NIWA finally secures concessionaire for N4.6bn Onitsha River

Six years after the Federal Government under the then administration of ex-President Goodluck Jonathan, invested over N4.6 billion in the rebuilding the abandoned Onitsha River Port, the Nigerian Inland Waterway Authority (NIWA), said on Monday, that it has finally secured a concessionaire to manage the port.

The long awaited concession of the Onitsha River Port holds huge economic implications to businesses located in the commercial Eastern cities of Onitsha, Nnewi and Aba, which would as a result of the concession, have the privilege to forgo the transportation of coming to Lagos to take delivery of their consignments.

This will also save as much as over N500,000 put in as cost of transporting the cleared consignment from Lagos ports to the states and also help to decongest the over stretched Lagos.

Recall that Onitsha River port, which was built by ex-President Shehu Shagari and rehabilitated by ex-President Goodluck Jonathan at the tune of N4.6 billion in 2012, has remained unutilised as it has been awaiting concessioning for over six years.

Speaking to newsmen in Lagos on Monday, Danladi Ibrahim, acting managing director of the National Inland Waterways Authority (NIWA), said that the river port has finally been concessioned for 25 years to a private terminal operator.

Ibrahim, who disclosed that the name of the concessionaire that won the bid would be made known to the public after the letter of award, is issued, expressed optimism that the concessioning would revive the river port for the economic benefit of both the importers based in the Eastern part of the country and Nigeria in general.

“Agreed the concession of Onitsha River Port has lasted for a very long time, and that was because the Central Bank of Nigeria (CBN) took over funding of the concession exercise. The apex bank, came up with a methodology that was cumbersome and responsibility of appointing a transaction adviser rested on the CBN, while the transaction adviser has the power to advertise for concessionaire. There were so many other factors, but, if it was NIWA that was responsible for the concessioning, we would have finished within one month,” Ibrahim said.

According to him, the concessioning has been completed, and “NIWA opened the financial bid on July 3rd and we have picked the most competent concessionaire and any moment from now, the concessionaire will take over the cargo handling operations of Onitsha port.”

When asked the name of the concessionaire, the NIWA boss said, “We cannot reveal it now because the award letter has not been issued but two companies were pre-qualified for the financial bid and it will be concessioned for 25 years.”

Ibrahim further disclosed that in order to enable the River Port operate effectively, that the authority was investing fund in the acquisition of barges for movement of bulk cargoes from Lagos port to Onitsha River Ports.

“NIWA is purchasing some barges to set the pace for transshipment of bulk cargos from Lagos Ports to Onitsha and Baro Port. We have a master plan to drive transshipment because this is a sector that has been neglected for a long time. Government needs to set the pace to show that the sector is viable and also practicable, that is why government is acquiring vessels to move bulk cargoes from Apapa port to Onitsha and Baro Ports,” he further explained.

Continuing, he said: “Right now, as am talking to you, we are talking to about three companies. One want to be moving from Apapa, Tin-Can to Mile 2 (Festac) where their trucks will be picking cargo while the other is to move from Apapa; Tin-Can to Epe and there is another one that want to move from Warri using the authority’s dockyard in Warri. Basically, government is the landlord and regulator but why we want to partake in the operations was to convince the private operators that the sector is viable.

Ibrahim also said that the dredging of River Benue will commence fully in 2019 and that it would boost commercial activities around the two river ports which would come into mainstream before the end of 2018.

Ibrahim said that the Onitsha and Baro ports are 100 percent ready for commissioning in 2018.

Though, he did not give the financial implications of the dredging but added that a fresh contract would be awarded. He said that NIWA is installing buoys from Lokoja to Baro.

AMAKA ANAGOR