President of Ship owners
Association of Nigeria (SOAN), Mr. Greg Ogbeifun
President of the Ship
owners Association of Nigeria (SOAN), Mr. Greg Ogbeifun has enjoined investors
to tap the potential of ship breaking and recycling in the country.
Apart from creating
employment opportunities for the youths presently roaming the streets for
non-existent jobs especially in the urban centres, Ogbeifun maintained that the
move would also add value to the economy.
Ogbeifun, who is the
Chairman of Starzs Group of companies
made the call in a chat with
journalists,. According to him, prior to
this time, shipwrecks were taken to foreign countries for breaking and
recycling but the cost of moving such wrecks has made it unprofitable to
continue to do so.
“There are many wrecked
ships scattered over the waterways of Nigeria. Until the 1960s, ship-breaking
was considered a highly mechanised operation concentrated in industrialised
countries such as the United States, United Kingdom , Germany and Italy. From the
early 1980s, ship owners sent their vessels to the scrap yards of India,
Pakistan, Bangladesh, the Philippines and Vietnam where payment, health and
safety standards were minimal,” he said.
Giving an insight on why
there are many wrecks and derelicts in Nigeria’s territorial waters which has
cost the federal government billions of naira annually to remove, Ogbeifun said: “The aim was to maximise profit but
today, in Nigeria, these vessels are abandoned midstream and around waterfronts
within the country. The cost of towing these vessels to other parts of the
country makes it no longer profitable for ship-breaking and recycling of
steel”.
He revealed that some companies had started
shipyard expansion to key into the sector, which had potential for developing
and giving the required service locally in the years ahead.
“Companies such as
Starzs Marine and Engineering Limited, operators of the Starzs Shipyard at
Onne, have commenced shipyard expansion to incorporate ship-breaking. However,
there is need for serious foreign partnership in terms of utilisation of the
best available technology. There are small activities in ship-breaking by some
firms down south in Calabar. The Indians have also indicated interest in
partnership in ship-breaking with Starzs Marine and Engineering Limited at
Onne, Rivers State,” he added.
He expressed hope that
investment in the sector and the readiness to build capacity in the use of the
required technology would open the sector for greater number of jobs for
Nigerians, especially the youth.
Source: this day live. 8
January 2016
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