FG seeks investors for 60% equity in new shipping line

There are indications that the Federal Government through the Federal Ministry of Transport is currently shopping for private investors among indigenous ship owners to own 60 percent equity in the proposed National Shipping Line, BusinessDay has learnt.
To ensure that the proposed National Shipping Line becomes a reality, the Federal Government recently in Singapore, signed a Joint Venture (JV) partnership with a Singaporean shipping firm known as Pacific International Line (PIL) to float a National Shipping Line.
The foreign firm is expected to have 40 percent shares in the proposed shipping line which is expected to bring competition into the industry.
It is further expected that the emergence of the proposed shipping line would enable Nigerian ship owners to own different categories of oceangoing vessels, such as crude tankers, containerised vessels, bulk cargo carriers, general cargo and dry cargo carriers, among others.
Industry watchers believe that the commencement of the shipping line would help Nigeria  domesticate over N2 trillion in capital flight which the nation’s economy loses annually to foreign shipping companies which currently dominate its shipping space.
Greg Ogbeifun, president of the Ship Owners Association of Nigeria (SOAN) said the MoU signed in Singapore by Nigerian delegates led by Rotimi Amaechi, the minister of transport, was on the basis that PIL would be 40 percent owners of the proposed shipping company, while Nigerian investors, which would be entirely private, would own the remaining 60 percent equity.
“At the moment, PIL has been mandated by the MoU to develop a business case for the shipping line that would be established and that draft business case would be presented to Nigeria for review and subsequent adoption,” Ogbeifun, who was among the Nigerian delegation to Singapore, added.
Ogbeifun who spoke on the sideline of the maiden Annual Maritime Conference in Lagos last week, further stated that the Federal Government has set up a committee saddled with the responsibility of identifying the private sector players among indigenous ship owners, who are expected to own 60 percent equity in the firm.
“An independent consulting firm would be appointed with the sole responsibility of working out modalities for selecting deserving players through a transparent, very open and participatory manner that would give every Nigerian ship owner an opportunity to be part of the process,” he said.
Since the demise of the  Nigerian National Shipping Line (NNSL) in the 90s, Nigeria has not had any deep oceangoing vessel to fly the country’s flag in foreign nations and benefit from the nation’s lucrative shipping business.
Consequently, the SOAN boss states that opportunities abound for Nigeria to take its rightful place as maritime capital in the West African region. “The government of the day is emphasising on growing agriculture and we believe that in the future, Nigeria would be in position to be exporting agricultural commodities and all of these call for different types of vessels to participate in shipping. Therefore, we see an opportunity for Nigeria to have several shipping lines, including tankers, crude or products, containers, dry cargo or bulk carriers.”
Jean-Chiazor Anishere, president of the Women International Shipping and Trading Association (WISTA Nigeria) suggested that the Federal Government has the obligation to create an enabling environment for the new national shipping line to succeed, so that it would not go aground like the NNSL.
“If we are able to complete the establishment of the national shipping line, Nigerian cadets, who are experiencing hard times in the area of training, would not find it difficult to undergo sea-time training and would be able to benefit from the shipment of Nigerian inbound and out bound cargo,” she said.
Henry Ajetunmobi, executive director, SIFAX Haulage, who blamed mismanagement and poor administration for the demise of the NNSL, advised the government to ensure that right and knowledgeable personalities are appointed to direct affairs of shipping business.

 

AMAKA ANAGOR-EWUZIE