Barge Operators Have Mobilized 4 Million TEU’s with 82 Companies, 2,000 Barges in Operation—-Hon Olubunmi Olumekun

By DAPO OLAWUNI

In this exclusive interview with DAILY TREND, Hon. Olubunmi Olumekun, President of the Barge Operators Association of Nigeria (BOAN), sheds light on the impressive strides made in the barge industry since 2019.

What are the significant impact your association have made on the maritime sector since you launched out in 2019?

So far, so good. We’ve recorded tremendous progress since then. We’ve mobilized around 4 million TEU (Twenty-foot Equivalent Units) from both imports, exports, and other cargo entries.

That’s impressive. How many members are currently in the association, and how many companies in total?

The association consists of companies, not individuals. We have no fewer than 82 companies in the association, with about 2,000 barges and tugboats operating on the water. Each barge employs at least 13 crew members, contributing significantly to job creation.

What challenges are you and your members facing?

Our biggest challenge is government policies. If some of these policies were addressed, we could make even more progress.

I have heard you’re required to pay a 50 million Naira bond to the NPA for a license. How does that work?

Yes, it’s an annual license, and the bond is a cash bond, not just a guarantee. You deposit the cash in a bank, and it remains there, doing nothing, for a year. If the bond hasn’t been utilized—meaning no incidents—it gets renewed for another year. However, if there’s an incident, the bond is forfeited. Globally, people use insurance bonds, which are cheaper and more efficient.
Insurance makes it cheaper, insurance makes it easier, insurance makes it seamless for businessmen. Like the Association of Nigerian Licensed Customs Agents (ANLCA) or when you want to have a custom license, we use insurance bonds, not cash bonds.

How do you regulate the industry, especially with the issue of accidents and substandard barges?

That’s why we formed the association. We want to regulate our members, know who is operating on the water, and ensure safety standards. Each barge has an identity number, so if there’s an incident, we can trace which company is responsible. However, many accidents are caused by operators who aren’t members of our association—people who enter the business without proper knowledge or understanding.
We have a lot of quack in the industry who do not know the industry, they just feel that the barge business brings money, they just jump into business without consulting, without knowing the roots of that business.

How long has barge operation been in practice in Nigeria?

Barge operations in Nigeria aren’t new. We’ve been moving cargo by barge since the 60s and 70s, especially from Lagos Port to places like Kiri Kiri and Badagry. Unfortunately, we tend to forget the past. What we need to do is learn from the past and improve on it.
For example, BACO LINER came in 70s, they offload their container from the upstream to the barge, so the barge moves it to the jetty at Kilikili. Barge operations is not just coming up.
Today, rather than give attention to waterways transportation, the government is budgeting a lot of money for road transportation. No, it’s not supposed to be like that, some percentage of this cargo is supposed to move by water, some would go by land and some by air transport.
But presently, we have thousands, millions of trucks moving on the road.

Do you think more cargo should be moved by water rather than by road?

Absolutely. We’re investing too much in road transportation, but we should balance it with water and air transport. Some percentage of cargo should move by water. It would reduce road congestion and save costs in the long run.

People say barge operations are expensive. How do you make it more cheaper and attractive?

It is more expensive now because we are dealing with multiple challenges of high charges from Terminal operators at the jetty and then to the warehouse. But if these costs were reduced and efficiencies improved, it should be cheaper than road transport. Barges move cargo in large volumes, which should make it more cost-effective.
If you look at moving cargo by road now, moving from the port to Oshodi-Isolo, it’s about 200,000 Naira. If 200,000 Naira is for the road movement, and somebody is calling for a barge which is still going to be subjected to another movement from the jetty to the warehouse, you will be paying nothing less than N500,000 to N600,000 on the barge.
This is why you see many people today still prefer going by road than to transport their cargo by barge, which is more expensive.
However, what we are saying is that, when all these impediments at the terminals and overbearing charges by the government agencies are removed, at least, the barge would charge 50% less than the road.
The barge moves cargoes in volumes, when these financial impediments are removed, the operators move in volumes, that’s where the operators will make their money.

What are the advantages of transporting cargoes by waterways over the road transportation?

There is an advantage for the cargo owner when they use barges to transport their cargoes, the cargo is going to get to their destination on time and safe. Because the issues of short shipment will not be there. Like in export, if you are having 20 containers that are supposed to go on the bill of lading, if you are using barge to transport it, the 20 containers can go on one barge.
But if it’s on the road, there’s a chance of one truck stopping on the road that will not get to the terminal before the vessel departs, and it may not meet up with the vessel, So, you are going to have one container left, this gives you only 19 containers.
But if you go by barge, the whole container is going to get there at the same time, because even if one barge stops, I mean, one tugboat that pushed the barge develops a fault and stops, we can still use another tugboat to propel the barge to the terminal.
But on trucks, when a truck develops fault on the road, there’s no way you can do it. You have to wait until when you fix it before you can move. But in barge, you can replace that tugboat with another tugboat and get your container to the port.

What about foreign incursion in the industry, what are your expectations from the government ?

Foreign competition is a big issue. The government needs to enforce regulations to protect local operators. Foreign companies should focus on their core businesses, like shipping or terminal operations, and allow local operators to handle other aspects. We need to protect our local industry from foreign domination. You can’t go to countries like India or Benin and operate freely as a foreigner, but here, you see foreigners handling clearing operations. That’s not fair, and it shouldn’t be allowed.
How do you want the local contents to survive? I am not saying the investors should not come, let them come, but let us serve them as an agent.