We presented a paper on the "VIABILITY OF THE REGION’S SEA PORTS" at the South-South Economic Summit (22nd – 24th April 2009), to six Governors of Nigeria’s Southernmost States (Bayelsa, Rivers, Akwa Ibom, Cross River, Edo and Delta).

The impetus of the Summit was that "collaboration is expected to drive growth in the economies of the Region and, perhaps, facilitate a turn around nationally that will help Nigeria attain and surpass the Millennium Development Goals (MDGS) and further deepen the achievement of the 7 point Agenda of the President of Nigeria..."

THE FOLLOWING PAPER WAS PRESENTED AT THE SOUTH-SOUTH ECONOMIC SUMMIT ON 24 APRIL 2009 AT TINAPA, CALABAR BY CHIEF MONDAY U. EKONG

1. INTRODUCTION

1.1 The economists had said that goods and services – no matter how useful they may be, are not complete until they have been delivered.  I cannot agree more!  This is why transportation and communication have become so critical in the global economic system that any nation without a seaport or a viable communication vehicle would find herself at a disadvantage.

1.2 The case for Nigeria is that of a blessing, and, in fact, the country – Nigeria is blessed on every side. The challenge Nigeria faces is in the area of sincerity of purpose and commitment.

1.3 Since mine is to discuss the viability of the Region’s sea ports with emphasis on Ibaka Gulf Coast City/Port imperative, I will try as much as I can to avoid ‘viability through statistics’.  I will look at the locational advantage, security implication, infra- and superstructure types, formation of market force, funding implication, tourism imperative, style of project packaging, benefits to society and government.

2. LOCATIONAL ADVANTAGE

2.1 About 5 of our Region’s states have access to the sea through river tributaries.  Some have direct access to the Atlantic ocean through mangrove swamps whilst a few have direct coastal land mass washed continually by ocean surge.  In this, we see Lagos and Akwa Ibom States as the two blessed states that provide the characteristics needed for ocean terminal and transhipment ports.

2.2 The Ibaka’s ancient jetty in Mbo Local Government Area of Akwa Ibom State is a good example of where nature had provided solid coastal beach overlooking the ocean.  The ocean itself has a depth of 13.5 meters.

3. SECURITY IMPLICATION:

3.1 A seaport must have appropriate security measures to guarantee the safety of cargo. It goes further that where the port is put up to serve an exclusive zone like a Free Trade Zone such as Onne and Calabar, or like the one under construction in Lagos, the level of security must possess attributes which do not only guarantee the safety of cargo, but be designed to guarantee the safety of lives.

3.2 Ibaka Gulf Coast City and Port which is a home to the Oil and Gas Free Trade Zone has received maximum security infrastructure including the installation of cameras and monitors fully supported by a dedicated satellite station, which shall constitute a scare to criminals, instead of a scenario where criminals constitute a scare to peace loving people.  This approach is informed by the sophistication of the city and the pedigree of investors who have already subscribed to make Ibaka a home.

3.3 Ibaka Free Trade Zone is actually not competing with any other zone. It is a port city with the peculiar uniqueness of providing residential, industrial and, most important, tourism destination for Nigeria. It is a prescribed city by world wealthy business men and women who want to explore our resources.

4. INFRASTRUCTURE/SUPERSTRUCTURE

4.1 The port and the support city will concentrate a great deal on building the underground to cater for services such as sewerage, water pipes, cables, and drainages.  They have all been shaped out to last a lifetime to make it cost-effective.  The road network shall be complemented by monorail service.  Monorail will provide a circulation vehicle to city users.  When you visit Ibaka by car, you will be received at the motor town.  You will, thereafter, have a ride in the monorail coach to do your business. It is designed to be a fly in and fly out city.

4.2 The monorail will connect important cities such as Okopedi, Tinapa in Calabar and North west Akwa Ibom’s container bay.

5. THE BENEFITS

5.1 Job creation in the first 9 months of construction is 8,000 employees on average monthly wage of $800 per worker.  On completion, 147,000 Nigerians will be employed to perform various types of jobs including farming, airline, manufacture, commerce, banking, hospitality, fabrication engineering, tank farms, bunkering, etc.

5.2 The depth of the port is naturally 13.5 meters.  We are stretching the harbour into the sea to float 1,500 meters seawards where the depth of 17 meters will be attained.  This means that ships of 100,000 tons will have a berthing facility.  This is a great benefit to the countries of the Gulf of Guinea.

5.3 Government tax income shall be on the increase.  The pay as you earn remittance to government when the city is completed is estimated at $10m per month.

5.4 The satellite towns of Mbo, Orueofong Oruko, Oron, Oyubia, Ibeno and Esit Eket will receive urban lift through an integrated planning so as to avoid the creation of slumps with its attendant criminal hideouts and unhygienic conditions.

5.5 Most foreign oil and gas operators will find Ibaka a place to operate from because of its security, management and international image.

5.6 Following the movementof commodities to, and the light/ heavy industries that are planned for the zone, it means that the Nigerian market will have sufficient commodities in supply.  That will translate to the stemming of the capital flight by at least 50 per cent. Nigeria's capital flight stands at US$35bn per year.

5.7 Ibaka port project is designed for community integration. It's a masses-oriented venture. This means that the developer must provide for the traditional as well as the migrating dwellers through the provision of housing and commodities, training/retraining and healthcare. Being humanitarian in scope, it shall not only create the corridor for upliftment funding, but will attract the understanding and co-operation of the youth of the Niger Delta Region, who will be seeing the project as a basic self-help imperative.

6. FUNDING

6.1 The funding of Ibaka Gulf Coast City and Port is being sponsored by the end-users. The end-users have admitted the Ibaka project as a humanitarian entity which will attract concessional funding usually from hedge funds traders.  This type and size of project can only be so funded. Ibaka is appropriately packaged for this concession.

7. VIABILITY

There is no gainsaying, therefore, to declare that any seaport that is designed with these facilities is not only a viable venture, but sustainable.  For example, the concessional funding for our port users – who would take advantage of our financial institutions to finance their imports and exports trade, is an incentive to beat.  Secondly, since ours is about to be the destination to oil and gas operators, a 10% mark-up on approximately 30 million barrels of crude oil per month (output/throughput) in the Gulf of Guinea should be sufficient to repay the $37 billion cost outlay for Ibaka Oil and Gas Deep Sea port facilities and its support city complex.

8. LAST NOTE

The initiators/investors appointed and inherited by His Excellency Governor Godswill are pleased to know that an implementation committee had been inaugurated.  They asked me to convey their gratitude to His Excellency, and to pray that the promised Build Operate and Transfer (BOT) contract be signed, sealed and delivered.  They have certainly spent upwards of $20 million to show the expected commitment. Further delay will most likely work against the cost of the projects.

FOR MORE INFORMATION - YOU CAN CONTACT CHIEF MONDAY U. EKONG VIA E-MAIL.