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Operators seek $500m lifeline from FG to procure ships

By on May 1, 2011

Indigenous Ship Owners Association of Nigeria says it is seeking a lifeline of $500m (N75bn) from the Federal Government to procure ships.

The General Secretary of ISAN, Capt. Niyi Labinjo, told the News Agency of Nigeria in Lagos on Thursday that Federal Government should have a serious look into the situation of local operators.

Labinjo said that Nigerian ship owners had only saved $100m (N15bn) into the Cabotage Vessel Financing Fund in line with the requirement of the law on shipping development (Cabotage Act, 2003)

According to him, the contributions in the CVFF were grossly inadequate to meet the needs of local ship owners.

Labinjo recalled that the sum of $25m (N3.8bn) was provided by the government in 1998 for shipping development under the Ship Acquisition and Ship Building Fund.

He said that there was need for indigenous ship owners to get bigger ships so as to be in position to move bigger cargoes.

Labinjo said that the association had floated a shipping line owned by all members and had applied to the government for a national carrier status.

He said that the plight of the ship owners was worsened by the storm that washed 16 ships ashore at Tarkwa Bay in Lagos on Feb.13, 2010.

“We never got any warning or weather report to alert us about the storm,” he said.

ISAN secretary said that all those who lost their ships to the storm should qualify for some form of compensation since the incident was like an earthquake that called for succor.

“I lost my ship – MT Ray. I lost her completely and she was worth $1m (N150m),” NAN quotes Labinjo as saying.

He said that government provided some amount to refloat five of the ships washed ashore, but the five ships were in bad shape and there was no money to repair them.

“We lost the 16 ships and government has not given us a relief,” he said.

Labinjo urged the government to address the issue of 15 per cent customs duty being paid by Nigerians bringing in vessels against the one per cent paid by their foreign counterparts with Temporary Import Permit.

“Allowing them to bring tankers and offshore support vessels will compound unemployment situation facing Nigerian ship operators,” Labinjo said.

Source : Punch