Headlines

Vessels transiting Suez Carnal to pay more in 2022

Suez Canal, Egypt

—as Suez Canal authority announces toll increase amidst high traffic

—-exempts LNG carriers and cruise ships from tariffs increase

After an eventful year that saw the Suez Canal blocked by a large container ship and then a fight to recover fees before releasing the Ever Given, the Suez Canal Authority has now announced plans to implement a rate increase for nearly all vessels using the canal in 2022.

The announcement of the increase in fees comes as the canal has been experiencing record traffic.

Rates for vessels transiting the canal will be increased by six percent beginning in February 2022.

While the canal has benefitted dramatically from the increase in shipping volumes and the transit of new larger vessels, it has nonetheless also found itself facing increasing competition.

During the spring blockage, shipping lines elected to send some of their vessels around Africa while Russia heavily promoted the advantages of its North Sea Route. The Panama Canal has also been seeking to increase traffic, offering increasing competition with its tolls.

Admiral Osama Rabea, Chairman of the Suez Canal Authority, said in considering the rate increases, they carefully followed and scrutinized all the variables related to the shipping market, global economic indicators, and global trade movement.

He said that they sought to apply a balanced and flexible marketing and pricing strategy that fulfills the authority and its clients’ interests and takes into account the global economic conditions.

The rate hike, he explained, was balanced with International Monitory Fund and World Trade organization projections for global economic growth while allowing them to provide navigational services for transiting through the canal. He also compared their services to other competitive routes.

The Canal Authority, however, said that it would exempt both LNG carriers and cruise ships from the increase in tariffs.

The canal has seen a continuous seaborne trade for LNG but it is a very competitive market. During October, 84 LNG carriers transited the canal up from 46 the prior year with an 87 percent increase in tonnage. Going forward, the Authority is modifying rates for LNG carriers from 25 percent to 15 percent, starting this month.

Cruise ships, they said, had been the most affected by the COVID-19 pandemic, and the efforts are designed to support a restoration of the traffic. Similarly, the Panama Canal Authority is also considering proposals to adjust the rates for cruise ships to also support their return.

The decision to raise the tariffs came after the Suez Canal set a new record for transits during October. The number of ships was up 14 percent year-over-year with a total of 1,847 transits. Net tonnage was up more than 11 percent to 112.1 million tons, contributing to a 12 percent increase in revenues to over $551.1 million.

The Suez Canal recorded its highest ever daily transits on September 29, 2021. A total of 87 vessels made the passage totaling 4.8 million net tons. During the day, a total of 49 vessels were northbound while 38 made the southbound transit.

During the first ten months of 2021, the Canal saw a nearly nine percent increase in tonnage. A total of 17,020 ships made the trip versus 1,380 in the first 10 months of 2020.

The Authority is forecasting continued strong volumes in the coming year and says that it is prepared to manage the traffic. It is also continuing efforts to upgrade its operations and enhance the services of the canal.

Among the record traffic in October was the transit of the largest container ship, Evergreen’s Ever Act.

Headlines

Maritime media charges federal government on disbursement of controversial CVFF

President Tinubu

The Eyewitness Reporter

Worried by the stalemated disbursement of the controversial Cabotage Vessel Finance Fund (CVFF) which has lingered for so long, the League of Maritime Editors (LOME) has urged President Ahmed Tinubu to expedite action on the release of the funds to trigger the development of indigenous shipping industry.

The group also called for urgent rehabilitation of collapsed critical port infrastructure at the nation’s seaports.

The President of LOME, Timothy Paul Okorocha, made these calls at the League’s 25th anniversary held in Lagos on Wednesday, with the theme ‘Harnessing Nigeria’s Potential in Marine & Blue Economy’,

While congratulating President Bola Tinubu for the further unbundling of the Ministry of Transportation and the establishment of the Ministry of Marine and Blue Economy, Okorocha appealed to the President to exercise the required political will to push further by ensuring that the routine talk about the rehabilitation of collapsed critical port infrastructure receives urgent executive attention.

“As development partners, the League looks forward to the effective participation of the respective agencies in the current administration’s renewed agenda template; and wants to see the Nigerian Ports Authority move away from the ritual of endless talk and lamentations into doing the needful, the reconstruction of broken down asset and infrastructure,” he said.

