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Algoma, Nova Partner Up on Short-Sea Dry-Bulk Shipping

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Canadian Algoma Central Corporation and Switzerland-based Nova Marine Carriers have set up a new joint venture that will focus on short-sea dry-bulk shipping for global markets.

The JV operating as NovaAlgoma Short-Sea Carriers (NASC) is a 50/50 joint venture between Algoma and Nova Marine Holdings Limited (Nova), the parent company of Nova Marine Carriers.

NASC was formed by Nova as an October 31, 2016 carve-out from the deep sea dry-bulk freight business operated by Nova Marine Carriers S.A. In accordance with its agreement with Algoma, Nova has transferred all short-sea commercial contracts to NASC and transferred its interest in NASC and its interests in any dry-bulk vessels of less than 15,000 dwt to a newly formed entity, NovaAlgoma Short-Sea Holding Limited (NASH), as disclosed by Algoma.

To complete this transaction, Algoma said that it has acquired a 50% interest in NASH from Nova. At closing, Algoma acquired an interest in the NASC commercial platform and its book of business and an interest in a fleet of 15 short-sea mini bulkers ranging in size from 5,750 dwt to 14,700 dwt.

Six of these vessels are wholly owned by NASH and the company has a 50% interest in the remaining nine vessels. In addition to the vessels owned by NASH, NASC currently manages a fleet of 57 short-sea vessels on behalf of other owners, bringing the total fleet to 72 vessels. In addition, NASC is an active charterer of vessels as required to meet the commercial needs of its book of business.

“While the vessels we operate in our domestic fleet are considerably larger, our Great Lakes dry-bulk business is a short-sea business and we share many customers and operating principles with global short-sea markets,” Ken Bloch Soerensen, President and CEO of Algoma said.

“The global short-sea market is slowly recovering after several challenging years,” said Vincenzo Romeo, Chief Executive Officer of Nova, “but is still in need of further consolidation. Furthermore, it is obvious that both customers and ship owners are seeking commercial partners with the financial strength to meet their need for high quality service and dependability. “

The joint venture will be based in Lugano, Switzerland and has offices in Rotterdam and Sofia.

The duo said that they have already identified commercial and other synergies between NASC and Algoma, including opportunities to capitalize on prospects to develop mini bulker business within the Canadian market.

In January of 2016, Nova and Algoma created NovaAlgoma Cement Carriers (NACC), a joint venture focused on pneumatic cement carrying freighters and servicing global manufacturers of cement products. According to Algoma, NACC has grown to a fleet of nine operating vessels from its initial three ships with three more under construction or in the planning stage.

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Maritime

Customs Inaugurates Advance Ruling System To Improve Trade

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Customs Inaugurates Advance Ruling System To Improve Trade

 The Nigeria Customs Service (NCS) on Thursday inaugurated its Advance Ruling System to enhance trade facilitation in Abuja.

It has also organised stakeholders` engagement to foster mutual understanding of its programmes and to facilitate the rollout of the system.

Speaking at the event, the Comptroller General (C-G) of NCS, Adewale Adeniyi, said that the move was aimed at creating a more transparent and predictable business environment for its stakeholders.

Adeniyi described the advanced ruling as a critical mechanism that allows traders to obtain binding decisions from customs administrations on the classification, origin and valuation of goods before importation.

“This tool is essential for promoting trade facilitation, reducing compliance costs and fostering a conducive business environment, “he said.

The joint sponsorship by the Global Alliance for Trade Facilitation and the European Union-World Customs Organisations (EU-WCO) Rules of Origin (RoO) Africa Programme for NCS personnel training in January on advanced ruling skills for rules of origin.

It was further both the World Customs Organisation and the World Trade Organisation have emphasised the significance of advance ruling in facilitating international trade and promoting customs compliance by aiding traders in making informed business decisions.

The C-G described the launch of the system as timely, aligning with the policy directive of President Bola Tinubu’s administration to facilitate ease of trade for legitimate traders.

“This is reflected in the Policy Advisory Document of the government, which highlights recent achievements, such as the approval to decongest the ports and make them free and accessible for importers and operators.

“Additionally, the recent inauguration of the Single Window steering committee by the President underscores high-level commitment to enhancing trade facilitation in Nigeria, “ he said.

He added that the implementation was also timely, particularly considering the significant number of disputes the service had to handle between 2020 and 2023.

According to him, out of the 34 disputes, 31 have been resolved, while three cases are still pending.

