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Shippers Council Shops for Investors for TTP Projects

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  • Shippers Council Shops for Investors for TTP Projects

The Nigerian Shippers’ Council (NSC) has commenced arrangements to shop for qualified investors to flag off its ultra modern Truck Transit Park (TTP) initiative across the country.

The Executive Secretary, NSC, Hassan Bello, in a chat with The Guardian said, the Council is promoting the development of TTPs across Nigeria on a Public Private Partnership (PPP) in line with the Federal Government’s policy to address the infrastructure deficit in the country.

He said the facility would provide short term resting place for truck drivers on long distance travels and reduce the loss to life and cargo caused by accidents arising from fatigue.

The parks are slated for locations such as: Lokoja in Kogi State; Obollo-Afor, Enugu; Jebba, Kwara; Ore, Ondo; Ogere, Ogun; Porto Novo Creek, Lagos; Onitsha, Anambra; and Mararaban in Nasarawa states respectively.Bello, who was apparently worried with the uncoordinated and indiscriminate parking of trucks around Apapa, and other major roads, said: “We have huge infrastructures deficit in Nigeria particularly in transport, so we need to try to cover this gap and one of the ideas that Shippers Council is promoting is the TTP. We need to establish modern infrastructure including the Truck Transit Park, which is going to be a state -of-the-art facility away from the highway where vehicles must park, instead of parking indiscriminately along the road.”

He explained that the facility would be automated, and will provide parking space for all kinds of vehicles, and serve as a one-stop shop equipped with standard hotels, hostels, viewing centres, eatery, mechanical service workshop, shower, recreational facilities, fire service stations, filling stations, clinics, and a host of other amenities.

The park, according to him will be standing on about 40,000 hectares of land, thereby giving space for extension, adding that there are collaborations with the law enforcement agencies to ensure that nobody parked along the highways, just as all the transport associations are integrated into the plan.

“We want to bring sanity and ensure that investors have returns on investment. We have already fashioned out a Memorandum of Understanding with the Nigerian Road Safety Corps. It will be electronically monitored.

“Already, the Council has secured two lands on Obollo Afor in Enugu State, and Lokoja in Kogi State. The Sokoto State Government is also making moves, we are looking at Kano, Porto Novo Creek, Ogere in Ogun State, Ore in Ondo State, and many other important locations,” he said.

He said the project would guarantee safety on the highways, generate employment, make a modern nation, and enhance revenue generation for the investors. “We are looking at about 3,000 direct employment and some more indirectly,” he said.Bello however said the Council is having a breakfast meeting with stakeholders and prospective investors on November 9th, at the Eko Hotels, Lagos, to sensitise them on the benefits and opportunities inherent in the TTP scheme.

According to him, the Infrastructure Regulatory Commission, Federal Road Safety Corps, Nigerian Stock Exchange, banks (lenders) including the African Development Bank, ECOWAS Bank, insurance firms, Nigeria Sovereign Investment Authority, Infrastructure Bank and NEXIM Bank, top Nigerian entrepreneurs such as Dangote Group, BUA, and the transport companies are among the participants at the forum.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Crude Oil

Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

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Oil

Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

Oil retreated from an earlier rally with investment banks and traders predicting the market can go significantly higher in the months to come.

Futures in New York pared much of an earlier increase to $63 a barrel as the dollar climbed and equities slipped. Bank of America said prices could reach $70 at some point this year, while Socar Trading SA sees global benchmark Brent hitting $80 a barrel before the end of the year as the glut of inventories built up during the Covid-19 pandemic is drained by the summer.

The loss of oil output after the big freeze in the U.S. should help the market firm as much of the world emerges from lockdowns, according to Trafigura Group. Inventory data due later Tuesday from the American Petroleum Institute and more from the Energy Department on Wednesday will shed more light on how the Texas freeze disrupted U.S. oil supply last week.

Oil has surged this year after Saudi Arabia pledged to unilaterally cut 1 million barrels a day in February and March, with Goldman Sachs Group Inc. predicting the rally will accelerate as demand outpaces global supply. Russia and Riyadh, however, will next week once again head into an OPEC+ meeting with differing opinions about adding more crude to the market.

“The freeze in the U.S. has proved supportive as production was cut,” said Hans van Cleef, senior energy economist at ABN Amro. “We still expect that Russia will push for a significant rise in production,” which could soon weigh on prices, he said.

PRICES

  • West Texas Intermediate for April fell 27 cents to $61.43 a barrel at 9:20 a.m. New York time
  • Brent for April settlement fell 8 cents to $65.16

Brent’s prompt timespread firmed in a bullish backwardation structure to the widest in more than a year. The gap rose above $1 a barrel on Tuesday before easing to 87 cents. That compares with 25 cents at the start of the month.

JPMorgan Chase & Co. and oil trader Vitol Group shot down talk of a new oil supercycle, though they said a lack of supply response will keep prices for crude prices firm in the short term.

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Crude Oil

Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

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Crude oil

Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

Oil prices rose on Monday as the slow return of U.S. crude output cut by frigid conditions served as a reminder of the tight supply situation, just as demand recovers from the depths of the COVID-19 pandemic.

Brent crude was up $1.38, or 2.2%, at $64.29 per barrel. West Texas Intermediate gained $1.38, or 2.33%, to trade at $60.62 per barrel.

Abnormally cold weather in Texas and the Plains states forced the shutdown of up to 4 million barrels per day (bpd) of crude production along with 21 billion cubic feet of natural gas output, analysts estimated.

Shale oil producers in the region could take at least two weeks to restart the more than 2 million barrels per day (bpd) of crude output affected, sources said, as frozen pipes and power supply interruptions slow their recovery.

“With three-quarters of fracking crews standing down, the likelihood of a fast resumption is low,” ANZ Research said in a note.

For the first time since November, U.S. drilling companies cut the number of oil rigs operating due to the cold and snow enveloping Texas, New Mexico and other energy-producing centres.

OPEC+ oil producers are set to meet on March 4, with sources saying the group is likely to ease curbs on supply after April given a recovery in prices, although any increase in output will likely be modest given lingering uncertainty over the pandemic.

“Saudi Arabia is eager to pursue yet higher prices in order to cover its social break-even expenses at around $80 a barrel while Russia is strongly focused on unwinding current cuts and getting back to normal production,” said SEB chief commodity analyst Bjarne Schieldrop.

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Crude Oil

Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

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oil

Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

Oil prices rose to $65.47 per barrel on Thursday as crude oil production dropped in the US due to frigid Texas weather.

The unusual weather has left millions in the dark and forced oil producers to shut down production. According to reports, at least the winter blast has claimed 24 lives.

Brent crude oil gained $2 to $65.47 on Thursday morning before pulling back to $64.62 per barrel around 11:00 am Nigerian time.

U.S. West Texas Intermediate (WTI) crude rose 2.3 percent to settle at $61.74 per barrel.

“This has just sent us to the next level,” said Bob Yawger, director of energy futures at Mizuho in New York. “Crude oil WTI will probably max out somewhere pretty close to $65.65, refinery utilization rate will probably slide to somewhere around 76%,” Yawger said.

However, the report that Saudi Arabia plans to increase production in the coming months weighed on crude oil as it can be seen in the chart below.

Prince Abdulaziz bin Salman, Saudi Arabian Energy Minister, warned that it was too early to declare victory against the COVID-19 virus and that oil producers must remain “extremely cautious”.

“We are in a much better place than we were a year ago, but I must warn, once again, against complacency. The uncertainty is very high, and we have to be extremely cautious,” he told an energy industry event.

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