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NPA, operators disagree over shipping hub status

By on January 16, 2015

The Nigerian Ports Authority and some key operators in the maritime industry are not on the same page over the plan to make the country a hub of shipping activities, COMFORT OSEGHALE writes

The Nigerian Ports Authority has said the nation’s seaports will soon become a hub centre for the shipping business within the West and Central African region.

The Managing Director of the NPA, Mallam Abdullahi Habib, stated this in an interview with The PUNCH in Lagos.

He also predicted that there would be a 5.9 per cent increase in the tonnage at the port of Lagos by 2016.

Habib said Nigerian seaports had begun to attract bigger vessels from where their cargo would be trans-shipped to neighbouring countries since the ongoing deepening of the port channels.

Through its two joint venture partners, the Lagos Channel Management and Bonny Channel Company which were both established in 2005, the draught of the Lagos and Eastern ports has reportedly been increased considerably.

He said, “Nigeria has six main ports at Apapa and Tin Can Island, Lagos, Rivers, Delta, Calabar and Onne. The ports of Lagos and Port Harcourt are forecast to see an increase in the tonnage of 5.9 per cent and 7.2 per cent, respectively by 2016. With their facilities already stretched, new ports in the vicinity will lessen the burden.

“Although ports in the country are over 30 years old and as such have their limits, four new ports at Olokola, Lekki, Badagry and Ibaka, which are in the early to mid-phases of planning, should help to consolidate Nigeria’s strength and capacity as a shipping hub.” According to a report by the NPA, the LCM from 2006 to date has dredged a volume of 53,583,546m3 while a total of 24 critical wrecks have been removed.

It also stated that the BCM had dredged a volume of 43,537,000m3 from 2006 to date while 14 wrecks had been removed.

The depth of the Bonny channel had been increased from 12.50 metres to 14.30 metres while its width had been increased from 215 metres to 230 metres, it added.

In 2014, the NPA also in a joint venture formed the Calabar Channel Management Company. The venture is to ensure the constant dredging of the Calabar channel due to its special feature of high siltation level.

Habib said, “We need a constant dredging of the channel in order to maintain a given draught; we are trying to increase it to at least 12 metres, if possible. This will enable the Calabar Port to excel because it is a very viable port but unfortunately because of the draft, it is not being utilised to its fullest potential.

“As a result of these efforts, larger vessels of above 232.33 metres with capacity of 4,500 TEUS requiring draught of 13.5 metres have started visiting the nation’s seaports. For instance, WAFMAX vessels (Maersk Calabar and Maersk Conakry), 250 metres long vessel requiring 13.5 metres draught owned by Maersk shipping line commenced calling at Apapa ports since 2011 while it called at Onne port in May, last year.”

He added that the NPA had undertaken the laying of channel buoys, the procurement of additional harbour crafts, the establishment of new signal stations and anchorages aimed at ensuring safety of navigation, protection of marine environment and enhancement of maritime safety.

Statistics made available to The PUNCH by the Assistant General Manager, Corporate Affairs of NPA, Mr. Musa Iliya, also showed that a total of 31,993 vessels with cumulative registered tonnage of 676,379,752 called at the ports between 2006 and 2012. They carried a combined cargo of 467,422,225 metric tonnes.

Iliya said, “Cargo throughput handled at Nigerian ports in the third quarter of 2014 stood at 22.3 million metric tonnes, showing an increase of 12.5 per cent over 19.8 million metric tonnes handled in the third quarter of 2013.

“Also 4.21 million metric tonnes of general cargo was handled in the third quarter of 2014, representing an increase of 41.7 per cent over the 2013 third quarter volume; 2.6 million metric tonnes of dry bulk cargo, representing a marginal increase of 0.6 per cent over the corresponding period of 2013 while Liquefied Natural Gas volume stood at 5.1 million metric tonnes, a growth of 5.8 per cent over 4.9 million metric tonnes over the third quarter of 2013.

“The ports also handled 5.2 million metric tonnes of refined petroleum products, 277,694 TEUs of laden containers and 217,080 TEUs of empty containers, representing 9.1 per cent, three per cent and 9.5 per cent increases, respectively over the third quarter of 2013.”

He added that a total of 1,405 oceans-going vessels had called at all Nigerian ports in the third quarter of 2014 as against a total of 1,366 vessels that called at the same period in 2013, representing an increase of 2.9 per cent.

The total gross registered tonnage of all ocean-going vessels in the third quarter 2014 amounted to 38 million metric tons, representing an increase of 9.8 per cent increase over the GRT of 34.6 million metric tonnes in the same period of 2013.

The President of the Association of the Nigeria Licensed Customs Agent, Mr. Olayiwola Shittu, however, disagreed with the NPA on the projection.

He said Nigeria could not attain the hub status of West African vessel traffic, until the cost of doing business at ports was brought down.

He said, “As long as we are not competitive with our port charges, compared to others in the West African sub region, then Nigeria cannot be a trade hub for that purpose. One of the ways to achieve this is for the Nigerian Shippers Council to effectively check all illegal collections at the ports.

“The cargo throughput that the NPA is throwing around includes petroleum products that are imported for local consumption. Does that add value to economic growth in the country? The tankers that bring in petroleum products are also vessels. We are talking about cargo that will add value to our productive sector.”

Shittu accused the NPA of including oil supply vessels that supplied oil rigs frequently, as ocean-going vessels that called at Nigerian ports.

He said the figures of port calls should only reflect separately those vessels berthing at the port and discharging cargoes, from those supplying.

Shittu said although the association had no records to counter those beign published by the NPA, what was obtainable in reality sometimes did not always tally with what the NPA had.

The spokesperson for the Seaport Terminal Operators Association of Nigeria, Mr. Bolaji Akinola, said although Nigeria was well positioned to serve as a hub port in the sub region, there was a need for the government to streamline the number of agencies operating at the ports.

He said, “There are other charges in the ports aside from terminal charges, some of which have no receipts for payments in the port system. Once the number of agencies in the ports is streamlined, all these extra charges that give our ports a bad name will be done away with.

“That aside, terminal operations in Nigeria are competitive in the pricing of cargo operations. Those who say Nigerian importers have taken their business to neighbouring ports because our ports are expensive should bring empirical data to prove it.”

Akinola added that Nigerian ports were being approached by other countries in the region for the use of their facilities for the trans-shipment of goods.

He said this would not have been possible if Nigerians ports were not competitive and efficient.

He said the argument was based on the fact that some Nigerian importers were importing goods through neighbouring ports.

Akinola said those who used neighbouring ports often did so to evade government fiscal policy in the importation of certain goods such as rice and vehicles.

“The import duty of rice in Nigeria is quite high; 10 per cent duty and 100 per cent surcharge whereas you pay next to nothing as import duty in Benin Republic. To evade this high duty, these importers land their rice in Benin and move it to Nigeria in bits and pieces. That is why there is no scarcity of rice in Nigeria.

“The same applies to importers of vehicles especially fairly used cars; some want to pay lesser duty while others want to import over aged vehicles which would be impounded if they had come in through Nigeria.”

 

[Punch]