Business

Need For Ecomarine Development In Africa

Published

14 years ago

January 1, 2010

Economists are united in the view that a country’s capacity to create wealth is most facilitated by favourable foreign/trade and supportive infrastructure. The critical determinant of trade development is the transportation cost component, which efficiency is often determined by the tight type technology.

That not withstanding, a number of people have continued to under value the importance of maritime transport in the overall development of Africa.

Ecomarine is an African business concept in which African goods and services destined for Africans, move on African-owned ships and trucks, and are stored in African-owned warehouses not forgetting the development of African skills in marine services and technology. Indeed, the conspicuous absence of dedicated coastal shipping services in the region, and the demise of the erstwhile National Shipping Lines, have compounded familiar shortcomings of the other modes of transportation thus, prompting the need for the creation of Ecomarine.

It was difficult to comprehend how and why, a region with a homogenous maritime coastline, stretching over 2,000 nautical miles, and covering 27 different countries, could afford to remain without a dedicated coastal shipping service.

The domination of the regional shipping industry by foreign multinational conglomerates, whose legitimate business practices greatly undermine the interest of the inhabitants of the region further exacerbated the situation.

The cost of moving a container from one part of the region to another is enormous. It is costly as if moving a container from anywhere in Europe to the region. Records also show that the cost of transportation on consumer goods in the region stands at approximately 14 per cent as against the average of 4-6 per cent in all other regions of the world.

Ecomarine which, to be precise, represents a private sector response to the situation, is conceived as an integrated maritime-based solution, designed to provide coastal cargo and passenger shipping services, the construction of load centers and inland dry port, coastal shipping feeder services as well as related linkage infrastructures and services.

As a way of showing commitment to partnership, the United States Trade and Development Agency (USTDA) had signed a grant agreement of about US $400,000 to fund engineering studies for the proposed automated trans-shipment platform.

Ecomarine’s mission, is to make maritime transport the natural choice in the movement of goods and travelers in the region, by proving customer-focused, competitive world class coastal shipping services.

The rationale behind the Ecomarine concept stretches beyond the direct benefits it stand to procure to the wide spectrum of immediate stakeholders, to include the positive impact on the socio-political and economic landscape of the entire region.

As a force in the promotion of intra-regional trade, the free movement of goods and persons, tourism, cultural exchanges and the more effective, interest-related bonding of regional citizens, Ecomarine stands out in a class of its own, as the vector of a much-desired integration of the sub region.

Indeed, there are lots of benefits that are derivable in the Ecomarine business, which could be summed up in terms of economies of scale, employment, wealth creation, poverty alleviation, industrial development and economic welfare among others.

Even with the promulgation of the Cabotage Act that gives Nigerians more courage to undertake full maritime business, Ecomarine is designed to join forces in conscientising regional operators as well as spour them to actions for overall development.

Besides the pride of place in pioneering a regional shipping venture, investors will benefit from the cross-boarder insurance cover being provided to Ecomarine by Multilateral Investment Guarantee Agency of the World Bank Group.

Business in general terms will benefit from increased market access, increased production and consequently witness increased profits. Government, on their parts, will enjoy greater political stability resulting from reduced poverty, and greater general welfare for the populace.

Foreign trade remains an important economic activity in the region. Available statistics show that trans-shipment cargo that flows to West Africa exceeds 633,000 Twenty foot Equivalent Units (TEUs) annually, while estimated passengers is put at only 200,000, and this can be explained by the fact that sea traveling is highly underdeveloped in the region.

The most heavily used routes in the region are accessible by sea and maritime transport, and this remains relatively cheaper and safer than all other modes. Therefore, the shortcomings of the other modes of transport in the region present an enormous potential from which Ecomarine can tap.

There might be competition from the other modes of transport, albeit their various limitations. Traveling by air is expensive if not prohibitive and connectively remains a major handicap. The decried excessive check points, administrative bottlenecks and other hazards constitute a serious limitation to traveling by road, while poor infrastructure, outdated rolling stock and the absence of rail links make it practically impossible to travel by train from one country to the other, in the region. The profitability and the viability of Ecomarine enjoy the support of some multi-lateral institutions like the Economic Community of West African States (ECOWAS) with secretariat in Abuja.

ECOWAS did not only midwife the delivery of the Ecomarine baby, but has since birth acted as facilitator in every possible way and that facilitated the decision of Heads of States and Governments of the Community to grant Ecomarine “National Carrier Status” in all member countries.

Ecomarine also enjoys the patronage of the foremost marine organisations of the region, the Maritime Organisation of West Africa and Central Africa (MOWCA) which has adopted a policy framework for a regional maritime Cabotage law, a regional coast guard network and a regional maritime fund.

The Port Management Association of West and Central Africa (PMAWCA) has also thrown its weight behind the priority berthing rights and other concessions to regional coastal shipping companies like Ecomarine.

There may be weaknesses and threats to Ecomarine existence and survival, ranging from the current domination of the industry by foreign liners and investors to political instability and competition from new entrants, but these can be mitigated through formation of strategic alliance, and adoption of competitive world class shiping standards to compete on equal terms.

What is on ground now with respect to operations of Ecomarine is not enough, and there is need for a more serious efforts, having known its benefits.

The region as at now is not adequately served by sea transport, and the growth rate potential for intra-regional and trans-shipment cargo is very high.

That is why the formation of New Partnership for African Devenlopment (NEPAD) initiative is timely, and represent tremendous opportunities for the growth of Ecomarine.

Ecomarine is the concrete example of what NEPAD is all about, because it not only captures in essence the principles and mechanisms advocated in NEPAD plan, but it also produces the desired result.

