How We Started Ore Sun City Logistics Hub- Abraham, Project Coodinator

 Engr. Christian Abraham is the Project Coordinator of Ore Sun City, an industrial logistics hub and Trailer Transit Park (TTP) project. In this exclusive interview with MMS Plus, he reveals the rationale behind the conceptualization of Ore Sun City, the modest achievements and other numerous benefits accruable from the project. This interview was conducted during the recent national conference on Trucks Transit Parks (TTPs) organized by the Federal Ministry of Transport in collaboration with the Nigerian Shippers’ Council (NSC) in Abuja.
Excerpts:

Can you please tell us your name and what Ore Sunshine city is all about?
My name is Christian Abraham, Project Coordinator for Ore Sunshine City. That’s the name we call the project. We also have a by-line “the ultimate logistics hub”.

What are the objectives of Ore logistics hub?
Ore liberty Development Company Limited is a special purpose firm between partners in building that hub with Ondo state government having 40% while Arkview Gardens & Estate having 60% as a private driver of the project.

The objectives are to build and grow the economy of Ondo state and in doing that we are also mindful of the immediate vicinity which is township and for that reason we have not only engaged the Oba (traditional ruler), but also kept in touch with Hausa, Igbo, Yoruba speaking communities and others including drivers to be sure that there is awareness concerning the existence of the Transit Trailer Park (TTP).

We also want to reduce the casualties on the road. We are concerned that blood is being shed regularly on the road and we think that the blood spillage is enough. Truck drivers should have a means or avenue to park and ensure that they have a comfortable accommodation. For instance, the hostels are about forty (40) rooms or thereabout are being finalized. As we speak, finishing touches are being put in place. Boreholes have already been drilled and articulations like piping are ongoing.

The trailer parks A and B can take two hundred trailers comfortably right now and extensions are been worked upon. There is already about two cafeterias of a hundred each. We have public toilets, restaurants and welcome centre which would house, shops, banks, and such higher level commercial entities. Then we have about 160 lock-up shops that are ready and people have started depositing for them. What is holding us back now is power; we are having issues with power. Initially the plan was to link up with Oshogbo, but the cost was exorbitant.

Government has just started the initiative of having TTPs; so when you talk to government they assist you to link up. But the power companies are not listening. There is no concession; we are paying fully for everything and the stuff. So we are now going to link up with Oshogbo Township and that also will be in place before the end of August. In fact, they are stringing right now as we speak.

Signage is also being worked on. If you go on that road you will see limited signage because we have also put some about two months back, they were pulled out and we have to begun to talk to various stakeholders that this is not just a private commercial project. It is a government project (Ondo State Government and stakeholders). Now the final objective of the entire trailer park is to ‘build the logistics hub’. It means in terms of import and export; farmers have an opportunity to say we have an input here, there is storage. Eventually, we will be looking at flowing with the Federal Ministry of Transport and the Nigerian Shippers’ Council.

Are there plans to have an Inland Container Terminal?
Bonded Warehouses are on the table. That is a subsequent development. We are going to have Boutique and Hotels. We already have warehouse that is being looked at but we will definitely expand it. We have a clinic that has been built already, equipping it is on plan. Police station is being finalized and in the next three weeks that station will be ready. We have liaised with the Ondo State Commissioner of Police and he has also liaised with the authorities in Abuja who have given us an approval. They have already told us the additional things they want like counters and others. Very soon they will send their men and that position will be empowered so that they will be operational. We are also going to assist them with vehicles to make sure that it is not just foot patrol which would be armed but the vehicular patrol because of the size of the place.

The entire place is two thousand three hundred and forty plots (2,340), one hundred and fifty six (156) hectares. The project is huge and we are taking it phase by phase and looking at the different sectors to ensure that we accommodate the cost of taking an initial phase and then truck activities begin so that as traffic comes in, trucks leave. Then, we can begin to build the malls while we are looking on the funding possibilities.

These are where we are with the transit park right now and we are having discussions with the Federal Road Safety Corps (FRSC), the Nigerian Police, Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), and Nigerian Association of Road Transport Owners (NARTO). We are having direct one on one engagement and there is a phase with the stakeholders that is important because we deem them very important to push out of the success of the TTP.

How far have you gone with collaborative efforts?
It was just this year that the Federal Ministry of Transportation, and Nigerian Shippers’ Council (NSC), came for a joint official inspection. That was when the interaction fully started but prior to this we were just running on those objectives. We concluded that we should make a difference to this place and that is why the erstwhile governor, Dr. Olusegun Mimiko supported and said ‘this is laudable, let’s go ahead’.

I understand that His Excellency, Barr. Rotimi Akeredolu, the incumbent governor of Ondo state has also espoused that he would continue with the project. Although, we haven’t had the opportunity of meeting with him because he seems to be busy now but I am sure we will still have time sit down and discuss with him.

Where is the project located; first or second Ore?
It shares the same fence as the Federal Road Safety Corps (FRSC) office. We have had discussions with the FRSC officers and they said no problems. But you know the issue of guidelines and regulations. So we have been discussing.

