Recently, and for the umpteenth time, the Nigerian Maritime Administration and Safety Agency (NIMASA) again assured that its multi billion Naira modular floating dockyard which was acquired in 2018, will become operational before the end of the first quarter of 2022.
Again, its Director General, Dr. Bashir Jamoh told journalists at the media briefing where he showcased the agency’s achievements and challenges in 2021, that the floating dock will be operational through a Public Private Partnership (PPP).
To underscore the seriousness of the PPP, Jamoh told journalists that, “the Director General of the Infrastructure Concession Regulatory Commission (ICRC), was here to give us the first certificate, telling us that privatising the modular floating dock is profitable and doable, and they gave us the go ahead to do that”
We recall that the plan to acquire the floating dock was actually that of the management of NIMASA under Dr Ziakede Akpobolokemi. The now-moribund floating dock, which eventually arrived in Nigeria during the administration of Dr Dakuku Peterside, was expected to serve as maintenance facility for visiting vessels and ships in Nigeria.
At the stage of conceptualisation, the facility was planned to save about US$100m annually in capital flight; generate employment, and boost local capacity.
Built by one of the world’s largest ship building firms, Damen Shipyards, and its partner, NIRDA, in Amsterdam, The Netherlands, at a cost of N50b, the NIMASA floating dock is 125 metres by 35metres, with three in-built cranes, transformers, and a number of ancillary facilities.
Available statistics indicate that, about 5,000 ships call at the Nigerian ports annually, there are about 400 coastal vessels and many fishing trawlers. These make the business of dry docking potentially lucrative, because there is an existing and sufficient demand.
Even though the ships are there, there is no facility to meet the demand, hence, dry docking of vessels operating in Nigeria is usually done outside Nigeria. The foreign exchange component of dry docking outside Nigeria is in millions of dollars every year.
Experts have put what Nigeria loses to be in excess of $100Million, when such vessels are moved outside her shores for the statutory dry docking.
Experts say that, to ensure that a ship is seaworthy, it must be dry-docked twice in at least five years. Some ships may have dry docking postponed or the intermediate dry docking waived by performing an underwater inspection in lieu of dry docking. All these costs huge revenue.
Sadly, there has been a lot of back and forth since the craft came in to the country, about four years ago. Since then, the expensive craft has suffered diverse treatment; the worse being that NIMASA treats it like an unwanted child, unsure of what to do with it and at a point, where to locate it.
How does any agency of government justify the fate that has befallen the floating dock in that manner?
We are of the opinion that NIMASA did not subject the acquisition of the floating dock to due diligence. If it did, the inaction or helplessness exhibited upon its arrival wouldn’t have been, even though its brainchild is no longer the DG.
NIMASA has enough time since 2018 when the floating dock arrived, enough time to determine its fate. Rather than do this, it has been dilly-dallying over what to do. As it is now, the facility is not generating any revenue. The worst is that it is diminishing in value and usefulness.
Did NIMASA not know that, it is a regulator and not an operator, hence operating that dock is not an option. The only viable option is to concession the floating dock to earn money. Each day the floating dock stays idle, it gulps money, depreciates and rots way.
Read Also: What do you make of NIMASA’s unending promises regarding the Floating Dock?
We are worried that, NIMASA, or more precisely the incumbent administration of Dr Bashir Jamoh may be bidding for time in the case of the floating dock.
We recall that the Director-General of NIMASA, in March 2021 assured maritime stakeholders that the modular floating dock would soon be deployed.
Jamoh at the corporate head office of the NPA, while on a visit, said: “I am here to affirm that the modular floating dock has come to stay. We have concluded arrangements for its deployment and operation. The date for its commissioning would be announced soon.”.
And by September of last year, the Infrastructure Concession Regulatory Commission (ICRC) reportedly issued a Certificate of Compliance for an outline Business Case (OBC) for the operation of the Modular Floating Dockyard on PPP basis.
It is shocking that the NIMASA DG is still talking about ICRC and PPP in February of 2022. He has (just like he did in 2021) again given himself till the end of March 2022 to get the ill-fated floating dock working.
We will like to be proven wrong. But, that date may come and go, and the craft will still be idling away in Lagos.
Like we once stated on this page, the Nigerian maritime industry will again hold Dr Jamoh by his word, that by the end of the first quarter of 2022, the NIMASA Modular Floating Dock will be operational.
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