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A STUDY OF CLASSIFICATION AND CERTIFICATION PRACTICES IN NIGERIA MARITIME INDUSTRY. CASE STUDY OF BUREAU VERITAS NIGERIA LIMITED AND AMERICA BUREAU SOCIETY
ABSTRACT
This research investigates the classification and certification practices within the maritime industry in Nigeria, focusing on the case study of two prominent maritime classification societies, Bureau Veritas Nigeria Limited and the American Bureau of Shipping (ABS). The study aims to provide a comprehensive understanding of the processes, standards, and regulatory frameworks governing ship classification and certification in Nigeria, while comparing the practices of the two selected organizations.
The research employs a mixed-methods approach, combining a thorough review of relevant literature, analysis of regulatory frameworks, and interviews with key stakeholders within the maritime industry. The quantitative aspect assesses compliance levels with international standards, examining the efficiency and effectiveness of the classification and certification processes adopted by the selected organizations.
The qualitative component delves into the perspectives of industry experts, regulators, and maritime professionals, exploring their experiences, challenges, and perceptions of classification and certification practices. The case study analysis aims to identify best practices, gaps in implementation, and areas for improvement in the current regulatory landscape.
The findings of this study contribute to the existing body of knowledge on maritime classification and certification, offering insights into the practices of leading organizations in Nigeria. The research has implications for policymakers, industry stakeholders, and regulatory bodies, providing valuable information for enhancing the efficiency and effectiveness of classification and certification processes within the Nigerian maritime industry. Additionally, the study suggests avenues for future research and improvements in industry standards to ensure the safety, security, and sustainability of maritime operations in Nigeria.
CHAPTER ONE:
INTRODUCTION
1.1 Background of the Study
The maritime industry plays a pivotal role in global trade and transportation, with vessels serving as critical assets for the movement of goods and passengers. To ensure the safety, security, and environmental sustainability of maritime operations, ship classification and certification have become integral components of regulatory frameworks worldwide. In Nigeria, a nation with a burgeoning maritime sector, understanding the practices and standards of classification societies is essential for fostering maritime safety and compliance.
To date, there are approximately 50 classification societies in the world. Since 1968, the largest of them (representing 94% of the international merchant fleet tonnage) have been grouped within the International Association of Classification Societies (IACS). As an international non-governmental organisation, IACS plays an important role in self-regulating the maritime market by harmonising rules and practices to increase maritime safety (Molenaar, 2014; Kopela, 2017; Ceyhun, 2020; Lissillour et al., 2021a, b). In addition to their private classification activity, classification societies carry out a public service mission on behalf of the flag states known as ‘certification’. They act on behalf of states that generally do not have the means to carry out inspections or audits (of the ship and the company that manages it) on terms depending on each flag state. Furthermore, classification societies must ensure compliance of vessels, not with the rules they have issued, but with the technical standards of various international conventions relating to personal safety (the Safety of Life at Sea (SOLAS) Convention) or pollution (the Marine Pollution (MARPOL) Convention) (Raynaut, 2019). Their role here is all the more justified since these inspections are identical to those carried out in the context of classification.
However, in a world where economic interests and safety imperatives are entwined, their credibility can be questionable. According to Latrech (2004), several factors justify this questioning: the ambiguity of their role between public and private, their commercial nature, sometimes their complacency, their financial dependence on shipowners, the legal problem posed by the disclaimer inserted in their contracts, or the IACS policy excluding smaller companies. Furthermore, from a legal viewpoint, their responsibility in strengthening maritime safety is regularly asked (Ferrer, 2004; Langlais, 2018; Raynaut, 2019). However, beyond the legal issues, is it not the broader governance of maritime safety in which classification societies play a particular role that needs to be questioned? As Latrech (2004) pointed out, “moving from a simple information role to a more technical role, they are now wandering between private functions for the granting of a rating and public functions carried out under delegation of flag states to equip ships with their international safety titles”.
Nevertheless, while their role is increasingly crucial for the regulation and safety of the maritime market, the academic literature on the strategic behaviours of the stakeholders, the forefront of which are classification societies, remains very limited. Most prior research on maritime safety focused on the technical aspects and identifying risk indicators to predict accidents; the subject raises issues related to strategic management and supply chain management (SCM) (Kretschmann, 2020). Nevertheless, it remains very understudied in Management Sciences (Lissillour et al., 2019), and recent studies urge future research to focus on the inter-organisational aspects of maritime safety (Dominguez-Péry et al., 2021). Furthermore, whereas prior research focused on decision models based on a rational decision-making approach (Hoffmann et al., 2020; Rahman et al., 2016), this research use behaviourism to understand better stakeholders’ complexity, their power relationships, leadership, conflict and cooperation maintained with their market, in a duality oscillating between regulatory actions and competitive behaviour.
In order to do so, this research adopts the analysis prism of the behaviourist approach commonly applied to the inter-organisational dynamics of supply chains.
Bureau Veritas Nigeria Limited and the American Bureau of Shipping (ABS) are two prominent classification societies operating in Nigeria, contributing significantly to the maritime landscape. As organizations responsible for assessing and certifying ships based on adherence to international standards, these classification societies play a crucial role in ensuring the reliability and seaworthiness of vessels.
