minister of finance, uplifted some junior officers above their former seniors, in a move which is referred to today in the Customs as a coup.
Ghana subjects 90% of imports to scanning
With the nation’s port operators battling with congestion at the ports in Lagos and only about 30 percent of the total goods ship through these ports being subjected to scanning, their counterparts in Ghana are presently subjecting about 90 percent of all goods imported to that nation to scanning, a decision which helped to speedy up clearing process in that country.
Mr. Nabali Bawa, Managing Director of Gateway Services Limited, (GSL) the leading service provider for the destination inspector scheme in that country, disclosed that they have reduced 100 percent examination in Ghana to about 10 percent.
Bawa explained that at the commencement of the D/I, Ghanaian government had set a target of 20 percent which has since been surpassed. He stated that sometime last year, containers designated for scanning where being sent for 100 percent examination.
He pointed out that the case was reported to the Ghanaian Customs Authority who ordered a reversal of such decisions and put in place a monitoring mechanism to ensure compliance.
According to him, the Ghanian Customs are of the opinion that the faster the transactions at the ports, the more revenue that would accrue to the government.
The GSL boss also noted that unlike Nigeria where there is a long list of banned items, in Ghana there are only about three items which are arms and ammunition, some category of drugs and food items.
He also disclosed that the importer wishing to import food items into that country are expected to first bring samples of such goods for testing and verification before they can be shipped to Ghana.
Meanwhile, the implementation of Destination Inspection Scheme has saved the Ghanian government $965,673.635 million which would have been lost to faulty declarations made by importers in that country between 2001 when the programme commenced to 2008 but for the adjustments made by GSL.
The revenue was based on 305,469 transactions from the operations of GSL, a subsidiary of inspection giants, Cotecna, in 2008.
Expert faults FG’s transfer of 2,000 containers
A maritime expert and immediate past managing director of Nigerian Ports Authority (NPA), Chief Adebayo Sarumi, has faulted the recent transfer of 2,000 containers by the NPA on the orders of government, noting that it was a waste of time and revenue.
Sarumi who stated this in Ibadan in May at a seminar tagged “ICDs as Catalyst for trade facilitation”, explained that such containers could have been easily moved to the Inland Container Depot (ICD) in Ibadan.
Sarumi, who was also a one time managing director of the Nigerian Shippers’ Council (NSC) and chairman of the seminar, pointed out that it was disappointing that the ICD projects are yet to take off, despite their important role in the import/export trade in the country.
The former NPA boss who spoke at the seminar organised by the Maritime Reporters’ Association of Nigeria (MARAN), disagreed with the view held by some operators that the ICD project could not commence without the railway in place.
He noted that in situations where there is evidence that an ICD could operate without the railway, like that situated in Erunmu (Oyo State) and Ise-Langu (Abia State) because of their nearness to port states, government should encourage the both the concessionaires and port users to commence operations.
He said that congestion recently witnessed at the port could have been avoided with proper use of the ICD projects, instead of concentration on the off-dock facilities in Lagos. Sarumi explained that the encouragement of these off-dock facilities has resulted in the movement of the pressure from the ports to the area where the off-dock facilities are located, noting that housing facilities for residential purposes are now being used for off-dock terminals.
In a paper titled “Overview of ICD projects in Nigeria,” Dr. Alex Okwuashi, registrar of the Certified Institute of Shipping, said government intention of establishment the project was to decongest and make consignments easily and readily accessible to importers and exporters across the country.
Okwuashi called on all the states in the geographical location of each ICD project to come together to make these projects work. He regretted the fact that the project has still not kicked off and charged all stakeholders involved in the actualisation of the project to put heads together to ensure it success.
Marketers blame NNPC for undischarged consignment
Contrary to accusation by the management of the Nigerian National Petroleum Corporation (NNPC) that independent marketers are refusing to berth their ships at their terminals, it has been revealed that the government parastatal is restricting the discharge of its products at tank farms in Lagos.
DDH gathered that the NNPC’s refusal to use other facilities in the Lagos area may not be unconnected with an understanding between the corporation and the said tank farms.
A top management staff of one of the tank farm operators (who are also independent marketers) told DDH correspondent that several of them have written to NNPC, notifying them of the availability of their facilities.
The source said that some of them were even willing to put their vessels at the disposal of NNPC to move the consignment from the ship offshore to their facility but the corporation’s management seemed unwilling.
