The Managing Director/CEO, NLNG Shipping and Marine Services Limited, Abdulkadir Ahmed, has emphasized the need to combine financial aspects of ship acquisition with technical competence and standards required for the vessels to be relevant as the world evolves.
He said this strategy will help create a robust framework capable of ensuring success in shipping acquisition and new build.
Speaking during a keynote address at the 2024 edition of Association of Maritime Journalist Association of Nigeria conference in Lagos on Thursday, he explained that adopting a holistic approach that goes beyond financing, the country will set targets on cost for sustainable growth, safety, reliability and operational excellence.
This, he noted, is in line with the strategic imperative of being safe, reliable and creating value which is the foundation for success of the Nigeria maritime industry.
The NSML boss stated that it is imperative to examine the indispensable regulations, standards and competency in the multiple process as they form an integral part of ships and vessels acquisition process.
Ahmed said it is unarguable that shipping is a huge capital intensive activity and assisting finance is key for acquisition and construction.
However, he noted that owners and prospective clients need to ensure a proper understanding of the dynamics that lead to the success in the constantly evolving maritime sector and also ensure compliance at all costs as there are no shortcuts to compliance.
“Strict compliance with standards will ensure that ships are not only built and operated to the highest quality and safety standards but are able to trade locally and internationally,” he stated.
He re-emphasized the role of technical competence and expertise, saying they cannot be overlooked in shipping acquisition and construction, as the complexity of modern vessels with lots of advanced technological features demands the highest of skills and knowledge right from design and acquisition stage up to their operations.
Speaking on regulations that the entire process requires, Ahmed said, “The shipping and maritime industry is highly regulated with great emphasis on safety, reliability and environmental sustainability. Compliance with the conventions and regulations guidelines primarily issued by International Maritime Organization such as IMI Solar, IMO safety of life and sea convention, MAPO which covers Maritime pollution are popular components of operations of the Maritime global industry with the drive towards decarbonization and emphasis on the need to reduce greenhouse gas evasion to combat the threats posed by climate change.
“There are a plethora of new rules and regulations owners need to be aware of while acquiring a vessel. The landscape for maritime organization and by extension the standard is becoming more stringent with resultant impact on design and operations of both new and existing vessels.
“From the financing perspective, major financing of insurance companies of ships globally have signed on the possession principle which is the global framework for integrating consideration into lending decisions to promote international shipping decarbonization. The principles are consistent with the policies and ambitions of the IMO to reach net zero emissions in the Maritime industry by 2050 compared to 20-2008 levels. Currently, 34 financials are signatories to the processing principles which represent a bank loan portfolio of global shipping of 80% global shipping finance portfolio,” he explained.
