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Developing Steel Sector'll Boost Shipbuilding IndustryDeveloping Steel Sector'll Boost Shipbuilding Industry -Experts
Daily Champion
Felix Nwaneri
27 July 2007
Federal government has been called upon to develop the nation's steel industry for it to meet demands of the local shipbuilding industry. Maritime expert, Mr. Emmanuel Ojo of Continental Shipyard Ltd, made the call recently in Lagos while speaking at this year's engineering conference of the Nigerian Navy.
Ojo, who spoke on shipbuilding/repair in Nigeria: Challenges and prospects said a situation where steel plates, bars, channels, beams and electrodes among others required for the shipbuilding industry could not be produced locally is less desirable.
According to him this presupposes that Nigeria cannot lay claim to having its own standard since materials required for the industry are sourced from countries like Ukraine, Russia, North and South Korea as well as China.
His words: "Virtually all materials and spare parts required for the building and repair of ships in Nigeria are sourced from overseas. This has the tendency of showing down or completely truncating all efforts towards the development of local shipyards in the country.
Noting that local shipbuilders cannot [make the] desired impact unless the steel industry is adequately developed, Ojo insisted that government should look inwards as foreigners cannot turn around the steel sector for Nigeria.
"From indications, it does not appear that those countries promising to turn around our steel industries are sincere about it. This is because this will mean less patronage for their own steel products and could likely lead to stiff competition and ultainately loss of jobs for their own nationals.
"I suspect subsersive tendencies of not letting us off the hook yet, not leading us to the promised land. It will require our sincere appreciation of the role steel production and products play in the life of a nation and to pursue to realisation of our own made in Nigeria steel through which we can proudly showcase to the whole world a wholly made in Nigeria ship in the near future," he said.
Ojo however added that hope is not lost especially with the signing into law of the cabotage bill in 2003. "The fact that the Cabotage Act 2003 was passed with such provisions for indigenous shipbuilding and repairs as well as the acquisition of ships by Nigerians, signaled the willingness of the Nigerian government to provide a conscious effort at getting deep into the maritime industry. "All that is required is faithful implementation of the act with the exemption of the minister's power to waive virtually everything provided therein," Ojo pointed out, describing the recently launched ship acquisition fund as heartwarming.
He however advised that recommenations be sought and obtained from reputable shipyards, confirming technical partnership with a would be beneficiary of the fund before money is released to them. "The recent pronouncement of the Federal government, approving the sum of $25 million from ship Acquisition and Shipbuilding Fund (SASBF) for the financing of vessels under the inland shipping (cabotage) regime is heartwarming.
"It's only hoped that part of the criteria for the release of the fund will include evidence of the local assembly, building, repair or outsourcing of these vessels through a shipyard domiciled in Nigeria with good track record.
"In actual fact, it is advisable that recommendations should be sought and obtained from reputable shipyards, confirming their technical partnership with a would be beneficiary of the fund before it is released to them. By this, the local shipyard could be held accountable for any technical deficiency that may arise," he explained.
He also urged the government to consider as a matter of urgency need to subsidise shipyards to significantly reduce the cost of doing business in the country, saying, "the principle of free trade, where big companies with economy of scale are given free hand to compete will do the nation no good."
Copyright © 2007 Daily Champion
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