August 29, (THEWILL) – Almost four decades, after the Alhaji Shehu Shagari administration conceived the Onitsha River Port project, a major breakthrough was reached on July 1, 2022, when the Federal Government signed a concession agreement with Universal Elysium Consortium Ltd, thereby marking the conclusion of a long process that spanned many years.
Two weeks later, on July 16, the port was handed over to the concessionaire by the management of the National Inland Waterways Authority (NIWA).
The Concessionaire, Universal Elysium Limited, a Nigerian specialist infrastructure management and advisory services provider emerged after a lot of other organisations contended in a World Bank monitored process. And after all the submissions and proposals from various organisations, it was zeroed down to about three. At the end, Universal Elysium Limited was considered.
With the agreement, the company is expected to handle the 30-year concession agreement which is expected to rake in an estimated amount of about N23 billion for the period. They are also expected to run the port and do lots of investments, both in terms of making sure the channels are opened and also ensuring that the port conforms in line with modern developments and technology.
Already, stakeholders are excited over the new development, judging from the fact that there are many benefits derived from the project, if successfully implemented.
For instance, if on the long run, Onitsha becomes a port of destination, vessels could now depart ports abroad and sail directly to Onitsha, as well as depart Onitsha with goods to others.
Although, that has not been achieved yet, industry sources are optimistic that the authorities are working seriously to ensure that the port becomes a port of destination instead of the present arrangement where cargoes are transloaded on barges at the port in Lagos, Port Harcourt or Warri, then moved to Onitsha through the channels.
Confirming the level of development on the Onitsha River Port project, the Managing Director, National Inland Waterways Authority, Dr. George Moghalu said that there was a world bank-monitored concessioning process that was considering various unsolicited proposals long before he became the NIWA MD.
Dr Moghalu explained that he followed up what was on ground when he assumed office and was able to conclude the process which gave birth to the emergence of Universal Elysium as the preferred bidder.
The NIWA boss who agreed that a lot of time had been spent on the project assured that he is putting in every effort with his team to get things done.
He therefore, informed that the Onitsha River Port concession is just a starting point as other concessioning will be coming up.
On why the government decided to concession the port, Moghalu said “If you look at modern business practices today, concessioning is a very good option, because the resources available to the government are not as they used to be. So bringing in the private sector partnerships is the way to go now. Then, apart from the fact that you have the advantage of proper management, it is to be run as a business. And it reduces pressure on the government. Don’t forget that these ports were built over two decades, three decades ago and nothing has actually happened. So, we think concessioning is our best option. And that was where the government was proceeding”.
On benefits of the port, he emphasised “If you look at benefits, it is neither for the government, nor the concessionaires, but more for the people because if Onitsha River Port is actively functional and the channels are opened for cargo to move from Lagos to Onitsha, the importers will benefit massively. The local environment will benefit and there will be employment opportunities. Pressure will be reduced on our roads. I am one of those who believe that we need to open up our river waterways so that we can move cargo by water as we have in most civilised countries. Bulk cargo is moved either by water or by rail.
But here, we move 90 percent of bulk cargo by road. And our roads are not designed to carry the weights they are carrying.
“If we take a simple analogy and say let’s assume that it is five million containers that come to the country: If those five million containers are going to the south-east where you have more than 60 to 75 percent of these cargoes go, what that translates to is that the number of cargoes, assuming it is five million containers, means that 10 million trailers will be on the road. That is because five million will carry the containerised cargo and then five million will return the empties. Our roads are not designed to carry this kind of pressure, and they keep damaging our infrastructure. If we are able to use the water, we will save the resources that we require to build these infrastructure and then convert them to other contending areas of interest for the government to invest their resources, which for now, all of us know, are now limited”.
He waved off insinuations of litigation with regards to the project, saying “I don’t think we have any issues now. The road is clear, because as we speak, the technical partners of Universal Elysium, the Port of Antwerp (in Belgium), are already at Onitsha. Our Area Manager reported to me that they had arrived. For us, the process has started and we are looking forward to the great enthusiasm and expectations to see that the place works”.
Also raising hope on the possibility of bringing other ports such as Oguta, Lokoja and Baro, Moghalu said “we have Oguta and Lokoja ports that are ongoing. We have Baro port (in Niger state) that has been completed. It is a world class port, and has been completed and commissioned with all the modern equipment you can imagine in place. And we have started receiving unsolicited proposals, asking for concessions for those ports – even the ones that are under construction. So, we are giving all of them consideration. We want to encourage PPP (public private partnership) arrangements by the government. Concessioning of Onitsha has succeeded, and we are going to use it as a model to adapt to other ports. That is why I said Onitsha is our poster boy. And, it is not only ports; there are other businesses, such as concessioning of jetties, waterfronts and others. There are many other projects we are exploring the possibility of using to expand our business scope.
Expressing satisfaction and confidence with NIWA for such initiative, a Lagos based freight forwarder, Mr Joseph Anyali opined that the Onitsha River Port would assist to decongest Lagos, create more jobs and eventually reduce the pressure on the roads by over 50 per cent.
According to Anyali, all that is needed is for the people to give NIWA and other stakeholders that are involved in the project the required cooperation.
An Onitsha indigene, Peter Mgbemena who was excited with the news of government decision to make the port work said “I didn’t know that it has gotten to this stage and that it has been handed over to the concessionaires already. That is a good one and am sure it will benefit my people in many ways”.
“My advice to the government is that they should not stop at just creating a channel. It is important that they make it a port of destination, to enable all manners of vessels to come in directly without much ado.”
About the Author
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
