The Nigerian Ports Authority (NPA) has said the reason for the winding down of the Continental Shipyard Limited (CSL), was because the venture has not been profitable to the authority in the last ten years.
Recall that in 1992, NPA entered into a joint venture with a foreign firm, Dockyard Engineering Service Limited of Switzerland to establish the Continental Shipyard Limited.
The company was established to undertake ship repairs and maintenance, construction of navigational buoys, steel structures and offshore construction and procurement. The venture could not deliver on its promises due to alleged mismanagement, bureaucracy, negligence and levity.
Regrettably in 2010, the company’s floating dock was grounded. The facility was consequently abandoned, balkanised and left to rot away over the years and as such cannot be salvaged.
But, in an exclusive chat with LEADERSHIP, the acting managing director of NPA, Mohammed Bello-Koko, said the authority has commenced the process to exit the joint venture agreement with CSL since it has ceased to be profitable.
According to him, there is an on-going arrangement to bring the floating dock owned by Nigerian Maritime Administration and Safety Agency (NIMASA), to replace the CSL facility.
He said: “Continental Shipyard Ltd has not been a profitable venture for almost 10 years and the process of winding down the JV has commenced. This is to ensure that NPA exits from the JV agreement.
“However it’s important to state that for so many years, the NPA has not been spending any money on the company or the facilities.
“There is an on-going arrangement to bring the floating dock owned by NIMASA to that facility. However, the dolphin where the floating dock will berth and some other facilities at the dockyard need to be rehabilitated,” he stressed.