Home Business FG to dredge $1.5bn Lekki channel beyond 16.5m
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FG to dredge $1.5bn Lekki channel beyond 16.5m

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By Steve Agbota

The federal government has concluded plans to embark on the maintenance dredging of the $1.5 billion Lekki Seaport channel from its present 16.5 metres to 17 metres in the first instance, as it targets 19 metres depth.

Disclosing this over the weekend during his maiden visit to Lekki Port, the Managing Director of the Nigerian Ports Authority (NPA), Abubakar Dantsoho, in the company of senior management staff of the Authority, urged Lekki Port to consolidate transhipment volumes to landlocked neighbouring countries.

“The rise in throughput volume at Lekki Port is exciting to us. Lekki’s capacity to berth super post-Panamax vessels and deliver rapid cargo and vessel turnaround positions is a game-changer for Nigeria’s export competitiveness, particularly for agro-allied products, as the African Continental Free Trade Area (AfCFTA) gains traction,” he added.

According to him, the port’s efficiency is driving steady increases in transhipment numbers, meeting the maritime needs of neighbouring countries and supporting NPA’s goal of achieving economies of scale.

However, he said this enhanced competitiveness fuels demand, boosts foreign exchange inflows, and contributes significantly to Nigeria’s year-on-year trade surplus, reinforcing the national economy.

“So it’s very pleasing to note the rising export figures, and we hope that the export volume will double or even triple shortly. And because of that, we still have to reaffirm our commitment as NPA management to do what we can do within our powers and with the support of the Federal Government to ensure that this trend, this beautiful throughput trend you have shown us, continues to grow and increase.

“So what are we doing to ensure that this trend continues? We are doing about five things. Now, number one, the Minister of Marine and Blue Economy, Adegboyega Oyetola, with the recommendation of the Nigerian Ports Authority, has gotten the approval for the dredging of the channel at Lekki Port. This is something that we have been working towards, something that we’ve been discussing for almost two or three years. And finally, we give God the glory that it has happened.

“We have also agreed that it is your company, China Harbour Engineering Company (CHEC), that is going to do the dredging. CHEC is going to be the contractor for the dredging project. On a normal day, NPA would have used Lagos Channel Management (LCM), which is our joint venture company, where we are in control of 60 per cent of the equity. But because we wanted to also enhance the relationship and make the partnership stronger, we accepted the idea that CHEC can go ahead and do the dredging,” he explained.

He said it is a clear indication of how serious and how supportive the NPA can be when it comes to issues of Lekki Port.

On automation, he stated: “Now, the other thing I want to mention is the automation issue that you have raised. Now, luckily for you, and most likely because you are the most current or the latest port that we have in Nigeria, it is expected naturally that all those things that are required for a modern port should be here. Lekki Port is up to date with the technologies, and we are very happy about that,” he said.

He pointed out that the technology here will be part of the main requirements for the deployment of the Port Community System, which is a precursor for keying into the National Single Window.

“We are hoping that other port locations or other terminals will very soon also have 100 per cent capability in terms of technology deployment so that once we deploy the Port Community System, keying into it would not be an issue. So I appreciate that Lekki Port has done well in the area of technology deployment,” he added.

On the channel survey, the NPA MD explained that the contract had been awarded.

“We have awarded the contract for the survey of the channel, which is also a major requirement of the international port and harbour and navigation systems. This will give us more optimisation in the area of channel management around Lekki Port,” he added.

On Lekki Port’s request for a reduction in Ship Dues, the NPA MD explained that much of the equipment the Authority buys to ensure efficiency at the ports is dollarised.

“We keep buying Navigational Buoys, Tug Boats, and others to ensure efficiency in port operations across the country. Because many of the things that we buy are dollarised, as much as it’s necessary to lessen the burden of Lekki Port payments to the government, Lekki Port should also know that we need to have more money to be able to buy more of these things and also ensure that personnel who are running them are also well paid.

“When the Single Window is finally deployed, and 95 per cent of port processes become paperless, the revenue at the ports will triple. Electronic transactions will completely or nearly eliminate unreceipted payments in our ports. When this happens, it is believed that we are going to make more money. At that point, I think NPA will look at the possibility of bringing down the Ship Dues,” he said.

The NPA MD also commended the Management of Lekki Deep Seaport for sustaining superior performance and remaining unwavering in its commitment to providing every necessary support to optimise the port’s potential.

Speaking earlier, the MD of Lekki Port, Wang Qiang, presented several key requests for policy support to the NPA MD.

“We wish to request an adjustment of Tariff Structure to reflect service costs and inflation, a reduction in Ship Dues specifically for large vessels and feeders, to enhance port competitiveness.

“Provision of Night Pilotage Services to enable 24/7 operations and improve vessel turnaround time, amongst others,” the Lekki Port MD stated.

The NPA MD also paid a visit to the $19.5bn Dangote Petrochemicals Refinery and met Africa’s richest man, Aliko Dangote.



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