According to the source, “I don’t know why NNPC keeps doing this. They are refusing to use our tank farms, yet accusing us of depriving them from using our facility. In fact, I do not know what they (NNPC) intend to achieve by the deliberate lies they are feeding the public with.
“NNPC management alone knows why they are insisting on using those facilities and should be bold enough to tell the public the truth instead of shifting the blame.”
National Assembly slams port concession agreement, calls for review
National Assembly members have come down hard of the concession exercise carried out by government through the Bureau of Public Enterprises (BPE) over two years ago , saying that it not only lacked transparency but that the agreement was not in favour of the Nigeria people.
The members who played host to the minister of transport and heads of parastatals in the ministry involved in port operations in Abuja, were irked when the Managing Director of the Nigerian Ports Authority (NPA), Mallam Abdul Salam Mohammed, told them that the concession agreement empowered the private terminal operators to raise their charges.
The NPA boss was responding to the joint marine committee’s enquiry as to why the port authority could not check the private terminal operators from raising charges indiscriminately.
First to speak on the issue was the Chairman of the Senate Committee on Marine Transport, Gbemi Saraki, who questioned the method of the exercise, stressing that the different concessionaires paid varying amounts while some others paid nothing at all.
Saraki explained that the terms of agreement was that the terminal operators were supposed to make investment to make port operations smoother and more effective but that the reverse was the case.
The Chairman of the Senate committee on Marine Transport, Ifeanyi Ugwuanyi, said the major challenge of port operation is that of capacity and the concessionaires were supposed to provided that as contained in the agreement. He pointed out that the whole process leading to the agreement was not transparent and therefore needed to be reviewed.
Senator Saraki further noted that the major interest of any government was to create opportunities for its citizenry to remain in business but regretted that “unfriendly charges by the concessionaires will drive Nigerians out of business.”
Similarly, a visibly angry Anyogu Eze, a member of the senate committee, also questioned the rational behind the clause allowing the concessionaires to increase their charges, noting that the action has contributed to the sky-rocketing prices of goods in the market.
Eze therefore noted that such an action must not be allowed to go unchecked. According to him, “any agreement that is skewed in favour of foreigners against Nigerians is null and void.”
Speaking earlier, the NPA boss had told the law makers that the authority’s position on the part of the agreement was made known to government in writing before it was signed by the private terminal operators. He explained that it was not in the authority’s place to criticise government openly on such sensitive issues.
Cotecna, Anti-corruption committee, partner against sharp practices
As part of measures to ensure transparency in trade facilitation at the nation's sea ports, Cotecna Destination Inspection Limited (CDIL), a trade security and facilitation company in Nigeria, has entered into partnership with Port Industry Anti Corruption Standing Committee (PIACC) to fight vice in the port system.
Speaking at a recent industry session when it played host to the PIACC led by Vice Chairman Alhaji. S.A Suleiman, Cotecna's Managing Director, Mr. Tayo Yahaya Rabiu said he would work closely with government and all relevant agencies to fast-track the process.
According to Rabiu, "Cotecna is ready and willing to collaborate with the committee to make Nigerian ports and the clearing process free of corruption and all forms of malpractices".
Alhaji Suleiman explained that the visit to Cotecna was a highpoint of the committee's strategy of advocacy, enlightenment, persuasion and appeal to port industry stakeholders to dissuade them from encouraging corrupt practices and implore them to entrench transparency in their operations. He expressed optimism that sane and corruption free seaports in Nigeria are achievable.
He stated that the committee was constituted in 2001 consequent upon recommendations at a maritime stakeholders' seminar. The PIASSC was therefore an aggregation of agencies and organisations operating at the ports with the sacred mandate to create mass awareness and ultimately entrench sanity.
Commending this ethical direction, Mr. Rabiu said Cotecna is a member of International Federation of Inspection Agency (IFIA) and has introduced its Business Ethics and Compliance Code in 2003 to reflect the requirements of the agency compliance standards. He pointed out that the Cotecna principles of compliance code are Integrity, Conflict of Interest, Confidentiality, Anti-bribery and Fair Marketing.
The Cotecna boss added that "as a step forward in the move to achieve faster and efficient cargo clearance at the Nigerian Ports, Cotecna is presently collaborating with AP Moller to carry out pre-scanning of containers at night hours in Apapa. Also, the automation of processes under the Destination Inspection program whereby all transactions are backed up with information technology systems has made it difficult for individuals to manipulate the process. The use of IT systems made it possible for all transactions data to be easily recalled no matter how far back the transaction".
