The-need-to-bring-warri-sapele-koko-and-okwagbe-ports-into-operation-for-the-economic-benefits-of-delta-state
September 7, 2020 | News
THE NEED TO BRING WARRI, SAPELE, KOKO AND OKWAGBE PORTS INTO OPERATION FOR THE ECONOMIC BENEFITS OF DELTA STATE
It is a known fact that the transportation sector is a strong factor in terms of economic and regional balanced development, as well as also having a great influence on national integration to the world economic market. Perhaps, that is why sea transport, which involves Ports - constitute an important economic activity in coastal areas. Ports are also important for the support of economic activities in the hinterland since they act as a crucial connection between sea and land transport. As a supplier of jobs, ports do not only serve an economic but also a social function. In terms of load carried, seaway transportation is the cheapest and most effective transportation system compared to other systems. Industries require a safe and cheap means of exporting finished goods and importing raw materials. Hence the majority of industries in the world are located in the coastal belts, in the vicinity of major ports. These industries in turn, influence the lives of the employees and indirect benefactors of that economy. With this at the back of our mind, we would then realize the importance of the subject matter, especially for Delta State, is blessed by ‘coastal areas’ that can be turned to revenue-yielding avenue for the development and growth of the State’s economy.
It is the importance of sea Ports activities that has obviously made the Lagos State Government to channel its energy in that area. Recently, the Vice-President, Professor Yemi Osinbajo, flagged off the construction of the Lekki Seaport, which the Lagos State Government is championing in partnership with some foreign investors. The elated VP, while pledging the full support of the Federal Government to see the project to logical conclusion in 2021, counted the blessings the new facility will bestow on Lagos, the nation’s economic capital, and the nation as a whole. The seaport is expected to be one of the deepest in West Africa with carrying capacity to become the hub of port operations within the region. The promoters of the project also promised to provide a wide-access port channel that will enable the port handle vessels which no other port currently situated in Nigeria can handle. It is also expected to provide up to 170,000 jobs directly and indirectly. Certainly, the Lekki Seaport, which is one of the many ambitious projects embarked upon by the Lagos State Government in its dogged determination to lift the metropolis to a world-class business and tourism city, is a welcome development.
Without a doubt, we believe that the ‘even development’ of Ports and Container Terminals in all parts of the country will help integrate the nation and give Nigerians a sense of inclusion. While the Lekki Seaport is a good development, we also believe the Federal Government, relevant stakeholders and Investors alike, should also consider other States that are blessed with coastal areas to evenly develop Ports across the country. Everything must not be concentrated in Lagos State. It is on that note that we are urging for the need for efforts to also be put in by the Federal Government, Delta State Government and relevant stakeholders and Investors in the Transport sector, to develop and operate the Warri, Sapele, Koko and Okwagbe Seaports in Delta State.
Like we noted above, Seaports are essential infrastructure that is needed for the importation, exportation and transportation of goods. If these stated existing and potential Seaports in Delta State are developed and made viable, they will definitely create and generate enormous revenue, which will improve the State’s economy. So, as we welcome the Lekki Seaport, we hope the Federal Government and relevant investors/stakeholders in the Transport sector, will swift into action into developing and making use of these stated Ports in Delta State. There is need for goods to be exported and imported into the country via other States apart from Lagos. In time past, the Warri and Sapele Ports were fully utilized and they were booming with enough economic and business activities, especially during the era of Alhaji Shehu Shagari led administration. And the old Warri Port was expanded to include the New Warri Port. But since then, the said Port has not been utilized as it should.
Some of the important socio- economic benefits of ports are:
- It fuels economic development - They are important links of hinterlands to points overseas. They facilitate movement of goods to and from hinterland. They increase international trade (both exports and import). Increase in exports lead to industrialization in the hinterland as well as around ports. Increase in imports lead to increase in consumer choice and provision of goods at competitive rates.
