The Maritime Sector - In Perspective

INTRODUCTION

The Maritime Sector - In Perspective, is a seminar organized for both the academic and non-academic staff of Global Maritime Academy, Ogoni-Olomu, Ughelli South LGA, Delta-State, Nigeria.

The aim of this seminar is to make you the staff of GMA have a clear perception or awareness into the economy sector for which you are producing the manpower that runs that sector.

At the end of the seminar, you will appreciate the enormous nature of the sector, the position the sector holds and its contribution to the development and growth of the Nigeria Economy.

This will enable you take your responsibilities at teaching and non-teaching staff of GMA serious, as you now know that your role in producing the manpower of this sector is contributing to the development of Nigeria Economy.

Therefore you should be proud and be thankful to God that you are part of Nigerians who are quietly contributing to the development of the country’s economy.

Economy Sector is a division or an area of the economy of a country Nigeria being one, in which businesses share the same or a related product or service. It can also be thought of as an industry or market that shares common operating characteristics.

The Maritime Sector is a part or division or an area of the economy of a countries economy that has to do with harnessing the potential of sea business.

WHAT IS AN ECONOMY

An economy is an area of the production, distribution, or trade, and consumption of goods and services by different agents in a given geographical location in the world, Nigeria for example. In its broadest sense, Economy is defined as a social domain (Nigeria) that emphasizes the practices, discourses, and material expressions associated with the production, use, and management of resources.

ECONOMIC AGENTS

Economic agents carry out economy activities. They can be individuals, institutions or groups of institutions businesses, organizations, or governments. These agents are those who practice in the various sector of the economy. Without them, the economy will not strive.

They play different part or role in any economic circuit (the production, investment or consumption circuit), through their normal actions and decisions; they influence the economy by producing, selling and buying and establish essential economic relationships with each other. In Nigeria Economic Agents are divided into the Public and Private Sectors.

ECONOMY SECTOR

Economy sector is the part or division of a country’s economy, in which businesses share the same or a related product or service. In other words it is an industry or market that shares common operating characteristics. It is a collection of industries that are homogeneous in operations.

DIVIDING AN ECONOMY INTO DIFFERENT SECTORS

For an economy to perform to the benefit of its citizen, it must be divided or broken down into parts called sectors. Dividing an economy into different sectors allows for more in-depth analysis of the economy as a whole and leads to efficiency in the performance of a particular sector and the economy as a whole. The economy cannot perform without economy agents.

ECONOMY SECTORS IN NIGERIA ECONOMY

The following are some major economy sector in the Nigeria Economy:

1. Agricultural Sector

i. Agro Industry

2. Mining Sector

i. Oil and Gas Sub Sector

ii. Solid Mineral Sub Sector

3. Power Sector

4. Health Sector

5. Defence Sector

i. Army

ii. Navy

iii. Air Force

iv. Police

6. Financial Sector

7. Educational Sector

i. Primary Sub Sector

ii. Secondary Sub Sector

iii. Tertiary Sub Sector

(a) Universities

(b) Polytechnics

(d) IEIs

8. Refining Sector

i. Petroleum Refining

(a) Refineries

(b) Petrochemicals

ii. Oil Refining

9. Manufacturing Sector

10. Transportation Sector

i. Air Transport Sub Sector

(a) Passengers

(b) Cargo

ii. Land Transport Sub Sector

(a) Road Transport

i. Passengers

ii. Cargo

(b) Rail Transport Sub Sector

i. Passengers

ii. Cargo

iii. Maritime Transport

i. Water Transport

i. Sea Transport

(a) Passengers

(b) Cargo

ii. River Transport

(a) Passengers

(b) Cargo

iii. Inland Water Ways Transport

(a) Passengers

(b) Cargo

12. Communication Sector

13. Maritime Sector

NIGERIA ECONOMY

Nigeria is a mono product economy highly dependent on inflows from the sale of crude oil. A mono-economy is an economy relying on one major export or natural resource to bring most of the currency into the country. What this means is that if there is any decline in the demand or price of global oil market, it will affect the economy negatively and therefore the wellbeing of her people. And that is what is happening to us as Nigerians today.

