A Ship-owner’s Daring Move

 Eromosele Abiodun writes on the bold move by Starzs Investment Company Limited to acquire a new vessel, despite the refusal by the federal government to disburse the Cabotage Vessel Financing Fund

For several years, shipping has been recognised as one of the catalysts for socio-economic development. It has since the ancient times been at the fore front of opening up the world and thus a major driver in the process of globalisation.

Specifically, container shipping has been both a cause and effect of globalisation.

Container shipping could claim to be the industry, which more than any other, makes it possible for truly global economy to work, connecting   countries, markets, business and people, allowing them to buy and sell on a scale not previously possible.

As a matter of fact, it is impossible to imagine world trade, and ultimately our lives as consumers, without container shipping.

Shipping has led to a phenomenal growth in world merchandise trade, which has consistently grown faster than output.

In 2006, goods loaded at ports worldwide were estimated at 7.42 billion tonnes.

The value of total world export increased from $6.454 trillion in 2002 to $40.393 trillion in 2005 representing an increase of 64 per cent.

However, the reverse seems to be the case in Nigeria. It is on record that no fewer than 90 per cent of shipping companies owned by Nigerians have either completely shut down their operations or are barely struggling to survive.

Of all the registered shipping companies in the country, only two can be  said to be operating viable businesses while others, representing 83 per cent are either completely dead or are in comatose condition.

Ironically, all the shipping companies based in Lagos are either dead or struggling to survive while the ones in Warri and Port-Harcourt are thriving.

Piqued by the spiral effects of the extinction  of indigenous shipping due to lack of funds and unfavourable policies, maritime stakeholders have faulted  the federal government’s decision in warehousing over $100 million in the Cabotage Vessel Finance Fund (CVFF) while its purpose suffers.

 

Starzs Takes the Bold Step

However, notwithstanding the many problems facing ship owners,  Starzs Investment Company Limited (SICL) has continued to expand the frontiers breaking new grounds in the process.

Last week, the company took delivery of a new vessel, MV ‘OSANYAMO’ Damen Azimuth Stern Drive Tug 5114, built and delivered by the Damen Ship Yard of China.

The company had also acquired MV ‘OSAYAME’ which has impressively maintained a record of eight years of zero downtime and lost time injury operations.

Built for Starzs , the new built Damen Azimuth Stern Drive Tug 5114, is presently the first and largest of its class, and genuinely generating  excitements in Nigeria. It is primarily and purposefully built to assist in tanker lifting operations alongside FPSOs in the Gulf of Guinea, under a contract with Total Exploration & Production Nigeria Limited.

Industry experts noted that the ASD 5114 is not only the largest in Damen’s tug range to date, at 52.3 meters- length, displacing 800 tonnes, it  is also a state-of–the –art tug, being a highly maneuverable vessel, fully equipped, for offshore operation.

Its features include a 268sqm deck space, at  five tonnes load per meter,  two large fuel and water tanks  with transfer capability of 115tonnes astern and 110tonnes ahead.

The double-tier deckhouse provides accommodation for a 14 crew and up to 10 passengers, built in compliance with the requirement of the Maritime Labour Convention (MLC) which came into effect in 2016.

Propulsion is via two main ABC16 DZC engines delivering 6,700kw powering twin kort nozzle thrusters manufactured by Schottel. Additional capabilities include fire-fighting (FiFI1) and oil recovery operation, with 101m3 of integral oil recovery tanks.

The MV OSANYAMO is also equipped with a dedicated Pal-finder water jet driven line handling craft to be used for handling hoses and lines for cleaning inspection ad repairs on the aft deck.

The SICL are Ship Owners and Managers, Offshore Marine Services Provider and a Private Maritime Security Provider, who owns and operates a range of vessels including terminal tugs and Security Patrol Vessels.

An official of the Nigerian Maritime Administration and Safety Agency (NIMASA), who lauded its design and detailed engineering, noted the steel cutting and kneel laying phases.

“There is no doubt that this vessel has been constructed to a very high level of quality which is synonymous with Damen Shipyard,” he indicated.

He noted that the vessel would be sailing under the Nigerian flag.

 Meanwhile, SICL has built a reputation guaranteeing zero downtime and zero loss time injury in their operations in the Nigerian oil & gas industry thereby exceeding its  clients’ expectations without compromising safety, reliability and integrity. With a competent workforce both offshore and onshore, the company is contributing significantly to the growth of the Nigerian maritime industry in the area of seafarers training and employment, local content development and the Nigerian economy in general. 

Obaseki, Stakeholders Hail STARZS

Speaking at the official christening of the vessel, Governor of Edo State, Godwin Obaseki called on financial institutions in the country to partner investors in the maritime sector to create employment opportunity for Nigerians.

He expressed his desire to see the nation’s capacity building institutions synergise, in the bid to boost employment opportunities and consequently improve the citizens’ present economic conditions.

The governor stated that with the extinction of  Nigerian National Shipping Line (NNSL), the country lost and had since continued to forfeit several economic and human development opportunities.

According to him, “I feel really privileged that I am performing for the first time in my life, the Christening, dedication and commissioning of a vessel.  I have never done it before”, he said, describing the shipping terrain in Nigeria, not only as “scary” but also, seriously dominated by foreign operators.

He commended the Starz Group Chairman, Greg Ogbeifun for his dedication, commitment and resourcefulness, particularly in mobilising local funds, institutional supports and utilising same, in a very challenging environment, in a bid to lift Nigeria’s flag as well as boost the employment opportunities for other Nigerians.