Signage also has been put into place because the big sign we put up there, because the gentleman didn’t take care of the certain structural issues, the wind knocked the thing down and then I ordered him to go back and do it properly because signage is critical to us so that there is awareness as you are mentioning.

Now, how much are we looking at here, how much has gone into the project?
I can tell you categorically that if you look at cost of approvals, land values and so many other things involved, it will be over a billion naira. I can’t give you a ready figure now because it’s an ongoing development. If you go there today, workers are working and different aspects are being finalized including existing buildings.

We are even trying to expand beyond the two hundred (200) trailers park. NUPENG has been there and NARTO has promised to send delegates because I spoke with their national president. So we are engaging them. Again, while going through this, we are working with government in order not to violate existing rules and laws. We are also ensuring that for a business entity (because we are private sector), cash flow is the key. There must be traffic, people must come in. We are engaging on different levels and we have materials out there. In fact, you will see some of our fliers, written in Pidgin, English, Igbo, Yoruba and Hausa and we are circulating thousands. In short, after this we are going to expedite circulation from Lagos and different key centers and we will also send directly to the bodies.

Can we visit there again, at least to see your facilities?
No problem! Of course, you are always welcome. If you don’t see me, my colleague will be there. Just contact us and we will know what to do. In fact, the Executive Secretary of the Nigerian Shippers’ Council is also planning to come for a visit and we will accommodate all that.

Can you give us a timeline; when should we be looking at having this project to take off?
It has taken off already, what you are seeing there is not a plan. Structures have been built, some were done last year. I cannot even tell you current development because my colleague just told me that we are in the stage of using drones to begin to track current developments. It’s not a small site. Ours is the biggest. While we have 156 hectares, Lokoja has about 40 hectares, and I know that NUPENG in Rivers has about 70 hectares.

The problem is that people don’t know the difference between truck parks and Transits Parks. That’s the problem I observed with my experience. People are still asking what truck transit park is all about.
Like I said earlier, we are taking it phase by phase, someone also asked whether we have accommodation and I said yes! This is because they still have the orientation of an ordinary truck park. I told you that we actually planned the first phase of 150 structures, about thirty at limited level but we had to suspend it because NNPC is trying to embed a huge pipeline and now the rains have come. We are still discussing with them on how to do this. Is it going to be in a tunnel? Can we cross the pipeline? There are so many issues because so much of the land is behind. Like I told you, what we are dealing with is a small parcel. Out of one hundred and fifty six (156) hectares, we are dealing with fewer than thirty hectares for now.

NNPC initially was to build the mega station and ensure that there is flow of products. There are meant to be two there but we have made provisions for the plan now and we are still going to engage them. So there’s still much to do. There are about fifty (50) structures there that we just left because it can’t cross the pipeline. Some people have been asking “can we come in?” And we said yes! But let us move along past these operational difficulties and then we will get there. It’s a huge project and we are taking it bit by bit and phase by phase but when you visit there, you will appreciate more.

How are you going about the funding aspect of it?
The funding so far has been from our resources and a little bit of funding from one or two small bank loans. We deliberately desisted from getting into debt because at the bank rate of 25% interest, you cannot sustain an entity that is meant to be long term. So we are also discussing. First Bank has indicated interest, Sterling Bank has told us that they want to try and I have just told the gentleman on ground that we will discuss with them but let’s engage them gradually. I am not interested in taking a bank loan right now; I am interested in a long term funding. It is one of the things that I am going to mention when I make my presentation in this conference.

Developmental funding is different from a bank loan. Now if it’s a concession, ordinarily it’s twenty five (25) years or thirty (30) years. You need a funding that would match that. So you don’t go into a fund with bank and you are dealing with a situation where they want their money back in five years and then you are stuck between high interests that will actually destroy the entire cash flow that is coming in.

So, funding is a real issue. We are also working on how to ensure that with the assistance of Nigerian Shippers Councils (NSC) and the Federal Ministry of Transport because they have the links; we will begin to engage and find out other ways. We will find a solution to it but clearly it’s not a project that you roll up today and want to finish in one year. No! It doesn’t work that way, not even internationally; it takes time to build up. You must have a model for it. But definitely it will be done and we are absolutely committed to it.

Are you also looking at the turnkey project type?
That is an alternative but remember that we have an MoU with the Ondo State government. It means that whatever we do in terms of funding, we need to refer to them and discuss with them because the MoU is very clear. Again, not only them, we need to also confirm from the NSC and Federal Ministry of Transportation and the Infrastructure Concession Regulatory Commission because by law they must approve the Public Private Partnership(PPP) arrangements and what we have here is PPP.

Therefore, we must go back to government and look at all these elements and make sure we are in the right standing, we are obeying the laws. They are giving us the support because they have huge resources technically and we want to tap into them so that even though we started before this initiative began, we are actually flowing and accelerating the pace of development because of their support and they have told us clearly that they would give every support and we are happy and that’s why we are here.