Headlines

Bello-Koko excites stakeholders with star performance

—-says Nigerian ports are still cheaper

—-as NPA remits over N89.9 billion in six months.

Eyewitness reporter

Mohammed Bello-Koko, the Acting Managing Director of Nigerian Ports Authority (NPA) has insisted that doing business at the Nigerian Ports is still cheaper despite the generally held belief in the industry.

Bello-Koko, who providence smiled on in May, 2021 when he was elevated to the position of the helmsman of the rich government parastatal following the indefinite suspension of Ms Hadiza Bala Usman, disproved this widely-believed myth when he presented his scorecard to the House of Representatives Committee on Ports and Harbour.

In his account of his performance within the six months of his stewardship, the Acting MD said that

NPA has raised its Internally Generated Revenue (IGR) between January and September 2021 by 120 percent.

According to documents he presented to the lawmakers, Bello- Koko said the NPA has also reduced its operating expenses by 20 per cent of its budget for this year.

“As at the end of September 2021, the Authority earned N256.28bn in IGR as against the expected N214.65bn (approved estimate N271.70bn) for the same period, representing a performance of 120% or 95% of its total annual budget for 2021.

“For operating expenses, as at the end of September 2021, actual spending stood at N55.10bn as against the budgeted figure of N65.49bn, comprising employees’ benefits, pension costs, towage services, supplies, repairs & maintenance, and other administrative overheads.

“This indicates a “savings” of N10.39bn or 85% performance of the approved budget of N87.32bn.

“Furthermore, in compliance with the quarterly remittance of its operating surplus to the Consolidated Revenue Fund (CRF) and provisions of the Finance Act 2020, the Authority has remitted the sum of N62.66bn to CRF for the year 2021 as of October 31, 2021, while a cumulative sum of N89.9bn has been transferred to the CRF in the last six months.

” At the current state of increased revenue drive, it is projected that the Authority will exceed its 2021 revenue projections and the projected transfer to the CRF for the year 2021 which is expected to be over N80bn, which would be the highest in the history of the Authority.

The NPA’s helmsman informed the House Committee that contrary to news reports insinuating that Nigerian ports are the most expensive in the sub-region, a study commissioned by the Authority with the support of UKAid in 2019, indicated that it is cheaper for general and container vessels to berth in Nigeria than in Ghana or Togo.

He explained that a huge chunk of what shippers or cargo owners spend to clear their consignments include terminal and freight charges paid to terminal operators and shipping companies, payments for customs duty, inspection services, haulage, insurance and other sundry trade levies and fees, which are outside the purview of the Authority.

“Aside from the towage dues which were reviewed in 2015, Port tariffs in Nigeria have remained same since 1993”, he said.

Following his assumption of office in May this year, the Acting Managing Director has taken deliberate steps to reposition the Authority to focus on cost-optimization and quality service delivery while maximizing business value for port operators and users.

Accordingly, the Bello Koko-led Management has focused on improving the overall efficiency of the country’s port industry.

To support the economic diversification agenda of the Federal Government through the promotion of non-oil exports, the Authority has partnered with the Nigerian Export Promotion Council (NEPC) for the establishment of third-party dedicated export terminals or export parks to be located in Lagos and Ogun states.

The initiative is aimed at the processing, packaging, and certification of exports under a one stop platform that houses all relevant agencies responsible for quality control and regulatory validation of exports before shipment.

“The objective is to enhance and fast-track Nigerian export cargo for shipment at the export parks without any further port clearance protocol.

“A pilot project has been established at the Lilypond Container Terminal in Lagos, while 10 other exports terminals are in the process of being certified in order to begin operations by 1st quarter of 2022” Bello-Koko declared.

The Authority, according to him, is in the process of consolidating its various electronic platforms under a unified port community system.

He listed some of the technology platforms which the agency uses to boost service delivery to include, Oracle Financials and Human Resources Planning, Enterprise Resource Planning (ERP), Revenue & Invoicing Management System (RIMS), e-Ship Entry Notice (e-SEN) and customs portal for online submission of bills.

Others are Hyperion budgeting, 3CI (Command, Control and Communication & Intelligence), Truck Call-Up Access Control, Harbours System Linked with the 3CI for harmonization of vessel operations.

“The Management agenda is to consolidate all the platforms into a single port community system to allow for ease of transaction and eliminate impediments associated with manual processes.

” It is noteworthy that, the International Maritime Organization (IMO) is providing technical aid to the Authority for the development of the Port Community System” the NPA helmsman declared.

To ensure immediate commencement of port Infrastructure & Rehabilitation, he told the lawmakers that the Federal Ministry of Transportation (FMOT) has constituted a Technical Committee with the purpose to identify the operational issues of the ports and assessing the state of the existing port Infrastructure starting with the ports in Lagos.

A technical consultant engaged for that study, he further disclosed, has already concluded the preliminary assessment of the ports.

