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Why Nigerian ports lost cargo hub status to neighboring countries—-Stakeholders

Eyewitness reporter
Nigerian ports may have effectively lost the bid to become transshipment centres in the West and Central African sub-region due to its aging and dilapidated infrastructure.
For several years, Nigeria’s government has laboured to position its ports as load centres in the sub-region for economic advantages.
But an investigation by our correspondent has revealed that long years of government neglect,  lack of adequate investments in infrastructure, corruption, the multiplicity of government agencies and high cost and cumbersome nature of goods clearance of cargo at the Nigerian ports have all combined to rub Nigerian ports the preferred destination for cargoes within the sub-region.
Therefore, this development has made stakeholders in the industry berate the Government for its failure to develop the port infrastructure which they lamented have greatly decayed and dilapidated.
They disclosed that even after the ports were concessioned to private business interests, the concessionaires have done little to change the narrative as few of them are actually investing in the infrastructural development of the ports.
The stakeholders claimed that 90 percent of the infrastructure in the ports is more than 40 years old, which could no longer handle the volume of the operations at the ports.

Mr. Adeyinka Sholeye, a Marine Engineer,  said that Nigeria has lost its transshipment hub status to West African countries like Togo, Ghana and Benin Republic due to dilapidated port infrastructure in Nigeria.

“These countries claimed trans shipment hub status from Nigeria because they have developed their ports into modern ones with infrastructure such as good access roads, a deeper draught that can accommodate larger vessels.

“Don’t be surprised that these ports have been automated. They have automated their processes.

“While these countries can take a vessel with 16 meters draught, none of the Nigerian seaports can accommodate such vessel due to the nation’s shallow draught that is not more than 13 meters.

“That is to tell you the level of seriousness and investments these people have committed to their ports.”

The Vice President, Association of Nigeria Licensed Customs Agents (ANLCA), Kayode Farinto, speaking in a similar vein,  lamented that the nation’s second-largest revenue earner, after oil, was left to wallop in such a sorry state with dilapidated infrastructure.

According to him, there are too many factors that are drawing the sector backward, ranging from bad access roads to the ports, to high shipping costs, shallow water draft at seaports.

“There are too many issues responsible for the setback. The government does not have either the political will or is not serious about implementing those good policies. You should expect that before the end of this year, we are going to have more than 40 percent drop in cargo coming to Nigerian ports”.

“The neighbouring countries, such as Ghana, Côte d’Ivoire, Ghana and Togo are rapidly developing their seaports while  Nigeria is currently losing grip of the shipping economy due to abandonment of the sector, which is the second revenue earner for the government after oil,” he noted.

The National President, National Council of Managing Director of Licensed Customs Agents (NCMDLCA), Lucky Amiwero, said the neighbouring ports have already positioned their ports as millennium ports, preferred, transshipment or load center, adding that most West African ports built their ports to accommodate Nigerian- bound cargo, knowing about the country’s poor infrastructure.

He identified the neighbouring ports, which have either completed their deep-sea projects or near completion at Cotonou, Benin Republic, Lome, Togo, Accra, Ghana and Cameroun.

He called on the Federal Government to wake up by designing the concept of a deep-sea/ transshipment center to accommodate large E-Class vessels/mega-ships of 8000- 20000 TEUs, that are currently demanded regionally and globally, which is the only solution to the diversion of goods to neighbouring ports.

He advised that with international best practices, Nigeria must design the National Guarantee system to cover the payment of import duty taxes at the time of transit; Custom Seal that ensures the physical integrity of the goods while in transit, making sure that the goods start and exit the transit in its original state; Implement electronic tracking system enabling Customs to track and locate transit vehicles and guide intervention force including Customs staff; a document system to enable transit document issued at the start of Transit journey to be accepted by transport and Custom authority along with transit.

Amiwero identified an inefficient port system as to why the country lost the transshipment hub status to other West African countries.

 He said except there is a change in infrastructure rehabilitation, Nigeria will continue to lose cargoes to neighbouring countries, which have deep seaports and better facilities.
The freight forwarder lamented that Nigerian ports cannot accommodate mega-ships with 8000-20000 TEUs, arguing that this was against the trend in neighbouring ports.

He said the Federal government needs to address the unwholesome practices of manipulated delays by providers of shipping services and other government agencies, leading to high demurrage, rent, and high transactional costs.

Amiwero stated that such practices are inimical to the efficiency of the port system, adding that such issues against Nigerian ports need to be addressed for the sake of the national economy.

