Imperatives of new national shipping fleet

As Nigeria ‘technically’ enters into economic recession that will be short lived, and as the Federal Government maps out plans to restructure and diversify the economy through expansion of trade, increasing portfolio investment and developing agricultural and maritime potentials, there is a compelling need to integrate strategies that will grow the economy.
Recently, the indefatigable and business minded Minister of Transportation, Rt. Hon. Chibuike Rotimi Amaechi set up a commission comprising prominent and influential captains of industry and experts to draw up a blueprint for a new private sector driven National Shipping Fleet.

This committee is headed by a maritime industry guru who also is the Executive Secretary of Nigerian Shippers’ Council, Hassan Bello. Being a consummate professional in the maritime sector, the Chairperson knows how to untie the ‘Gordian’ knot.
While inaugurating the committee, Minister of Transportation Hon. Chibuike Rotimi Amaechi who rolled out the rules of engagement stated what is expected of the members. Part of the assignment, which fundamentally is the most significant, is that the new National Shipping Fleet must be private sector driven.
Nigeria is not only a maritime state but also a cargo-owning nation and therefore occupies a unique position in international trade.
Incidentally, the country has a coastline of approximately 853km and lies between latitude 4⁰10ʹ to 6⁰10ʹN and longitude 2⁰45 to 8⁰5ʹE. The Nigerian coastline stretches from the Western border with the Republic of Benin to the Eastern border with the Republic of Cameroon. It is also a fact that more than 90 percent of global commerce is facilitated through shipping transport because it is the most reliable option both in terms of cost effectiveness and in terms of volume.
As we know, the Nigerian National Shipping Line (NNSL) was established in 1959, a year before Nigeria gained independence. The vision of the founding fathers was that with the enormous maritime potentials, vast market, huge and vibrant population coupled with a rapid growing economy, a National Shipping Line flying Nigeria’s flag would bring not only pride to the country but also lubricate the economy through creating massive employment opportunities. There is no denying the fact that the NNSL achieved those objectives in its two decades of operations before institutional corruption and lack of cargo conveyance drove it out of the market space. Unfortunately, the NNSL became a line for government officials and their cronies returning from bad voyage. The vessels were aging, even as there were no commodities for export, while the oil boom only stimulated our cravings for imported foreign goods. Eventually, such negativities led the death of the shipping line.
Having learnt its lessons the hard way, the Federal Government is now acceding to the numerous requests for a new private sector driven national fleet. It therefore would not be out of place to request that the committee look at some critical areas especially in those countries that have enormous maritime potentials as Nigeria or facing similar challenges in order to develop a carrier that will meet national aspiration.
The committee must therefore enter into discussions with the Federal Ministry of Justice to expunge some obnoxious admiralty or trade laws that impinge on trade facilitation. Also, the Federal Ministry of Trade and Commerce, Bank of Industry (BOI), Nigerian Export Promotion Council (NEPZ), Manufacturing Association of Nigeria (MAN), Export Processing Zones (EPZs), Ministry of Foreign Affairs, Nigerian Customs Service (NCS) and even agencies in the Federal Ministry of Transportation and Agriculture should be consulted so as not to sabotage a good effort.
Their collaboration and input largely would define the rights of overseas business transactions. It would also help build critical massive inflow of Foreign Direct Investment (FDI) and with its multiplier effect create huge export/import of commodities that will survive the fleet.
Furthermore, the committee should recommend the review of insurance principles governing shipping at least to support our domestic insurance.
The Lloyds of this world are part of the international conspiracy against emerging markets. Moreover, with insurance industry consolidation in Nigeria, a pool of insurance companies can indemnify or insure as many fleets as possible.
The committee should also critically re-examine the structure of Cabotage Fund domiciled with NIMASA, its application and role in the entire gamut of ship acquisition.
In addition, the committee should look at why previous strategic intervention funds by government never achieved its intended objective. Why was it that most beneficiaries of NERFUND loan failed? Is it due to the harsh investment climate or were the beneficiaries careless in their investment drive? What happened to the Airline Intervention Fund, including the Textile Mills Intervention Fund and Agricultural Loans? It is public knowledge that few Nigerians benefited from the Cabotage Fund which was diverted to real estate where returns on investment was higher, thereby leaving our maritime industry in comatose.
Furthermore, the committee made up of reputed corporate governance experts should be patriotic enough to recommend a window of protection for the new National Shipping Fleet against international exploitation. There must be room for cargo allotment or sharing, tax incentive, manpower training and development. Given that the new fleet will be flying the national flag, the Federal Government has a duty to promote and market it. As at today, the French Government keeps promoting and marketing Peugeot Automobile to the world so the South African Government with regards to MTN. The new shipping fleet should be assisted to stabilise through aggressive media campaign that would promote its intrinsic values and advantages to our brothers, sisters and friends in the Diaspora.
Lastly, we urge the committee to look at the NPA 2016 first quarter report, which shows that a total of 1,131 Ocean Going Vessels (OGVs) and crude oil tankers with a total gross tonnage (GT) 59,461,614 called at Nigerian ports. This statistics is even low due to present economic recession and falling oil sales, when compared to 2015 fourth quarter report. The index shows that as a cargo nation, Nigeria requires vessels that would compete in the international maritime market.
Indeed, the expectations from this committee are huge. Ethiopian Airlines and South African Airways have become the pride of Africa in International Airspace. We have the capability of replicating such in the maritime domain.
Finally, I believe that if   members of the National Implementation Committee succeed in establishing a robust and vibrant shipping fleet for Africa’s largest economy, history will remember their achievements, even as their names will be written in Nigeria’s Hall of Fame. Definitely, they cannot afford to fail in this assignment.

Nwamadi is a Lagos based journalist.