Intel Logistics Limited, an indigenous logistics company, and its boss, gentle-speaking maritime infrastructure development expert, Simeon Volpi, have been sources of relief to Nigerian economic planners, writes Correspondent, SAM NWOKORO.
It takes being proactive to beat other competitors in modern day wheeling in the business arena. And because business is just the flip side of politics, it takes an extraordinarily good entrepreneur to identify the needs of a particular community to design policies and to engage the governments of the community for a fruitful business relationship.
Of course, modern investment decisions are largely driven by core fundamentals of the economy an investor is looking towards putting in capital. As famous American automobile executive, Lido Anthony “Lee” lacocca, used to say: “Do not look at the hole in the doughnut, but the doughnut itself.” Meaning, any investor worth his salt should not be scared by initial challenges observable in a business environment.
Intel and its Nigerian chief executive officer must have taken this school to heart when they ventured into the Nigerian maritime oil and gas industry as logistics suppliers.
Today, by the wisdom of Intel, Nigeria has never regretted its effort at involving the private sector in the oil and gas logistics supplies.
The firm has taken extraordinary stake in the development of Nigerian seaport infrastructure since it won concession agreement from the federal government in 2006 through the Port Reform Act of 2006. Without shouting so loud about it, the Nigerian government seems not to disguise its appreciation of the firm and its management’s investment in the nation’s oil and gas seaport infrastructure and security while other concessionaires prevaricate.
Simeon Volpi knows the problems and challenges of the Nigerian oil and gas transport as well as other infrastructure needs at the nation’s seaports. This he has exhibited by the quantum transformation Intel has done under his oversight function in Nigeria as its Chief Operating Officer (CEO). Judging by the manner he speaks passionately about the adventure of Intel in Nigeria since the firm berthed its shores in 1982, it is clear the Whiteman has integrated into the Nigerian development consciousness.
Like one multinational oil giant would canvass “one with Nigeria” in its advert, Intel in Nigeria thinks no less.
Passion for success
Volpi’s discourses about the Nigerian oil and gas sector show really that he is not a ‘Johnny Just Come’ to Nigeria. He is abreast with the dynamics of the oil and gas industry and its infrastructure deficiencies. He knows it beyond the Nigerian shores.
In assessing the industry in the continent, he said: “Future oil discoveries in Africa are set to increase five times more than their present level. This is the reason the International Energy Agency (IEA) predicts that about $2.1 trillion have to be invested in Nigeria’s oil and natural gas supply infrastructure between 2010 and 2035. This is the only way for us to realise our potentials in oil and gas.
“We cannot move forward without the right infrastructure.”
Volpi said this is one reason Intel is amassing $500 million into future expansion of its concessional lots in the nation’s seaports.
As a honed commercial czar, Volpi does not talk down on the Nigerian economy, because he is aware that the positive indicators mask whatever are perceived unsavoury policies in husbanding an economy buffeted all round by unpatriotic politicians, crude oil price shocks and the nuisance of unanticipated sectarian disturbances despite the growth the economy has recorded over the years.
A true believer in the Nigerian dream, Volpi told journalists recently that Nigerians should have faith in what the country has. “Nigeria is the largest economy in West Africa and one of the fastest growing economies in the world comparable to Brazil, China and India. The oil and gas sector comprises more than 90 per cent of the country’s foreign exchange earnings.”
He said it is important to have the proper logistics support available, emphasising that one day lost because of a logistics error means millions of dollars lost.
“According to Mc Kinsey, the cost of logistics in countries like Nigeria could be as much as 30 per cent of a project’s total cost. Intel is a specialised logistics company that was created specifically to cater for the oil and gas industry. That is our main focus. We have the facilities and the resources,” he informed.
He assessed the energy outlook for Nigeria and stressed that “the sector will continue to develop because new technologies and alternative sources and solutions will develop overtime, and particularly in the area of power generation”.
For Volpi, Nigeria needs to diversify into other areas if she is to survive the present oil price fall.
“It would be wise for the country to invest a portion of its oil and gas revenue in sectors such as agriculture and other industries, including logistics. We should develop sound road and rail system. Right now, we have the Onne oil and gas free zones. The difference between the Onne oil and gas free zones and other free zones under the Nigerian Export Processing Zones Authority (NEPZA) is that it really works. Other free zones are not as active.
You have the likes of Calabar that have seen huge investments but have little or no activity. Onne is successful because it has a free zone that is dedicated to oil and gas where investments are huge. Safety, security and infrastructure are among its key attributes, and we have approximately 150 companies working at Onne,” he said.
Volpi disclosed that Intel is managing three ports in Nigeria on behalf of the Nigerian Ports Authority (NPA). It has a 25 years concession agreement with NPA since 2006, with extension opportunity starting for another 25 years. It manages a four-kilometre stretch of jetties in Onne, with a draft ranging from eight to 14 metres. According to him, Intel has “approval from government to invest $500 million in Phase 4A of Onne projects”.
Onne port has two terminals, namely, the Federal Ocean Terminal (FOT) and the Federal Lighter Terminal (FLT).
According to Volpi, a Dutch company started the construction in the 1970s but never got to finish it. In 1980, Intel began delivering the FLT under a Public-Private Partnership (PPP) structure. But Intel finished it, something that has led to high influx of small and big investors into the Onne and Port Harcourt ports.
Under Volpi, Intel Logistics has been working in conjunction with Intel West Africa and has become established as a leading supplier of oil and gas logistics support services throughout West Africa, particularly Nigeria. First in Nigeria, and then in other countries, Intel has pioneered the concept of integrated one-stop shop oil services centre, bringing together terminal operations, logistics plus transit and supply services.
To complete the range of services available at the oil services centre, and to offer a more logistics package, Intel also provides dedicated manpower and equipment hire services, secure residential housing and commercial office areas. This benefits operations by allowing them to concentrate on their core businesses rather than invest time and resources in peripheral activities.
Under Volpi, Intel has also created one of the highest networth job portals to help Nigerian graduates get connected to jobs in the oil and gas companies, thereby fulfilling an essential part of what Nigerian state managers have been expecting from multinational corporations in the country: employment creation for Nigerians. Careers@Intel has been well commended by job-seekers for its prompt responses to job seekers enquiries
There is no doubt that Intel has, by dint of hard work and patriotic partnership with Nigerian government, given impetus to government’s effort in collaborating with the private sector in infrastructure upgrade at the ports. To a large extent, Intel has behaved well in Nigeria and unequivocally deserves Nigerian governments’ enduring business relations.
