CVFF Fund: Capt Tony Onoharigho Cautions Transport Ministry, NIMASA Against Plans to Visit Damen Shipyard, Kenya

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Capt Tony Onaharigho

Capt Tony Onaharigho

By DAPO OLAWUNI

Immediate past President of Nigerian Institute of Shipping (NIS) Capt Tony Onoharigho (PhD) has cautioned the Ministry of Transportation as well as the Nigerian Maritime Administration and Safety Agency (NIMASA) against the proposed visit Damen shipyard in Kenya, in order to create an alternative solution for Nigerian shipowners on vessel aquisition.

Capt Onoharigho who is now the Life Patron of the NIS in an exclusive chat with DAILY TREND cautioned that the Cabotage Vessel Financing Fund (CVFF) which as at the last check, has garnered more than $300million, should be used to aquire Very Large Crude Carriers (VLCC) and Ultra Large Crude Carriers (ULCC)

A very large crude carrier (VLCC) has a dead weight tonnage or cargo carrying capacity ranking up to 2,50,000 tons. On the other hand, an ultra large crude carrier (ULCC) has a DWT of anything between 2, 50,000 to 5, 00,000 tons. In simple terms, it can be said that these two types of oil tankers ferry about two billion oil containers and barrels.

Capt Onoharigho advised the NIMASA Director General, Dr Bashir Jamoh to write his name in gold by ensuring that the CVFF Fund is not wasted in purchasing low quality vessels from Kenya shipyard.

Recall that Dr Bashir Jamoh had given the indication of the visit to Kenya on a radio program in Lagos last week, saying that the Minister of Transportation has agreed that some of the Ministry officials will travel to Kenya this month because the biggest ship building Industry; DAMEN Shipbuilding Company are building a ship yard in Kenya that will address the kind of issues Nigeria is facing.

But in reaction to this, Capt Onoharigho said “The major thing NIMASA should do with the Cabotage Fund is to aquire a VLCC or a ULCC that can carry our crude oil and put preference in terms of loading, if they are going to load any other cargo, the Nigerian owned would be loaded first.

“We all know that crude oil lifting is our mainstay in Nigeria today, and eventually, that crude oil is being lifted based on FoB by foreign vessels. We are also crying for the training of manpower and placement for our Seafarers and training schools, when students finish from these academies, we have to start looking for vessels for them to get sea training.

“But if you use the Cabotage money to aquire a VLCC like three or four of them, and give a mandate to these IOC’s that if Nigerian vessels come to their terminal, they should be given preference in terms of loading, this would bring money, we can now operate these vessels on CIF basis, we can now start increasing the tonnage as we are making profit.

“I am not saying that they should give the vessel to government to manage, they should set up a separate body or a private party that would manage that business, with that, the crude oil money, the freight and the insurance money would be coming to us.

“This would eliminate bureaucracy and bottlenecks we are having in terms of product transactions” he said

The former NIS President cautioned that NIMASA should not go to Kenya to look at any vessel, rather, they should purchase a VLCC with proceeds of the CVFF fund.

“The NIMASA should first find out what kind of vessel is being produced by Damen Shipyard in Kenya, is it tug boats or supply boats that does not meet the standard of IMO double hull for crude oil lifting?

“We don’t have any VLCC in this country, and our major product as a country is oil, we must try to carry our oil by ourselves like Iran is doing.

“The NIMASA boss should try and put his name in gold.
We had Niger Line before now, these vessels are dry cargo vessels, and we were generating cargoes from all the local government based on 40-40-20.

“The purchase of VLCC would provide a space for training of Nigerian Seafarers.
A body that would be created would incorporate all the people that own the money, they would be given shares which they can monitor. As the business is growing, their share would be increasing.

“The money in the CVFF is enough to aquire two vessels, with minimum off twenty crew onboard. It would be a form of image laundry for Nigeria because the vessels would fly our flag all over the world.

“We can use the maritime sector to launder the image of the country as well, just like the music and entertainment industry where our music is now selling all over the world” he concluded

Director General of Nigerian Maritime Administration and Safety Agency (NIMASA) Dr Bashir Jamoh while speaking on the radio program last week said Nigerian indigenous Shipowners would be part of the trip and decisions taken would be consensual. He insisted stakeholders would be part of the plan.

“But what I am telling you is just a proposal, the stakeholders will be carried along and they will be able to see what we are doing and everything will be transparent “.

Jamoh revealed that nine primary lending institutions (banks) were listed for the disbursement of the Cabotage Vessels Financing Fund , CVFF by the Governing Board of NIMASA, and been forwarded to the Minister of Transportation.

But Jamoh said the Agency is trying to avoid the previous pitfalls experienced under the Ship Building and Acquisition Fund when beneficiaries diverted the funds to purposes other than the reasons they were meant.

He said NIMASA in collaboration with its supervisory Ministry, the Federal Ministry of Transportation are exploring other options to ensure that the main objectives of the CVFF are realized.

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