High seas to hinterland: Opportunities and challenges harnessing blue economy (2) 

BY EMMANUEL JIME

Emmanuel Jime is the Executive Secretary and Chief Executive Officer of Nigerian Shippers Council and presented this to the International Maritime Summit held in Lagos, recently.

Challenges in harnessing the blue economy in Nigeria

According to available data from the National Bureau of Statistics (NBS), the maritime sector’s contribution to the nation’s GDP has been insignificant over the years. Industry stakeholders have, however, challenged the figures quoted by NBS and concluded that the figures released are not in tandem with the contribution of the sector to the economy and, therefore, challenged NBS to liaise with industry institutions for accurate information.

Notwithstanding the position of industry stakeholders, the reality is that the actual contribution of the maritime sector to the nation’s GDP is far below the capacity and potentials of the industry.

This might not be unconnected with numerous challenges both on the high sea and the hinterland, which include the following:

• Complex and interlinked criminal network at sea (Piracy, armed robbery, child trafficking, illegal oil exploration, and depletion of the aquatic ecosystem)

• Inadequate legal framework in the maritime industry

• Pollution and abandonment of wrecks on the high sea

• Non domestication/implementation of international maritime convention and instruments

• Over reliance on single mode of transportation (road) for cargo evacuation from the ports

• Poor states of port access roads

• Inadequate transport infrastructure linking the seaport to the hinterland that has made our ports less efficient and productive.

• Inadequate investment in port infrastructure

• Weak institutions and political will to implement government policies

• Unethical practices of some government agencies operating in the port; and

• Inter-agency rivalry and unhealthy competition etc.

NSC facilitation of high sea to hinterland connectivity in development of Blue Economy

1. NSC facilitated the development of capacity for the carriage of African cargoes. A feasibility study for the establishment of sea link was funded by the Council for a coastal shipping company to operate coastal shipping in West and Central Africa.

2. NSC provided a framework for the reduction of cost of transport in Africa. In 2016, the Council organised an international seminar for the reduction of transport cost in Africa. The workshop addressed issues of surcharges in West and Central Africa.

3. NSC through the National Fleet Implementation Committee has been advocating for the need to have Nigerian Ocean Going Vessels to ensure that the country maximises her opportunities in maritime transportation.

4. NSC has been advocating for the implementation of Cargo Tracking Notes to ensure that illicit and dangerous cargoes are not brought into the country. Likewise the scheme will check under declaration, concealment, plug revenue leakage and improve revenue generation for the government.

5. NSC, through her effort as the lead agency in the implementation of the Nigerian Port Process Manual (NPPM), has been able to record improvement in vessel reception processes at the ports, cargo handling and clearance processes and improvement on passage through the port access roads in Lagos.

6. NSC has also been advocating the need for an intermodal approach to cargo evacuation to ensure seamless transfer of cargoes to the hinterland, thereby reducing congestion at the seaport terminals and at the same time promoting efficiency at the port.

7. Advocacy for inland cargo tracking to hinterland destinations to ensure the safety and security of hinterland bound cargoes

8. NSC in collaboration with haulage operators has been able to standardise the rates and tariffs in the sector. The Council is collaborating with the National Automotive Design and Development Council on the proposal for the re-fleeting trucks for the road transport operators and ensuring that the sector is standardised.

Way forward

In order to ensure that the seaports are well connected to the hinterland and also ensure that the country benefits maximally from the abundant benefits in the blue economy, particularly in the seaport and shipping sector, there is need for adequate provision of critical infrastructure and coordination in this regard.

Likewise, the federal government should ensure, amongst other things that conscious efforts are directed in the provision of the following:

• Full automation of the port processes and procedures to ensure seamless cargo handling and clearance at the seaports for onward delivery to the hinterland.

• Implementation of the single window to facilitate seamless cargo handling and reduce multiplicity of functions of government agencies in the ports.

• Provision of rail connectivity to major seaports in the country to ensure seamless cargo evacuation and reduction of cargo dwell time at the port.

• Establishment of more deep seaports, capable of attracting high volume capacity vessels, which will in turn reduce freight cost and improve the country’s connectivity.

• Promotion of barge operations for cargo evacuation to and from the seaports to the hinterland.

• Promotion and full implementation of Cabotage Act to encourage and protect indigenous participation in barge operations in Nigeria.

• Development and operationalization of more critical transport infrastructure such as the Inland Dry Ports (IDPs) and Vehicle Transit Areas (VTAs) to facilitate trade to the hinterland and other neighbouring land-linked countries.

• Encourage 24-hrs port operations

• Encourage and promote private investment in the maritime industry etc.

Conclusion

The Nigerian Shippers’ Council will continue to work tirelessly to ensure enhanced transportation and trade facilitation for our economy to optimise the potentials inherent in the blue economy.

In addition, the Council, as port economic regulator, will continue to promote fair trade practices amongst the various stakeholders and further ensure the implementation of various government policies under her supervision to ensure that the nation maximises her opportunity in the port sector of the blue economy.

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