Clarion Shipping recently announced its arrival into Nigeria’s cabotage space with the launch of the MV Ocean Dragon, a 349-TEU container ship that marks the first wholly Nigerian-owned ocean-going container vessel. With port levies accumulating fast in Dollars, TOLA ADENUBI looks at the enormous challenges confronting the new indigenous shipping line. Excerpts

SINCE the liquidation of the Nigerian National Shipping Line (NNSL) in September of 1995 due to heavy debt and mismanagement, Nigeria’s cabotage space has been dominated over the years by foreign shipping vessels, leading to huge losses via capital flight and high unemployment rate for Nigerian seafarers.

The entry of Clarion Shipping into Nigeria’s cabotage space in June 2025 brought excitement among maritime stakeholders as many saw the wholly owned Nigerian shipping line wresting back lost revenue from the foreign shipping lines that had dominated Nigeria’s cabotage space for decades.

Since its launch, Clarion Shipping has unveiled two ocean–going vessels that are meant to carry indigenous cargoes within the regional and international routes.

One of the vessels, MV Ocean Dragon, is dedicated to the transshipment of cargoes from the Lagos Ports areas to other Ports in Nigeria as well as for regional shipping along the West African coast.

The second vessel, a 1,149 twenty-foot equivalent unit container, is meant for intercontinental shipping that will be used to facilitate shipping between China and Nigeria to help bring in part of the 38 per cent imports of the total imports to Nigeria on an annual basis.

The acquisition of these two vessels, which are 100 per cent wholly indigenous owned, has since raised hopes in terms of indigenous participation in cargo freight in and out of Nigeria, an area that has been the exclusive right of foreign shipping companies since the collapse of the NNSL) and Unity Line many years ago.

However, barely three months after its launch, Clarion Shipping is already feeling the strain of the harsh operating environment in Nigeria’s maritime industry, albeit the payment of charges.

HEAVY LEVIES

Lamenting over the huge levies slammed on the Nigerian-owned vessel at Nigerian port terminals, the Regional Manager at Clarion Shipping, Mr. Solomon Ogudo, told the Nigerian Tribune that if such levies persist, the shipping line might be forced to re-adjust its business plan.

According to Mr. Ogudo, “As the Regional Manager for Clarion Shipping, Onne and Calabar ports falls directly under my supervision. The major challenges that we have faced since we began operations in July are the charges that come with moving cargoes locally.

“The rates that the Ocean Dargon gets are standard rates that are given to foreign vessels that sail into the country from foreign ports.

“When Ocean Dragon began operations, the idea was to solve regional issues affecting movement of cargoes. You will agree with me that between Onne and Calabar, the roads are not in good shape. That’s why we keep seeing containers falling off trucks when on transit between Onne and Calabar.

“Also, there are import prospects from our West African corridor. We have import units of containers moving from Cameroon, Equatorial Guinea, Ghana and the rest. So what we did at Clarion Shipping was to establish a vessel that operates between Onne and Calabar, then create a hub for these import and export business between Nigeria and all these other West and Central African countries.

“However, we have discovered that vessel operations between Onne and Calabar has the same cost implications with when you operate a vessel from a foreign country to Nigeria. This will not make the business sustainable and viable in the long term

“After investing so much capital to ensure that an indigenous vessel flying Nigerian Flag operates within the Nigerian maritime space, the charges that come from the ports in Nigeria are killing the business.

“When you consider the fact that Clarion Shipping just started this venture about three months ago, and that the cargo volumes are not readily available, what Ocean Dragon is paying at Nigerian port terminals is outrageous. Imagine moving about 29 containers and paying almost 40,000 Dollars as port dues? This is killing.

“Don’t forget that we charge in Naira onboard the Ocean Dragon. Our charges are domesticated in Naira, but the port dues slammed on Ocean Dragon at Nigerian port terminals are in Dollars.

“How can you do a business of N20,000,000 and end up paying charges in the region of N35,000,000? Doesn’t this mean the business is running at a loss? That is almost a 100 percent loss when you do the mathematics.”

On efforts made to remedy the situation, the Clarion Shipping Regional Manager explained that efforts are on to get government attention to the challenges facing the new shipping company.

“We are currently pushing to have the attention of the Nigerian Ports Authority (NPA) to these issues. You know the ports have been concessioned and are being managed by private entities. We want government to help Ocean Dragon get a concession where the vessel pays just once at a terminal when she is doing local operations. For example, Ocean Dragon operates between Calabar and Onne. We want the NPA to help us get a concession where the vessel pays Port Dues just once when running local trips between Calabar and Onne. This will help us compete favourably with the foreign owned vessels.

“Most of these containers that the Ocean Dragon moves between Onne and Calabar, the foreign vessels that brought them have already paid most of the rates on them. There should be a special rate for Nigerian-owned vessels to encourage local investment.

‘Also, we are looking up to government through the NPA to help us get a waiver to pay Port charges in Naira. As a Nigerian-owned shipping company, we charge in Naira. Paying for port charges in Dollars is excruciating.

“There are so many solutions that we have brought onboard since we commenced operations. If a vessel comes from China or anywhere and discharges cargoes at Apapa or Tin-Can Ports, we can help move these cargoes to the preferred destination of the importers through what is called Transier and TBL arrangement.

“We also have the capacity to move cargoes from Lagos to Kano. We have network arrangement with Dala Inland Ports and others in the northern part of the country. These are just few of the so many solutions that we have brought onboard, but if we don’t have incentives from the government, we are not sure how this business will survive,” Mr. Solomon Ogudo lamented.

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