Also worried by the lingering delayed disbursement of the CVFF, the League further urged President Ahmed Tinubu to provide the Minister of Marine and Blue Economy, Adegboyega Oyetola, and his ministry, the needed impetus to bring to an end, the unending rat race of the disbursement of the CVFF, saying that the fund established since 2003 would jump-start a new lease of life for the capacity development of indigenous ship-owners.

He added that this would enable Nigeria to participate meaningfully in seaborne trade; especially with the proposed commencement of the implementation policy of the blue economy.

The LOME President noted the genuine struggle by the Nigerian Maritime Administration and Safety Agency (NIMASA) and its leadership, especially under the present administration to disburse the CVFF but observed that the efforts suffered political disruptions.

“As insiders, the League over the years has seen the genuine struggle by the Nigerian Maritime Administration and Safety Agency (NIMASA) and its leadership, especially under the present administration to disburse the CVFF in its commitment to grow local capacity building, but observe the otherwise disruptive tendencies within the field of political play.

“We appeal to Mr. President to use his good offices to prevail on the relevant authorities to respond to the needs of our industry as there can be no better time than now,” he said.

Speaking on the theme of the conference, Doctor Charles Okoroefe of Nigeria Maritime University also hailed the unbundling of the transportation ministry which he said was a misnomer.

He has decried the untapped potential of marine resources, especially in the area of tourism in Nigeria, regretting that marine tourism is lacking in Nigeria unlike in Gambia and the Caribbean where marine tourism is a major source of income where marine tourism rakes in billions of dollars.

“Egypt made about $14 billion in tourism from the Nile in 2022,” he added.

“People troop in into the Bahamas. Do we (Nigeria) have the potential? Yes. But the question is how prepared are we?” he queried.

He stressed that marine tourism is a solution in terms of job creation and that the time has come for Nigeria to progress from potential to actuality.

“So talking about job creation. All of these elements I mentioned are potential areas for job creation because it is a major issue in Nigeria today.

” A lot of young people are jobless. Meanwhile, we have an area that is green where a lot of jobs can be created.

“So I think we have to look at that potential area of driving our marine and Blue Economy,” Okoroefe stated.

He also called on the Ministry of Marine & Blue Economy to synergise with the Ministry of Agriculture to harness the potential of the sea.

“So, I believe the Ministry of Marine and Blue Economy has to synergise with the Ministry of Agriculture and also harness exotic seafood for export,” he explained, saying we cannot be depending on imports alone.

He urged the ministry to look at other fundamental seafood we have in excess that we can process through the rivers for export.

The marine expert regretted that Nigeria still imports palm oil from Malaysia, the same people who came to Nigeria to learn how to plant seedlings and today Nigeria is importing palm oil from Malaysia, “these are exportable items. So I believe the Ministry of Marine has to do a lot.

“With the Ministry of Agriculture for instance, with the Ministry of Power and the Ministry of Tourism, these are resources that we need to address in order for us to develop and come out of potential to thrive. On our ocean and marine resources, we’ve been talking endlessly.”

Headlines

Tantita refutes, describes allegation of oil theft by Navy as libelous, defamatory

Capt. Warredi Enisuoh

The Eyewitness Reporter

Following an allegation of involvement in the alleged oil theft incident against Tantita Security Services Limited by the Nigerian Navy, the security outfit has described the accusation as laughable and an attempt by the Navy to cover up the truth.

The security outfit, which has received widespread commendation for its efforts in combatting the menace of oil theft in the country, debunked accusations of any involvement of its operatives in the incident while lampooning the Navy for underestimating its operatives.

Reacting to the development, the Executive Director – Operations and Technical, Tantita Security Services Nigeria Limited, Capt. Warredi Enisuoh in a statement described the Navy’s claim as “defamatory and libelous”.

The statement said: “The activities going on inside the Nigerian Navy’s FalconEye should be investigated as the ship was only a few kilometers off the coast of Ondo State, well within view of the Nigerian Navy’s FalconEye, but they never reacted”.

“We are indeed saddened and disappointed that the Nigerian Navy could descend so low as to make such bizarre accusations against our organisation, knowing the same to be false,” he added.

“Perhaps they are not aware that video evidence of what transpired between the Tantita operatives and the Nigerian Navy at the scene exists and has been transmitted to the highest authorities.

“We will therefore not join issues with the Nigerian Navy as we are well aware that Nigerians know who is who.”

It would be recalled that the activities of Tantita and other security outfits have saved the country a whopping $43.2m from oil theft daily.

