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									STRATEGIC PORT DEVELOPMENT: A TOOL FOR MEETING THE
CHALLENGES OF FUTURE GROWTH IN NIGERIA’S INTERNATIONAL
TRADE

                     PRESENTED BY

                ABDUL SALAM MOHAMMED
                  MANAGING DIRECTOR
               NIGERIAN PORTS AUTHORITY

      AT THE ANNUAL NATIONAL SHIPPING CONFERENCE

                     ORGANISED BY

               NIGERIA SHIPPERS’ COUNCIL

         AT THE TRANSCORP HILTON HOTEL ABUJA

                    28th AUGUST, 2009
CONTENT

•   Introduction
•   Role of Port in the Economy
•   Historical Development of Ports in Nigeria
•   Function of NPA
•   Mandate of NPA
•   Historical Development of Ports in Nigeria Cont.
•   Key Elements which facilitate Port development and
    efficiency
•    Further strategy for meeting the challenges of future growth
    in Nigeria’s International Trade
•   Further measures taken to add to or recover lost capacity
•   The 6 Ports
•   Challenges
•   Conclusion
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INTRODUCTION:

I am delighted to be here with you and to participate in the “Annual National Shipping
Conference” and in particular to present this paper titled “Strategic Port
Development: A Tool for Meeting the Challenges of Future Growth in Nigeria’s
International Trade”.

According to Martin Stopford 2nd edition (1997) in his book “Maritime Economics:
Ports are the crucial interface between land and sea” It is said to be where “much of
the real activity takes place: A geographic area where ships are brought alongside
land to load and discharge cargo – usually a sheltered deep water area such as a
bay or river mouth”.


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Geographically, a port is a nodal point along a given shoreline where the mode
of transportation changes from land to water or vice versa (Badejo 2001). Ports
provide the necessary facilities for the goods to be delivered by one transport
mode and eventually taken to their final destination by another mode.

The need for water transport cannot be overemphasized with respect to the
Nigerian economy which is heavily dependent on importation of goods as well
as exportation of agricultural goods, manufactured goods and crude oil.




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ROLE OF PORTS IN THE ECONOMY

• Interface between Maritime and other Transport modes.

• Gates through which hinterland and landlocked trade needs are served.

• Serve manufacturing industries and the distribution chain of consumables.

• Stimulates and evaluates exports.

• The most cost effective mode of transportation.

• Facilitates the social, cultural, economic and political integration of
  countries, regions and block whose economic interest they serve.

• Provides Logistic base for deep Sea exploration.

• Provides security base.

• Contributes significantly to the finances of the nation.
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HISTORICAL DEVELOPMENT OF PORTS IN NIGERIA

•   Port operations and development in Nigeria began in the middle of 19th
    century.

•   The effort towards the provision of facilities for ocean going vessels
    started in the early 1900 with the construction of the Lagos breakwater
    East and West moles).

•    Capital dredging activities aimed at opening up the lagoon commenced in
    1906.

•   Port Harcourt was opened in 1913 following the discovery of coal in
    Enugu.

•   In 1914, the Lagos harbour was opened to ship traffic.

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•       In 1921 construction of the first four deep water berths
        548.64m in Apapa began.

•        In 1948, capacities were expanded through the building
        of additional quay walls of 762m span

•       Cargo handling, Harbours and quay wall maintenance
        were under different government departments:

    -   Nigerian Railways – Cargo handling at the terminals.

    -   Marine Department – Vessels movement through the
        channel up to the quays.

    -   Public Works Department – Maintenance of the quay wall

•       NPA was established by the 1954 Ports Act cap 54 of
        1954 to perform all functions hitherto under the control of
        the different government departments.The actual
        operations started in April, 1955.
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FUNCTIONS OF NPA

•   Develop, own and operate ports and Harbours

•   Provide safe and navigable channels.

•   Offer cargo handling and storage services.

•   Maintain Port facilities and equipment.

•   Ensure safety and security.

•   Control pollution within port limits and their approaches.

•   Provide ancillary services i.e. ship repair, supply of water to vessel etc.

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MANDATE

•    Carry on the business of carrier by land or sea,
     stevedore, warehouseman or lighterage man.

•    Construct, develop ports, docks, harbours, piers,
     wharves, carials, water courses, embankment and
     jetties.

•    Invest and deal with the monies of the Authority.

•    Appoint, license and manage pilots of vessels

•    Enter into Agreement with any person for the operation
     or the provision of any of the ports facilities which may
     be operated or provided by the Authority


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HISTORICAL DEVELOPMENT OF PORTS IN NIGERIA CONT.

