NPA boosts operational efficiency with $1 billion Port rehabilitation project

The Nigerian Ports Authority (NPA) has commenced the rehabilitation of the dilapidated facilities in the nation’s seaports to improve operational efficiency.

The move marks the readiness of the Managing Director/CEO, Dr. Abubakar Dantsoho to deploy his decades-plus experience in the maritime sector for the maximization of the benefits derivable from Nigeria’s littoral assets and blue economy potentials.

Evidently the home-grown chief executive who enjoys the unalloyed support of the performance-driven Minister of Marine and Blue Economy, Adegboyega Oyetola, has his focus set on implementing deliberate performance improvement measures geared towards future proofing Nigeria’s foremost trade facilitation platform for competitiveness and improved value addition to the national economy.

SPONSOR AD

Major players in the maritime sector have applauded President Bola Tinubu for appointing Dantsoho, stressing that the president’s famed eye for talents has again been proven correct with his giant strides in the last one year.

Port Rehabilitation

On assumption of duty as NPA boss, Dantsoho promised to ensure efficiency by embarking on port rehabilitation.

Work has since commenced with the finalisation of documentation and commencement of actual works on the $1billion worth reconstruction of the aged Tincan Island Port Complex and the comprehensive rehabilitation of Apapa, Rivers, Onne, Warri and Calabar Port Complexes to assure their infrastructural integrity and bring them up to speed with the contemporary demands of the international maritime ecosystem.

New Ports Developments

The NPA has also taken steps towards port capacity expansion through the operationalisation of new Ports and advancement of green port development.

Dantsoho only last month led the NPA Management to finalize an agreement for the $1billion development of Snake Island Port to be built on an 85-hectare site within the Snake Island Integrated Free Zone.

This is in addition to Badagry Deep Seaport, Ondo Deep Seaports and Burutu Ports which are at various stages of progress under the technical guidance of the NPA. With the Port Community System (PCS) and the National Single Window amongst other initiatives for port competitiveness being aggressively implemented, it is evident that the Nigerian Ports Authority is poised to transform its strategic intent of being the maritime logistics hub for sustainable port services in Africa from potential to actualities.

Port Automation

Under Dantsoho, the NPA has concluded Nigeria’s membership of the International Port Community System Association (IPCSA), which is a necessary precursor to the implementation of the National Single Window (NSW) project.

Single Window operation is the global trade best practice for the electronic exchange of information relating to over 500 million TEU movements and billions of tonnes of cargo for sea, air and land transport modes.

Electronic Truck -call up

The electronic management of truck traffic management which was conceived to sustainably tackle the excruciating traffic gridlock that hitherto characterised the port access roads has been firmed up through the introduction of satellite truck parks and time belts resulting in significant ease of doing business at the ports.

Exports Growth and Trade Surplus

Dantosho’s insistence on port efficiencies has culminated in Nigeria’s attainment of trade surplus of N5.81 trillion ($3.7 billion) in third quarter of 2024 as reported by the Nigerian Economic Summit Group (NESG) foreign trade alert through exports predominantly consummated on the platforms of the Nigerian Ports Authority.

Also, the successful implementation of President Bola Ahmed Tinubu’s strategy for the sale of crude and other petroleum products in Naira which in addition to saving Billions of forex earnings hitherto lost to importation, resulted in guaranteeing national energy security, deepening balance of trade and creating direct and indirect jobs.

The authority under Dantsoho has put Public Private Partnership modalities in motion to derive revenue from Ports Independent Power Production, Bunkering Stations, Fallow Lands for Logistics, Fresh Water Provision and Ship Repairs and Maintenance

Maritime Nations Reckoning- PMAWCA

Another major achievement of the Dantsoho-led NPA is the promotion of Nigeria’s standing in the comity of maritime nations with his pioneering victory and election as the president of the Port Management Association of West & Central Africa (PMAWCA); the first Nigerian to be so elected since the inception of the prestigious regional maritime bloc in 1972.

Leadership of maritime decision-making blocs such as PMAWCA and the Pan-African Association for Port Cooperation (PAPC) which Dr. Dantsoho also leads, provides the diplomatic capital necessary for actualizing Nigeria’s quest for re-admission into the influential “Category C” of the International Maritime Organization (IMO).

During the period under review, the NPA has provided the technical guidance responsible for the unprecedented increase in number of transhippment cargo processed from Lekki Deep Seaport to cater to the maritime needs of Nigeria’s landlocked neighboring countries, and win back cargo hitherto lost to our maritime neighbors.