If we must succeed, Nigeria must diversify her economy into agriculture and wake up the sleeping economy giant known as the Maritime Sector. Or properly harness its full potential.

WHAT IS THE MARITIME

Maritime could be defined as that which is connected with the sea, especially in relation to seaborne trade or naval matters. Maritime could be associated with the following:

1. Maritime Regions - these are countries in the world that have coastline or seashore or seaside.

2. Maritime Mammals - are animals living or found in or near the sea, e.g. dolphins, whales, hippopotamus, etc.

3. Maritime business has to do with business connected with water or the sea, e.g. seafaring, seagoing, or ocean-going, shipping, ect.

5. Maritime Law - law connected with the sea.

WHAT IS THE MARITIME SECTOR

The maritime sector is a division of a countries economy that has to do with harnessing the potential of sea business. And this is of crucial importance to modern societies. This you will know as we go through this seminar.

But the general public has a limited perception and appreciation of its influence and role as an essential element in terms of social and economic development, and as a potential source of excellent employment and career opportunities, with several million people currently working in activities and companies directly and indirectly related to oceans and seas worldwide.

For the Maritime Sector to function effectively, it is divided into various industries or businesses.

THE MARITIME INDUSTRY

The Maritime Industry is made up of all enterprises or initiatives engaged in the business or activities of designing, constructing, manufacturing, operating, supplying, repairing and or maintaining of vessels and marine structure. Managing and or operating shipping lines, stevedoring and customs brokerage services, shipyards, dockyards, marine railways, marine repair shops, shipping and freight forwarding services and similar enterprises.

Others are maritime transportation, the naval industry (naval engineering and shipbuilding companies, and the component supply sector), commercial fishing and aquaculture industry. Further we have the cruise and recreational industry, sport and commercial ports and marinas, marine energy sources, marine and ocean research and sciences.

Maritime Education and Training Academies and training centers exist. There are a wide range of professional services around the maritime activities, and professional associations, trade unions and organizations supporting the rights and interests of seafarers and maritime professionals

International and local regulatory bodies like IMO – International Maritime Organization and NIMASA – Nigerian Maritime and Safety Agency are all part of the Maritime Industry are there to regulate the practice of the practitioners in the Maritime Industry.

It is difficult to quantify the total value of the world maritime industry, and the economic relevance of a sector that affects a wide range of aspects of modern societies and their development. The maritime industry is of huge importance in terms of natural resources and energy, trade and industry, sciences and leisure activities.

An essential part of our trade and prosperity, which demands innovative solutions and careful management systems to ensure its long-term sustainability, as well as the implementation of national and international regulations and instruments to address some still-unsolved issues and new problems expected to emerge in a near future (social and labor rights, international registration of ships, taxes, maritime environmental protection, etc.

Maritime activities continue to expand, bringing benefits for people across the world thanks to a growing efficiency of technical and human resources. The merchant navy, offshore oil sector, commercial fishery and cruise companies are part of the industry of the future, and the maritime sector is a key catalyst for socio-economic development and international competitiveness in a changing world, with new companies and organizations emerging and establishing operations in developed countries in the world.

To enable us properly x-ray the maritime sector, let discuss some of the major industries in the Maritime Sector is as shown below:

1. Commercial Fishing Industry

2. Aquaculture industry

3. Shipping Industry

4. Cruise Ship Industry

5. Water Sport And Leisure Industry

6. Marine Defence Industry

7. Naval Engineering and Shipbuilding Industry

8. Maintenance and Repair Industry

9. Ship Breaking Industry

10. Offshore Oil Exploration

11. Commercial Ports, Terminals and Marinas

12. Marine Dredging Industry

13. Marine Energy Industry

14. Marine and Ocean Research and Sciences Industry

15. Maritime Educational Institutions

16. Maritime Training Institutions

COMMERCIAL FISHING INDUSTRY

This is the industry has to do catching of wild fish, craps, lobsters in the sea. The industry has fleets of fishing ships and personnel to carry out this business. Nearly four million commercial fishing vessels ply the seas and oceans at any given moment. This industry is responsible for the supply of wild fish, craps, lobsters, crayfish, shrimp and other sea food round the world. Nigeria depend heavily for its fish especially ice fish from this industry.

