Port Harcourt Company Saves Maritime Industry From Fraud

Kelechi Esogwa-Amadi

The Maritime Industry in Nigeria would have suffered a great loss if not for the timely intervention of Elshcon Nigeria Ltd, a company based in Port Harcourt.

The company, which renders ship services, recently alerted the Nigerian Ports Authority of an ongoing fraudulent practice which made ship owners in Nigeria to be abandoning the country’s shipyards to patronize those of other African countries due to the high fees they were being forced to pay.

Elshcon had wanted to tow its 4000-Gross Tonnage off-shore barge to the Lagos dry dock for repair, being the only shipyard that has the capacity to handle such a big vessel.

However, the company discovered that despite the fact that the voyage was for repair and not for commercial or trading purpose, it was still required to pay the same full ship dues that commercial voyage ships pay, a development that has made ship owners in Nigeria to be heading to the ports of other countries such as Tema Port, Ghana, Namibia Port, among others, to repair their ships.

Uncomfortable with this, Elshcon Nigeria Ltd alerted the Nigerian Ports Authority of the development via a letter dated 28th May 2018 which the NPA replied in its own letter dated 6th August 2019, thanking Elshcon Nig. Ltd and making drastic changes.

In the letter, the NPA stated: “With respect to vessels coming for dry-docking and maintenance but not making any operational movements, the volume conversion and interpolation of GRT shall not be applicable on such operations…vessels that have made first entry into any Nigerian Port and re-enters any other Port on the same voyage (such as service boats) shall pay the following rates and these rates are also applicable for vessels coming for repairs and maintenance: (1). Ship Dues USD: $0.938 * 8GRT + 1176. (2). USD $160.89 Per Voyage (This is in addition to 1 above.)

Commending the Federal Government for the gesture and the management of Elshcon Nigeria Ltd. For bringing the issue to the notice of the NPA, the Marine Club of Nigeria, Ship Owners Association of Nigeria and the Nigerian Chamber of Shipping noted that the new measures will be beneficial for both the maritime industry and the local shipyards in the country.

“This feat is one to which the maritime industry and the local shipyards shall remain grateful for, as it serves as a win-win situation for all parties affected,” they said in a joint statement.

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