- It leads to development of cities - Most of the world’s major cities are port cities. Ports spur the economic activities around them like banking, finance, Insurance, logistic etc. This lead to development of cities around ports. For example – Mumbai and Kolkata in India.
- It increases Employment - Ports increase employment both directly and indirectly. Direct employment refers to employment in port related activities. Indirect employment increases due to increased industrialization and increase in other services like banking and insurance.
- It is relatively ‘Environment friendly’ - When compared to other transportation systems, railway transportation requires twice as much energy consumption, while road transportation requires ten times as much as sea conveyance. During the past few decades the world has become increasingly environmentally conscious and, with its lower energy consumption, marine transportation is obviously more environmentally friendly than other means.
- It increases world ‘Economic Integration’ – Globalization has been partially successful due to cheap transportation facilitated by ports.
- It brings about the development of Infrastructure – Increase in the economic activity between hinterland and ports lead to development of infrastructure including railways, roads & inland waterways. Such infrastructure makes our exports more competitive and as a spillover effect to provide world class infrastructure to citizens.
In Tunisia, seaports constitute the most important transit points on borders which link national and international economies. Along the period 1987-2014, nearly 95 per cent of the total exchanged goods between Tunisia and the rest of the world have been passed through seaports. In view of its role to sustain foreign trade, Tunisian decision-makers accord to seaports' activities a particular attention. During the last two decades, 6 per cent of public spending for the development within the state budget was assigned to seaport infrastructures. Moreover, in 2013 Tunisian decision-makers decided to create a new seaport in the region of Enfidha, which started in 2015 with 3000 million dinars as an investment. It is considered as the Hub Port, covers mainly 3200 hectares, 2000 of which are specifically devoted to economic and logistic activities. We can give many other examples to buttress the importance of having as much seaports possible in any country.
We cannot be talking about development without some specific infrastructure being put in place that will astronomically boost the Nigerian economy. Delta State, being a coastal State, is blessed with everything that is required for Ports development. The Government needs to look at the ‘untapped’ natural seaports evident in Delta State. Delta State has been highly neglected by both past and present Federal and State Governments, when it comes to the development of Ports, despite the State being a Coastal State. This needs to change!
Zik Gbemre, JP.
It is a known fact that the transportation sector is a strong factor in terms of economic and regional balanced development, as well as also having a great influence on national integration to the world economic market. Perhaps, that is why sea transport, which involves Ports - constitute an important economic activity in coastal areas. Ports are also important for the support of economic activities in the hinterland since they act as a crucial connection between sea and land transport. As a supplier of jobs, ports do not only serve an economic but also a social function. In terms of load carried, seaway transportation is the cheapest and most effective transportation system compared to other systems. Industries require a safe and cheap means of exporting finished goods and importing raw materials. Hence the majority of industries in the world are located in the coastal belts, in the vicinity of major ports. These industries in turn, influence the lives of the employees and indirect benefactors of that economy. With this at the back of our mind, we would then realize the importance of the subject matter, especially for Delta State, is blessed by ‘coastal areas’ that can be turned to revenue-yielding avenue for the development and growth of the State’s economy.
It is the importance of sea Ports activities that has obviously made the Lagos State Government to channel its energy in that area. Recently, the Vice-President, Professor Yemi Osinbajo, flagged off the construction of the Lekki Seaport, which the Lagos State Government is championing in partnership with some foreign investors. The elated VP, while pledging the full support of the Federal Government to see the project to logical conclusion in 2021, counted the blessings the new facility will bestow on Lagos, the nation’s economic capital, and the nation as a whole. The seaport is expected to be one of the deepest in West Africa with carrying capacity to become the hub of port operations within the region. The promoters of the project also promised to provide a wide-access port channel that will enable the port handle vessels which no other port currently situated in Nigeria can handle. It is also expected to provide up to 170,000 jobs directly and indirectly. Certainly, the Lekki Seaport, which is one of the many ambitious projects embarked upon by the Lagos State Government in its dogged determination to lift the metropolis to a world-class business and tourism city, is a welcome development.
