Dangote Refinery: Surge in vessel visits pushes demand for local content

dangote refinery

Stakeholders in the maritime sector have stated that the anticipated surge in vessel traffic and maritime activities associated with the expanding Dangote refinery’s operations, as well as those of other companies coming onboard, presents significant freight opportunities for the country.

According to industry projections, Nigeria could be looking at between 950 and 1,150 vessel movements yearly if all refineries become operational.

It notes that deploying local content in transporting the refined products would support West African coastal trade, increase Nigerian participation in regional maritime commerce and create jobs across the maritime value chain.

The stakeholders said that while the current job opportunities, like vessel ownership, crewing, port operations and support services, mandatory procedures such as tanker vetting, ship inspection reports and compliance checks create openings for mariners, surveyors and inspectors, as well as the economic potential of maritime services.

The Director of International Trade at the Maritime Researchers and Authors Association of Nigeria (MARASSON), Sunday Ademuyiwa, urged the Ministry of Marine and Blue Economy to take immediate action to ensure the country benefits from freight opportunities presented by the Dangote Refinery.

He said Dangote Refinery already recorded about 650 vessel calls in its first year of operations and that when combined with additional refining capacity from the several other refineries, vessel movements in Nigerian waters would increase dramatically.

Detailing rough estimates based on industry trends, Ademuyiwa said that while Dangote Refinery recorded 650 vessel movements within the first year of operation, he estimated that BUA Refinery, with a smaller capacity, could receive around 200 to 300 vessel movements yearly.

He said other modular refineries, like two to three with capacities ranging from 50,000 to 100,000 barrels per day, could add another 100 to 200 vessel movements.

Ademuyiwa Nigeria could be looking at between 950 and 1,150 vessel movements yearly, even as the actual number would depend on several factors, including refineries, production levels, export demand, vessel sizes, global market conditions and the capacity of port infrastructure.

He urged the Federal Ministry of Marine and Blue Economy to move swiftly to ensure that Nigerian shipping companies and ports are positioned to benefit from the expected surge in maritime activities linked to the refinery’s operations.

The National President, Nigeria Association of Master Mariners (NAMM), Tajudeen Alao, described the Dangote refinery as a major driver of wealth creation, noting that its location on the open sea gives the country a strategic advantage for exports and maritime trade.

The NAMM president said existing laws on vessel ownership and crewing already support Nigerian participation, while cabotage rules reinforce the country’s involvement in domestic cargo transport.

He added that Nigerian-owned and operated vessels would retain taxable income within the country, thereby preventing revenue losses associated with foreign vessels carrying Nigerian cargo. He stressed that stronger enforcement of existing maritime laws would enable Nigeria to fully benefit from its maritime domain and resources.

Alao stated that the refinery’s deep-water access is well positioned to support coastal shipping and shuttle services to ports such as Port Harcourt, Warri, Calabar and Lagos.

He urged policymakers to prioritise the evacuation of refined products by sea rather than relying heavily on road transport, explaining that Nigeria’s existing network of tank farms makes marine transportation safer, more efficient and more cost-effective.

According to him, products can be shipped to coastal depots, discharged into tank farms and then distributed inland by trucks. Alao explained that a 5,000-tonne tanker can carry the equivalent of about 150 trucks, each transporting roughly 30 tonnes, and can be loaded within 12 to 18 hours, compared to the extended time and road congestion caused by truck movements across port cities.

On his part, master mariner and maritime expert, Captain Michael Ifesemen, said the Dangote Refinery has opened vast opportunities for maritime jobs, port operations and local shipping participation in the country, driven by the influx of vessels and increased marine activities.

The maritime expert also highlighted the role of marine transportation in evacuating Dangote products, noting that moving products by sea would reduce pressure on roads and lower government expenditure on repairs caused by heavy-duty trucks.

He explained that coastal transshipment along the West African corridor would require barges, many of which are built locally in Nigeria, thereby creating additional employment for barge builders and operators.

Ifesemen added that while international vessels currently dominate operations, Nigerian participation is expected to increase in the medium term as regional distribution expands.

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