FISHING VESSELS

Fishing vessels are a subset of commercial vessels, but generally small in size and often subject to different regulations and classification. They can be categorized by several criteria: architecture, the type of fish they catch, the fishing method used, geographical origin, and technical features such as rigging. As of 2004, the world's fishing fleet consisted of some 4 million vessels. Of these, 1.3 million were decked vessels with enclosed areas and the rest were open vessels.

Most decked vessels were mechanized, but two-thirds of the open vessels were traditional craft propelled by sails and oars. More than 60% of all existing large fishing vessels were built in Japan, Peru, the Russian Federation, Spain or the United States of America.

Fishing vessels are generally small, often little more than 30 metres (98 ft) but up to 100 metres (330 ft) for a large tuna or whaling ship. Aboard a fish processing vessel, the catch can be made ready for market and sold more quickly once the ship makes the port.


Fishing Trawler

AQUACULTURE INDUSTRY

Aquaculture, also known as aquafarming, is the farming of fish, crustaceans (crabs, lobsters, crayfish, shrimp) aquatic plants (aquatic plants are plants that have adapted to living in aquatic environments - saltwater or freshwater) and other aquatic organisms all regarded as seafood.

Aquaculture involves cultivating freshwater and saltwater populations of seafood under controlled conditions, and can be contrasted with commercial fishing, which is the harvesting of wild fish.

Mariculture refers to aquaculture practiced in marine environments and in underwater habitats. Particular kinds of aquaculture include fish farming, shrimp farming, oyster farming, mariculture, algaculture (such as seaweed farming).

Like the wild fishing industry, the aquaculture industry is responsible for the supply of fish, craps, lobsters, crayfish, shrimp and other sea food round the world fish market. Nigeria depend heavily for its fish especially ice fish coming from this industry also.

Below is a picture of the an Aquaculture Farm.

Aquaculture Farm

SHIPPING INDUSTRY

The Shipping Industry is a very huge one responsible for carrying international traded goods around the world.

Shipping also known as maritime transport, is the documentation and transportation of goods by water, whether inland waterways or seas and oceans.

It can be domestic trade which is done in the inland and coastal waters supported with boats, ferries, coastal vessels of less than 500 gross tonnage or it can be by international trade which involves the or ocean called ocean transport with big vessels of over 500 gross tonnage in size.

Maritime transport is the backbone of international trade and a key engine driving globalization. Shipping has for long been the major form of transporting large goods, as well as an essential communication link connecting coastal cities, countries and continents.

About 90% of world trade is carried by the international shipping industry. About 50,000 merchant ships, registered in over 150 nations and manned by over a million seafarers of nearly every nationality, transport every kind of cargo internationally.

These ships are Bulk carriers, Oil Tankers, Chemical Tankers, Roro Vessels, Container Vessels, General Cargo Ships. Coastal ships carrying goods in the coastal waters are all part of this industry.

Around 90 per cent of global trade by volume and over 80 per cent by value is carried by sea and is handled by ports worldwide.

CARGO SHIPS AND THEIR SIZES

Ships are used for carrying freight or cargo. The types of Ships used are called Cargo Ships. These Ships are categorized partly by their capacity (their tonnage), partly by their weight, and partly by their dimensions (often with reference to the various canals and canal locks through which they can travel).

Some common categories include:

1. Handy Size – are carriers of 15,000-35,000 DWT

2. Handymax – are carriers of 35,000-60,000 DWT

3. Aframax – are Oil Tankers between 80,000 and 120,000 DWT. This is the largest size defined by the average freight rate assessment (AFRA) scheme.

4. Panamax – the largest size which can traverse the Panama Canal. Generally they are vessels with a width smaller than 32.2 m.

5. Suezmax – the largest size which can traverse the Suez Canal.

6. Malaccamax – the largest size which can traverse the Straits of Malacca.

7. Capesize – vessels larger than Panamax and Suezmax, which must traverse the Cape of Good Hope and Cape Horn in order to travel between oceans.

