Cabotage: Indigenous Operators Seek Govt Assistance in Retonnaging
By Francis Ugwoke
Indigenous shipping companies have appealed to the Federal Government to consider assisting indigenous shipping firms that have performed over the years to retonnage their old vessels.
Secretary-General, Nigerian Shipping Companies Association (NSCA), Capt. Emmanuel Iheanacho who spoke to THISDAY explained that such policy exists in Europe as part of the shipping development effort of various countries.
Noting that the policy comes under "Scrap and Bold Scheme", Iheanacho said that the objective is basically to motivate ship owners to scrap old tonnages (ships) for more modern tonnages.
According to him, such policy can be introduced in the country with the discretion of the National Maritime Authority (NMA) to use the Ship Building and Ship Acquisition Fund (SASBF) to retonnage old ships.
He explained that such policy should be for the benefit of firms that have experience, which in his view can be handled with the administrative discretion of the maritime regulatory authority.
Capt Iheanacho explained that such policy will go a long was in assisting indigenous firms which have older vessels to scrap them for newer vessels.
However, to ensure that indigenous firms take advantage of the opportunities offered by the cabotage shipping regime, the NSCA scribe told operators to go for Protection and Indeminity Club membership, adding that this was the only way for Nigerian firms to be fully prepared for cabotage shipping regime.
Iheanacho gave the advice following speculations that the Nigerian National Petroleum Corporation (NNPC), Petroleum Products Marketing Company (PPMC) and other multinational oil firms were demanding for P & I Club membership before giving Nigerian firms jobs.
Iheanacho confirmed that he has secured P & I Club of London membership for his tanker vessels, a fleet of four.
The fourth vessel, MT Genesis Adventurer, a LPG carrier of 9,000 metric tonnes (mt) deadweight was acquired recently as part of the company's effort to participate in cabotage maximally.
The ship which arrived about 10 days ago has been waiting for cargo.
Indigneous shipping firms have been lamenting that nearly all foreign firms in the country may have been granted waivers to operate under the coastal shipping law, in what they argue have weakened the cabotage shipping regime which took off recently.
Under the law, foreign firms can only be granted waivers in a situation where indigenous firms fall short of capacity of the kind of equipment or vessel required for any particular job.
But THISDAY checks reveal that most foreign firms under the umbrella body of Marine Industrial Service Consultative Organisation (MISCO), a body of mainly foreign firms were granted waivers by the Transport Ministry, shortly after the guidelines for cabotage implementation were released.
It was gathered that soon after the release of the guidlines on cabotage, the Ministry advised the affected foreign operators to forward their applications for waivers, which our source said have been granted.
The foreign firms, it was gathered will continue to enjoy their waivers for a period of 12 months after which they will be required to renew their licences.
Indigenous operators who are aggrieved over the development told THISDAY that it appears that government agencies are not sincere in implementing the cabotage regime.
President of the Indigenous Ship Owners Association of Nigeria (ISSAN), Chief Isaac Jolapamo said that indigenous firms instead of benefitting have lost out in the cabotage shipping policy.
Jolapamo said that government should not have gone ahead to give waivers to foreign firms in areas where indigenous firms have capacity.
He disclosed that he was aware of three Nigerian ships that have been substituted for foreign vessels, which he claimed was operating illlegally.
The tanker vessles were engaged by Obat Oil & Petroleum Limited for transshipment of petroleum products, premium motor spirit (PMS)before they were substituted by MT Torrent.
Two of the three tanker vessels, belong to Genesis Worldwide Shipping, while the third belongs to Morlap Shipping, a firm owned by Jolapamo.
Jolapamo alleged that there was a deliberate effort by some people to stiffle the operations of indigenous firms.
He said that his Association has written to the National Maritime Authority (NMA) and the Minister of Transport, Dr. Abiye Sekibo, to complain about the development to no avail.
He added that his next move will be to take the matter to President Olusegun Obasanjo for his intervention.
Secretary-General of the Nigeiran Shipping Companies Association, Capt. Emmanuel Iheanacho who also lamented over the waivers granted foreign vessels, said that the problem of cabotage has been enforcment of the law.
Iheanacho said, "I am tired of complaining, I have four flagged vessels, only one is carrying products.
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