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After dredging most part of the Lagos channel above 13.5 meter, the seasoned maritime industry operator and Chieftain of the Lagos Channel Management (LCM), Danny Fuchs had a one-on-one chat with the crew of Business Monitor, on the gains of the two new tugs, MT Uromi and Majaiya, which the Nigerian Ports Authority (NPA) has just added to its fleet of opersational boats in Lagos Pilotage District.
After taking several questions, Fuchs did not mince words, as he concluded, that the greatest joy now, is seeing the West African Maximum (WAFMAX) vessels, special container ships with ability to load 4500 TEU containers, gliding to and fro, on the Lagos channel!
EXCERPT PLEASE:-
If you have to identify one thing that gives you joy on regular basis in the course of your task in Lagos, what would it be?
The WAFMAX vessel! Seeing them sailing in or out of Lagos, sailing through the channel; and knowing that all stakeholders, from the NPA to the African circle, the LCM, Depasa, the APMT etc all contributed to making this possible, truly makes me proud.
When I first came to Lagos in 2007, there was no WAFMAX vessel here. It gives me great joy when I see those large vessels comfortably coming and going out; and knowing that it is a dream of everybody comes true; especially knowing that no one can claim to be solely responsible for making it possible.
In 2007, the area around the Badagry Creeks where the APMT is located was then about 8-meter deep.
But today, the WAFMAX vessels are coming in at 13.5meter; even some of them are coming in at 13.8meter draft. And now, they are coming directly from the Far East; and they don’t need to sail into any ports on their way- so as to first off-load and become lighter. It makes me proud- because it makes me happy to know that I am a part of team that is making a wonderful dream come true. Today, Lagos is now, already, a hub!
Can you enlighten us in terms of the efforts that actually made this dream possible?
At this point, I must try to speak for everybody in Nigeria. First, it was the Nigerian people, the Nigerian government’s vision; the critical stakeholders’ desire that actualized the WAFMAX vessels.
If the Nigerian government didn’t dream it, they would not write us. It was that dream that led to port concession. The concessionaries dream that led to dredging and it was the dredging that brought the WAFMAX. So, it is the Nigerian government that should be most proud. Then, followed by all other stakeholders, particularly the APMT!
I am also happy that we have employed a lot of Nigerians to this job. And they are working perfectly well. Presently, our work force consists of more than 80 percent Nigerians. We have less than 20 percent expatriate.
So, if you are asking me what effort went into it, I would say it is collective efforts that have gone into it. I cannot say that everything is because of us. No. is a holistic success!
No one can solely try to claim the success within that regard.
The Nigerians port authority is the master-mind; then followed by all others- the APMT, all of us- we are working together as a team; in such a way that enables the NPA to have an edge as a landlord. And you can see that the NPA is more efficient today than before; you can also see how confident the stakeholders have. You can see it in the ease with which they invest in the Nigerian dream. They are very happy with the ports.
You can also see that without a good tonnage company, those big ships could not enter, even as LCM continues to dredge and make the channel deeper. We have been removing the critical wrecks and making the channel safer.
Of course, the port could not come to this level of efficiency or productivity with many ships and cargo without the collective efforts of everybody.
For instance, the gross tonnage in 2007 was 135 million metric tons. Today, we are talking of more than 90 million metric tons; productivity and efficiency have gone four fold; and so we are not talking of only the number of the ships; but also the sizes of the ships!
Let me also say this: the Lagos port today can even accommodate even bigger ships today.
So, in one voyage we have the capacity to bring goods because everything is working better. You can even bring in the longer ships. I mean ships longer than the WAFMAX; because the channels are safer to navigate today than in the past. This is why today, our operation in Lagos in now almost half in the night. The statistics is there. It is available for all to see. If the towage is not working 24/7 then the ships would not be able to come at night; the pilot cannot go and meet the ships in the high seas and if the LCM is not removing wrecks, it would be difficult for ships to move in the night. There used to be a lot of obstruction. But later when everything was cleared; the channels are now cleared, the vessels began to sail smoothly and confidently, even at my host.
The harbor masters are also more effective now in the discharge of their assignments. So, holistically, everybody has its own part and everybody has been discharging this more efficiently. It is a synergy. And it is a synergy that we are very proud of.
