Minister backs move to set up new national shipping line

  

THE Minister of Transport Alhaji Ibrahim Bio has thrown his weight behind the establishment of a proposed national shipping line and has sent a memo to the Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA) for appraisal.

 

 

 

It would be recalled that a group under the aegis of Maritime Professionals Association (MPA) had proposed a new shipping company ahead of the proposed purchase of three training and trading vessels by the Nigerian Maritime Administration and Safety Agency (NIMASA).

In a memorandum to the Director-General of NIMASA titled:  The establishment of a public limited liability company to be known as Nigeria Shipping Company (NSC) Plc, President of the group, Dr Jideofo Ogbuagu said that the growth of maritime manpower could only happen with the general shipping development.

Already, a trip to Russia to inspect the  vessels has also been proposed as these  vessels  will be used by the maritime academies in Nigeria for the overall development of the industry.

The vessels, according to him, when finally purchased, will be managed by a team of core professionals with impeccable knowledge of shipping operations.

 

He, however, recommended that the maritime academies and the training vessels should work perfectly together to achieve the objectives of making

Nigeria a major supplier of shipping services to the world.

On the ownership of NSC, the group proposed that while NIMASA owns 51% of the company, the remaining 49 per cent could be sold to other investors through private placement and public offers.

His words:  “Other investors through private placement and public offers (would own) 49%.  These investors should be private individuals and companies who would be encouraged to buy into NSC Plc having seen the level of start-up facilities provided for the company by NIMASA.

 

“The company should have a 10-member board that is separate and different from NIMASA’s own board.

“The board of NSC Plc should comprise of only shipping practitioners or persons versed in shipping. However, it could include persons in other professions like banking, insurance or legal profession, but who also have serious interest in maritime practice and development.

“The board must not include persons who without real shipping knowledge or interest would only end up politicizing and trivializing the affairs of the company.

 

According to Ogbuagu, the minister is already aware of the proposed shipping company as he has sent the Memo the to Director-General of NIMASA for his consideration of the proposal.

Besides, the law also allows NIMASA to set up such company for the development of the Nigerian shipping industry.

Part (IV)Section 23 sub-section 2 (C)  of the 2007 Act of NIMASA states that “NIMASA is empowered join in the formation companies, while section 2 (D) states that “NIMASA has statutory powers to act on Nigerian Shipping Company Plc”.

 

It would be recalled between 1979 and 1999

Nigeria ran over 26 vessels aground a due to bad management, corruption and government intervention in the running of these ships.

The defunct Nigerian National Shipping Line (NNSL) has a total of 26 vessels in its fleet, while the National Unity Line (NUL) had 2 vessels before they went under .

Ogbuagu noted that despite attempts by NIMASA to create the regulatory and enabling framework for private practice to thrive, the aggregate performance of the nation’s maritime industry has continued to lag behind its contemporaries.

Source: Vanguard