“There is need to reclaim our cargo from neighboring West African countries that are now a hub for Nigeria cargos, by working out a mechanism for a better developed regional hub to consolidate on our destination of Nigerian cargo that has been siphoned by regional ports,” he advised.

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Exclusive! Hope rises on take-off of proposed $3bn Badagry Deep Seaport as NPA, APMT resume discussion

 

The eyewitness reporter
Barring any last-minute hitches, the proposed Badagry deep seaport project may soon be on the stream as the Nigerian Ports Authority (NPA) has resumed discussions with the lead promoter of the multi-billion project, APM Terminals’ Global investment limited.
The investors/ promoters led a team to the NPA headquarters last Wednesday where they met with Mohammed Bello-Koko, the NPA Managing Director, and his management team.
The discussion centered on the take-off of the Badagry project which was conceived in 2016 to take the pressure off the overstretched Lagos ports.
The investment team was led by Martjin Van Dongen, the Global Head, Business Development of APM Terminals Global investment limited.
An elated Bello- Koko revealed that the two teams discussed how to optimize the potentials of the Badagry Deep Seaport.
“Discussions focused on optimizing the potentials of the upcoming Badagry Deep Seaports and other new ports as NPA Management intensifies action toward the vision to make Nigeria the maritime logistics hub for sustainable port services in Africa”
It could be recalled that the Federal government in 2016 conceived the idea of developing deep seaports in the country to position Nigeria as the hub of maritime activities in the West African sub-region.
The proposed deep sea ports project include Lekki deep sea port, which has already taken off, the Ondo deep sea port, Ibom Deep seaport and Badagry deep seaport.
While preparations for the takeoff of both the Ondo and Ibom sea ports projects are in top gear, that of the Badagry project was initially bogged down by technicalities and disagreement between the NPA and the promoters of the project.
The Badagry deep seaport project is an initiative of a consortium led by APM Terminals, Orlean Invest, Oando, Terminal Investment Ltd and Macquarie.
However, in November 2012, APM Terminals and its consortium partners announced plans to develop the Badagry deep seaport.
In 2020, the NPA disclosed that the promoters paid $500,000 as a commitment deposit into an escrow account to signify their commitment towards the port project.
However, the NPA kicked against the initial Outline Business Case for the port, which has been reviewed to include the suggestions of the Ports Authority.
The Federal Government however has approved a concession arrangement for the development of the Badagry deep seaport project over a period of 45 years.

The approval was finalised following a presentation by the Federal Ministry of Transportation at the Federal Executive Council (FEC)  during the last administration of President Mohammed Buhari.

According to officials, the port is expected to generate $53.6 billion in revenue over the 45 years concession period.

The proposed site of the project is located 55km west of Apapa and the port of Lagos, along the 55km long Lagos-Badagry Expressway, which is being upgraded from a four-lane to a ten-lane expressway.

The port is expected to have an annual throughput capacity of 1.8 million Twenty-foot Equivalent Units (TEUs).

The proposal for the project was announced in 2012. Feasibility studies have been completed and construction works are yet to start.

The project will be implemented in four phases, with the overall project cost estimated to range between $2 billion and $3 billion.

Also, it is expected that the new port will primarily ease pressure on the existing ports of Lagos, Apapa and Tin-Can Ports, which handle approximately 85 percent of the country’s non-oil throughput.

It will further alleviate the burden on the country’s existing ports, which are on the verge of exceeding their cargo handling capacities, and address the country’s annual container traffic, which is expected to grow to 10 million Twenty-foot Equivalent Units by 2030.

When fully built, the deep-water full-service port will be one of the largest in Africa with 7km of quay and 1,000 hectares (2,470 acres) of dedicated yard. It will include state-of-the-art facilities for container, bulk, liquid bulk, Ro/Ro and general cargo as well as oil and gas operations support and a barge terminal.

Plans for the adjoining Badagry Free Trade Zone will include a power plant, oil refinery, industrial park and warehousing and Inland Container Deport functions.

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Jamoh, Bello- Koko, serial award winners, bag National Productivity merit awards

Bello-Koko, Jamoh, NPOM award winners
 The eyewitness reporter

The Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA) Dr. Bashir Yusuf Jamoh, is gradually turning into a serial award winner as he has landed yet another plaque of honour from the federal government.

