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LADOL, Nigerdock spend over $1b on facilities

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  • NPA, NIMASA Directed to Contribute N46.1bn to 2016 Budget Funding

Two of Nigeria’s ship repair and fabrication yards, Lagos Deep Offshore Logistics Base (LADOL) and Nigerdock, have invested over $1.1billion to enhance their productive capacity. This is in line with their mandate to meet the Local Content requirement in the fabrication and building of oil platforms for International Oil Companies  (IOCs) and indigenous oil production and servicing firms.

The Chief Executive, LADOL, Dr. Amy  Jadesimi, and the  Group Executive Chairman, JAGAL Group, operators of Nigerdock, Anwar Jarmakani, who spoke separately yesterday when they received the  Controller-General, Nigerian Customs Service (NCS), Col Hameed Ali (rtd),  said they have invested $600million and $500million respectively to improve on service delivery.

In response to Mrs Jadesimi’s wellcome address, Ali, expressed delight at the giant strides of the wholly indigenous owned facility which has so far attracted $600million in local content input. He said for  an indigenous investor to take such bold step amid the risk in undertaking such ventures, the project must be appreciated by the Presidency.

Ali said: “I have come and I have seen, they say ‘seeing is believing’. I will take the message to President Muhammadu Buhari whom I’m sure will be impressed if he gets to know what you are doing here. The President is interested, more so that you are the first people that are doing this kind of project in West Africa…and to say that your organisation is owned by Nigerians, it is amazing.

“With what you are doing here, I have no doubt that government will continue to support and encourage you. “Any government will be glad to support an entity such as this that will put us (Nigeria) at par with other industrially developed countries of the world.”

Dr. Jadesimi said the zone which has been developed into a world-class facility from a swamp, has so far generated about N16.9billion in revenue in the past 10 years.

“Over the years, we have done our best in terms of Customs revenue generation. So far, we have generated almost N16.9billion as Customs revenue,” she said, adding that more would come when the project is completed.

Going forward for the Egina project,  the customs duty of the FPSO will be paid through the Apapa Customs Command and that will be determined by the Customs assessment team in the area of value.

“What we can tell you so far is that the value of what we have been doing is put at about $20 million. We are sure that with that, we will be able to give you the percentage of the $3.8billoin worth of the entire vessel for your overall assessment.

“The essence of what we are doing now is that you spend about two years building the vessel, bring in a lot of raw materials for the fabrication before the vessel goes out into the customs territory and that is the point at which you pay duty,” she said.

She said beyond revenue generation, other socio-economic values, such as jobs as well as preservation of foreign exchange are other advantages of the project to the nation.

“The number of enterprises at the free zone has also been increasing. We are expanding our activities and looking at agricultural processing, just as we are focusing on job creation. By the end of this year, we estimated that we would have created over 2000 jobs,” she said.

On his part, Jarmakani said the company has invested additional $500million on the facility and urged the Federal Government to stop monopoly in the country’s oil and gas logistics and supply service as it makes the sector uncompetitive.

He said the monopoly has forced the oil and gas industry and the nation into capitulation.

Jarmakani said: “The Nigeria oil and gas supply and logistics services is the most expensive in the world because of its entrenched monopoly. They have driven away investments from Nigeria and seriously damaged the international reputation of Nigeria.”

He also alleged that monopolists have consistently and aggressively used different government institutions to compromise, maintain and entrench its monopoly position with impunity. According to him,  attempts have been made in the past to use the Customs. He however expressed appreciation that the present administration is aggressively doing away with what he described as “impunity.”

In the meantime, as the federal government makes efforts to fund this year’s budget under dwindling revenue from oil, the Nigerian Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA), Nigerian Shippers’ Council (NSC), among others have been directed to pay urgently the sum of N46.1bn to the Federation Account.

The directive which applies to other government agencies in other sectors of the economy was given by the Ministry of Finance as part of the efforts to mobilize resources for the funding of the 2016 budget.
It was gathered that the amount is supposed to be part of the 25 percent internally generated revenue (IGR) from the agencies for last year.

Our source who attended the meeting where the Finance Minister, Mrs. Kemi Adeosun gave the directive said the money ought to have been paid before now.
A breakdown of the amount showed that NPA is expected to pay N40billion as it has not paid any amount for long now.

NIMASA on the other hand is to pay N5billion, as the source said the agency has been making necessary contributions to the Federation Account, while NSC is to pay N600million because of its lean purse.
Other agencies of the Transport Ministry, including Maritime Academy of Nigeria (MAN), Oron, are also expected to contribute some amount to fund the budget.
It was gathered that the Finance Minister was not happy with the NPA for not submitting its audited account since 2013.

Following this, the Minister has given a directive that the authority should as soon as possible get its audit report up till 2015 ready and submitted to the Ministry.

Nation with additional report from Shipping day

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WAIVER CESSATION: Igbokwe urges NIMASA to evolve stronger collaboration with Ships owners

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…Stresses the need for timely disbursement of N44.6billion CVFF***

Highly revered Nigerian Maritime Lawyer, and Senior Advocate of Nigeria (SAN), Mike Igbokwe has urged the Nigeria Maritime Administration and safety Agency (NIMASA) to partner with ship owners and relevant association in the industry to evolving a more vibrant merchant shipping and cabotage trade regime.

Igbokwe gave the counsel during his paper presentation at the just concluded two-day stakeholders’ meeting on Cabotage waiver restrictions, organized by NIMASA.

