N50 billion modular floating dockyard acquired by Nigeria Maritime Administration and Safety Agency to put an end to the huge cost of dry-docking outside the country has generated more controversy than the purpose for which it was acquired
To ensure seaworthiness of the ships, most ships are required to be dry docked twice every five years. Some ships may have dry-docking postponed or the intermediate dry-docking waived by performing an underwater inspection in Lieu of dry-docking.
Dry-docking a ship is a complex task. The ship weighs a lot and the weight must be spread evenly to the dock. While a ship is floating the pressure holding the ship afloat is spread throughout the entire underwater hull. While in dry dock the load is spread among wood blocks. There are also interferences such as transducers and irregularities such as flare at the bow. In order to dry dock the ship the dock master must be aware of the characteristics of the ship’s bottom and its weight distribution.
Therefore ships carry a docking plan, which specifies where the blocks are to be placed, the angle of the side blocks, and the height of the side blocks. It also lists where transducers, sea chests, tail shafts, and other items are located.
With an average of 5,000 ships calling at the Nigerian ports annually, 400 active coastal vessels and several fishing trawlers, the demand for ship repair and maintenance facilities can only be on the rise.
Before now, the dry-docking of vessels operating in Nigeria was done outside the country with huge implications in terms of foreign exchange costs running into several millions of dollars yearly.
As a matter of fact, Nigeria was losing about N16.5 billion ($100 million) annually to neighboring countries through the movement of its vessels dry-docking to meet the International Maritime Organisations (IMO) requirement.
Experts believe there is a huge investment opportunity for ship repair and ship building in the country presently that is not being exploited.
THISDAY findings revealed that it cost between N45 million and N75 million ($300,000 and $500,000) to dry dock a vessel and that approximately 200 to 300 vessels go to Ghana, Duala and Robins Bay for dry dock annually.
“Each dry dock cost the ship owner between $300 to half a million dollars each trip. If you can dry docks a vessel at $300,000 for dry docking for 25 days and if you have two docks a month that is $600,000 every month.
“You can imagine having over 3,000 vessels (in Nigeria); they have to go for dry dock. It is a requirement by the IMO standard that a vessel goes for dry dock once every three years, and if you dock 200 to 300 vessels once every year at $300,000 per dock, you can then imagine how much it will come to, ”said maritime expert Lucky Amiwero.
Controversy galore
In a bid to put an end to the huge cost of dry-docking outside the country, NIMASA acquired a modular floating dockyard in 2018. With this facility in place, the agency promised to save the federal government over $100 million annually and about $1 billion in 10 years. The multi-billion naira floating dock was acquired as part of efforts to reposition the nation’s maritime industry to international standard and boost revenue.
The plan to embark on the project predates the immediate past Director General of NIMASA, Dr. Dakuku Peterside. Before his appointment as NIMASA boss, his predecessor had already established a business case for a floating dry dock where owners of ship can dry dock their vessels from time to time. However, since its arrival in Nigeria, the modular floating dockyard has been enmeshed in controversy.
Aside allegation of mismanagement, the floating dockyard acquired by the NIMASA, it is currently gulping $30, 000 per day, which translates to $10.440 million (N5.1 billion) a year in demurrage charges.
The modular floating dockyard was expected to save the federal government $100 million annually via a direct saving from the dry-docking of vessels operating in Nigeria, which is mostly done outside the country.
However, the floating dockyard designed to berth in Okerenkoko Delta State, the permanent site of the Nigerian Maritime University, has been lying idle at the Naval Dockyard in Victoria Island Lagos.
Providing more details at a press briefing in Lagos, a former Executive Director Operations of NIMASA, Rotimi Fashakin, explained that the insecurity in the Niger Delta region made it difficult for NIMASA to berth the dock at Okerenkoko as originally conceptualised.
Fashakin, confirmed that the multi-billion-naira facility was currently lying fallow at the Naval dockyard pending when the agency would get a permanent location to operate it.
He said: “Initially when the floating dock was acquired, the design was for it to berth in Delta State. But even at that time, there were a lot of reports advising to the contrary, there were lots of surveys advising to the contrary, these reports are still there till date.
“When we got here, we were forced to review all these reports and take a decision that we think would serve all interest in the shipping community. The floating dock was not conceptualised by the Peterside administration, we only inherited it just like the Buhari administration inherits projects and goes ahead to actualise them.
“Indeed, the floating dock was supposed to go to Okerenkoko in Delta State, but the conditions that exist now, for the dock to get to Okerenkoko now is almost impossible. A dock is supposed to serve the shipping community as a commercial facility, but which company or vessel would be bold enough to travel to Delta State because of the insecurity?”
He added: “When the dock landed in Nigeria, there were various state governments that requested for it, all these are on record. When it came in, we thought of many ideas, first is to get an operator to operate it, but this is a government asset and not something you can just give to an operator, NIMASA is a regulator and not an operator, so giving the dock to an operator also needs to go through the bureaucracy of government.