"Apart from providing services that are under our contractual obligations which includes Document Processing, Computerized Risk Management, Scanning, Capacity Building/Training of Stakeholders, and Provision of Tools and Equipment, the company is also providing Value added Services to the Nigerian Government and other stakeholders in numerous areas", he noted.
The Anti Corruption Standing Committee Vice Chairman was impressed by the company's provision of Cotecna Link which is a Web access provided to Authorized Dealer Banks and other key stakeholders to check status of documents submitted for processing of Form M and Risk Assessment Report (RAR).
Another useful processing tool by Cotecna is Value Quest, an investigation module provided to selected Nigeria Customs Service officials for investigating suspected import transactions. Mr Rabiu also announced the establishment of the Valuation and Classification Centre of Excellence in Abuja to provide technical training on valuation to Nigeria Customs Service officers and the company staff. “All these are value added services that we are offering to ensure seamless trade flow”, he said.
FG appoints SGS service provider for SONCAP
Federal Government has signed a consultancy agreement with Societe General de Surveillance SA of Geneva –Switzerland (SGS ) to serve as the service provider under the Standards Organisation of Nigeria Conformity Assessment Programme (SONCAP).
The SONCAP is an offshore programme under which intended imports that fall under SON regulated products have to be tested by an approved laboratory abroad, to ensure compliance with Nigerian Industrial Standards (NIS). If the products are compliant, the service provider will issue a Product Certificate (PC) which is required by the importer for the opening of Form M. Thereafter each shipment has to be verified and covered by a SONCAP Certificate (SC) as one of the documents required for import clearance of SON regulated products.
The signing ceremony was held at the Standards Organisation of Nigeria (SON) Lagos Operational Office in May. Minister of Commerce and Industry, Chief Achike Udenwa, signed the agreement on behalf of the Standards Organisation of Nigeria, while Mr Nigel Balchin signed on behalf of SGS Geneva.
SONCAP was made mandatory with effect from 1 December 2005, as a policy to check and control the importation of substandard and unsafe products into the country.
The programme commenced with a sole service provider but with the addition of SGS Geneva and another service firm, Nigerian importers and their foreign suppliers can now choose which of the three service providers they wish to use to check that their intended imports conform to specifications of NIS.
Chief Achike Udenwa urged SGS to use its expertise and global network to prevent the flow of fake as well as harmful products into the country. “We know SGS to be a reputable and very professional company. I therefore challenge you to use your good office, expertise and network to see that these substandard and harmful goods don’t come into Nigeria”.
In his response, representative of SGS Geneva, Mr Nigel Balchin, thanked the Federal Government of Nigeria for appointing his company as a SONCAP project consultant. “We see this as a big honour and we look forward to working closely with SON to combat the importation of substandard goods, that are often dangerous and some are counterfeits. The participation of SGS, with its global network of offices and laboratories, would lead to a strengthening of the SONCAP to protect Nigeria against imports of substandard and dangerous goods whilst facilitating trade through improved levels of service” he assured.
SGS has Conformity Assessment Service mandates, similar to that of SONCAP, with the Governments of Kenya, Kuwait, Indonesia, Russia and Saudi Arabia.
Specify non-conventional ships for proper waste management, control— Akinsoji
A maritime expert and former Government Inspector of Ships, Engr. Olu Akinsoji, has called on the management of the Nigerian Maritime Administration and Safety Agency (NIMASA) to include specification for ships operating in the nation’s inland waterways as a means of ensuring effective management and control of waste generated in the area.
Akinsoji who was also one time Rector of the Maritime Academy of Nigeria (MAN), disclosed this at a one-day workshop for the review of the draft National Guideline for Management of Waste from Ships.
He noted that without specifying and inclusion of non-conventional vessels in the guideline to be adopted, it would be difficult to effectively control the dumping of waste into the nation’s waterways.
He explained that specification would not only allow for categorisation of these ships but would also help in the monitoring and control of dumping of waste in the marine environment, in terms of volume.
Akinsoji stressed that there was need for NIMASA to play a leading role in the implementation of the law when it finally becomes enforceable since the guideline provides for multiple implementors.
He also called for the engagement of inspectors to ensure effective implementation, noting that such inspectors should be empowered to patrol the nation’s marine environment and check all violation of the marine pollution law.
Maersk named world's best carrier
Maersk Line has been recognized as the Best Global Shipping Line at the Asian Freight & Supply Chain Awards (AFSCA) sponsored by Hong Kong's Cargonews Asia.
