By Dr Eugene Nweke
There is no gainsaying over emphasizing the fact that the Maritime Industry plays host to other critical sub-sectors of the economy and industries. It is the major revenue earning sector of the economy and the fulcrum drive to socio-economic development of a nation.
Measuring how well the sector has fared in Nigeria’s 55 years of existence cannot be properly placed on the right perspective, except by evolving a measurable, transparent performance indicators or developmental indices in relation to the volume of investments, inputs and outputs thereof, which shall include but not limited to:
1. TRADE GROWTH:
a) Export/Revenue Performance: Maritime remained a MAJOR MAIN STAY of the Economy since the Pre-port concession era but suffered serious drift on account of ineffective administration at the central level. Today, real export activities are struggling to find their rights of place, except for crude oil exports.
b) Import/Revenue Performance: Following the Collapse of export- related activities, import business took a centre stage. Though RAPID GROWTH has been recorded, but in the long run, both our Balance of Trade and Foreign Exchange Reserve, seriously nose dives on scale, as labour/wealth are indirectly transferred to foreign countries of Manufacture.
c) Vessel Calls/Throughputs: Compared to Pre-Concession period, REMARKABLE GAINT STRIDES HAVE BEEN MADE, different ships, in their sizes, volume, types call at our ports with ease, except for Panama, Marcopolo Vessels.
d) Presence of Shipping Lines /Agencies: Pre Concession, Major Shipping lines had their agents on ground, but today most of the Major Shipping Lines have their full physical presence on ground including administrative office structure.
2. TRANSPORT INFRASTRUCTURAL & COMPLEMENTARY DEVELOPMENTS:
a) Ports Infrastructure: Compared to the Pre-Concession regime, REASONABLE PROGRESS HAVE BEEN ACHIEVED.
b) Ship Yards/Repair of Infrastructure: Compared to Pre-Concession era, there seems to be a POLICY- MISDIRECTION.
c) Ship Building/Acquisition/National Fleets: Compared to Pre-Concession era, Started and fared well then, but along the Line suffered serious POLICY MISCALCULATION AND INCONSISTENCY, AND THIS ALSO FELL A VICTIM OF CORRUPTION AND MAL-ADMINISTRATION.
d) Sub Industries/Sub-Sector Developments :
i. Freight Forwarding &Logistics Sector: THIS SUB-SECTOR, THOUGH SUFFERED MUCH NEGLECT, BUT SELF-SUSTAINING AND HAS RECORDED REASONABLE IMPROVEMENT.
ii. Manufacturing/Processing/Export Sector: FAILED POWER SECTOR CONTRIBUTED TO ITS EPILEPTIC OUTPUTS AND THE SUB-SECTOR ALSO TURNED A VICTIM OF POLICY INCONSISTENCY.
iii. Steel Sector: A VICTIM OF CORRUPTION AND POLICY INCONSISTENCY.
iv. Auto Sector: A VICTIM OF POLICY SUMMERSAULT.
v. Dockworkers /Cadets/Seafarers Sector: APPRECIABLE ACHIEVEMENTS RECORDED ON THE PATH OF DOCK WORKERS, but for the Cadet /Seafarers, while the human resources are available, the essential facilities and the ships to work with are lacking in line with efficient/effective training.
vi. Insurance Sector: IT'S RELEVANCE, EXPECTED LEVEL OF PATRONAGE AND INVOLVEMENT IN THE INTERNATIONAL TRADE SUPPLY CHAIN IS NOTHING TO WRITE HOME ABOUT YET.
vi. Insurance Sector: IT'S RELEVANCE, EXPECTED LEVEL OF PATRONAGE AND INVOLVEMENT IN THE INTERNATIONAL TRADE SUPPLY CHAIN IS NOTHING TO WRITE HOME ABOUT YET.
e) Navigation's, Dredging and Drought: Compared to Pre-Concession era, REMARKABLE MILES have been achieved; at least Berths can boast of 9 meters to 13.5 meters draught. Channels are constantly monitored, NPA deserves a THUMB UP.
f) Cargo Handling Facilities: REASONABLE IMPROVEMENT noted when compared to Pre-Concession era of the NPA's graveyard of cargo handling equipments.