•   The Authority’s development strategy became programmed to fall in line with the first
    National development plan 1962 – 1968

•   The second Apapa Wharf Extension was executed and further improvements of Port
    facilities in Port Harcourt

•   The civil war 1967-1970 gave rise to the closure of Port Harcourt port thus Lagos
    became the only available port serving the country’s maritime transportation need.

•   Lagos port experienced upsurge in terms of tremendous flow of war time cargoes and
    other goods.

•   The FMG between 1967 and 1970 enacted a decree which empowered the Authority
    to acquire the ports of Warri, Burutu and Calabar previously operated by private
    entrepreneurs.

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    •    In the Third Development Plan 1975-1970, port development occupied a very
        important position. During the period, the Tincan Island Port, new Warri Port
        and new Calabar Port were commissioned Sapele Port commissioned in 1982.

•       Economic fortunes of the country began to decline in the 1980s thereby
        the domestic economy under serious pressure; inflation rose from 7.7%
        to 39.9% between 1982-1984 and prices of crude oil       dropped,    external
        reserve dropped.

•       The foregoing affected the port hence a previously booming import
        business which caused port congestion scaled down during the era,
        hence a sizable proportion of the existing port facilities remained under-utilized.

•       As part of the Authority’s vision to cope with anticipated development of the
        Ajaokuta Steel Mill, the new refinery at Port Harcourt, the petrol-
        chemical and fertilizer plants located at Eleme Rivers State, it
        conceived the construction of the first deep seaport which is the Federal
        Ocean Terminal (FOT) Onne. The Project was commissioned in 1996
.
•       FOT could be seen as part of the grand concept of regional ports.

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KEY ELEMENTS WHICH FACILITATE PORT DEVELOPMENT AND EFFICIENCY

Port development and efficiency are facilitated by the provision of the following:-

•         Defence from sea activities i.e. moles; light house, mooring buoys,
          hydrographic surveys and charts, beacons etc

•         Adequate draft along the channel (capital and maintenance dredging)

•         Sufficient depth at berths (regular sweeping) to carter for vessels of bigger
          sizes and higher pay loads.

•          Wreck removal to rid the channel and berths of any encumbrances.

•         Well maintained quay walls and quay aprons.

•         Stacking areas, sheds, cold storage facilities and warehouses.

•         Efficient towage services
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•   Pilotage services

•   Cargo handling and quay services (plants, equipment, workshop and
    skilled manpower)

•   Efficient stevedoring/labour

•   Electricity; Illumination & CCTV cameras and communication equipment

•   Water supply

•   Security within the port and along the water front. Security within the
    port and along the water front.

•   Effective pollution control

•   Adequate fire fighting equipment

•   Information and Communication Technology (ICT)

•   Intermodalism       (road,     rail,   pipeline   inland   water     ways)


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•   Customs and Tariffs policies (scanners to facilitate custom
    examination etc.)

•   EDI systems that enable community based interface
    between      customs,    clearing   agents, shipping
    companies/agents, terminal Operators, Banks, Port
    Authority and relevant Government agencies.

•   Enhanced documentation.

•   Favourable Government Policies/Reduced bureaucracy.

•   Complementary port services/terminals – ICDs.


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    FURTHER STRATEGIES FOR MEETING THE CHALLENGES OF
    FUTURE GROWTH IN NIGERIA’S INTERNATIONAL TRADE

•      Other than expansion of Port capacity and improvement in the
       key elements which facilitate port efficiency, the FG
       embarked on the following port reforms that would enable the
       port meet the challenges of future growth in Nigeria’s
       international trade.

•      Commercialization exercise in 1988.

•      Decentralization of administrative control.

•      Port concession (Landlord model-PPP) and the emergence
       of Terminal Operators


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  FURTHER MEASURES TAKEN TO ADD TO,OR RECOVER LOST
  CAPACITY

  Greenfield and further port development.

  The following measures have been taken in response to
  globalization, increasing trade volumes and development in oil and
  gas sector. Most of these developments are port based/port
  dependent operations.

• Bulk Cargo Berth at Seamen I, Tincan Island Port by Management
  Enterprises.


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•   230 meters quay length at Tincan Island Port developed by Port and Terminal Multiservices
    Limited (GRIMALDI

•   376 meters jetty expansion of FLT 3 by Intels Ltd.

•   376 meters jetty expansion of FLT 4 by Intels Ltd.

•   Construction of Quay apron/berth at FLT I by Brawal

•   570 meters quay length and terminal expansion by West Africa Container Terminal (WACT) at
    Federal Ocean Terminal Onne.