Tagged the "Shippers' Choice Awards", the AFSCAs are decided by the votes of industry executives throughout Asia, and set out to reward industry leadership, as well as consistency in service quality, innovation, customer relationship management and reliability.
Judges based their votes on reliability, service delivery, service network and commitment to corporate social responsibility.
The award also recognized Maersk Line's contribution to the maritime industry's development in Asia, which the carrier said demonstrated Maersk Line's wide recognition for both unrivalled customer service and a benchmark for excellence, in a company statement.
"We appreciate all the support and confidence our customers have shown us by voting Maersk Line the best global carrier. We remain committed to truly understanding our customers and their business, and to developing high quality, reliable and sustainable services to meet their requirements. We are truly committed to supporting of our clients' efforts to weather the storm by providing the best services possible," said Tim Smith - North Asia Chief Executive for Maersk.
Approximately one in every two containers that land in Nigeria originates from the Far East.
Managing Director of Maersk Nigeria Limited, Tom Knudsen in reaction to the award said that the line “will not rest on its laurels, and while it is good to see our efforts recognized, it is not what we've done, it is what we do next that counts for our clients”.
“Port congestion in Nigeria has eased in recent weeks and we are ready to continue our work with the government and other stakeholders to mitigate the inconvenience of congestion if it emerges again during the peak season starting September 2009. If ever there was an opportunity for a smooth shipment into Nigeria, it is now", Knudsen stated.
Knudsen added that the shipping line strived to get a good understanding of its clients and their businesses and said, “in whatever we do we are trying to make it easy for our clients and efficient for ourselves”.
Maersk Line is one of the leading liner shipping companies in the world and with a fleet numbering more than 470 container vessels and more than 1,900,000 containers, the carrier ensures a comprehensive worldwide coverage.
APM Terminals Apapa gets new MD
The Managing Director of APM Terminals Apapa since 2007, Mr. Michael Lund Hansen has accepted a new position in the AP Moller - Maersk Group as Regional Director of Inland Container Services in the Asia Pacfic Region and will be moving to Hong Kong, according to a press release from the company.
It further said Michael Lund Hansen will leave Nigeria in June after 2 years of strong growth and development for APM Terminals Apapa.
According to the statement, APM Terminals Apapa in the past years modernized the Apapa Container Terminals through investments in modern container handling equipment, upgrading of the terminals infrastructure and implementation of IT systems. All these initiatives made the Apapa Container Terminal operated by APM Terminals to be the leading port terminal in Nigeria. On Thursday 19th June 2008, Nigeria's President Umaru Yar'Adua officially commissioned the upgraded Apapa Container Terminal.
Michael’s successor is Martin Dirks, a dutch national with vast experience from many countries, including Africa.’
It said that the APM Terminals Apapa Ltd manages the Apapa Container Terminal under a 25 year concession agreement with the Federal Government of Nigeria. During its first three years of operation significant investments have been made to the tune of USD 100 million and many successes have been recorded accordingly:
- Throughput is now 3 times the level at time of takeover
- Productivity is now 4 times the level at time of takeover
- More than 800 Nigerian staff are on permanent contracts with full benefits and training
- Safety at the Apapa Container Terminal has dramatically improved since the days of frequent accidents and even fatalities; as a matter of fact today it is 169 days since APM Terminals Apapa last had an accident where someone was injured and unable to return to work immediately!
- Security has improved significantly making it very difficult for certain people to conduct their business at the port in the way they used to!
The statement said further that “Port congestion has come and gone. No vessels are on queue for Apapa and there is no delay in delivery of containers or in transfers to ICDs. Empty Containers flow through the port without congestion on the Apapa roads and APM Terminals position containers for examination within 48 hours after scheduling.”
It admitted to some problems though. “The one remaining problem in the industry is the dwell time. We still do not have clearing agents coming forward fast enough to clear the containers. Most containers are standing for many weeks after discharge without any steps taken by cargo owners to release them. As a result the average dwell time is more than 30 days. This must come down. Otherwise congestion will hit the Lagos ports again.
APM Terminals is in Nigeria with a long term view. Our investments in Apapa are designed to yield benefits long term, not for short term profits. We work in close cooperation with all stakeholders in the industry to implement improvements that will benefit the Nigerian economy and benefit the Nigerians. The media is an important stakeholder for APM Terminals and the new MD will continue the good cooperation APM Terminals has with the Nigerian media.”