Being positioned to dominate the regional maritime industry, and with profitable business with strong cash flow, no effort should be spared to develop the Ecomarine project.

Corlins Walter

Business

Fuel Scarcity: IPMAN threatens shutdown over bridging claims

Published

3 days ago

May 3, 2024

The Tide

The Independent Petroleum Marketers Association of Nigeria (IPMAN) Depot Chairmen Forum, has exonerated its members from the current fuel scarcity in the country.

According to IPMAN, this is caused by its inability to source petroleum products.

The IPMAN Depot Chairmen Forum also threatened to withdraw its services over non-payment of N200 billion bridging claims by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to its members, since 2022.

Alhaji Yahaya Alhassan, the Chairman, of the Forum said this while briefing newsmen in Abuja, yesterday.

Alhassan said the Nigerian National Petroleum Company Limited (NNPC Ltd.) was the sole importer of the product, but the marketers could not source products from NNPC Ltd. deport, rather from the private depots at high rate.

“We cannot buy fuel from the private depots at N950 and transport the product from Lagos to the North and other parts of the country with N2 million and still sell it at N900 or N1, 000.

“It is expedient for us to state that we are more pained by the non-availability of petroleum products in the country, which has given rise to another round of untold hardship for Nigerians.

“Contrary to claims that IPMAN members are hoarding Premium Motor Spirit (PMS) known as fuel, we would like to categorically state that PMS scarcity is wholly triggered by inability to get fuel from NNPC and not IPMAN,’’ he said.

Meanwhile, the NNPC Ltd. Chief Corporate Communications Officer, Olufemi Soneye said the disruption was due to logistical issues which had since been resolved.

“We currently have an availability of products exceeding 1.5 billion litres, which can last for at least 30 days. Unfortunately, we experienced a three-day disruption in distribution due to logistical issues, which has since been resolved.

“However, as you know, overcoming such disruptions typically requires double the amount of time to return to normal operations.

“Some folks are taking advantage of this situation to maximise profits. Thankfully, product scarcity has been minimal lately, but these folks might be exploiting the situation for unwarranted gain,’’ Soneye said.

He however, said the lines would clear out soon.

On the non-payment of bridging claims, the IPMAN forum said it was distressed and depressed by the laidback attitude of the NMDPRA towards the survival its member’s businesses, arising from its refusal in paying the claims.

“It is with deep frustration that we have assembled here today as the IPMAN Depot Chairmen Forum. It is also disheartening to note that some of our members have completely shut down businesses and retrenched employees.

“As businessmen and women, our members acquired bank loans to keep their fuel retail outlets running on a daily basis across the nooks and crannies of Nigeria in order to serve the teeming population of Nigerians,’’ Alhassan said.

He recalled that Sen. Heineken Lokpobiri, Minister of State Petroleum Resources (Oil), at a stakeholders meeting in February mandated the NMDPRA management to clear the entire debt in 40 days.

“However, today, we have crossed the 40 days’ time lapse given to the NMDPRA to clear the debt, and it is shameful to state that only the paltry sum of N13 billion has been paid, ignoring minister’s directive.

“We are not happy with the indiscriminate increment in the issuance and renewal of Sales and Storage Licence, by the NMDPRA, and the subsequent delays in acquiring the licence, which our members are recently subjected to.

“We are also calling on President Bola Tinubu to look into this unwholesome figure which is highly detrimental to our business and reverse it forthwith, as it is bound to impact negatively on the masses.

“We are poised to take far reaching decisions that may cripple the supply and sales of petroleum products across Nigeria if our demands are not met within the shortest period of time.

“We are collectively prepared to withdraw our services, shut down every single outlet, and suspend lifting of products forthwith till our demands are fully met, and the consequences will be terrible.

“We call on our members to however remain resolute and law abiding, even as we draw close to the immediate ultimatum for our demands to be met by the NMDPRA,’’ the chairman said.

Reacting to the IPMAN’s claims, the Acting Head, Corporate Communications, NMDPRA, Seiyefa Osanebi said the bridging claims payment was ongoing.

“The bridging claims payment is always an ongoing process,” she said.

Maritime

Shippers’ Council Registers 160 Port Operators

Published

1 week ago

April 29, 2024

The Tide

The Nigerian Shippers Council (NSC) says it has registered 160 Port stakeholders into its Regulated Port Service Provider and Users platform since the initiative began in 2023.
Executive Secretary, NSC, Mr Pius Akutah, made the disclosure on the sideline of a sensitisation programme by the commission for port operators in Lagos, with the theme, “Regulated Port Service Provider and Users”.
Represented by the Director, Consumer Affairs, Chief Cajetan Agu, Akutah emphasised the significance of the programme for stakeholders.
He said the sensitisation programme was the second edition after its commencement during the last quarter of 2023.
The Secretary said the 160 registered port operators consist of agencies, terminal operators, shipping companies, individual port users as well as service providers.
“We invited the ports stakeholders for enlightening them on the processes for online registration of Regulated Port Service Provider 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 and N100,000.
“The Council was able to intimate them on the benefits, because port users benefit more as we help to interface on 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 eliminate high costs to make the port efficient.
Also speaking, the Deputy Director, Stakeholders, Service, NSC, Mr Celestine Akujobi, said “the sensitisation exercise was important for the council to enable us 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 friction 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’re hopeful that before the last quater of 2024, the council will implement sanctions on defaulting operators”, Akujobi said.
Earlier, Vice Chairman, National Association of Government Approved Freight Forwards (NAGAFF), Dr Ifeanyi Emoh, said port challenges were enormous, adding that they originated from some of the government agencies.

Emoh urged the council to look into regulating other government agencies, so that there could be a window through which they can collect port charges collectively instead of indiscriminately.

By: Chinedu Wosu