“Additionally, despite the absence of a structured mechanism, a total of 296 requests for Tariff opinions were received, with 266 processed and 30 pending.

“It is crucial to note that the absence of this mechanism has implications beyond Trade Facilitation, as it also impacts our revenue, “he said.

He said that the service would organise workshops and sensitisation sessions at its Area Commands to ensure the successful implementation and to ensure stakeholders` understanding for effective use.

The C-G said he had given approval for the development of a handbook to guide traders and customs officers, and also to ensure consistency and transparency in the service`s rulings.

He thanked the German International Cooperation Agency (GIZ) for supporting its commitment to facilitate ease of trade.

Earlier in his remarks, the Country Director of GIZ, Dr Markus Wagner, said that the advanced ruling system was part of the Nigeria Energy Support Programme, funded by the German Federal Ministry for Economic Cooperation and Development.

Represented by Duke Benjamin, the Cluster Coordinator for GIZ Nigeria Programmes on Just Transition and Inclusion, he said the knowledge provided by the advance ruling would facilitate improvement in investments in Nigeria.

He added this was due to the clarity it brought to trade processes.

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CUSTOMS: Compt. Kayode Impounds Over N7bn Contraband At FOUC, Gracefully Bows Out

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CUSTOMS: Compt. Kayode Impounds Over N7bn Contraband At FOUC, Gracefully Bows Out

…Michael Ugbagu takes over 

The Nigeria Customs Service, Federal Operations Unit Zone “C” has announced the contraband seizures of N7,577,259,390.00 between January 25th, 2023 and April 19th, 2024. 

Outgoing Comptroller Kayode Kolade disclosed this in a farewell message while handing over to his successor and new Comptroller of the Unit, Mr Michael Ugbagu. 

Kayode thanked the Comptroller-General of Customs; Adewale Adeniyi, MFR and his entire management team, for the trust and confidence bestowed on him to serve as Comptroller FOUC and for replacing Ugbagu, “a thorough enforcement guru. 

“I am grateful to the Comptroller-General of Customs; Adewale Adeniyi, MFR and his entire management team, for the trust and confidence bestowed on me from January 25th 2023 to April 19th 2024 as I hand the affairs of this unit to another amiable Comptroller Michael Ugbagu, who is also a thorough enforcement guru”. 

He thanked unit officers for their unparalleled support, commitment, dedication, handwork and prayers, adding that their support was the reason for his successes. 

 “With all your support and cooperation, the Unit within my tenure was able to make substantial and spectacular seizures; totalling 198 seizures with a duty paid value of only N7,577,259,390 derived from five sacks of Pangolin scales weighing 413.1kg worth N523,356,390; 1,813 bags of  50KG each of 

foreign  parboiled rice worth N105, 105,000.00;

815 SACKS of Cannabis Sativa weighing 17,950KG and 2,935 PARCELS (1KG EACH) weighing 2,935kg (TOTALING 20,885KG) worth N1,670,800,000.00. 

Other seizures and their breakdown are as shown: 

  1. DSP/CMC cough syrup with codeine

31 Cartons containing 3,600 bottles 

   N21,600,000.00

52 units including 3 armored vehicles, N4,275,000,000.00, explosive devices

9  sacks 50kg of explosive materials/superpower 90 substance/ cables N12,990,000

+ security implication, used clothing/ shoes

1,807 jumbo bales, 48 sacks of used shoes, 

N451,750,000.00, N4,800,000.00

5. unregistered/expired medicaments, 

955 cartons of expired/various brands,  including tramadol, N238,750,000.00, 

used pneumatic tyres, 6,457 PIECES

N96,855,000.00 for foreign spaghetti, 364 cartons at  N7,280,000.00, 4,693 cartons, and foreign tomato paste at N234,650,000. OIL

He added that although FOUC is not a revenue-generating unit, under his watch and based on interventions to checkmate the activities of fraudulent agents at the seaports, lots of lost revenues were recovered to N155,819,714.00. within his 15 months in office. 

Comptroller Kayode also reconstructed and equipped a clinic at the Unit’s office, in Owerri,  where officers and Men, as well as members of the host community, enjoy free health care services administered by the unit’s qualified medical personnel. 

In addition, to ensure a healthy work-life balance, he carved out a spacious office for sports activities with fully installed gym equipment where officers and men can exercise. 

