Despite the recent pronouncement in the maritime industry by the minister of finance and the coordinating minister of the economy, Dr. Ngozi Okonjo-Iweala, which signalled the much needed reforms in the sector, many issues have continued to bedevil the nation’s maritime industry. Managing director of the Nigeria Ports Authority (NPA), Engr. Omar Suleiman in this exclusive interview with SAMSON ECHENIM, gives deeper insight into the issues and explains what the authority is doing as the overall seaport manager, to make Nigeria the commercial hub of West and Central Africa.
YOUR ROLE AS THE MANAGER OF THE NATION’S SEAPORTS COULD BE CHALLENGING. HOW HAS IT BEEN IN THE LAST FEW YEARS SINCE YOU TOOK OVER THE MANAGEMENT OF THE NIGERIA PORTS AUTHORITY (NPA) AS THE AGENCY’S MANAGING DIRECTOR?
Yes, it is challenging, but it is also very interesting. The marine sector is a very interesting one. The only thing there is that it is a sector that is really technical and it really requires generous understanding of the peculiar intrigues of the sector before one can operate, manage and make a meaningful impact. As you know, water itself and what is under is sometimes unpredictable. A lot of changes can happen very rapidly and so is even the operation outside it. But so far so good we have been working hard to overcome whatever form of challenges we have in managing the sector.
IN 2006 THE FEDERAL GOVERNMENT LEASED OUT 26 PORTS TO CONCESSIONAIRES, BUT AT THE MOMENT, ONLY ABOUT SIX ARE FUNCTIONING WELL. WHAT HAS HAPPENED TO THE OTHER PORTS?
I may correct you on this. Of all the 26 ports given out in concession arrangements, some areas (ports) were leased to the same company. So, actually we have about 15 concessionaires. But the issue is that I think we have only one that has some shortcomings but not that it is not operating completely, for instance, Koko Port. We had some challenges with one of the concessionaires in Apapa and another one in Port Harcourt. Some of the reasons why they are not functioning are not just attributable to the concessionaires themselves. You know there was the global trend of economic activities that went. There is also the issue of insecurity that has really increased around the maritime sector. But above all these challenges, over all, we give the concession of Nigerian ports a very good mark, because, for instance in Apapa, we are able to bring in vessels of up to 4,500 TEU of up to 13.5 metres which we were not able to do before now. Before, we could only take 1,000 TEU and we had about eight metres, but now the concessionaires are given the opportunity to really concentrate on the real key activities of Nigerian port authority that is the channel and by that we have really developed certain parameters much more than before. Ports concession has paid off seriously. Also one of the indices of measuring the shipping industry—the turnaround time increased seriously. The waiting time has decreased. Terminals are very clean. You may take a walk to some of the terminals, you will see the change. Human traffic in the port is well in control, but there are still certain things to be done by both port concessionaires and the NPA.? We are also doing everything to see that very soon we will be able to have a 100 per cent efficient port.
DESPITE THE SACK OF SOME GOVERNMENT AGENCIES FROM THE PORTS, AGENTS ARE STILL COMPLAINING, ESPECIALLY WITH REGARDS TO EMPTY CONTAINERS. THEY SAY TRANSPORTERS ARE NO LONGER READY TO TAKE UP THE BUSINESS OF RETURNING EMPTY CONTAINERS BECAUSE SHIPPING COMPANIES DO NOT HAVE HOLDING BAYS FOR EMPTY CONTAINERS. WHY IS THIS A PROBLEM?
I will take it further to educate us on this particular issue of empty containers. In the whole world, it is only in Nigeria that our export remained largely undeveloped and that is causing presence of a lot of empty containers at port. How many transporters will want to take empty containers? In terms of the cost of handling, an importer pays less for transporting empty containers than laden container whereas the reality is that it takes the same time that it takes to transport laden container to transport empty container. Therefore, transporters naturally do not like to take empty containers because it takes the same time and the same energy to transport a laden container and an empty container, yet they are paid less for handling the empty ones. That is one reason transporters don’t like carrying empty containers. Secondly, Nigeria has to develop export, so that when the containers come in, a sizeable number will be used to take the export. Then the transporter will be willing to take them back when they are laden and much more money is paid on them. This is the major reason why we have a lot of empty containers in Nigeria.
THE RECENT REDEPLOYMENT IN THE NPA STRUCTURE ACCORDING TO YOUR ACCOMPANYING STATEMENT WAS IN LINE WITH THE TRANSFORMATION AGENDA OF THE CURRENT ADMINISTRATION. PLEASE, COULD YOU EXPLAIN FURTHER HOW THE REDEPLOYMENTS ALIGN WITH THE PRESIDENT GOODLUCK JONATHAN ADMINISTRATION?
The nature of the NPA activities changed drastically by 2006 when we leased the ports to concessionaires. The concessionaires became the terminal operators. We are no more doing cargo handling operations. Completely, that has gone out? of the duties of NPA. We are also not doing workshop activities, including maintenance works; all those responsibility were out of the NPA purview. The structure we had before was huge to include those activities. When these activities were gone there has been need to align the management structure in line with the activities of landlord model which entails mainly monitoring of the marine sector and also the technical issues. So, the real transformation was to come in and then have that particular management structure that suits the activities of the authority put in place. By doing that, the NPA will seriously gain a lot by putting more effort in monitoring which I feel is where we should concentrate our efforts now.
AFTER HER PORT TOUR AND ANNOUNCEMENT OF MAJOR REFORMS IN THE MARITIME SECTOR ON OCTOBER 10, MINISTER OF FINANCE, DR. NGOZI OKONJO-IWEALA, DIRECTED THE NPA TO TAKE CHARGE OF THE NEW REFORMS. SOME AGENCIES ASKED TO LEAVE ARE STILL AT THE PORTS. HASN’T THE NPA GOT THE POWERS TO DRIVE THEM OUT?
What really happened is that it is not all the agencies that were asked to leave the port. There are six main agencies which are supposed to remain at the port and those ones asked to leave will be invited to the port if there is a consignment for them to inspect. So, they will come in when they are invited and when they have a specific activity for which they are needed at the port against what it used to be before where they are involved in every activity.
SOME MARITIME EXPERTS ARE ASKING FOR MORE PORTS IN NIGERIA, ESPECIALLY SMALL PORT IN DRY AREAS. DO WE REALLY NEED MORE PORTS AND DOES THE COUNTRY HAVE THE RESOURCES TO BUILD MORE PORTS?
The ports you are talking about in the north are inland ports which are managed by the Nigerian Inland Waterways, not by the Nigerian Ports Authority. They are ports not like Apapa Port, but small ports that small vessels can take cargoes from the big ports and take them through to hinterlands such as the north. But the economy needs deep seaports. For real development to happen in our economy, we need vessels that can take up to 3000 TEU and we don’t have enough of such ports and we at the NPA are trying to position Nigeria as the hub of West and Central Africa. For us to do that, there is the need for us to develop a deep seaport which we are looking up to in the very near future.