“NIMASA and shipowners should develop merchant shipping including cabotage trade. A good start is to partner with the relevant associations in this field, such as the Nigeria Indigenous Shipowners Association (NISA), Shipowners Association of Nigeria (SOAN), Oil Trade Group & Maritime Trade Group of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

“A cursory look at their vision, mission and objectives, show that they are willing to improve the maritime sector, not just for their members but for stakeholders in the maritime economy and the country”.

Adding that it is of utmost importance for NIMASA to have a through briefing and regular consultation with ships owners, in other to have insight on the challenges facing the ship owners.

“It is of utmost importance for NIMASA to have a thorough briefing and regular consultations with shipowners, to receive insight on the challenges they face, and how the Agency can assist in solving them and encouraging them to invest and participate in the maritime sector, for its development. 

“NIMASA should see them as partners in progress because, if they do not invest in buying ships and registering them in Nigeria, there would be no Nigerian-owned ships in its Register and NIMASA would be unable to discharge its main objective.

The Maritime lawyer also urged NIMASA  to disburse the Cabotage Vessel Financing Fund (CVFF)that currently stands at about N44.6 billion.

“Lest it be forgotten, what is on the lips of almost every shipowner, is the need to disburse the Cabotage Vessel Financing Fund (the CVFF’), which was established by the Coastal and Inland Shipping Act, 2003. It was established to promote the development of indigenous ship acquisition capacity, by providing financial assistance to Nigerian citizens and shipping companies wholly owned by Nigerian operating in the domestic coastal shipping, to purchase and maintain vessels and build shipping capacity. 

“Research shows that this fund has grown to about N44.6billion; and that due to its non-disbursement, financial institutions have repossessed some vessels, resulting in a 43% reduction of the number of operational indigenous shipping companies in Nigeria, in the past few years. 

“Without beating around the bush, to promote indigenous maritime development, prompt action must be taken by NIMASA to commence the disbursement of this Fund to qualified shipowners pursuant to the extant Cabotage Vessel Financing Fund (“CVFF”) Regulations.

Mike Igbokwe (SAN)

“Indeed, as part of its statutory functions, NIMASA is to enforce and administer the provisions of the Cabotage Act 2003 and develop and implement policies and programmes which will facilitate the growth of local capacity in ownership, manning and construction of ships and other maritime infrastructure. Disbursing the CVFF is one of the ways NIMASA can fulfill this mandate.

“To assist in this task, there must be collaboration between NIMASA, financial institutions, the Minister of Transportation, as contained in the CVFF Regulations that are yet to be implemented”, the legal guru highlighted further. 

He urged the agency to create the right environment for its stakeholders to build on and engender the needed capacities to fill the gaps; and ensure that steps are being taken to solve the challenges being faced by stakeholders.

“Lastly, which is the main reason why we are all here, cessation of ministerial waivers on some cabotage requirements, which I believe is worth applause in favour of NIMASA. 

“This is because it appears that the readiness to obtain/grant waivers had made some of the vessels and their owners engaged in cabotage trade, to become complacent and indifferent in quickly ensuring that they updated their capacities, so as not to require the waivers. 

“The cessation of waivers is a way of forcing the relevant stakeholders of the maritime sector, to find workable solutions within, for maritime development and fill the gaps in the local capacities in 100% Nigerian crewing, ship ownership, and ship building, that had necessitated the existence of the waivers since about 15 years ago, when the Cabotage Act came into being. 

“However, NIMASA must ensure that the right environment is provided for its stakeholders to build and possess the needed capacities to fill the gaps; and ensure that steps are being taken to solve the challenges being faced by stakeholders. Or better still, that they are solved within the next 5 years of its intention to stop granting waivers”, he further explained. 

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Breaking News: The Funeral Rites of Matriarch C. Ogbeifun is Live

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The Burial Ceremony of Engr. Greg Ogbeifun’s mother is live. Watch on the website: www.maritimefirstnewspaper.com and on Youtube: Maritimefirst Newspaper.

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Wind Farm Vessel Collision Leaves 15 Injured

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…As Valles Steamship Orders 112,000 dwt Tanker from South Korea***

A wind farm supply vessel and a cargo ship collided in the Baltic Sea on Tuesday leaving 15 injured.

The Cyprus-flagged 80-meter general cargo ship Raba collided with Denmark-flagged 31-meter wind farm supply vessel World Bora near Rügen Island, about three nautical miles off the coast of Hamburg. 

Many of those injured were service engineers on the wind farm vessel, and 10 were seriously hurt. 

They were headed to Iberdrola’s 350MW Wikinger wind farm. Nine of the people on board the World Bora were employees of Siemens Gamesa, two were employees of Iberdrola and four were crew.

The cause of the incident is not yet known, and no pollution has been reported.

After the collision, the two ships were able to proceed to Rügen under their own power, and the injured were then taken to hospital. 

Lifeboat crews from the German Maritime Search and Rescue Service tended to them prior to their transport to hospital via ambulance and helicopter.

“Iberdrola wishes to thank the rescue services for their diligence and professionalism,” the company said in a statement.

In the meantime, the Hong Kong-based shipowner Valles Steamship has ordered a new 112,000 dwt crude oil tanker from South Korea’s Sumitomo Heavy Industries Marine & Engineering.

Sumitomo is to deliver the Aframax to Valles Steamship by the end of 2020, according to data provided by Asiasis.

The newbuild Aframax will join seven other Aframaxes in Valles Steamship’s fleet. Other ships operated by the company include Panamax bulkers and medium and long range product tankers.

The company’s most-recently delivered unit is the 114,426 dwt Aframax tanker Seagalaxy. The naming and delivery of the tanker took place in February 2019, at Namura Shipbuilding’s yard in Japan.

Maritime Executive with additional report from World Maritime News

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