Transport Ministry Explains Directive On Relocation Of Private Jettie

Transport Ministry Explains Directive On Relocation Of Private Jetties

Officials of the Nigerian Ministry of Trade have said that the recent directive given to owners of private jetties to relocate the reception of ocean-going vessels to properly approved and established ports was based on security, technical and legal observations and should not, therefore, be politicised.

Prior to the presidential order last week on the relocation, there had been directives by the Presidency, Ministry of Transport, Nigeria Ports Authority and Nigeria Customs Service (NCS) on the operations of private jetties in the country.

The authorities observed that private jetties have been receiving ocean-going vessels directly at their jetties without such vessels transiting through Nigerian Ports Authority (NPA) concessioned ports for such cargoes to be inspected, tallied, released and all dues paid before proceeding to final destinations/jetty for final discharge.

The officials also explained that the government directives were meant to guard against security breach and loss of revenue to government and concessionaires, which the authorities have to protect as per concession agreements.

The high-level sources noted that since 2002, there had been 15 publications and letters that contained directives banning private jetties from receiving ocean-going vessels at their jetties even though the affected companies never complied with the orders.

They said that the directive would not create any monopoly in the sector as insinuated by Lagos Deep Offshore Logistics (LADOL), an indigenous oil and gas logistics company.

The sources equally revealed that LADOL requested permission to receive FPSO at their private jetty but that it was found out that it is not possible for the organisation to handle such operations at their jetty.

Documents made available showed that the width and draft of the Lagos channel cannot accommodate the facility because of limited room for safe manoeuvring and that the average depth and channels are 9.5 metres and 210 metres respectively, while the turning basin radius is less than 600 metres.

Based on global practices, the minimum radius for turning basin for FPSO is 600 metres.

In view of the high traffic of vessels in the channel, the integration and movement of FPSO being towed by more than five tugs could lead to a blockade of the channel for weeks or months in the event of any accident in the course of navigation in the channel.

On safety, officials observed that other users of the channel would be in jeopardy and it would create an unconducive operating atmosphere to concessionaires who the authority is obliged to provide free passage of their vessels without any hindrance as signed in their respective agreements.

They noted the numerous back and forth with LADOL for it to see reason with the government directive and how the strong views expressed by the Federal Ministry of Transport and Maritime Workers Union of Nigeria had not deterred the company from insisting on how it wants to operate and why it would not comply with directives of the government and regulatory agencies.

However, after several years of negotiations, government found out that it was most appropriate for the directive to be complied with and hence the directive by the Federal Ministry of Transport on April 22, 2015 which conveyed the approval of the president to NPA for appropriate action.

On the alleged claim by LADOL that they were under pressure by the Jonathan administration to leave Lagos and relocate to his native state of Bayelsa, the ports regulators described this as sheer blackmail. “ There are records showing that for whatever favors they thought they could obtain, LADOL wrote to Mr. President for authorization to move their jetty from Lagos to Bayelsa. The government has a record of this. It is equally not true that the enforcement of the already existing measure was done to favor LADOL’s supposed competitors. Government regulations on the misuse of private jetties had existed long before now. The fact that jetty owners have thwarted previous enforcement efforts must not make impunity become the norm.”

The ministry therefore insisted that the directive issued is in the overall interest of the nation and not the victimisation of any person or company.