Patronage of Ports Outside Lagos

Imbued by his hands-on experience as Port Manager for Onne Port Complex where he pioneered the investor-friendly initiatives responsible for the year-on-year growth being recorded at Onne Port Complex, Dantsoho recently undertook an investment drive tour of the Eastern Ports, arising from which the Authority has received several expressions of interests for investment in Rivers, Calabar and Burutu Ports.

As a result, the West Africa Container Terminal (WACT)-APM Terminals Nigeria recently received Hapag-Lloyd, one of the world’s leading liner shipping companies as it launched its service at the terminal. The launch of the new service was celebrated with a special ceremony at the WACT-APM Terminals Nigeria Onne port, marking the partnership with Hapag-Lloyd’s weekly shipping service, directly connecting Eastern Nigeria to global trade routes.

This strategic alliance underscores the commitment of WACT-APM Terminals Nigeria’s commitment to expanding Nigeria’s maritime capabilities and solidifying its position as a vital gateway for international commerce. The new service will significantly enhance connectivity, offering increased vessel capacity, improved transit times, and greater schedule reliability for businesses operating in East Nigeria.

The CEO of APM Terminals Nigeria, Frederik Klinke, described the event as not a maiden call but the launch of Hapag-Lloyd as a shipping line in East Nigeria. He said the development is an important milestone and indication of the strong partnership that APM Terminals has globally with Hapag-Lloyd.

“This is an important milestone in East Nigeria for building its potential. We in APM Terminals have a very strong belief in the East Nigerian market. We are very proud of the partnerships that we have with our shipping line customers, now, with Hapag Lloyd being among them, and our government partners as well as the customers that we serve in East Nigeria. What we are really trying to do is to lift the East Nigerian market. There is a lot of trade potential that requires better logistic solutions.

The Country Managing Director, Hapag-Lloyd, Himmat Ahlawat, described Nigeria as one of the most important markets while also reiterating that customer service is the biggest priority for the Hapag-Lloyd team.

He said, “We consider Nigeria as one of the most important markets if not the most important in Africa and Eastern Nigeria. Without calling Eastern Nigeria, our ambitions here will remain unfulfilled. In Hapag Lloyd, the biggest priority we have is customer service. If there are no customers and our customers are not happy, then we have no right to exist. So, our actual stated aim is to be the undisputed king of customer service. So that is something we should bring on the table, because we use a variety of digital tools to help our customers, which the rest of the market has still not started using.”

Noteworthy Port Statistics

The 2024 Consolidated Management Report of the Nigerian Ports Authority (NPA) highlights significant improvements in port activities, with multiple indicators pointing to robust growth across various sectors. From cargo throughput to ship traffic and service boat operations, the Nigerian ports have experienced remarkable progress.

One of the most notable achievements in 2024 was the substantial increase in cargo throughput. Cargo traffic surged by 45.1%, rising from 71,213,197 metric tons in 2023 to 103,336,863 metric tons in 2024. This increase reflects heightened trade activities and improved operational efficiencies.

Lekki Port stood out as the leader in cargo throughput growth, recording a 2,160.8% increase, followed by Onne Port with a 9.4% rise and Tin Can Island Port with 7.3% growth. Notably, Liquid Bulk cargo accounted for the largest share at 55.6%, while containerized cargo contributed 20.9%.

Increase in Ship Traffic

The Nigerian ports also recorded impressive gains in ship traffic. The number of ship calls increased by 5.6%, growing from 3,791 in 2023 to 4,005 in 2024. This was accompanied by an even more substantial 15.4% growth in Gross Registered Tonnage (GRT), which climbed from 123,660,278 to 142,660,418 tons. Lekki Port again led the growth trend, registering a 477.6% increase in ship calls, while Onne Port experienced a 5.8% rise.

The total container throughput also saw a significant 9.7% increase, with 1,744,972 TEUs handled in 2024, compared to 1,591,194 TEUs in 2023. Within this category, laden containers grew by 12.2%, with export-laden containers experiencing an outstanding 53.7% rise.

Transhipment container traffic saw an even more impressive 136.5% increase, indicating a growing role for Nigerian ports in regional cargo redistribution.

Service Boat Operations Boom

During the period, service boat operations recorded an exceptional 49.6% increase in activity, with the number of boats handled growing from 8,956 in 2023 to 13,396 in 2024. Additionally, the Gross Registered Tonnage (GRT) for service boats soared by 129.3%, jumping from 1,997,163 tons to 4,579,742 tons.

