Stakeholders in the maritime industry have expressed optimism that the concession of Terminal `B’, Warri Old Port to SIFAX Group-led consortium, Ocean and Cargo Terminal Services Limited, they expressed hope that it would not only reinvigorate the maritime sector but would also boost cargo operations in the Southeast.
Ocean and Cargo Terminal Services Limited won the concession with a competitive bid of $100.78 million and would run the terminal for twenty five years. In April 2018, the company was announced the preferred bidder of the Warri Old Port, out of the seven other companies whose bids were evaluated.
The stakeholders, in separate interviews said that the upgrade and activation of the Warri Old port was long expected, saying that effective operation of the port would complement the Lagos ports.
Mr Abudu Eroje, Deputy Secretary-General, Maritime Workers Union of Nigeria (MWUN) commended the concession of the Warri Port.
He said that when fully operational, the port would ease the persistent gridlock on roads leading to the Lagos ports.
Eroje commended the Nigerian Ports Authority (NPA) for redesigning the port and urged the new concessionaire to work on facility development and constant maintenance.
According to him, most of the problems port users are facing at the Lagos ports are traceable to lack of maintenance culture.
“I am impressed with the feat so far achieved by NPA; South East-bound cargoes can be routed to the Warri Port.
“This in effect will reduce the cost of doing business in our ports and will have positive effects on the prices of goods,’’ he said.
Mr Abilo Ochuko, Lagos Zonal Chairman of the Nigerian Licensed Ship Chandlers Association, said that the concession of the Terminal `B’ of Warri Old Port would create more job opportunities for unemployed youths in the Southeast.
“The ease of doing business which government has been talking about for some time is now coming to reality.
“Shippers can now make informed choice between Lagos Port and Warri Port because business is about choice,’’ he said.
Ochuko, however, advised the Federal Government to provide adequate security cover in the area to attract cargoes to the port.
According to him, shippers will not want to patronise the port if in doubt of effective security coverage.
Recall that Ocean and Cargo Terminal Services Limited won the concession of Warri Old Port, even as it assured the Federal Government and other stakeholders that it would turn around the fortunes of the Terminal B, Warri Old Port before long.
The assurance was given by the consortium’s Chairman, Dr. Taiwo Afolabi, at the formal signing ceremony and handing over of Terminal ‘B’, Warri Old Port to Ocean and Cargo Terminal Services Limited by the Bureau of Public Enterprises (BPE) and the Nigerian Ports Authority (NPA) in Abuja.
Afolabi said the combined industry and business experience and pedigree of all the members of the consortium gave him the confidence that the project would be another resounding success.
He further expressed his appreciation to the Bureau of Public Enterprises and the Nigerian Ports Authority for the transparent manner that the process was conducted, right from the beginning.
He said: “This is great news for us as a company to have led this consortium to win the concessioning of the terminal. While we are glad that we have emerged the concessionaire of the Warri Terminal, we are not unaware of the enormous responsibility this success has conferred on us.
“However, it is a familiar territory for us having operated the Terminal C at the Tin Can Island Port, Lagos, successfully in the last 12 years.
We will fall back on the experience and expertise we have developed running the terminal to make a difference at the Warri Port. We have already begun mobilizing our team to hit the ground running as soon as possible. I want to assure that in no time, the fortunes of the Warri Port will change for the best.”
On his own part, Mr. Adekunle Oyinloye, Group Managing Director, SIFAX Group, pledged that the company, noted for its adherence to international best practices and compliance with agreed covenants, will set new standards with the management of the new terminal.
He said: “BPE, NPA and other relevant government agencies should look forward to an efficient port management system when we formally take over the control of the terminal while the clients are in for an unparalleled customer-focused service delivery that will put them at the heart of our operations. We will also adhere strictly to the terms of the concession agreement too.”
Earlier in his speech, Alex Okoh, BPE Director-General, noted that the objectives of the Federal Government in concessioning the port is to increase efficiency, improve service delivery, modernize port development, reduce the cost of shipping and clearing of goods at the ports and relieve the government of the burden of financing the sector, while urging Ocean and Cargo Terminal Services Limited to focus on these objectives as they take over the terminal.
“Government expects nothing less than strict adherence to the terms of the concession agreement. Consequently, the pursuit of your business objectives must be tailored in a way that will also assist in the realization of these objectives. I know for sure that the company has both the financial muscle and capable manpower to make the terminal a beauty to behold”, he noted.
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