Greece Crisis Threatens Nigerian Ship Owners

Maritime Activity Reports, Inc.

August 21, 2015

Image: Nigeria Shipowners' Association

Image: Nigeria Shipowners' Association

 There are strong indications that the current economic crisis faced by Greece may truncate a vessel acquisition deal worth over $250 million with some Nigerian ship owners, reports BizWatchNigeria.

Recently, some ship owners Association has signed a Memorandum of Understanding MoU with Greek ship owners whereby 40 ships of various tonnages and class will be brought into Nigeria’s Coastal and Inland Shipping Cabotage trade on a bareboat charter arrangement.
This was part of the measures by the Nigeria Shipowners Association (NISA) to enhance indigenous fleet expansion and boost their participation in the shipping business in the country.
Under the scheme the 40 ships would be transferred to Nigerians after two years. This is in preference to moves by some ship owners from the United States of America, who wanted to make equity investments in some of the thriving Nigerian shipping firms, which most of them turned down.
Meanwhile,there are concerns that this deal, which is expected to materialize before the end of 2015 might not come to fruition at least for now as the crisis in Greece worsens.
However, President of NISA, Captain Niyi Labinjo, who spoke in a telephone interview and admitted that the crisis might affect the transaction, especially in terms of delays, allayed fears that the current economic crisis in Greece would truncate the deal, saying that nation’s at one time or the other face similar or even worse political and economic crisis.
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