Without a doubt, we believe that the ‘even development’ of Ports and Container Terminals in all parts of the country will help integrate the nation and give Nigerians a sense of inclusion. While the Lekki Seaport is a good development, we also believe the Federal Government, relevant stakeholders and Investors alike, should also consider other States that are blessed with coastal areas to evenly develop Ports across the country. Everything must not be concentrated in Lagos State. It is on that note that we are urging for the need for efforts to also be put in by the Federal Government, Delta State Government and relevant stakeholders and Investors in the Transport sector, to develop and operate the Warri, Sapele, Koko and Okwagbe Seaports in Delta State.
Like we noted above, Seaports are essential infrastructure that is needed for the importation, exportation and transportation of goods. If these stated existing and potential Seaports in Delta State are developed and made viable, they will definitely create and generate enormous revenue, which will improve the State’s economy. So, as we welcome the Lekki Seaport, we hope the Federal Government and relevant investors/stakeholders in the Transport sector, will swift into action into developing and making use of these stated Ports in Delta State. There is need for goods to be exported and imported into the country via other States apart from Lagos. In time past, the Warri and Sapele Ports were fully utilized and they were booming with enough economic and business activities, especially during the era of Alhaji Shehu Shagari led administration. And the old Warri Port was expanded to include the New Warri Port. But since then, the said Port has not been utilized as it should.
Some of the important socio- economic benefits of ports are:
- It fuels economic development - They are important links of hinterlands to points overseas. They facilitate movement of goods to and from hinterland. They increase international trade (both exports and import). Increase in exports lead to industrialization in the hinterland as well as around ports. Increase in imports lead to increase in consumer choice and provision of goods at competitive rates.
- It leads to development of cities - Most of the world’s major cities are port cities. Ports spur the economic activities around them like banking, finance, Insurance, logistic etc. This lead to development of cities around ports. For example – Mumbai and Kolkata in India.
- It increases Employment - Ports increase employment both directly and indirectly. Direct employment refers to employment in port related activities. Indirect employment increases due to increased industrialization and increase in other services like banking and insurance.
- It is relatively ‘Environment friendly’ - When compared to other transportation systems, railway transportation requires twice as much energy consumption, while road transportation requires ten times as much as sea conveyance. During the past few decades the world has become increasingly environmentally conscious and, with its lower energy consumption, marine transportation is obviously more environmentally friendly than other means.
- It increases world ‘Economic Integration’ – Globalization has been partially successful due to cheap transportation facilitated by ports.
- It brings about the development of Infrastructure – Increase in the economic activity between hinterland and ports lead to development of infrastructure including railways, roads & inland waterways. Such infrastructure makes our exports more competitive and as a spillover effect to provide world class infrastructure to citizens.
In Tunisia, seaports constitute the most important transit points on borders which link national and international economies. Along the period 1987-2014, nearly 95 per cent of the total exchanged goods between Tunisia and the rest of the world have been passed through seaports. In view of its role to sustain foreign trade, Tunisian decision-makers accord to seaports' activities a particular attention. During the last two decades, 6 per cent of public spending for the development within the state budget was assigned to seaport infrastructures. Moreover, in 2013 Tunisian decision-makers decided to create a new seaport in the region of Enfidha, which started in 2015 with 3000 million dinars as an investment. It is considered as the Hub Port, covers mainly 3200 hectares, 2000 of which are specifically devoted to economic and logistic activities. We can give many other examples to buttress the importance of having as much seaports possible in any country.
We cannot be talking about development without some specific infrastructure being put in place that will astronomically boost the Nigerian economy. Delta State, being a coastal State, is blessed with everything that is required for Ports development. The Government needs to look at the ‘untapped’ natural seaports evident in Delta State. Delta State has been highly neglected by both past and present Federal and State Governments, when it comes to the development of Ports, despite the State being a Coastal State. This needs to change!
Zik Gbemre, JP.