Concession as Elixir for Inland Waterways Transportation  

Eromosele Abiodun writes on the plan by the Nigerian Inland Waterways Authority to concession river ports across Nigeria, positing it will allow for private sector management, trigger improved utilisation of the inland waterways for transportation and ease conveyance of goods

Inland waterways are made up of navigable rivers, lakes, coastal creeks, lagoons and canals. The movement of goods and services along inland waterways is one of the oldest means of transporting goods and services from point to point.

This is largely due to the fact that inland water  transport offers  the  most  economical,  energy  efficient  and environmental  friendly  means  of transporting  all  types of  cargo  from  place  to  place. It  also  offers  safer  and cheaper  rates  in  areas where  water  exist  naturally.

This facilitates commerce, promotes  wealth  creation, poverty  alleviation, and creates job  opportunities  for youths  within  such  regions. The  ancillary  sector  of boat  building  industry  also   generates  employment through  active  engagement  of  the  youths  in welding and  fabrication  process.

Despite the immense benefits to the economy, inland water transport in Nigeria has had a long history of neglect by both government and the private sector.

Little efforts were made to develop inland water transport facilities prior to the 1980s. This  stems largely from policy inconsistency, limited private sector involvement and conflicts between and among agencies  involved  in  the management  of  inland  water  transport  in  Nigeria.

Since the 1990s, however, the Federal Government  of Nigeria (FGN), has taken  a  number  of  initiatives, including capital  and  infrastructure  improvement, channels  dredging  and  maintenance  and  installation  of safety  facilities  to  turn  the  sector around.

Industry watchers and analysts have argued that with efficient control systems, the Nigerian Inland Waterways Authority (NIWA) could function appropriately to make economic fortunes.

Their arguments, no doubt, may not be unconnected with the efficient operations of the Inland Waterways Transportation of the United States (U.S) with about 25,000 nautical miles, out of which 12,000 miles have been commercialised and maintained by the government.

The American inland, intra-coastal and coastal waterways and channels, available statistics reveal, accommodate about 3,008 businesses and 24,908 employees as well as makes a whopping N8 billion dollars annually.

More than 60 per cent of America’s grain exports, about 22 per cent of domestic petroleum products and 20 per cent of the coal used in electricity generation is ferried via America’s water transportation system.

The Nigerian situation

The case is, however, not the same in Nigeria. For years, the growth of water transport and other ancillary businesses have been impeded by numerous obstacles, chiefly the battle for control.

Virtually all the state governments with this geographical advantage are engaged in subtle regulatory or supremacy battle with the federal government.

The situation thereby flouts the dictates of the law, court rulings and as such cause distraction to major stakeholders in the industry.

Nigeria has 36 states plus the FCT owing a land area of 924000sqkm with an estimated population of about 170 million.  The country  is  blessed  with  a  coastline  of about  870km  and  about  3000kilometer  of  inland waterways.  Nigeria currently  has  six  major  ports (Tincan  Island,  Apapa,  Warri,  Port  Harcourt,  Onne  and Calabar)  and  10  crude  oil terminals  (Escarvos,  Bonny, Sapele,  Forcados,  Tuma,  Okrika,  FOT).

Nigeria Ports  Authority  (NPA)  annual  account  showed that  traffic  into  the  major  ports,  excluding  tankers,  was estimated  at    35, 000 vessels  per  annum  and  overall cargo  throughout  (excluding  crude)  was  222.23  million tons.  The total number of passenger that patronizes the sea ports is estimated at 35000 per annum. Statistics from NPA indicates that  4,070  vessels  with  121,350,844GRT visited  Nigeria in the year 2000 alone,  having  an  overall cargo  throughout  at  28,859,274 million tons.

Sequentially,  container  traffic  at  major  ports was 119,458  (outwards)  and  204,299  (inwards). However, several other ports dotted along the 300km of inland waterways are Onitsha, Oguta, Opobo, Lokoja, Baro, Jebba  etc.  Nigeria being major oil  producing  and exporting  country  records  about  2,000  petroleum  tanker vessels  calling  at  her  ports  annually,  with  an  average tanker  size  of  about  95000.

Industry analysts therefore wonder why the federal and states government cannot take advantage of the huge opportunities in the sector to create jobs.

“Pause  and  reflect  on  the import  and  export  statistics in  terms  of  numerous  trade  opportunities  and  the never-  ending  operations on  the Nigerian coastal ways nationwide. Such transport or activities over waterways is especially effective when the source and/or  destination are  a  water  front location,  which is  a  main infrastructural  advantage that  regularly  needed  to  be trained, maintained and upgraded, of which Nigeria is specially blessed with such infrastructure as waterways unlike the  hinterland  states.

