Business
IMO And Efforts To Minimise Marine Accident
Statistical records have revealed that there is a high rise in accidents on board ships, in spite of efforts to control such accidents, and that majority of the accidents are caused by human errors on board.
Security, safety of lives and efficient shipping operations in our waters have been the cardinal objectives of the International Maritime Organisation (IMO), and the apex world maritime body for a long time kept on improving ship construction and equipment standard by continuously amending the Safety of Lives at Sea (SOLAS) convention.
Invariably, stakeholders in the maritime industry have their various role to play in complementing the various efforts of IMO towards SOLAS initiative actualisation and this also implies that various segments and operators in the industry should be committed to making their own input, to the success of SOLAS.
The Continuous rise in accident occurrence amidst the SOLAS amendments demanded comprehensive casualty investigation, so as to find the underlying causes of accidents. A careful analysis of casualty investigation reports revealed that about 80% of accident on board were caused by human error.
Inspite of the wide acceptance of the conventions, the shipping industry, media and various governments were expressing growing dissatisfaction as to its effectiveness. The best way to deal with human error was to comprehensively amend the SOLAS convention, to bring about diversion of focus and this gave birth to the Standard of Training, Certification and Watchkeeping (STCW).
The implementation of STCW was meant to improve seafarers competence, which raised the anticipation that those safety standards would remarkably improve.
Also, implementation and enforcement of the amended convention is an opportunity to raise the standard of the world’s seafarers, improve safety, and reduce accidents and pollution.
However, the question is; why do human error accidents on board ships still take place? The occurrence of such accidents have therefore brought about mixed feelings as to the effectiveness of the STCW convention and the role of stakeholders in implementing the standards.
The maritime administrations are responsible for ensuring compliance with the implementation of the convention and the ISM Code by approving related education and training, ensuring that the duties, task and responsibilities of seafarers conform to the certificate issued. They are expected to ensure that quality standards of seafarers competence are continuously monitored, certified, endorsed and revalidated, as well as accrediting maritime academies and institutions.
In the final analysis, they must submit progress reports to IMO, concerning the implementation of the convention in their respective countries.
Training institutions as it were, play crucial role in developing seafarers competence. The scope of training provided are not limited to the convention, but are expected to exceed those set by IMO, as they will take into consideration the national challenges.
To fulfill the need of international shipping, they are to provide quality seafarers, develop and train staff in maritime education as in-line with IMO models courses, and global maritime standards. They are expected to use standards of competence tables of the Standard of Training, Certification and Watch Keeping (STCW), in setting the time table for training.
They are to focus on a competence based training system where hands on training and the development of basic skills through the use of simulators, labouratory training equipment and other practical training aids are provided.
In a nutshell, they provide academic walls by ensuring a complete utilization of necessary educational equipment and updates.
On their own part shipping companies are expected to compensate for laxity in enforcement of convention provisions by the administration and implementation of rules according to the ISM Code and the necessary standard regarding emergencies and report procedures between shipboard and company.
They are to contribute to the training of company personnel and seafarers sea service by monitoring the implementation of procedures for changing crews to ensure that sufficient time is allowed for those new to the ship to have adequate opportunity to familiarise themselves with the ship, its appliances and equipment relevant to their assigned duties, thereby providing the enabling environment to allow seafarers effectively practice the seafaring profession.
As part of competence demonstration, seafarers role under STCW has to do with acquiring and demonstrating competence, while on board, keeping pace with progress by ensuring that their knowledge is up to date in the areas relevant to their duties and responsibilities on board.
On recognition and endorsement, they are to obtain and keep up to date, any recognition endorsement that may be required and serving as authorized holder of competency certificate onboard ship of the administrations concerned.
However, the International Maritime Organisation (IMO) in order to keep track with the implementation of the convention and other instruments relevant to ships safety, is expected to lay emphasis on human element matters with other member states, as well as encourage technical cooperation between her member states and other organization to give effect to the convention, recognise advice and assistance provided by experts with knowledge of maritime resources and for training.
From reports, a major problem with the convention is proper implementation, as the human error factors have continuously surfaced. A summary of the annual report of marine accident investigation in London involving United Kingdom merchant vessels, pleasure craft, fishing vessels and other vessels, especially on issues relating to human factor indicated that a total of 2,485 accidents occurs yearly on the average.
A number of merchant ships on international voyages were involved in collision or near misses. The causes were attributed to crew fatigue under manning, falsified hours of work records and failure to perform dedicated look out on the bridge. Other factors include poor situational awareness and anticipation/judgment by officers of the watch.
In addition, routine paper work, cargo work, maintenance, inspections, loading unloading, passage planning and actual working hours have also been identified to have contributed to accidents and incidences.
Under the STCW, checking and making judgment concerning certificates of competency lies with the body that assesses watch-keeping skills of crew members as compared to STCW table. It is here that judgement is made as to whether or not the level of competency of seafarers poses a danger to property, persons or environment, so that action for the detention of the vessel can be initiated.
Research conducted by seafarers International Research Centre concerning fraudulent practices associated with certificates of competency and endorsement show that evidence of fraudulent practice existed in certificate issued to seafarers.
Although shipping operations today are faced with many challenges, but what is crucial to ship safety is seafarers competence, and that means the competency acquired must conform to all the standard of training, certification and watch keeping.
That is why the statement made by the eastern zone coordinator of NIMASA, Sani Mohammed in Port Harcourt that his agency has nothing to do with graduates of institution that does not meet IMO standard in job placement, and other stakeholders should follow suit.
