Isan Seeks Govt's Support for Shipping Line

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Jan 2009

Indigenous Ship Owners Association of Nigeria (ISAN) has called on the Federal Government to support its initiative of setting up a shipping company, by creating an enabling environment through provision of cargo for ISAN vessels. It also called on the Nigerian National Petroleum Corporation (NNPC), major oil marketing companies in the downstream and international oil companies (IOCs) in the upstream of the country's economy to allow ISAN members provide them with shipping services. President of the association, Isaac Jolapamo, made this call at the Civic Centre in Lagos at the weekend, when the association held its 2009 New Year Party/Award Ceremony, where pioneers of ship owning business in Nigeria were honoured as well as others that have contributed to the growth of indigenous shipping in the country.
ISAN, which is the umbrella body for all indigenous ship owning and allied companies operating in the maritime sector of the economy, had recently formed a shipping company, which will be trading as ISAN Shipping Lines.
Apart from trading for commercial and employment generation purposes, the shipping lines will also showcase Nigeria in the international shipping community.
According to Jolapamo, the company was formed in line with ISAN's quest to see to the genuine participation of Nigerians in the country's maritime trade. The association's desire is for the country to be able to take advantage of its competitive edge to harness her maritime and shipping potentials for the benefit of Nigeria and Nigerians.
He said Nigerians would substantially gain from the capital flight in its shipping services and employment opportunities, if curbed.
Calling on the Nigerian Maritime Administration and Safety Agency (NIMASA) to add value to its regulatory function by concentrating more on shipping development, the ISAN President said transparent disbursement of Cabotage Vessel Finance Fund (CVFF) and Vessel Maintenance Subsidy (VMS) during the first quarter of this year to qualified Nigerian ship owning companies should be one of the top priorities.
Meanwhile, Commissioner, Lagos State Ministry of Transportation, Prof. Bamidele Badejo, in a lecture entitled: 'Too Many Cooks: The Dilemma of Indigenous Shipping Development in Nigeria' identified 10 factors responsible for the decline of indigenous shipping.
These factors, he said, are policy summersault, political and legislative dimensions, economic dynamics and market size, international conspiracy and gang ups, human capacity relevance and technological changes and access to funds and finances.
Others include infrastructure and equipment failure, stiff competition from international shipping operators, general absence of coordination and integration and multilateral versus unilateral competition.
According to him, these factors occur either singly or collectively through various forms of interface to affect sustainability of the country's shipping industry.
The commissioner also said it could be justifiable to suggest that the current economic downturn and high level of unemployment, which the country is facing, may be traced to the deterioration and general decline in indigenous shipping sector.
According to him, development of indigenous shipping in Nigeria has been very slow and will continue to be so until deliberate and concerted efforts in a coordinated manner are put in place. He said it is predominantly uncoordinated, largely unsupported by government and faced with stiff competition emanating from other modes of transportation.

Source: Daily Independent