“The Nigeria  inland  waterways operations  and management  has  long  since  time immemorial been in service but are yet to meet with her states  expectation seeing  the various natural features  on ground as  tools to facilitate its operations. Nigeria aspires to be amongst the top 20 largest economics by the year 2020 according to the economics policy at vision 2020 and successful operations and management of the inland waterways by the actual implementation at the enacted  cabotage laws in Nigeria is critical to the success or otherwise  of the plan because of the indispensible role shipping plays in not just the movement of goods and services around the country and the revenues collected as tax from the various actors in the sector,” an industry watcher who does not  want his name in print, said.

Cabotage Act Impact 

Experts also believe the effective implementation of the cabotage Act  willcatalyse  the  growth  and  development of  the transportation sector and reduce the over dependence of the nation on road transportation operations and its consequent damage of the roads since the collapse of the railway system in Nigeria.

Others believe the growth of the sector is expected when the dredging activities on in the nation’s   inland waterways are concluded.

“However, the initiatives and strategies forecasted for the future still does not move a foot if the problem of enforcement  geometrically progresses due to the infallible and unchangeable management governing the corridors of power in this sector, seeing actually that most of them still lack the rudimentary understanding of its existence and likewise its operation,” said the industry analyst.

Privatisation Option

Meanwhile, all hope is not lost if the efforts by the National Inland Waterways Authority (NIWA) to concession river ports across the country is anything to go by.

Recently, the Managing Director of NIWA, Gida Mustapha announced that the agency is inching closer to the final concessioning of the Onitsha, Lokoja, Baro and Oguta River ports.

Mustapha, who stated this during a tour of the area offices under his jurisdiction, confirmed the receipt of certificate of compliance from the Infrastructure Concession Regulation Commission (ICRC) to go ahead with the concession process.

The concession, he said, will allow for private sector management and trigger improved utilisation of the inland waterways for transportation and easy conveyance of goods.

He said the tour would expose the operations at various points in order to take the necessary action.

At the Onitsha River Port, he said he was impressed with the state of the cargo handling equipment and other facilities. He therefore, promised to accelerate the process of completion of the concession of the port.

However, he frowned on the slow pace of work at the Oguta River Port site and promised to get the National Assembly and Imo State government to support the process of completing the port.

Mustapha was also delighted with the asset of NIWA at Warri Dockyard, which he said was enough to sustain the authority financially if properly managed.

He noted that the issue of inadequate manpower and obsolete equipment at the port would be addressed, adding that some operations at the Dockyard may be leased to the private sector.

The NIWA boss also visited two jetties in Yenegoa, Bayelsa State, and promised the people of the state that the two jetties would be put into use very soon.

The LASWA example

Similarly, the Lagos State government is making efforts to develop the state’s inland waterways.

Recently, the Lagos State Waterways Authority (LASWA) confirmed that about two million people shuttle the Lagos waterways on a monthly basis.

The Managing Director, LASWA, Abisola Kamson made this revelation at a briefing with journalists in Lagos.

According to her, the number of people that ply the state’s waterways has grown rapidly over the years and measures are being put in place to strengthen the authority’s water guards to enforce safety rules.

Kamson also revealed that new safety rules for the growth of water transportation sector in the state is underway as various challenges are being encountered by LASWA on the waterways

She also said that they are in partnership with the NIWA, in order to regulate various activities on the state’s waterways and ensure that it is safe.

She stated that the new guidelines would focus on the quality of boats, size of the boat, size of the engine, and general safety for commuters.

The LASWA boss said operators would be given a period to comply with the new guidelines after which government would begin strict enforcement of the guidelines adding that LASWA would employ more water guards to enhance patrol on waterways.

She said the water guards of the authority provided statistics on daily basis on the number of passengers plying the jetties in the state, saying that many people were now used to commuting on the waterways and that the number still kept on growing.

Kamson said: “The core function of LASWA is to act as a regulatory agency for all movements on waterways. We are to provide enabling infrastructure that will promote water transport.

According to her, the authority is working closely with the Marine Police in order to beef up the security and also curb illegal access on the waterways, adding that plans were underway to ensure that jetties and boat operators not licensed by the state government were not allowed to operate on the waterways.

Kamson said that there would be proper channelling of boat routes to prevent boat users from interference.

This, she said, would enable the authority monitor the number of approved vessels plying certain route, which would make for safety of the waterways.

The MD appealed to Lagos residents to desist from dumping refuse and open defecation on water as such practice could impede movement on waterways, adding that efforts were underway for mechanised clearing.