Six months after the Federal Government’s proposed plan of floating a national carrier, stakeholders have intensified the call for the establishment of a national fleet and vessel ownership by individuals to enable the country to participate in international shipping trade.

Recall that a former Minister of Transportation, Rotimi Amaechi, had in 2016, unfolded the Federal Government’s plan to float a new national shipping line.

The Director, of the Strategic Planning and Research, Nigerian Shippers’ Council (NSC), Rotimi Anifowose, said the proposed fleet, which is to be wholly private sector driven, is expected to address several challenges, which include, low national tonnage capacity, loss of jobs and freight earnings.

He said it would also distort the balance of trade, the insignificant contribution of the sector to gross domestic product (GDP), and foreign domination of maritime activity.

Anifowose said the National Fleet, when implemented, would generate over $5.42 billion to the country’s GDP and $1.62 billion accruable to the government from corporate income tax through the Joint Venture Company (JVC).

He further stated that it will also ensure over $1 billion in foreign direct investment (FDI) and $9.1 billion yearly in freight revenue.

Also, the President, of the Nigeria Shipowners Association (NISA), Sola Adewumi, stressed access to finance to enable shipowners to participate in the shipping trade.

He said shipowners often face financial constraints in maintaining the existing ships as well as expanding their fleets and operational costs.

Adewumi lamented that no Nigeria shipowners can compete favourably with their counterparts with the present bank’s lending rates

According to him, collaborative efforts with financial institutions and government agencies like the CVFF promised by the Nigerian Maritime Administration and Safety Agency (NIMASA) can provide access to favourable financing options and investment incentives.

Source- Guardian Newspaper.