The maritime industry serves as a critical artery for global trade, connecting nations and facilitating the movement of goods and people. In the context of maritime operations, ship safety is of paramount importance to ensure the protection of human lives, the marine environment, and the integrity of vessels navigating the seas. Nigeria, with its extensive coastline and active maritime trade, is particularly invested in fostering robust safety measures to mitigate the risks associated with maritime activities. This research focuses on examining the role of classification and inspection services, with a specific emphasis on Bureau Veritas, in enhancing ship safety within the Nigerian maritime landscape.
The maritime industry stands as a critical pillar of global trade, serving as the lifeblood for the exchange of goods, resources, and cultures among nations. In this intricate web of maritime activities, ensuring the safety of vessels navigating the seas is of paramount concern. Nowhere is this concern more significant than in Nigeria, a nation with an extensive coastline and a strategic position in international trade routes. Recognizing the imperative of safeguarding its waters and the vessels that traverse them, Nigeria places a substantial focus on upholding stringent ship safety standards.
Amidst the myriad challenges and risks inherent in the maritime landscape, the role of ship classification and inspection services emerges as pivotal in establishing and maintaining robust safety standards for vessels. One of the prominent entities contributing to this endeavor is Bureau Veritas, a globally recognized classification and inspection service provider. This research delves into a critical exploration of the role played by ship classification and inspection services, with a specific focus on the contributions of Bureau Veritas, in fortifying and enhancing ship safety within the Nigerian maritime context.
The maritime industry’s dynamic nature, marked by evolving challenges and risks, necessitates constant vigilance and adaptability. Nigeria, as a key player in the West African maritime arena, encounters diverse challenges ranging from the prevention of maritime accidents to the mitigation of environmental consequences resulting from shipping activities. Within this milieu, the role of classification and inspection services becomes instrumental in establishing and maintaining stringent safety standards for vessels operating in Nigerian waters.
Bureau Veritas, with its global footprint and reputation as a leading classification and inspection service provider, assumes a crucial role in shaping and upholding maritime safety standards. Employing rigorous protocols, advanced methodologies, and a commitment to international standards, Bureau Veritas aims to mitigate risks and ensure that ships adhere to safety regulations. This research seeks to unravel the nuances of Bureau Veritas’ contributions and methodologies in fostering ship safety, thereby contributing to the overall safety and integrity of maritime activities in Nigeria.
As we navigate the chapters ahead, we will embark on a comprehensive journey to unravel the intricacies of ship safety in Nigeria, shedding light on the indispensable role played by ship classification and inspection services, with Bureau Veritas at the forefront.
1.2 Statement of the Problem
The maritime industry faces various challenges, including accidents, environmental concerns, and non-compliance with international regulations. Understanding the classification and certification practices in Nigeria is imperative to address these challenges and enhance the overall performance and safety of the maritime sector. This study aims to investigate the practices of Bureau Veritas Nigeria Limited and ABS to identify areas of strength, challenges, and opportunities for improvement.
1.3 Objectives of the Study
The primary objectives of this study are as follows:
To examine the classification and certification practices of Bureau Veritas Nigeria Limited and the American Bureau of Shipping in the Nigerian maritime industry.
To assess the level of compliance with international standards and regulations by the selected classification societies.
To identify challenges and opportunities associated with classification and certification practices in the Nigerian maritime industry.
To provide recommendations for enhancing the effectiveness and efficiency of classification and certification processes in Nigeria.
1.4 Research Questions
The research questions guiding this study include:
What are the classification and certification practices adopted by Bureau Veritas Nigeria Limited and the American Bureau of Shipping in the Nigerian maritime industry?
To what extent do these classification societies comply with international standards and regulations in their certification processes?
What challenges and opportunities are associated with classification and certification practices in the Nigerian maritime industry?
What recommendations can be proposed for improving the classification and certification processes in the Nigerian maritime sector?
1.5 Significance of the Study
This study holds significance for various stakeholders within the maritime industry, including policymakers, regulatory bodies, maritime professionals, and classification societies. The findings will provide valuable insights into the current state of classification and certification practices in Nigeria, offering a basis for informed decision-making, policy formulation, and improvements in industry standards. Additionally, the study contributes to the academic discourse on maritime safety and regulatory compliance, serving as a reference for future research in the field.
1.6 Scope of the Study
The study focuses on the classification and certification practices within the Nigerian maritime industry, with specific attention to the operations of Bureau Veritas Nigeria Limited and the American Bureau of Shipping. The research encompasses an analysis of regulatory frameworks, compliance levels with international standards, and the perspectives of key stakeholders involved in maritime classification and certification.
1.7 Structure of the Thesis
The thesis is organized into chapters, each addressing specific aspects of the study. Chapter Two reviews relevant literature on maritime classification, certification practices, and international standards. Chapter Three outlines the research methodology, including the research design, data collection methods, and analytical approaches. Chapter Four presents the findings of the study, and Chapter Five discusses the implications, conclusions, and recommendations based on the research outcomes.
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