Tugboat, security patrol vessel, jargon barges, crew boats to top demand in next four years

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Tugboat, security patrol vessel, jargon barges, crew boats have been listed as vessels that would be in high demand in the Nigerian oil and gas industry over the next four years (2019-2023), the Nigerian Content Development and Monitoring Board (NCDMB), has said.   

The NCDMB was quoted in the Nigerian Maritime Administration and Safety Agency (NIMASA), 2019 Nigeria’s Maritime Industry Forecast as saying that Nigeria can only drive local content development in the Nigerian maritime sector, if Nigerian ship owners acquire the listed vessels that can guarantee good business and return on investment.

This projection comes with high hopes and opportunities for Nigerian ship owners to regain its pride of place in the nation’s lucrative shipping business that is presently dominated by foreign ship owners.

According to the NIMASA report, these vessels will account for 66 percent of vessels demand between 2019 and 2023 while the industry spend on the above mentioned vessels is projected to be $1.6 billion, equivalent to 51 percent of the total spend. It is also projected that 519 marine contracts in Nigeria will be executed within the 4-year period.

Within the period, the volume of transaction for category one vessels would be 49 percent with projected spending of $1.65 billion as against 23 percent in category two with projected spending of $1.04 billion and 28 percent in category three vessels with expected spending of $519 million.

Comparatively, in the last four years (2014-2018), expenditure on marine vessels cost Nigeria about N1.09. Findings show that the industry spent $2.21 billion on category one marine vessels accounting for 73 percent of total funds spent on marine vessels.

Also, the category two vessels expenditure stood at $393 million, which is 13 percent while $437 million, equivalent 14 percent, was for category three vessels.… Read More...