•   Bonny LNG

•   Olokola Deep Water LNG project at Ondo State

•   Development of deep sea water Port for oil and gas in Lagos, Warri and Onne

•   Brass LNG

•   Lekki Export Processing Zone

•   320 meters quay length, stacking area, warehouse and offices by Eko support services.

•   Snake Island Free Zone

•   Projection of the quay wall at berths 1-3, LPC by ABTL to achieve depth of 12.5m.

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•   Flood control and rehabilitation of stacking area at Lillypond Container
    Terminal, Ijora, Lagos.

•   Construction of stacking area by APMT.

Other measures include:

•   95 hectares dredging and reclamation.

•   Rehabilitation of Tincan Island water supply.

•   Rehabilitation of Port Harcourt Port, Berths 1-4 (Terminal B) by BUA.

•   Rehabilitation of Dockyard Wharf 3 and its environs.

•   Dredging of Calabar Channel

•   Dredging of Bonny Channel.

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    THE 6 PORTS

    Functionality is a key factor in design and construction of ports. Ports are
    developed to suit types of cargo, ship and sizes of ship.
    These include:-

•   Bulk Terminal and Heavy Bulk Terminal
•   Container Terminal

•   RoRo Terminal

•   General Cargo Terminal

•   Petroleum Jetty
    Ports in Nigeria are spread along the nation’s coastal waters from West to
    East to serve the nation’s economy. The spread provides the necessary
    avenue for evacuation of the nation’s import and export trade.

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• NPA has made a remarkable progress since inception in April 1955.
  From a modest beginning, today NPA has 6 ports excluding oil
  terminals and these have been delineated into 26 terminals
  operated by terminal operators who handle cargo operations.

The Ports are:-

•      Lagos Port Complex
•      Tinclan Island Port Complex
•      Port Harcourt Port
•      Onne Port
•      Delta Ports, Warri
•      Calabar Port
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It is pertinent to state that the private sector initiatives in port development
would require the infrastructural support of the Authority for conservancy
and other services that would support the operation e.g. in the area of
channel management and other services. Consequently the Authority
entered into joint venture with Bonny Channel Management Company
(BCC), Lagos Channel Management Company (LCM), Landfall, African
Circle and Continental Shipyard.

Since the engagement of these companies, improvements in the channel
depths have been witnessed and calling frequency of large draught vessels
at our terminal is steadily increasing.




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As a result of this effort, the Authority was able to berth a vessel of
256m length in 2008. The Lagos area has witnessed improvement
from a shallow depth of between 8-9m to 11.5m while Bonny
Channel is being dredged to 14m.

From a mere total cargo throughput of 13,273,953mt (Import and
export) in 1995 the ports handled a total cargo throughput of
58,962,173,mt (import and export) in 2008.


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•   Crude Oil lifting at the terminals rose from 81,147,610m3 in 1995 to
    99,398,815m3 in 2008. LNG lifting rose from 1,503,398m3 in 1999 to
    19,076,748m3 in 2008.

•   Total cargo throughput is projected to rise to about 100,405,666mt, Crude
    Oil to 116,802,114mt and LNG 164,594,465m3 in 2012 and in 2020 cargo
    throughput is projected to rise to 415,358,993mt, crude oil to
    141,117,415m3 and LNG to 5,174,550,713m3




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    CHALLENGES

    The ports are capable of meeting the challenges of future growth in Nigeria’s
    International trade if the following challenges are addressed:-

•   Youth restiveness in the Niger Delta

•   Multiplicity of security agencies in the ports

•   Coordination of the activities of the various agencies in the port.

•   Security concerns at the water front and access channels

•   No functional integrated electronic system for streamlining the various port related
    activities.

•   Poor port access by road and rail ( urgent need for multimodal development)

•   Poor support infrastructure e.g. power, water and telecommunication.

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• Low activities in Inland Container Deports (ICD)

• Absence of interface among stakeholders

• Issues concerning docklabour

• Bureaucracy and delays concerning budget

• Lack of coherent Port development plan.

   Conclusion:

   It is believed that adherence to the development plan of the
   concessionaires in conjunction with the port master plan will put our
   ports on a sound footing to meet challenges in Nigeria’s future
   growth in International trade.

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Certain institutional reforms need also to be carried out with regard
to the reform of other bodies responsible for activities that are
connected to trade facilitation in the ports.

Relevant agencies, regulatory authorities and stakeholders must
therefore buy into the vision of transforming the ports into arena
where international best practices is obtainable so as to keep the
pace of meeting the challenges of future growth in Nigeria’s
International Trade.



Thank you.


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