“The other thing was getting a place to berth it, if you know the complexity of a floating dock, the draft that you need to keep it and operate it is 12 meters. The contractor was spending over $30,000 keeping the dock afloat for many months and we had to pay many months demurrage on that. Eventually, we reached a situation where we had an agreement with the Naval Holdings Limited, a sub-sect of the Nigerian Navy to keep the dock
“We are still looking forward to having a formal MoU which we would have an operator operating the floating dock. The Navy also has a graving dock, the initial report shows that if that floating dock is operating as it is, it would imperil the graving dock. So the Naval Holdings Limited suggested another spot where we could use it, a consultant was asked to assess the spot, the report of the consultant is out, we would need to do some dredging at that spot where we can now operate the floating dock, ”Fashakin said.
NIMASA assures Nigerians
But the current Director-General of NIMASA, Dr. Bashir Jamoh, believes the purpose for which the modular floating dock was acquired will be achieved.
He assured maritime stakeholders that the modular floating dock is in the process of being deployed.
Jamoh disclosed this during a visit to Managing Director of Nigerian Ports Authority (NPA) HadizaBala-Usman, in Lagos.
Jamoh stated: “I am here to affirm that the modular floating dock has come to stay. We have concluded arrangements for its deployment and operation. The date for its commissioning would be announced soon.”
In an interaction after the meeting with the NPA Managing Director, the NIMASA Director-General recounted the process of securing the NPA Continental Shipyard for the floating dock, and getting approval from the Federal Ministry of Transportation as well as the Infrastructure Concession Regulatory Commission (ICRC).
He emphasised that obtaining these approvals were important preliminary conditions “because of the need to engage managing partners and ICRC is in charge of the mode of operations and Public-Private Partnership (PPP) arrangement.”
In her remarks, Bala-Usman stressed the need to promote the NIMASA local dry dock to the maximum capacity by placing the NPA’s Continental Shipyard at the Agency’s disposal as a preferred location. She said NPA would go into an agreement with NIMASA on the handover of the authority’s dockyard, jetty locations, and warehouses within the area to facilitate the installation of the modular floating dock.
“We believe the floating dock is an integral part of the maritime sector and we like to commend NIMASA for starting this and NPA will continue to provide the necessary support as it relates to the aspect of our shareholding within the SPV being guided by the Infrastructure Concession Regulatory Commission (ICRC),”Bala-Usman stated.
She added: “As it is, NPA has confirmed and reiterated that it will support and hand over those facilities within the next few weeks to enable NIMASA to conclude the movement of the modular floating dock from the Naval Dockyard to the Continental dockyard.
“This is a very welcome development for the sector and we look forward to patronising and using the dockyard facility for our vessels and other vessels of government agencies.”
Responding, Jamoh said: “You have heard from the MD of NPA, within the next few weeks the Continental Shipyard will be ready to house the floating dock. The second aspect is the issue of operation; we have obtained the approval of the ICRC and we have been directed to move to the Federal Executive Council.
“As far as we are concerned, the confirmation of certain aspects of the operations will be run concurrently. While we are seeking the Federal Executive Council approval, the issue of a managing partner will be considered and Expression of Interest will be published. So, we are good to go.
“When fully operational, the NIMASA floating dock is expected to provide a lot of benefits to the maritime industry, ranging from conserving foreign exchange, to providing employment and boosting indigenous capacity, developing shipping, and providing training exposure for students of the Maritime Academy of Nigeria, Oron, and the Maritime University, Okerenkoko.”
A revenue earner
Following reports in the media that the floating dockyard has been made redundant and was gulping $30,000 daily in demurrages, Jamoh had last year stated that the floating dock was expected to generate N1 billion monthly or N12 billion annually when work on was concluded.
NIMASA, Jamoh revealed, was partnering with the NPA to get a permanent place for the platform, adding that when it is fully operational it would amount to a very huge revenue earner for Nigeria, “because a lot of vessels would be able to dry-dock in the country.”
That aside, he said NIMASA was working with the Navy and Police, the Army, DSS other relevant agencies to stem the cycle of criminalities in the nation’s maritime domain.
NIMASA, Jamoh said he had acquired some vessels and other sophisticated equipment that would be a game changer in the fight against piracy and other maritime crimes on the Nigerian waters, as criminals could be easily reached and stopped.
He said there would be rigorous training for NIMASA staff, who would man the platform, before going into full operation
Meanwhile, sources at the agency told THISDAY that the floating dockyard was lying idle at the Naval dockyard in Lagos pending when the agency would get a permanent location through the NPA to operate it.
According to the source, “Initially when the floating dock was acquired, the design was for it to berth in Delta State. However, at that time, there were reports advising to the contrary. There were lots of surveys advising to the contrary, these reports are still there till date. When the agency got there, it was forced to review all the reports submitted to it and take a decision that would serve all interest in the shipping community.
“The floating dock was not conceptualised by the last administration. The truth is that the floating dock was supposed to go to Okerenkoko in Delta State, but the conditions that exist then and now, for the dock to get to Okerenkoko is almost impossible, a dock is supposed to serve the shipping community as a commercial facility, but which company or vessel would be bold enough to travel to Delta State because of the insecurity.
“Another problem we had was getting a place to berth it, if you know the complexity of a floating dock, the draft that you need to keep it and operate it is 12 meters and that is why we are collaborating with the NPA because the previous contractor was spending over $30,000 keeping the dock afloat for many months and we had to pay many months demurrage on that, “the official said.
Source: Thisday
