By Bolaji Ajala
OPERATIONS of the oil and gas free zone in Onne, Rivers State, has cited security threats as a major setback in operations as well  other challenges encountered in its activities of enabling logistical efficiency in the free zone.

Captain Adejimi Adu, Onne Shorebase Superintendent, ExxonMobil, who disclosed this in a paper entitled: Driving Economic Growth Through Enhanced Supply Chain Efficiency, during last week’s Logistics West Africa Exhibition in Lagos, noted that the major challenge operators encounter in the free zone is security.

Elaborating further, he said that “There are attacks on vessels which constitute serious threats to the free flow of traffic along the water ways that lead to the Onne Free Zone. From 2005 till date, there have been serious reports of attacks on marine vessels which have resulted in casualties especially in 2007. This problem has led to imbalance of the logistics.

The superintendent also said, “Bad access roads resulting in unsafe condition and delays in delivery of materials. There are bad and numerous portholes along the Onne Road, leading to the fall of trucks which are blocking the road. This has caused delay in material delivery especially petroleum materials and has led to inefficiencies in access control to the zone resulting in delays.

The superintendent equally complained of excessive charges for administrative handling, saying, “Every sea shipment also attracts $200 delivery documentation and another $200 for transfer within the zone.

“Restriction on the use of local agents for the transfer and trucking of cargoes within the free zone leads to cost efficiency, high energy cost due to absence of power connection to the national grid, reluctance of some government agencies to comply with safety requirements, and operational interference by local communities.”

Despite these challenges Adu said that there are benefits attached the use of the free zone such as exemption from duty for imported consumables, exemption from the pre-shipment, no time restriction for cargoes shipped to the free zone and installment payment for materials, as there is also freedom to purchase material within the zone especially for projects.