COMMUNIQUE ISSUED AT THE END OF THE 16TH MARITIME TECHNICAL SUMMIT ORGANIZED BY ASSOCIATION OF MARINE SURVEYORS AND ENGINEERS (AMES) ON “MARINE TRANSPORT AND BLUE ECONOMY: ROUTE TO SUSTAINABLE SUCCESS” HELD ON THURSDAY SEPTEMBER 19th, 2024 AT RADISSON BLU HOTEL, IKEJA, LAGOS
PREAMBLE:
Compelled by the need to ensure the Nigerian maritime transport and blue economy sector optimally harnesses its potentials in a sustainable manner, the Association of Marine Engineers and Surveyors (AMES) organized a one-day conference to bring shipping industry stakeholders and relevant regulatory agencies together to discuss the best approaches for viable success in line with global best practices.
AMES 16th Marine Technical summit attracted local and international participants, including marine engineers, master mariners, ship owners, veteran seafarers, lawmakers, regulatory agencies, private sector investors, academicians, insurance brokers, naval officials, among others.
The one-day conference themed: “Marine Transport and Blue Economy: Route to Sustainable Success” saw the presentation of four papers by shipping operators and industry veterans, as well as panel discussions for each paper and general interventions.
The event focused on pertinent maritime issues including; vessel operations, shipping manpower development, biofouling management, ship financing and incentives, government regulations, among other issues required for an optimized marine and blue economy.
OBSERVATIONS:
At the end of the paper presentations and panel discussions, the participants observed that:
- 1. Nigerian seafarers, especially those graduating from the Maritime Academy of Nigeria (MAN) Oron need a clear path for seatime opportunities and employment.
- 2. Growing a Nigerian fleet to transport imports and exports globally will reduce dependency on foreign operators in the shipping industry
- 3. AMES to explore training partnerships with private sector investors like Dangote Group as well as regulatory agencies like the Nigerian Maritime Administration and Safety Agency (NIMASA)
- 4. There is a worrisome decline in Nigerian master mariners and ship captains to replace the aging industry veterans
- 5. Nigeria is losing an estimated $9.2billion to foreign ship owners on account of dearth of indigenous shipping capacity.
- 6. There is a need to change unfavorable trade terms from Cost, Insurance and Freight (CIF) to Free on Board (FOB) terms, especially for crude affreightment
- 7. Positioned strategically along the Gulf of Guinea, Nigeria has access to major shipping routes and stands as a pivotal player in this vast maritime network
- 8. Uncertainty in Nigeria’s shipping policy has undermined the growth in global maritime trade to an extent that Nigerian flagged vessels are unable to access some foreign ports
- 9. Nigeria generates about 70% of the volume of the total cargo traffic within the West and Central African regions, underlining the nation’s significance in the region
- 10. China is angling to introduce ships that will dominate the carriage of goods under the African Continental Free Trade Agreement (AfCFTA), while Nigeria celebrates the export of goods without participating in the freight carriage.
- 11. Proposed deep seaports in Nigeria including Ibom, Bakassi, Badagry, and others will be relevant in the movement of import and export cargo when they eventually come on stream.
- 12. There should be adequate incentives for the shipping sector such as tax holidays, zero import duties, among others.
- 13. The African Continental Free Trade Area (AfCFTA) presents a major opportunity for growth in shipping, but Nigeria needs shipping lines to participate in the continental shipping
- 14. A Nigerian fleet would strengthen the country’s position in global trade, potentially allowing it to negotiate better trade deals and be more recognized for eligibility in admissions into the International Maritime Organization (IMO) Category C council membership.
- 15. Developing a indigenous fleet would lead to increased investment in shipbuilding and ship repair yards, and subsequently stimulate the Nigerian steel industry and engineering sectors.
- 16. Nigeria could enhance its leadership role in West Africa by offering shipping services to neighboring countries, thereby fostering regional economic integration, becoming a major player in the AfCFTA
- 17. There is no shipbuilding facility in the country, leading to capital flight for shipbuilding and repair services.