This reflects enhanced offshore activities and better service infrastructure at the ports. The operational efficiency of Nigerian ports also showed improvement. The Average Turn-Around Time for vessels decreased from 4.7 days to 4.6 days, reflecting a 1.0% improvement in port operations. Lekki Port demonstrated the highest efficiency, with an average vessel turnaround time of just 2.5 days.

Furthermore, Berth Occupancy Rate improved from 30.1% in 2023 to 33% in 2024, signifying increased port utilization and operational effectiveness.

Industrial harmony

In keeping with his inaugural address, Dantsoho has, since appointment, placed employee matters on top of the Authority’s agenda through unprecedented collaboration with the Maritime Workers Union (MWUN) and the senior Staff Association of Statutory Corporations and Government Owned companies (SSASGOC).

Only recently, the Honourable Minister of Marine & Blue Economy Adegboyega Oyetola and Dantsoho received the commendation of the coalition of Maritime Workers for clearing the age long backlog problem of employee stagnation by conducting promotion examination in one fell swoop to admiration of the Union and its members.

This is in addition to an increase in productivity bonus, provision of end-of-year welfare items to staff and the review of the Financial Guide to the Condition Service which has comprehensively responded to workers’ yearnings for increase in response to inflationary trends.

Dangote, Stakeholders Commend Dantsoho

Following the exceptional performance, stakeholders including Dangote Industries Limited (DIL), truckers commended Dantsoho stressing that the Marine and Blue Economy sector will witness expansion.

Speaking during a courtesy call to the NPA headquarters in Lagos, President of the Dangote Industries Limited (DIL), Aliko Dangote explained that as the biggest customer to the NPA, it is important that the interaction between NPA and DIL is sustained.

The richest man in Africa said, “We are here to thank the NPA for doing a great job, because as we speak today, we are the biggest or largest customer of NPA.

“I think this kind of interaction between us and them is very, very important for the growth of the industry. So, we discussed quite a lot of issues. We also discussed issues of how to deepen the Marine and Blue Economy of the nation. And we have agreed to actually work together for the benefit of Nigeria.

“The size of our own operation at Lekki alone is going to be almost 240 ships of crude, with each ship carrying one million crude each. And then we’ll have products which now will amount to over 600 ships in a year. Then we also have our fertilizer operation, which will be loading almost eight ships. This is an operation that has never, ever been seen in the country.

“So, it’s a major challenge. But with the leadership of the NPA, we are very, very comfortable that they’ll be able to deliver.”

Recently, cargo truckers in Rivers State commended the NPA for opening the completed section of ‘Road D’ at the Federal Ocean Terminal (FOT), Onne Port, Eleme Local Government Area of Rivers State.

Speaking on behalf of truck drivers, Mr Adolphus Ugwu, Haulage District Chairman, Maritime Workers Union of Nigeria (MWUN), Eastern Ports, applauded the NPA, and the Onne Multipurpose Terminal (OMT) for the development.

Ugwu told journalists that truckers see the opening of the road as a welcome development. He thanked NPA and OMT for working in synergy to open the Road D, which he said will address road challenges facing truckers at FOT, Onne Port.

“For this reason, Truckers commend NPA for a job well done. As drivers, we are also commending Onne Multi Purpose Terminal (OMT), for their effort at the opening of the completed portion of Road D,” Ugwu stated.

Last week, the Secretary General of the Association of Maritime Truck Owners (AMATO), Mohamed Sani Bala, declared a vote of confidence in the electronic call-up system introduced by the Nigerian Ports Authority (NPA) to tackle gridlock on the Apapa and Tin-Can port access roads.

Sani-Bala, who stated this after a peaceful rally in Apapa, applauded the NPA for the initiative that has brought sanity to the port access roads.

He stated further that the impact of eliminating gridlock and improving traffic flow along logistics corridors has made import and export cargoes evacuated seamlessly.

“On behalf of the trucking community, we wish to use this peaceful rally as a platform to express our profound gratitude to the management of NPA for the deployment of the Eto Call-Up System, and to also appreciate the Lagos State Government for its vital role in enforcing compliance with the Standard Operating Procedures that underpin the system,” he said.

Judging by his success thus far at leapfrogging Nigeria’s foremost trade facilitation platform to catalyze national maritime endowments for the creation of national economic prosperity for all, Dr. Abubakar Dantsoho is poised to deploy his hands-on experience and track record of result delivery to optimize the limitless potentials for growth inherent in the Nigerian Ports Authority.