Nigeria poised to become Africa’s shipping logistics hub -Bello Koko
By Okezie Nnadi
Acting Managing Director of the Nigerian Ports Authority (NPA), Mohammed Bello-Koko says the Authority is poised to leverage Nigeria’s status as Africa’s biggest economy to actualize the country’s maritime hub status in the region, through investments in modern deep seaports that would attract very large merchant vessels with the attendant multiple socio-economic benefits, as well as boost port revenue performance.
The MD NPA who stated this at the first retreat for the reconstituted board of Directors of the Authority, with the theme “Expanding the Frontiers of Service Excellence” which ended last weekend in Abeokuta, Ogun state.
Giving insight on the new direction and measures being put in place to actualize the Authority’s aspirations, the NPA acting Managing Director explained that a lot has been done, especially in the last few months to resolve most of the identified constraints to efficient movement of cargoes to and from port locations.
“Nigeria accounts for about 70 percent of cargoes imported into West and Central Africa and the country controls an impressive stretch of the Atlantic Ocean. Nigeria’s rich aquatic endowments and her border with landlocked nations makes development of deep seaports a huge potential revenue earner for the nation.
The move towards earning the status of hub in the region according to the Bell Koko, is in line with NPA’s new vision statement which was adopted at the recent Management retreat, “To Be The Maritime Logistics Hub For Sustainable Port System In Africa”, he said.
Describing the board retreat as very timely, he reiterated that it signposts a unity of purpose and shared vision, where the executive management working closely with every section, unit, department, division and directorate, embrace an all-inclusive strategic outcomes for the Authority with the requisite buy-in of the Board.
“In appreciation of this, I will like to crave the understanding of the Board with regards to executive management’s limitations in actualizing some of our goals and objectives, which I am sure distinguished board members must have noticed in the course of the tour of ports that preceded this retreat” he added.
Briefing the Board, Koko said the recent interventions made by the Authority has led to significant improvement in terms of ship and cargo dwell time at the port. He also, explained that “some of the benchmarks we are yet to achieve are dependent on externalities and variables that require concerted inter-agency actions, which the Authority, despite dogged efforts is yet to optimally achieve owing to systemic administrative constraints and red tapism, including conflicting directives from the agencies operating within the port value chain and reporting to different supervising Ministries with jurisdictional overlaps and duplication of functions”, he stressed.
Continuing, he informed the Board that concerted efforts are being made to expand the revenue streams of the Authority, in addition to revenue from traditional port operations.
According to him, “unlike the practice in our sister francophone countries where government funds dredging of ports, we are responsible for funding ours which put a lot of strain on our resources and capacity to invest in critical port infrastructure.
We are facing decaying port infrastructure, for example sections of the quay aprons or walls at Tin Can Island Port, Onne, Delta and Calabar ports are collapsing and require huge funds to repair them. With the increasing pressure to remit more revenue to the Consolidated Revenue Fund (CRF) of the Federation, it has become very difficult to have sufficient funds to attend to these decaying facilities, hence the need to explore alternative funding sources outside the traditional port service offerings” he stated.
He revealed that the Authority’s Management has began to explore smart ways to boost the revenue performance of the organization.
While explaining that the Authority is blessed with prime real estate which could serve as alternative funding sources outside the regular budget. “NPA has a lot of high value landed properties in Onne, Snake Island, and Takwa Bay that are designated free trade zones and mostly allocated but with poor arterial road network and other infrastructure to make them attractive for private investments which would bring good revenue to the Authority and Federal Government.
He stated that management will need the support of the Board to drive the process of alternative revenue sources to actualize the lofty aspirations of the Authority.
The acting Managing Director, further said that Management has opened correspondences with some multilateral financial institutions like the French Development Agency (AFD), African Development Bank (AfDB), European Investment Bank (EIB) and Sanlam Infraworks (a Central Bank of Nigeria approved fund manager for InfraCorp), all part of plans to access long term low interest credit, for port infrastructure upgrades and expansion.
Bello-Koko also touched on efforts by the Management to make Nigerian seaports more business friendly. In his words, “ we have been able to deploy technology to address the perennial traffic gridlock that has been frustrating the conduct of business around the Lagos ports corridor. A software application code named “eto” is gradually restoring sanity to trucking business despite the initial teething problems and resistance by vested interests hitherto profiting from the chaos.
The Authority, he mentioned, has accredited 33 private truck terminals within the Lagos area, in addition to the Lilypond Truck Transit Park and Tin Can Island Port Truck Transit Park, to ensure trucks do not park indiscriminately on the access roads uand would only be allowed to transit to the port after obtaining electronic tickets via the “eto” call-up platform.
The NPA is collaborating with the Lagos State Government to ensure enforcement and compliance with the e-call up system, he said.
Other solutions being implemented is the push to link all seaports to the national rail network as well optimize the use of the inland waterways through the transfer of cargo or containers via barges.
Currently, the Authority is streamlining barge operations to ensure efficiency, safety and cost effective cargo delivery for increased port revenue.
He equally acknowledged recent steps taken by the Ministry of Transportation and the Authority towards the timely execution of the new green-field deep seaport to be domiciled in Bonny, Rivers State.
The Bonny seaport project, boosted by two major railway projects, would massively transform the economic landscape of the country, particularly the South South and South Eastern regions.
However, on the South Western axis is the Lekki Deep Seaport which should be operational next year.
The two port projects will usher a new vista of economic prosperity and further consolidate the country’s status as gateway to the African economy, he noted.
Speaking earlier, Chairman of the Board, Mr.Emmanuel Adesoye FCA, described the retreat as an opportunity for the Board and Management “not just to rethink our strategies, structures and systems for effective service delivery, but also to unwind, reconnect and strengthen our bonds as team players committed to upholding excellence”, he remarked.
He called for clear and deliberate efforts by the NPA towards efficient operations, competitive and diversified export driven economy; a strong and incentive based system aligned with win-win relationships to enhance profitability and productivity for the concessionaires, NPA, and the Nigerian State; increase in alternative revenue streams; and effective collaboration based on transparency and constant communication with all relevant stakeholders across the port value chain.
The three day event, attended by all board members, attracted seasoned experts in port administration, strategic and creative thinking, stress management, among other relevant subjects. Two former NPA’s Chief Executives namely Chief Adebayo Sarumi CON, and Mr. Felix Ovbude, gave presentations on their experiences and ideas as port administrators. Former General Manager Operations, Mr. Joshua Asanga, who gave a presentation on “Ways To Improve Port Operations Towards A World Class Port Administration”.