Not left in the harvest of awards which was a reflection of their value-addition in their various endeavours is Mohammed Bello-Koko, the Managing Director of the Nigerian Ports Authority(NPA) who is also a recipient of the National Productivity Diadem and a fellow serial awards winner.
Added to the already crowded roll call of honours of Jamoh is the National Productivity Merit Award conferred on him by the Federal Ministry of Labour and Productivity to recognize the invaluable contributions of the NIMASA DG to the development of the maritime industry.
To underscore his sterling leadership qualities as the DG of NIMASA and his roles in the current revolutionary trend in the maritime industry, the federal government nominated Dr Jamoh as a recipient of the 2021 National Productivity Order of Merit, NPOM, Award.
In a letter of the award signed by Dr Nasir Olaitan Raji-Mustapha, the Director General/CEO of the National Productivity Centre, Abuja, there are five categories of the awards.
Jamoh was listed among the 35 recipients under the category of 2021 Individual Awardees while Bello-Koko was listed among the 36 recipients under the category of 2022 Individual Awardees.
To share the limelight with Jamoh in this same category of the award is the Executive Director, Finance and Administration of the Agency, Hon. Chudi Offodile, while the Permanent Secretary Federal Ministry of Transportation, Dr Magdalene Ajani will share from the euphoria with Bello-Koko under the same category of  2022 recipients of the award.
The official conferment ceremony is scheduled for Monday, June 5, 2023.

An excited Jamoh expressed appreciation to the Federal Government, noting that it is a call to greater service to our Fatherland.“I am spurred by this award, particularly as it is coming from the Federal Ministry of Labour and Productivity, which underscores the ministry’s role in ensuring reward for hard work and productivity in public service”

“Let me also use this opportunity to dedicate the award to the industry’s stakeholders; external and internal, as they have made our work easier as an administration.

“We will continue to strive to make the maritime sector a viable economic driver, especially with the Blue Economy mantra, which is critical to the sustainability of the maritime sector”, Jamoh said.

Commenting the on the selection of the Permanent Secretary of the Federal Ministry of Transportation, Dr. Magdalene Ajani, the DG said it is a well-deserved honour, as she has remained a core professional and astute administrator in the coordination of activities in the Ministry and the Agencies under the supervision of the Ministry.

“I am not surprised by her selection, as she is an administrator par excellence and has remained resolute and professional in the discharge of her duties.

“Little wonder she is commonly referred to as the “Head Mistress” of the Ministry and the Maritime Sector”. I congratulate her on the well-deserving award.
In the same vein, the NPA MD expressed appreciation to the Federal government for the award and said that the recognition will further spur him on to put in his best in his resolve to turn the rich maritime potentials of the country into actualities.
”I will like to express my profound appreciation to the Federal Government for the honour of being conferred with the National Productivity Order of Merit Award.

”This conferment can only spur me and the entire team at the Nigerian Ports Authority whose commitment to exceptional performance culminated in this recognition, to continue pushing the limit and advancing the frontiers of trade facilitation.

”Imbued with the understanding that excellence is a moving target, I want to seize this moment to assure that we will not rest on our laurels in our resolve to turn our rich maritime potentials into actualities’, an elated Koko declared.

The National Productivity Order of Merit Award was instituted by the Federal Government of Nigeria to recognize and honour productive individuals and organizations in Nigeria in the year of the award for achievements made in the preceding years.

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Shippers’ Council bestows on APMT certificate of registration as regulated service provider at ports

Emmanuel Jime
The eyewitness reporter
AP Moller Terminals led by its Vice President, Mr. Martijn Van Dongen, has led a four-man delegation of the company to the management of the Shippers’Council to receive recognition as a certified regulated service provider at the Nigerian Ports.
This recognition was bestowed on the terminal operators during the visit of his top management staff to the economic regulatory agency at Apapa Friday.
Dongen said the essence of the visit was to strengthen collaboration with the Nigerian Shippers’ Council, the port’s economic regulator.
APMT received its certificate to operate as a regulated service provider during the visit.
Chinenye Deinde, the Legal Adviser and Head of Corporate Affairs of APMT also called on NSC to pursue the National Transport Commission (NTC) Bill, stating that it has the potential to sanitize the maritime sector.
In his response, the Executive Secretary and Chief Executive Officer of NSC, Rt. Honourable Emmanuel Jime said that the Shippers’ Council is working on the review of its enabling Act which he believes will strengthen the agency in its role as port economic regulator.
According to him, the Federal Government is committed to making Nigeria an investment haven for foreign investors while encouraging local entrepreneurs to be creative in growing the economy.
“The strategic location of this country on the African continent makes it a trigger for investments”, the NSC ES/CEO concluded.
Mr. Dongen was accompanied on the visit by Mr. Klaus Holm Laursen, Head of Joint Ventures, Africa and Europe, Mrs. Chinenye Deinde, Legal Adviser & Head, Corporate Affairs, APMT as well as Mr. Frederick Klinke, MD, APMT Nigeria.
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