Starzs has contributed over $5m into CVFF — Ogbeifun

Says shipyard has handled 1,500 dry-dockings

THE chairman of Starzs Investments Company Limited (SICL), Engineer Greg Ogbeifun has revealed that SICL has contributed over $5 million into the $700m Cabotage Vessel Financing Fund (CVFF) since inception.

Speaking with the Nigerian Tribune, exclusively, Ogbeifun revealed that SICL will be applying for the CVFF loan having operated in the Nigerian maritime industry for 40 years.

The former President of the Ship Owners Association of Nigeria (SOAN) said: “We will be applying for the CVFF loan. My first company, SICL which is the ship owing company, will be 40 years this year and has contributed over $5million into the CVFF. The details are there.

“We will be applying for the CVFF because we want to expand our business. The industry is growing. The oil production capacity is also growing. The Rig count is growing, and we need to grow with it so that we can employ more people and further impact the industry positively by growing the Nigerian ship registry tonnage.”

On shipyard expansion plans, Ogbeifun explained that, “Starzs Marine and Engineering Limited (SMEL) which oversees operations at Nigeria’s first privately owned indigenous Ship-repair Yard, has carried out over 1,500 Dry-docking since inception.

“Fifteen years ago, I set out to expand the shipyard from 500-tons lifting capacity to 10,000-tons lifting capacity. From docking ships of 44 meters long, now we are going to be docking and building ships of up to 120 meters long.

“It took time and doggedness to get to a point where an international financing body like AfreximBank now decided to invest $365m in our shipyard expansion drive.

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“The initial payback tenure for that Afreximbank loan is 12 years with an option of an extension review. Now, the $25 million provision of the CVFF cannot go anywhere near what we need as regards expansion of the shipyard.

“So, if we take the $25million that the CVFF allows per shipowner, what we will probably do is to get Afreximbank involved and tell them that we guarantee that the loan can be paid within eight years.”