The Group Executive Vice Chairman of Sifax Group, Dr. Taiwo Afolabi has said that the major reason the maritime sector has failed to contribute its full potentials towards the Gross Domestic Growth of Nigeria was due to decay in infrastructure and intermodal transport system.
Afolabi stated this at the weekend while giving his opening remarks at the 2nd edition of the Taiwo Afolabi Annual Maritime Conference (TAAM) held at the University of Lagos.
The Sifax Group boss noted that even though the Nigerian maritime sector has a key role to play in the alleviation of extreme poverty and hunger, the contribution of the sector to the country’s GDP is still low when juxtaposed with its huge potentials and opportunities.
He noted that more than 90% of the world’s trade is transported by sea and it is by far the most cost-effective way to move goods and raw materials around the world.
He said “one of the major factors that have impeded the sector from fulfilling its potentials is huge infrastructural deficit, deplorable access roads, faulty cargo scanners, non-existent rail system, non-functional truck bay among others. These factors have conspired to negatively impact the service delivery efficiency and overall impact”
“This challenge is the major reason we are all gathered here today in order to address it. Our sector cannot continue to reel under the burden of infrastructural decay if we want to contribute meaningfully to the economy and fulfil the industry’s potentials” he said
Speaking on the essence of the annual TAAM Conference, Afolabi noted that the key objective of the conference is to promote the culture of intellectual discourse in the maritime sector.
While delivering the keynote address, Executive Director, Sifax Haulage and Logistics Limited, Major Henry Ajetunmobi argued that it is only on sustained development of critical port infrastructure through Public Private Partnership that the full potential of the maritime sector will be unlocked.
He said there was need for increased and sustained investment in port infrastructure coupled with introduction of progressive and innovative changes in the way Nigerians do business.
Ajetunmobi noted that efficiency in port operations is best achieved when the three modes of transportation; sea, rail and road are seamlessly brought together in a sustainable manner. He however noted that the current low level of development of the entire intermodal value chain at Nigerian port sector is caused by underfunding.
He said that “this can only be addressed through focused and sustained encouragement of potential private sector investors, both domestic and foreign, to see intermodal transport as a remarkably attractive investment choice”
He urged government to adopt other options and models in maintaining and improving upon the quality of port access roads, including concession through tolling.
Ajetunmobi proposed that “within a given span of time, short rail lines should be constructed between Lagos and Ibadan, and another to a location between Abeokuta and Ibadan to which all cargoes arriving Lagos ports will be evacuated by rail before delivery to shippers and their agents”
However, in her goodwill message at the conference, Managing Director of Nigerian Ports Authority (NPA) Ms Hadiza Bala Usman noted that since the ports were concessioned in 2006, it has witnessed a significant improvement in port infrastructure and revenue generation.
The NPA boss represented by Acting General Manager Business Development, Mr. Stanley Yitnoe argued that though port infrastructure is a major driver of every port across the world, it is however a burden that the Federal Government cannot easily carry due to competing demand for scarce funds
She said "this is particularly true in the light of present economic recession, dwindling oil revenue and the dire need for diversification. There is no better time than now to deploy private capital for development of port infrastructure and apply private initiative and efficiency"
" In her remarks, Chairman of the occasion, Barrister Margaret Onyema-Orakusi commended Dr Afolabi for recognising the need to carry along the young minds and students in matters of maritime sector and how to proffer solution to the numerous challenges.
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