He called on everyone to extend the same support and cooperation to his successor, Comptroller Micheal Ugbagu as he pilots the unit affairs and wished him well. 

“I wish you well my brother. You will succeed and your legacies will be felt as well “, he said. 

In his response, Comptroller Michael Ugbagu thanked the CGC and his entire management team for bestowing him with the mandate to oversee the affairs of FOUC. 

He thanked Comptroller Kolade for his “highly commendable “ achievements while he held sway and pledged continued compliance with established guidelines. 

 “We will ensure compliance with the current import and export guidelines using intelligence and technology to drive our operations. 

 “There will be watertight security against smuggling activities across the zone. Smugglers will be discouraged, frustrated and made uncomfortable, making smuggling, duty evasion and warehousing of smuggled goods unattractive within the zone “, he said. 

He called for support and cooperation from the media and the general public to enable him to carry out his new assignment. 

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NSC Registers 160 Port Operators, Urges Others To Comply

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NSC Registers 160 Port Operators, Urges Others To Comply

…NAGAFF Says port challenges were enormous, blames some of the government agencies

The Nigerian Shippers Council (NSC) has enrolled 160 Port Stakeholders into its Regulated Port Service Provider and Users platform since the initiative began in 2023.

The Executive Secretary of NSC, Mr Pius Akutah, disclosed to newsmen on the sideline of a sensitisation programme by the commission for port operators on Monday in Lagos.

The theme of the programme is, “Regulated Port Service Provider and Users”.

Akutah, who was represented by Director Consumer Affairs, Chief Cajetan Agu, emphasised the significance of the programme for stakeholders.

He said that the sensitisation programme was the second edition after its commencement during the last quarter of 2023.

Akutah said that the 160 registered port operators consist of agencies, terminal operators, shipping companies, individual port users as well as service providers.

L-R The Assist. Director, Consumer Affairs, Nigerian Shippers’ Council, the Director Consumer Affairs Dept. Of NSC, Chief Cajetan Agu, and the Deputy Director, Stakeholders, Service, NSC, Mr Celestine Akujobi, during the NSC sensitisation programme for stakeholders on the “Regulated Port Service Provider and Users’ held in Lagos on Monday.

“We invited the port’s stakeholders to enlighten them on the processes for online registration of Regulated Port Service Providers and Users.

“We have demonstrated to them how to register and how to make payment and we were able to present before them the various categories of the registration.

“The rate of payment is also in the registration. The payment of each group depends on the operation. A shipper pays N30,000, terminal operators and shipping companies pay N300,000, truckers also pay N30,000 while some pay N50,000 as well as N100,000.

“The council was able to intimate them on the benefits because port users benefit more as we help to interface for reducing port charges from time to time,” Akutah said.

He said that there was a need to continue to work with port operators to stop delays and also eliminate high costs to make the port efficient.

The Deputy Director, Stakeholders, Service, NSC, Mr Celestine Akujobi, said the sensitisation exercise was important for the council to enable us to bring all the port stakeholders together.

According to him, this is to avoid challenges during the implementation of the council’s responsibilities.

“By the time we introduce sanctions on defaulters, no operators will complain that he or she is not aware of the registration.

“I’m happy with the turnout of this sensitisation. This shows that the operators are well informed of the statutory fiction of the council as the port regulator.

“The final implementation will commence as soon as we discover that all the operators have keyed into the portal.

“We are engaging other ports across the country and we are hopeful that before the last quarter of 2024, the Council will implement sanctions on the defaulting operators,” Akujobi said.

The Vice Chairman, National Association of Government Approved Freight Forwards (NAGAFF), Dr Ifeanyi Emoh, said that port challenges were enormous, adding that they originated from some government agencies.

Emoh urged the council to look into regulating other government agencies so that they could be a window where they collected port challenges collectively instead of indiscriminate charges.

The Member of National Council of Managing Director of Licensed Customs Agents, Mr Abayomi Duyile, commended NSC, saying that the sensitisation would enable both the government agencies and port users to operate on the same level.

The Chairman, Board of Trustee (BOT), NEXUS Association of Maritime Truckers Operators (NAMTOP), Mr Raheem Morufu, said he had registered since November 2023, but found it difficult to register on the NSC portal.

“I’m now well informed after the training that everyone will register individually, regardless of their operations to be attended to when there is a challenge.

“I want to commend NSC for their intervention when the shipping companies overcharged me. I was able to be refunded N20 million after the intervention,” Morufu said.

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