We thought it was just the dredging that was the magic wand
I refuse to take any medals to myself. The LCM could not single handedly make it and ensure the success unless the harbours and the pilots and the NPA staff had not been committed become more efficient and performing better.
I am also proud of the statistics of the soaring productivity of the NPA. It shows that everybody is working. It shows that the ships coming into Lagos today are bigger and longer and more drafted than before. The WAFMAX is special model designed for West Africa and when we say West Africa, I hope you realize that we are definitely talking of Nigeria- or Lagos. The WAFMAX means the West African maximum. But even then the WAFMAX is not the longest ships that have come into Lagos. The longest vessel was 272 meter and it was in Lagos last year. It was longer and bigger than the WAFMAX. It was in Tin Can 7 or 8 last year.
We agree the landfall is working, we agree the LCM is working. But, how do you react to the allegation that your organization is reaping Nigeria off? We gather you charge $7000 for service that port users could freely obtain for $1500 per hour?
This is not true! Your facts are wrong! We don’t charge arbitrarily. Our budget is derived from the management of the towage company and the NPA; based on the figure already approved by the NPA. That means that we actually will earn low if lower numbers of ships come into Lagos. And earn more, if higher numbers of ships come in. We charge on the numbers of ships that come in.
So, when the Landfall and the NPA entered into their agreement, the understanding was that the numbers of ships handled in the previous year was about 2,100 vessels. Based on this figures, the Landfall and the NPA calculated and agreed on a budget of $7000 which accommodates everything including the cost for crew, the cost of maintenance, the cost for bunkering, administration, payment of officers as well as the cost of renting the land on which the Landfall would stand to perform its task. The Landfall is renting the land on which it is standing, from NPA. .
We are also paying for the quay side we are using. Everything is incorporated in the budget.
So, the NPA and Landfall agreed on a budget approved in favor of the NPA because the ships coming in can ask for everything it needs and would get it, once it enters into the navigational channel of the pilotage district. The ship must not get in contact with wrecks, or obstruction. And the navigational aids must be in place.
Currently, our operational dredging space today is between the Capital Oil in the west, to the navy in the north; and that explain why the tug boats do not go to Kirikiri or Abacha area, because those areas are not navigational channel.
So, why do you charge $7,000?
Our take off ship figure was 2100 ships. Now, for each ship; two tug boats are assigned; when it is entering into the port. When it is done with all its activities, two tug boats are again assigned to guide it out. That means that for each ship that comes and leave;’ four tug boats have been assigned to work on it.
But, sometimes too, a ship at berth may need to be moved into another area, needing tug boats assistance.
If you divide 7000 by four tugs; you get 1800; which is slightly more than your $1,500; but then, we do not charge per hour. We charge per ship; even if the task takes more than three hours to be completed; we still charge based on flat rate!
So, if you are now telling me of $7000; I would ask you to divide it by four and that is what each tug boat may be collecting. But, we do not charge per hour. Each assignment can take one hour. It can take three hours. It does not matter; as we charge per flat rate. That means, even if the assignment takes 24 hours, we would still not charge beyond the budget!
You just stated that your tug boat operation do not extend to kirikiri or abacha areas. Why? Are those areas not in Lagos?
The tug boats are Nigerian assets. They are very costly. So, we have a responsibility to ensure they are not abused; we have a responsibility to maintain them, and ensure that they are always in class. Of course they may also be the only Nigerian Ports Authority Vessels that are in class. We therefore do not take them to Abacha or Kirikiri areas because those areas have not been navigated and declared safe. That is why we do not take tug boats into such areas. Navigational channels are channels that are maintained, surveyed, bathometric in hydrograph; and dangerous wrecks in the areas removed.
We cannot risk those tug boats in such areas not yet certified as “Safe”. They are too expensive and everyone appreciate that fact.
We wish that the NPA would extend its jurisdiction to these areas too, by surveying, dredging and maintaining them. It would enable NPA to begin to collect more revenues in form of ship dues, from the private operators functioning in those areas and extend the port in the future. Then, they can also collect revenue in the areas also.
But, it also means that somebody must first survey the area, dredge it and certify it is safe, by removing all obstructions and put the required types of aids in the areas too. But, for now, it is not safe to take the Nigerian tug boats there and we all recognize this. We would only succeed in destroying the tug boats by taking them there now.
Business Monitor