8. VLCC (Very Large Crude Carrier) – are supertankers between 150,000 and 320,000 DWT.

9. ULCC (Ultra Large Crude Carrier) – are enormous supertankers between 320,000 and 550,000 DWT.

TYPES OF SHIPS

Ships are difficult to classify, mainly because there are so many criteria to base classification on. One classification is based on propulsion; with ships categorized as either a Sail, Human or a Motorized Ship.

Sail Ships

Sail ships are ships which are propelled solely by means of sails. Below is the picture of a sail ship.


Sail Ship

Human Propelled Ship

In the early maritime days human propelled cargo, passenger and war ships where in use. But in these modern maritime era, human propelled boats are mostly used for leisure, as you will see when we will be discussing the Cruise and Leisure Industry.

Below is the picture of a human propelled sail ship.

Human Propelled Sail Ship

Motorized Ships

Motorized or Motor-ships are ships which are propelled by mechanical means, like diesel engines or other mechanical automated means.

Most commercial ships are motor-ships that is why their names start with MV meaning Motor Vessel for example M.V. Oron is the name of a ship or vessel which is propelled mechanically.

These days naming convention, MV is removed from the name of the ship.

Below is the picture of a Motor Vessel.

Motor Vessel

CATEGORIES OF SHIPPING VESSELS

Commercial or Merchant ships, fall within the following categories:

1. Container Vessels

2. Bulk Carrier

(a) Wet Bulk

i. Crude Oil Tanker

ii. Chemical Tanker Ship

iii. LNG Tanker Ship

iv. Petroleum Tankers

(b) Dry Bulk Carrier

3. General Cargo Vessel

4. RO-RO Ship

5. Refrigerated Ship

Cargo Ships

Cargo ships transport dry and liquid cargo. Dry cargo can be transported in bulk by bulk carriers, packed directly onto a general cargo ship in break-bulk, packed in shipping containers as aboard a container ship, or driven aboard as in roll-on roll-off ships. Liquid cargo is generally carried in bulk aboard tankers, such as oil tankers, chemical tankers and LNG tankers.

Container Ship

Dry Bulk Carrier


Crude Oil Tanker

Chemical Tanker Ship

LNG Tanker Ship

Petrol Tanker

General Cargo Ship

RO-RO Vessel

Refrigerated Ship

Inland and Coastal Vessels

Continuation of shipping is being done by inland and coastal vessels. When a foreign ship cannot berth in the Port of discharge as a result of the depth of the Port water. Coastal vessels are used to convey the cargo of the ship to the Port of discharge. Many types of boats and ships are designed for inland and coastal waterways. These are the vessels that trade upon the lakes, rivers and canals. Barges are a prime example of inland vessels. Flat-bottomed boats built to transport heavy goods, most barges are not self-propelled and need to be moved by tugboats towing or towboats pushing them. Riverboats and inland ferries are specially designed to carry passengers, cargo, or both.

Coastal Container Vessel

Coastal Passenger Ship

Support Industries

The shipping industry both international and coastal is being supported by the Ship Building Industry, Maintenance and Repair Dock Yards, Special-Purpose Vessels.

Special-Purpose Vessels

Special-purpose vessels are not used for transport but are designed to perform other specific tasks. Examples include tugboats, pilot boats, rescue boats, cable ships, research vessels, survey vessels, and ice breakers and dredgers

Special-purpose vessels often have specialized crew for carrying out their special task.

Special-purpose vessels are typically powered by a single propeller driven by a diesel engine. Vessels which operate at the higher end of the speed spectrum may use pump-jet engines or sometimes gas turbine engines.

Below are pictures of special-purpose vessels.

Tugboat

Rescue Boat

Dredger Ship

Ice Breaker Ship

THE CRUISE SHIP/LEISURE INDUSTRY

This is the industry that has to do with carrying of passengers for diversified leisure and tourism. Several hundred of large and mega cruise ships all over the world are involved in this business. In fact there are a myriad of recreational ships all over the world. Coastal boats and Ferries carrying passengers in the coastal waters are all part of this industry.

Passenger Ships

Passenger ships range in size from small river ferries to giant cruise ships. This type of vessel includes ferries, which move passengers and vehicles on short trips; ocean liners, which carry passengers on one-way trips; and cruise ships, which typically transport passengers on round-trip voyages promoting leisure activities onboard and in the ports they visit.