Integrated Logistics Service (Intels) Nigeria Ltd., on Friday urged the Senate Committee on Marine Transport to declare midstream discharge of cargoes illegal.
The Chief Executive Officer (CEO) of Intels, Mr Andrew Dawis, made the plea when members of the committee visited Intels’ facilities in Onne and Port-Harcourt in Rivers.
Dawes said that the Federal Government was losing huge revenue to illegal midstream discharge.
“Government should protect the licenses operators in other to take on more revenue for government.
“Senate needs to support the Ministry of Transportation and the Nigerian Ports Authority (NPA), to address diversion of revenue accruing from oil and gas related cargo to non-designated terminals.
“NPA cargo dues in oil and gas terminals are four times higher per tonne, while other terminals created significant loss of revenue to NPA, irrespective of Presidential directive to enforce the rules.
“Ability to meet the Guaranteed Minimum Tonnage (GMT) target as provided in the concession agreement is threatened with the illegal diversion of cargoes to non-designated facilities,” NAN quotes Dawis as saying.
Also speaking, the Deputy Chief Executive Officer of Intels, Mr Adamu Abubakar, said the committee should assist in looking into the private jetties receiving and discharging cargoes from ocean-going vessels irrespective of Presidential directive to enforce the rules.
Abubakar said that midstream discharge was still on-going in spite of the Presidential directive, adding that lack of broadband telecommunication facilities was affecting dredging and deepening of Warri and Calabar Ports entrance channel.
He said that the ports were not linked to the national grid, saying that Intels provided power for its operations.
Abubakar said there was an urgent need to rehabilitate the poor road conditions leading to Onne ports.
“The logistics and equipment infrastructure needs of the terminal concessioned to Intels, require much higher investments and specialised skills, in contrast to other terminals.
“These were projected to yield higher returns to the concessionaire as well as the government.
“This informed the basis for fixing a higher throughput fee per tonne to be paid by concessionaires of terminals located in those ports under Intels at the time of concession.
“Other terminal owners pay much lower fee under the concession agreement.
“The fee for the terminals granted to Intels under Annexure was also higher compared to the much lower Commencement Fee paid by concessionaires in other terminals,’’Abubakar said.
He said that some terminals, on account of their specific locations, were to be dedicated and designated for oil and gas cargoes, while other ports were not.
Abubakar said that Intels had created multiple locations in Nigerian ports in the oil and gas free zones of Onne, Warri, Eko Support and the Export Processing Zones of Badagry and Calabar ports.
He, however, said that the ports were strategically located to serve as support base for logistics services especially for oil and gas onshore and offshore.
Abubakar said that the company had improved the jetty at Federal Lighter Terminal (FLT) from 924 metres during pre-concession to 1,677 metres in post-concession period.
He said that Intels being an indigenous company, had also improved the draft and also improved the industrial area from 350,000 meters to 2.29 million metres.