“The NPA is already reviewing alternative sources of long term, low-interest capital for port infrastructure development by engaging reputable funding institutions like the African Development Bank, the Chinese Exim Bank and other Infrastructure Development Agencies.

“In addition, port terminal operators are also being encouraged to explore such windows to fund the rehabilitation of the facilities and port equipment with amortisation as an option of recouping investments.

“This is to ensure immediate commencement of rehabilitation of the ports and quay walls and also deeper drafts to accommodate large modern-day vessels,” Bello Koko said.

The first public action of the Bello Koko-led management was to rejig the implementation of the electronic call-up system for trucks (known as ETO).

It ensured all identified lapses associated with the system were addressed, particularly breaches observed while the Taskforce saddled with the responsibility of enforcing compliance was in charge.

Series of stakeholder engagements were held with the top hierarchy of the Military, the Nigerian Police, other security agencies, the Lagos State Government and other critical industry stakeholders.

The outcome of these engagements led to tremendous improvement in travel time along the Apapa port access roads in Lagos.

The Authority in conjunction with the FMOT also reached out to the Federal Ministry of Works on the timely completion of the reconstruction of Sunrise Bus Stop to the Mile 2 stretch of the Tincan Island Port corridor.

To complement the above, the NPA also launched “Operation Green” to remove and clear all illegal structures and shanties on the Apapa and Tincan Island Port access roads.

A great deal of success was recorded by this operation as exemplified by the resultant free flow of traffic to and from the ports.

The Authority is cashing on this success to embark on awareness and sensitization of port stakeholders to drum support towards the implementation of a sustainable policy on traffic decongestion along port corridors.

In this regard, the NPA has just procured twenty-four (24) motorcycles to be added to existing assets and in support of continuing collaboration and operations for better traffic management to the ports.

The agency is also making efforts to address identified areas of security vulnerabilities with the deployment of Electronic Access Control with Apapa and Onne ports as pilot projects, while procurement process has commenced for the full perimeter fencing of Tincan Island Port Area to further consolidate compliance with ISPS code.

Further compliance to ISPS code, especially as it relates to vulnerabilities of the port’s waterfront, Management has procured 13 units of Security Patrol Boats (SPB) ready to be deployed across all pilotage districts including the establishment of Marine Police units in Calabar and Delta ports where none currently exists.

“This would reduce incidents of attack on vessels around the port area and boost the confidence of the international shipping community to use Nigerian ports.

“To enhance efficient marine services, particularly monitoring and facilitation of communication with vessels, the management renovated the dilapidated Control Towers at both Apapa and Tincan ports and new communication gadgets have been installed to ensure prompt and effective communication with vessels coming into the port channels.

” This has led to significant improvement in harbour services as well as an increase in port revenue. In addition, various marine equipment like Pilot Cutters, Security Patrol Boats and Tug Boats are also being deployed.

“To improve cargo evacuation from the port and facilitate the quick return of empty containers to the port, the management has reviewed the modalities for registration and operations of barges.

” The new regulatory framework which includes a new Standard Operating Procedure (SOP) took effect from 1st September 2021.

“It provides for enforcement of the safety and operational standards including the requirement to install radio communication equipment on-board to facilitate the sharing of traffic information.

“Furthermore, the Authority is in the process of deploying an electronic call-up system for barges, similar to the one for trucks, to streamline their operations and movements. It has approved rates for barge operations which will ensure more revenue to the Government.

“Similarly, the Authority has supported the use of privately managed jetties as part of measures to optimize inland barge services at the port.

” This has encouraged barging as a model for the promotion of inter-modal transportation.

” The use of barges has taken some pressure off the roads. The movement of cargo by barge this year alone has recorded well over 200,000 TEUs.

“This has also generated huge employment opportunities; in stevedoring, terminal operations and other marine services.

” It also becomes another revenue stream to the Authority in particular and Government in general.

“To address the menace created by trucks carrying empty containers and to ensure that Nigeria is not made a dumping ground for empties, the Authority began to enforce the return of empties, where vessels are compelled to ship back at least 80% of the number of imports shipped in.

“To guarantee the safety of records and documentation, the NPA Management recently commissioned an ultra-modern and fully digitalized archival system of document preservation and storage”

Bello-Koko told the lawmakers that he has managed to steady the ship by running an inclusive style of administration along with regular consultation with relevant agencies of government and trade groups operating in the port.

It is no surprise that the current NPA leadership has won plaudits from industry stakeholders for focusing on costs optimization to shore up revenue accruable to the government, exploring alternative funding sources to address aging port infrastructure and repositioning Nigeria as the hub for maritime trade in Africa.

As 2021 winds down, feelers from the new administration suggest that all hands are on deck to ensure that the Authority remains a veritable and profitable national asset, even as the Bello Koko-led management shore up its responsibilities to customers under a business-friendly port system, without compromising on security.

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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.

Headlines

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.

Headlines

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.