- 18. There must be clear conditions of service for employees and professionalism at the nation’s apex maritime regulator, NIMASA, to curb inefficiencies.
- 19. The impact of the failure of Nigerian National Shipping Line (NNSL) include; loss of jobs, loss of freight earnings, loss of national tonnage capacity, distorted balance of trade, and a poor reputation among the comity of maritime nations.
- 20. The process of flagging or registering a ship in Nigeria is strenuous and time-consuming, yet, the Nigerian flag register does not meet international standards.
- 21. The development and maintenance of a trading fleet would create jobs in various sectors, including shipbuilding, ship repair, maintenance and operations, marine insurance, maritime law firms, shipping agencies and general logistics.
- 22. Foreign ships littered within our maritime domain are mostly responsible for the influx of illegal cargoes such as small arms, illegal substances and toxic waste, a Nigerian shipping fleet could significantly curb this menace.
- 23. An optimized shipping industry will see Nigeria witness an upturn of $9.1billion freight revenue annually, $5.42billion added to our GDP and $1.62billion contribution to corporate income tax
- 24. Establishing a shipping fleet would enable Nigeria to retain a substantial portion of its revenue within the country, strengthening its economy and reducing dependence on foreign currency.
RECOMMENDATIONS:
Thereafter, the conference participants made the following recommendations:
- 1. To bridge the gap in seafarer’s training via seatime opportunities, the Nigerian Navy’s fleet could be utilized for training
- 2. Reintroduction of Nigerian shipping lines should be prioritized with adequate planning in line with global shipping trends and technological advancements
- 3. The framework for the development of shipping fleet should explore new models besides full ownerships
- 4. Mariners and regulatory agencies should hold regular symposiums and collaborate in a bid to change the unpleasant narrative for shipping business in the nation
- 5. Vessels being acquired for operations in the country should be in top class to reduce the cost of maintenance and environmental pollution
- 6. Government should consider engaging seasoned maritime technocrats during their policy making and reviews on global shipping matters to prevent the policy somersaults and setbacks.
- 7. Fiscal policies via tax incentives, waivers for import duty, regulatory levies as well as business policy incentives should be provided in the shipping sector.
- 8. Existing shipping intervention funds such as the Cabotage Vessel Finance Fund (CVFF), Maritime Fund, among others should be accessible and new funding mechanisms explored.
- 9. Nigeria’s ship registry should be restructured in order to attract international tonnage with considerations for an open ship registry or a dual ship registry.
- 10. A distinct Nigerian Maritime bank should be created to provide long-term loans with lower interest rates for the maritime industry.
- 11.The nation’s maritime training scheme should be improved, for enhanced technical output that meets global best standard
- 12. There is a need to develop comprehensive strategies to address the evolving threats by leveraging technological innovations, enhancing intelligence capabilities, and fostering collaboration among critical maritime stakeholders
- 13. Every vessel must have and utilize an approved ship security plan in line with the ISPS Code.
- 14. Port State Control officers and flag administrators should be properly trained to optimally discharge their duties.
- 15. Government and industry operators should develop and implement a strategic plan to replace the aging veterans with young professionals
CONCLUSION
In a global shipping industry dominated by established international shipping lines with extensive networks and resources to foster their corporate and national interests, the emergence of Nigerian shipping companies will require a well-thought-out plan, robust incentives and diplomatic relations to secure a share of the global trading market.
The sustainable growth of the nation’s maritime sector for development of the national economy will be hinged on effective regulations, availability of indigenous vessels and well-trained seafarers. Overcoming the challenges posed by global shipping lines in Nigeria requires a multifaceted approach involving infrastructure development, regulatory reforms, economic incentives.
Some of the recommendations made in this summit, if implemented, can spark the much-desired change in the nation’s shipping sector.
RAPPORTEURS:
Mr. Kenneth Jukpor
Mr. Roland Ekama