“Overtime, the maritime industry, in spite of the supports it had received, such as the Cabotage Law, and the Local Content Law, has continued to be dominated like I said, by foreign companies.

“Apart from the brief spell when we had the NNSL which offered Nigerians sea opportunities, in the maritime industry as we know, just like most other assets, that endeavour failed, and as a country we lost that opportunity to build the human capacity and resources to go ahead to dominate”, the governor stated.

Obaseki stressed that  the country’s weak economic position had seriously affected not only the nation’s balance of trade, but devastatingly also, the well-being and the future of the youths.

 He enjoined the financial sector, the Local Content Board and other institutional bodies to synergise, create more opportunities and ensure a more assured future for Nigerians, particularly in the maritime sector, in the immediate future.

Also speaking the Managing Director of the Nigerian Ports Authority (NPA), Hadiza Bala-Usman implored the private sector to take advantage of the enabling environment created by the Muhammadu Buhari administration and invest in the nation’s maritime sector.

 Also speaking at the event, the Managing Director of the Nigerian Ports Authority (NPA), Hadiza Bala-Usman implored the private sector to take advantage of the enabling environment created by the Muhammadu Buhari administration and invest in the nation’s Maritime sector.

 “This is another testament to the commitment of the President Muhammadu Buhari administration to the improvement of the Nigerian economy, not just by diversification but by providing the enabling environment for the private sector to invest more in the country, ”she said.

“In addition to its contribution to the development of the Maritime industry in the country, the introduction of MV OSANYAMO has the capacity for oil exploration and production in Nigeria. Said to be the largest Damen ASD Tug range till date, the ASD Tug 5114 model vessel is purpose built to assist in tanker lifting operations alongside FPSOs in the Gulf of Guinea, ”she added.

According to the NPA boss, “at 52.3 meters length, displacing 800 tonnes, a 268sqm deck space, at 5 tonnes load per m, 2 large fuel and water tanks; with transfer capability of 115 tonnes astern and 110 tonnes ahead, two main ABC16 DZC engines delivering 6,700kw powering twin kort nozzle thrusters manufactured by Schottel and additional capabilities like fire-fighting and oil recovery, the MV OSANYAMO is state-of-the-art tug, being a highly maneuverable vessel, fully equipped, for offshore operation.”

While congratulating the management of Starzs Investment Limited for the feat and epoch making initiative,  she reiterated the commitment of the NPA to all investors in the nation’s maritime sector.

 “Together, we can work to make the sector the pride of Nigeria and the African continent as a whole,” she said.

The NPA boss particularly commended the Starzs Investment Limited for its commitment to the Nigerian Content requirement of the federal government to the extent that it can boast of a 100 percent Nigerian crew on its entire fleet of vessels.

On his part, Executive Secretary and Chief Executive Officer of Nigerian Shippers’ Council (NSC), Mr Hassan Bello, said the effort by the company to acquire the vessel is significant because it means that Nigerian are not only owning ships but operating shipping services.

“What the company has done is not to reinvent the wheel but a continuation of what has already been done. What is left now is for the federal government to support efforts like this to create employment opportunity for Nigerians,” he said.

Similarly, Chairperson, Ship Owners Forum, Mrs Margret Orakwusi said: “What Greg has done is a proof that Nigerians can do it. He has made us very proud. It shows that Nigerians now have a place in the shipping industry.

“Government should support ship owners to acquire ships like this that can last for as long as 30 years. Borrowing cannot do this because shipping is a long term investment, shipping is not oil and gas, it is the future of Nigeria because it has the potential to create hundreds of jobs.”

In his comments, the former Executive Secretary of the NSC, Adamu Biu said the acquisition of the ship is a source of pride to every Nigerian.

“Whether you are in the shipping industry or not, there is no doubt that the maritime industry is stronger than the oil and gas industry. The company has taken a huge risk to get to where it is today. The vessel will be used for freight, now is the time for Nigerian operators to move into deep sea freight in the industry, “he said.

The  Managing Director, Total E&P, Nicolas Terraz, noted that the acquisition of the vessel is a fruit of the collaboration of stakeholders with one common goal.

Represented by the General Manager, Technical Services, Mr Kennet Umujoro, he said:, “It is an idea formed, developed into a concept and nurtured into a source of pride. The Vessel is specifically adapted to support sophisticated operation.” 

Nigerian Content Compliant

The Chairman/CEO  Starz Group, Ogbeifun stated that from 1986, Starzs Investments Company Limited has grown to be the foremost 100 per cent Nigerian content compliant marine logistics service company in Nigeria, rendering unbeatable services to various international oil and gas companies (IOCs) in the oil and gas industry of Nigeria through value creation in remarkable service delivery.

“A valuable combination of knowledge, expertise and experience gained over the years, in swamp operations and upstream sectors of the oil and gas industry projects have played a vital role in placing Starzs at the highest echelon of the Nigerian maritime industry as a world class marine logistics services provider.

“During the third African Shipping and Oil Roundtable Investments Forum held in Cape Town South Africa in 2013, Starzs bagged the AME award as the “Best Marine Logistics Services Provider in Africa,”he said.

He added: “Over the years, Starzs has not only grown in experience and fleet size but has also developed in quality standards to an international level, in 2013, Starzs was issued Document of Compliance (DOC) by Lloyds for ISM/ISPS compliance and is currently working towards obtaining the ISO 9001:2008 Certification.

“Our vision is to build an enduring and globally renowned frontline organisation that would over time, thrive on value creation for stakeholders in the maritime industry. The company meets the quality standards expected by clients and by classification societies – a typical one is the issuance of DOC by Lloyds Register for meeting both national and international regulatory standards.”

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