g) Coastal (inland) Transportation: TO DATE, IT'S IMPACT and growth is still slow and cannot Score a Pass Mark.
h) Inter-Port Rail and Road Networking: AT INCEPTION it was commendable but went into a Comatose in the early 90's.
i) The Evolution of Green Ports Developments: NO CONCRETE PLANS TOWARDS EVOLVING A GREENFIELD PORT INVESTMENT. Furthermore, a Green Ports Development evolution suffers prompt patronage, as Investors are mostly interested in the Brown Ports (Straight Jacket Investment/ readymade ports), via concession/Privatization. However, the global trend and quest for the development of Deep SeaPorts to meet the global emergence of Marcopolo Vessels, recently prompted an effort being channeled towards the development of Ibaka , Lekki, Olokola and Badagry Deep Sea Port Projects.
j) Outer Ports/Container Freight Stations/Container Yards/Inland Depot: While commending the emergence of various Private Bonded Terminals in the 90's, the absence of a Container Freight Stations /Container Yards, is hampering Products Processing and Storages, thereby, affecting the export business performance. However, the Nigerian Shippers’ Council, is commended for its Inland Container Depot vision within the geo-political zones of the nation.
k) Ports Access Roads: Beyond late 80's, the Port access road continue to dilapidated, as the access roads could no longer withstand the increasing cargo growth, leading to an increased vehicular activities to and from the ports’ access roads. Today, however, the port access roads are snowballing into a STATE OF EMERGENCY.
3. MARITIME DOMAIN /TERRITORIAL SURVEILLANCE/ECONOMIC ACTIVITIES:
a). Illegal Bunkering Activities: 18 Years after independence, following the oil boom of 1977-79, Illegal bunkering thrived and became ALMOST AN UNSTOPPABLE VENTURE BY CABALS. Not until 2014 to date, serious attempt to curb the menace was noticed. This illegal activity is a major promoter of sea Piracy and a deliberate act of siphoning of accruable revenues due to the government.
b.) Fishing Activities: Nigerian Fishing Industries Performed very well up to early 90's but today gradually snowballing into a near state of emergency as foreign fishing trawlers seems to encroach and almost dominating our waters within and few miles beyond the Economic Zone of 200 Nautical miles.
c.) Safety/Security of the waters; Piracy/ Policing Activities: As noted earlier, there are quite a number of piracy threats and attacks, though the activities of Niger Delta- militant’s attacks were more pronounced; down the line, comparable to the Global Sea Unrest, NIMASA still deserved a THUMB UP in this regards.
d). Inter-Agency Collaborations: The joint M.O.U /Partnership between the Navy, Customs, Police, NIMASA, etc can be said to be justifiable and deserves a THUMB UP notwithstanding noticeable and prevailing lapses.
4. GOVERNMENT REFORMS:
a). Institutional Reforms: HIGHLY COMMENDABLE. Dock Labour reforms, Customs Modernization, Introduction of SERVICOM Charter, NPA Reforms, establishment of Freight Forwarders Regulatory Council, etc are among key several reforms of the government that injected and improved ports operations.
b). Effectiveness of Public Enterprises: Government from all indications is gradually removing its hands from Public Enterprise administration, an indirect admittance that it lacked the managerial know-how in enterprise management. Hence, its resort to quick jump into Privatization/ Concessioning of its Public Enterprises. Government in expressing its resolve in this direction has created an agency to serve this specific purpose, that is, the Bureau of Public Enterprises (BPE).
Suffice, to note that, no reasonable economic development may be attained over thriving monopolied private system, Therefore, it means that making a paradigm shift from public sector monopoly to private sector monopoly will do the economy no good, government must be determined to design its strong business interest and involvement to stabilize and promote a healthy competition.
This, perhaps explains why, Great Britain concessioned 45% of its ports and manages 55 % as public enterprise. This is to pave way for efficiency, security, healthy competition, retained and sustainable professional expertise.
