Business

September 8, 2010

Julius Berger pays N500million Cabotage waiver debt to NIMASA

By Godwin Oritse
Julius Berger has paid a whopping N500million as Cabotage waiver debt to the coffers of the Nigerian Maritime Administration and Safety Agency (NIMASA) since the law came into effect five years ago.

Disclosing this to Vanguard, the Director in charge of Cabotage, Barrister Boniface Igwe said that besides the payment of N0.5billion by the constriction firm NIMASA is also negotiating with the ,management on some yet to be ascertained Cabotage debt.

Igwe stated that most foreign players in the local shipping industry have mistakenly taken waiver for exemption and exemption for waiver.

He explained that waiver is quite different from exemption adding that waiver is built on the tripod that makes up Cabotage that is building, ownership and manning of vessels.

He said that on the issue of ownership, NIMASA tries to encourage joint venture between local players and foreigners who have interest in the indigenous shipping sector with a view to transfering technology.

Explaining further, Igwe said that exemptions are in respect to particular areas where Nigerians cannot immediately operate adding that this also has a time frame attached to it so that a Nigerian can take over that position or job.

His words “Manning is our main stay in capacity building, manning in respect to seafarers and that is why we institutionalised the National Seafarers Development Programme (NSDP) where we train young Nigerians abroad, including giving 5% of our earning to the Maritime Academy of Nigeria (MAN) Oron Akwa-Ibom State.

“One of the companies that wanted exemption before I became Director of Cabotage was Julius Berger, in order for some of their water craft to carry some of their equipment without Nigerian crew.

“The reason was either because these water crafts needed just one crew to move around or that it is a specialised vessel that only a specially trained marine personnel can handle.

“Even at this, before I give you exemption I must request that a Nigerian is put on board that vessel who will take over the manning after at most one year.

“One of the example was the company that applied to us to exempt it registering all their vessels in the Cabotage Special Register because part of the agreement when they purchased the vessels was that they will not be de-flagged until the vessels are fully paid for”.

Part of the Coastal and Inland Shipping (Cabotage)Act 2003 states that “A waiver granted under this Act specify the period of time for which it shall be valid”.