Corlins Walter
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The Commissioner of Finance, Lagos State, Abayomi Oluyomi, has described Small and medium Enterprises (SMEs) as a critical engine for sustainable development in any economy.
He said this recently at the 10th anniversary of the Alert Group Microfinance Bank and the opening of their new head office in Lagos.
According to the National Bureau of Statistics, SMEs accounted for about 50 per cent of Nigeria’s gross.
He commended the positive impact of the Alert MFB as it empowers SMEs in the State.
“Alert MFB in the past 10 years has been at the forefront of empowering SMEs in Lagos State, disbursing over N30bn in loans to over 30,000 individuals having small to medium businesses over that period, which is quite remarkable”, he said.
Speaking, the Group Managing Director of Alert Group, Dr Kazeem Olanrewaju, revealed that the financial institution commenced business in 2013 as a microfinance bank.
“We started this journey in 2013 and it has been expanding. Today, they have about 10 branches across Lagos. They have supported well over 30,000 clients and have disbursed over N30bn.
“The company has been profitable since the second year. Looking at the market and the available opportunity, the Alert MFB board decided to come together to establish a Microfinance Institute (MFI), which is the Auto Bucks Lenders”, Dr. Olanrewaju said.
The GMD further stated that the company was focused more on supporting businesses and small and medium enterprises.
“The loan to support business represents over 98 per cent. The consumer loans you will see are the ones given to entrepreneurs. So, the area of focus of Alert MFB and Auto Bucks Lenders is to support businesses across the country.
“With the establishment of Auto Bucks Lenders, we have the opportunity to also do business outside Lagos. So, presently, we have offices in Ogun State and Oyo State. We intend to go to every part of Nigeria to support what we are doing”, he declared.
The cement market, in the last couple of weeks, has seen a significant turnaround with prices tumbling from between N10,000 and N15,000 per 50kg bag to between N7,000 and N8,000.
The sudden rise in the prices of cement and other major building materials in February this year upsets the construction industry, especially in real estate, where many developers were forced to abandon building sites.
A recent market survey conducted by The Tide’s source in different locations across the country confirmed a price drop, ranging between N7,000 and N7,500 per bag, though BUA cement is selling for N7,500 to N7,800 per 50kg bag, depending on location.
Both entrepreneurs and major distributors who were interviewed, explained that the price drop is due to low demand and government’s intervention.
At the peak of the price hike, the Federal Government called a meeting with major producers where it was agreed that a bag of cement should be between for N7,000 to N8,000, depending on location.
But the producers did not comply with this agreement immediately, followin which “Nigerians stopped demanding for cement; many project sites were abandoned as developers sat back and waited for the prices to come down.
“So, what has happened is an inter-play of demand and supply with price responding, which is Economics at work”, Collins Okpala, a cement dealer, told the source in Abuja.
In the Nyanya area of the Federal Capital Territory, a 50-kg bag of Dangote cement now sells for between N7,000 and N7,500, while BUA cement sells for between N8,500 and N9,500, down from between N11,000 and N12,000 respectively.
In Lagos, the product has seen significant price drop too. In Ojo area of the state, Sebastin Ovie, a dealer, told our reporter that what has happened is a crash from the January price, attributing the crash to low demand and stronger naira.
“The current price of the product is between N7,000 and N7,500 per 50kg bag, depending on the brand. This is a significant drop from the average of N12,000 which most dealers were selling in February and March”, he said.
A dealer in Agege area of the state who identified himself as Taofik Olateju, told the source that sales are picking up due to the drop in price.
He recalled that Nigerians at a point stopped buying due to the high price of the product at N15,000 per bag.
“I am sure most dealers ran at a loss then because we had mainly old stocks which we wanted to offload quickly”, he said, confirming that the product sells for between N7,500 and N8,000, depending on the brand and the demand for the brand.
Continuing, Olateju noted that “because the naira is now doing well against the dollar, it will be unreasonable for manufacturers to continue to sell the product at the old prices. I also believe that the federal government’s intervention and the threat to license more importers may have worked, leading to the reduction in price”.
In Enugu, the source reports that the product sells for between N7,200 and N7,500 depending on the brand and location.
“This is a city where the price of a 50kg bag went for as high as N12,000 and N13,000 in some cases in February and March”, Samuel Chikwendu said.
He added that the prices of other building materials, especially iron rods, have also dropped considerably which is why, he said, activities are picking up again at construction sites.
The story is slightly different in Owerri, the capital of Imo State, where Innocent Okonkwo told the source that low demand was also driving the price drop, adding that a 50kg bag was selling for N9,000 on the average in the state.
Sundry market observers are optimistic of further price reductions, but they remain cautious as manufacturers, wholesalers, and retailers continue to play critical roles in setting prices for end-users.
They lamented, however, that despite Nigeria’s status as one of the largest producers of cement in Africa, the price of the product continues to rise, particularly in the face of high inflation impacting the building materials market generally.
Okpala in Abuja highlighted the variations arising from direct sourcing from manufacturers versus procurement through dealers, with traders holding old stocks selling products at prices ranging from N8,500, N8,300 to N8,000 per bag.
Lucy Nwachukwu, another dealer in Abuja, said the significance of procurement volume in determining cement costs, noting that stability in prices has been observed over the past month, with the product retailing for between N7,000 and N7,800 depending on the brand.
In Port Harcourt also, a customer, Daniel Etteobong Effiong, said the price goes between N7500 to N8500, depending on the brand and the location one is buying from.
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