The India government emulated and did almost the same thing. The South Africa Government, retained its Public enterprise posture, only rebranded its port, metamorphosed to "Transnet Port" of SA, then "out sourced" areas it lacked technical capacity. Ghana retained and manages Takoradi's Port by itself, while retaining also 30% shares having offered its Tema Port to two operators who accepted to form a Consortium, for a 70% share (these two operators APMTerminals and Bollare Terminals under the consortium arrangements are now known as "Mediterianian Ports Services" -MPS.
In all, Governments are advised to develop capacity at striking a balance between monopoly and competition in its future Privatization/ Concession Processes.
c). Private Public Partnership Arrangements:This is THE TONE OF THE DAY, KUDOS TO GOVERNMENT, but still there are RESERVATIONS.
d). Legislative Roles; Amendments and Formulations of Acts: The National Assembly deserves a COMMENDATION in this regard. The NPA, NCS, SON, CABOTAGE Acts Amendment, etc Also the Local Content Board come to reference, the NTC, PIB, among Several others that were passed in the dying minute of the last Senate Assembly even as some are said to be awaiting Presidential veto's. Looking into the future the stakeholders opines that, the Law Formulations processes should be fast-tracked and strengthened to assist the sector timely.
5. CAPACITY BUILDING, HUMAN RESOURCE AND RESEARCH DEVELOPMENTS:
a). Training Institutions: ADEQUATE, but are poorly funded, thereby affecting outputs.
b). Maritime Libraries/ Research Institutions: ALMOST AT A STATE OF NEGLECT, as concerned Ministries and Agencies lack official vote in this respect.
c). Grade/Certification/International Acceptance: NATIONALLY A PASS MARK will suffice but INTERNATIONALLY NO. This accounts for the reasons, why the Federal Government spent so many funds for foreign Training.
d). Maritime Enlightenments and Sensitizations; Conferences, Workshop, Seminars, Technical Committees, Organizational Retreats , International Exchange of Expertise, etc: HIGHLY COMMENDABLE, as much has been achieved in this regards.
6. TERMINAL OPERATIONAL EFFICIENCY:
a). Tariffs Structure: Fair Before Port Concession,
Presently Tariffs are Inconsistent, Unstructured and above industrial standard/averages. Port Pricing System is not empirical yet.
Presently Tariffs are Inconsistent, Unstructured and above industrial standard/averages. Port Pricing System is not empirical yet.
b). Availability of Cargo Handling Equipments: Compared to what obtained in the Pre-port concession era and now, a deserving pass mark will suffice, but with consideration to trade growth and throughputs, much is seriously desired, even as noticeable operational delays occasion by inadequate corresponding handling Equipments to match throughputs is increasingly creeping into several days and its attendant cost implications.
c). Terminal efficiency/Yard Spacing/ Automation: There is improvement looking at where and what it was before port concession in 2006. Full integrations and automations of all transaction process to the extent that it reduces human contact to go and the evolution of on-line’s e-transaction is still an issue with some Shipping and Terminal Operators. The Physical Presence & Time spent at: Booking/ Commercial Halls transactions, Securing Cargo Positioning/Scanning, Releasing, etc the processes and procedures speak volumes and a negation of the 48 hours Cargo Clearance drive.
d). Berth Productions: Compared to Pre- Concession regime, A PASS MARK will suffice, but when compared with neighboring Countries’ Performance indicators, it is "BELOW PASS MARK".
e.) Cargo Forecasting/Projections: There has been a noticeable, seemingly dearth in this important aspect of operations on the part of NPA, a Little BELOW PASS MARK on the part of the Operators.
f). On Time Delivery/Business Friendly/Just in Time ( -JIT) Driven Terminals Operations: Compared to Pre-concession era, a Fair Improvement, recorded. In Post- concession, much is desired. It takes some operators 3 to 7 days to position a container for Physical Examination or Scanning Operations; 2 to 4 days to Plan and effect Cargo delivery, 2 to 5 days to receive empty containers.
g). Turn Around Time of a Vessel: GREAT IMPROVEMENT recorded, So far, Compared to Pre-Concession regime, today our ports are evenly ranked within the sub-region.
