As global shipyard market is predicted to contribute $50.3billion to economies in 2023, Nigeria has lost over 110,000 vessels to neighbouring countries due to lack of ship- yard building and repairs. According to the Nigerian Maritime Administration and Safety Agency (NIMASA), most of the ship owners moved their vessels to neighbouring countries like Togo, Ghana and the Republic of Benin for dry docking and repairs…..CONTINUE READING...CONTINUE READING
The agency’s Director-General, Dr Bashir Jamoh, explained in Lagos that this was the reason NIMASA is seeking partnership with the Norwegian Government for the development of ship building and ship repair facility, which is a challenge for the shipping industry in the country. He said: “Over 110,000 vessels come to Nigeria annually but because of lack of ship repairs industry in the country, some of the ship owners have to move their vessels to Togo, Ghana and the Republic of Benin to repair them.
“There is a huge demand for ship repairs in the country. NI- MASA welcomes partnership with Norway to exploit and develop ship building and ship re- pairs industry in the country.” He disclosed that the deployment of the Agency’s floating dock would generate about N1 billion monthly. Jamoh, while playing host to the visiting team from Norway, led by the Foreign Minister, Anniken Huitfeldt, called for a partnership between Nigeria and Norway in the area of ship building and repairs.
Huitfeldt commended Nigeria for her role in the Gulf of Guin- ea, which had led to the curbing of pirate activities in the region. It would be recalled that a former President of Ship Owners Association of Nigeria (SOAN), Engr Greg Ogbeifun, had said that the country needed higher capacity ship repair yards to curb capital flight, stressing that ship building was relatively non-existent in the country.
He noted that the sector ought to be making a substantial con- tribution to the country’s income, saying that the loss to the sector was estimated to be over $500 million per annum. Ogbeifun explained that a lot of jobs and revenue were lost when vessels leave the country to look for dry-docking facilities elsewhere. It was learnt that since Nigerian Ports Authority (NPA) closed its subsidiary, Continental Ship- yard Limited (CSL), as its company’s floating dock was grounded in 2010, ship lines calling at the nation’s ports have been finding it difficult to dry dock or repair their vessels.
Meanwhile, findings revealed that the demand for the ship re- pairs and maintenance services market is anticipated to surge at a robust pace, reaching $50.3bil- lion between 2023 and 2033. It was learnt that United States had about 500 ship building and repair yards, Europe, 200 ship building and repair yards, China, 80 shipyards, South Korea and Singapore have 30 ship building and repairyards each. According to ship building market research report by Business Research Company, Singapore ship repairs and maintenance services market would to grow at a remark- able pace with a CAGR of 9.2 per cent during the forecast period, while China holds the biggest market share of $9.1 billion in 2023 and highest CAGR of 7.4 per cent during the forecast period.
Also, South Korea to cross a value of $4.2 billion by 2033, while Nigeria is expect to get $500 million if the dock is working as United States is striving to earn $1.6 billion by 2033. It said that the global ship building market size would grow from $193.66 billion in 2022 to $209.13 billion in 2023 at a Compound Annual Growth Rate (CAGR) of 8.0 per cent. However, it said that the Russia-Ukraine war disrupted the chances of global economic recovery from COVID-19, at least in the short term…..CONTINUE READING