Recalled that on Thursday, December 7, 2023, the Nigerian Navy had disclosed that 17 people said to be engaged in the illegal siphoning of crude oil in Ondo State were nabbed aboard a 77-meter-long Motor Tanker (MT) VINNALARIS 1 Lagos.

Navy spokesperson, Commodore Adedotun Olukayode Ayo-Vaughan, disclosed in a statement, saying the suspects were nabbed at the Forward Operating Base (FOB) Igbokoda in the early hours of Thursday.

However, a day later, the Navy turned around to accuse Tantita Security Services Limited (TSSL) of complicity in the incident.

Customs

As Customs elevates 357 junior officers, Adeniyi charges new graduates to trigger change through continuous learning

The Eyewitness Reporter

The Nigeria Customs Service has elevated 357 junior service staff from the ranks of Customs Assistant I (CAI) to Inspector of Customs (IC).

This significant decision was ratified during the 7th management meeting of 2023, chaired by the Comptroller General of Customs, Bashir Adeniyi on December 1, 2023.

The comprehensive promotion list encompasses both the General Duty(GD) and Support Staff (SS) personnel who excelled in the 2023 promotion exercise.

The breakdown of promoted officers is as follows: AIC to IC (246) GD, AIC to IC (37) SS, CAI to AIC (39) GD, CAI to AIC (27) SS, CAII to CAI (7) SS, CAIII to CAII (1) GD.

According to the statement by the Customs’ National Public relations officer, Abdullahi Maiwada, the strategic advancement mirrors the visionary leadership of the

Comptroller-General, emphasising motivation, recognising excellence, and rewarding diligence within the service.

In extending his heartfelt congratulations, Adeniyi urged

the newly promoted officers to redouble their efforts in fulfilling the service’s core mandates of Revenue Generation, Suppression of Smuggling, and Trade Facilitation.

In another development, the Comptroller-General of Customs, Bashir Adewale Adeniyi has emphasized the significance of embracing continuous learning for the recently graduated officers from Senior Course 9 and Junior Course 17.

He made this statement during the passing out of the Customs graduates on 8 December 2023 at the Nigeria Customs Command and Staff College Gwagwalada, Abuja,

The CGC, represented the Deputy Comptroller General of Customs, Sa’idu Galadima, in charge of the Training and Doctrine Command (TRADOC), highlighted the importance of professionalism and integrity and urged the graduates to uphold high standards in their service.

He also encouraged them to use the opportunities in their various commands and take calculated risks.

ACG Kingsley Egwuh, the Commandant of the Nigeria Customs Command and Staff College Gwagwalada praised the graduates for their dedication towards the betterment of the service and the nation.

Expressing satisfaction with their 100% success rate, he emphasized diverse training areas, including academic standards, proficiency, and weapon handling.

He said, “All graduates should give their careers a purposeful meaning, shun all vices against growth and development, and uphold the motto of the Nigeria Customs Service, which is Justice and Honesty.”

The Commandant revealed ongoing projects, including replacing dilapidated chairs in the college hall and installing solar panels.

ACG Egwu, while praising the graduates, expressed optimism that the acquired training would enhance their performance. He thanked CGC Adeniyi and his Management Team for their unwavering support, including approving an African Study Tour to Gambia, Ghana, Mozambique, and Tunisia.

Deputy Commandant and Director of Studies, Comptroller Oluyomi Adebakin, stated that the curriculum of the Senior and Junior courses aims to develop human capacity and establish a more effective and efficient Customs allocation. She highlighted the dedication to enhancing officers’ skills and abilities with a high level of moral standards.

The Special Guest of Honor, Senator Isah Echocho, Chairman of the Senate Committee on Customs and Excise, highlighted the global economic challenges and stressed the importance of positively impacting society. He expressed hope that the graduates’ ability to advance in technological advancements would contribute to elevating Nigeria’s economy.

Similarly, The college hosted a regimental dinner night to honor the graduates of Senior Course 9 and Junior Course 17. The evening celebrated academic achievements and underscored the disciplined ethos of the Nigeria Customs Service.

Amidst the regimental splendor, the night served as a reminder of the service’s proud heritage and the graduates’ responsibility to carry forward the torch of discipline and tradition.

The structured rituals and ceremonial aura encapsulated the ethos of the Nigeria Customs Service, providing a fitting culmination to the accomplishments of Senior Course 9 and Junior Course 17.

The evening concluded with a sense of accomplishment and pride, marking not only the end of academic pursuits but also the beginning of a journey for these graduates to carry forward the values of the Nigeria Customs Service with honor and dedication.