h). Turn Around Time of Utility Trucks: Compared to Pre Concession era, a Seemingly stereotype activities have been witnessed, due to a number of cogent reasons (dwell time of empty container on a truck, before it is discharged, no even and proximate empty containers’ holding bays, traffic gridlocks, etc). Though number of Truckers and Trucks Fleets has drastically increased over time, but unregulated.
i). Efficient Common Users Roads: Compared to Pre-Concession, with respect to development, managing the tear and wear/palliative measures maintenance, a PASS MARK will suffice.
j). Cargo dwell Time: Compared to Pre-Concession regime, in some Ports a noticeable and recorded SLIGHT DIFFERENCE from 21 days dwell time of Cargo to 18 days, in some Ports AVERAGE MARK has been recorded, from 21 days down to 11 days, while ABOVE AVERAGE in some Ports, from 21 days down to 8 days. Though, some factors are also responsible.
k). Cargo safety at the Port: Compared to Pre-Concession regime, ABOVE CREDIT MARK, recorded.
l). ISP Code Compliance: A CREDIT MARK will suffice.
m). Port Health / Environmental Pollution: Compared to Pre-Concession era, A PASS MARK, but there is still much need for a better improvement. In Some Terminals, Cargo Examination Bay is still very dusty during harmattan and flooded during rainy season. Public Conveniences insufficient. No effective control standards of carbon-monoxide emissions from cargo handling gears, even from trucks, etc.
7. NEED FOR A POST INDEPENDENCE POLICY CHANGE @ 55 VIA THE RE: ASSIGNMENT OF RESPONSIBILITIES OF MINISTRIES:-
With Special Emphasis to the noticeable Conflicting assigned Functions of the Ministry of Transport, Works and Housing and Aviation, in strong terms, there will be need to revisit the records. For instance, on the 1st of February, 1966, the Transport, Works and Housing Ministries were charged with the following responsibilities for the "Matters or Groups of Matters set out" against their respective Ministries:
a). MINISTRY OF TRANSPORT RESPONSIBILITIES :-
Ø Maritime Shipping and Navigation.
Ø Navigation on National Inland Waterways.
Ø Navigation: Issue of Certificates of Competence;
Ø Ports.
Ø Railways.
Ø Aviation: Certificate of aircraft and Personnel. Authorization of scheduled flights within and to and from Nigeria in accordance with the Air Transport (Licensing) Regulations 1958.
Ø Policy on Aviation in general; and provision of air safety services at Nigeria aerodromes,
Ø Relations with the following bodies:-
Ø Nigerian Ports Authority.
Ø Nigerian Railway Corporation.
Ø Nigerian National Shipping Line.
Ø Nigerian Airways.
Ø Nigerian Civil Aviation Training Centre
b). THE TWO ASSIGNED FUNCTIONS TO THE MINISTRY OF WORKS AND HOUSING THAT SHOULD BE TRANSFERRED TO THE MINISTRY OF TRANSPORT, A CALL FOR LEGISLATIVE AMENDMENTS:-
v"Development and Operation of National Trunk Roads including Regulations on Traffic on National Trunk Roads".
v"Roads Research and Constructions".
Without Prejudice, therefore, there is urgent need to ensure that this aspect of responsibilities be integrated into the Transport Ministry so as to achieve a robust Ministry of Transport that is all inclusive in its organizational structure, repackaged to consist of the following Directorates:
Without Prejudice, therefore, there is urgent need to ensure that this aspect of responsibilities be integrated into the Transport Ministry so as to achieve a robust Ministry of Transport that is all inclusive in its organizational structure, repackaged to consist of the following Directorates:
a) Directorate of Shipping Transportation, with a Director General.
b) Directorate of Inland Waterway Transportation, with a Director General.
c) Directorate of Aviation Transportation, with a Director General.
d) Directorate of Road Transportation, with a Director General.
e) Directorate of Rail Transportation, with a Director General.
With this, all the Director Generals shall report to one Minister of Transport. Apart from saving administrative cost, it brings the Five Transport modes under a seamless coordination and effective control, which will in the long run trigger the much expected inter-modalism/Inter-networking. Most importantly is the aspect of prompt Trade Facilitation derivable therein.
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