Finding solutions to supply chain problems

Murphy Shipping has offered supply chain solutions to government agencies, and various the oil and gas, construction and manufacturing sectors, for the past 37 years. The company is the preferred global logistics chain partner for its customers, and its skilled and motivated staff create value for customers and shareholders through consistently superior delivery of innovative business solutions.

Murphy began life as a  customs’ broker, but due to the demands of Nigeria’s oil & gas sector of the 1970’s, it developed by adding other services to its repertoire. Today the Murphy Group employs more than 600 staff in 13 offices in seven countries.  Services offered range from customs brokerage, project management, to full logistics support. The company’s mission is to provide an unparalled customized service with reliable performance at a competitive price, through an efficient and highly motivated workforce.

Interview with: Mr. Lape Osinaike, Managing Director Murphy Shipping & Commercial Services Ltd

As a shipping and freight forwarding company and having operated in Nigeria since 1975  I’d like to start off by asking about your assessment of the transportation infrastructure in the country right now?

I would rank it at 40 to 50%. It used to be something between 10 to 20% but I think the Government has good intentions to move our transportation to the next level. We cannot afford to be left behind. There have been slight improvements in terms of the way things are going now and that is why I would rank it at 40 to 50% at the moment. The policies have not been too favourable, but I think there is still room for improvement in that area. Stakeholders are coming together and talking about what the Government should be doing, and I think that is really helping out.

How important is it that Nigeria develops its maritime transportation sector?

As long as we have the right people in the right places, I think that the sky is the limit. We have to ensure that we have first-class maritime activities in Nigeria. I know in the past they came up with a law which simply means that you can use more Nigerian ships in our territorial waters, but it has not been too favourable. But the awareness is out there and I strongly believe that with the new minister things will change at the end of the day.

What is your experience operating in the ports here?

In terms of the turnaround of ships coming in, that has really improved. I think it has reduced to 21 to 30 days. It was terrible in the past, but that has really improved. It is still slightly congested, but I think that is due to the port authorities planning things badly. Now everybody is crying out because it affects all of us, so the Government is looking into that. In terms of the quality of ships coming through, that has improved tremendously. 

The Minister of Finance has been playing a key role recently in transforming the ports. The first thing she has done is remove many of the bureaucratic agencies from the ports and also they recently announced that they would be operating for 24hrs a day within the next 11 months. What effect do you think this will have?

Some of them are still there, but that will go a long way if you can get out a handful of those smaller agents attached to customs, because this will make things more efficient. But as we speak, a few of them are still there.

What are your comments on the importance of Nigeria’s ports as a strategic location for the region?

I think Africa is the next continent for business if we have the right people in the right places doing the right things. In the past the Government has had good intentions and awareness of the issues we had, but you can tell that the Government is listening and a lot of seminars are taking place to find out what people think. Awareness is increasing.

Out of the 49 global routes, 20 of them pass through Nigeria. Nigeria is a very large country with a lot of trade that needs to go through.

That is why we are called the giant of Africa, but we really need to prove that we are actually the giant of Africa.

From an operational point of view, how have you seen the competitive landscape change in recent years?

That is really food for thought. We are ticking along there.

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Let’s talk more about Murphy and the history of the company.

We started off in 1975 as a clearing and forwarding company, but luckily Murphy created a niche within the oil and gas sector very early on, so that has really helped us one way or another. We employ around 200 people in Nigeria and we employ about 600 people globally. We are an integrated logistics provider and we cover things like warehousing, transportation, insurance and freight forwarding as well as customs clearance. It is like a one-stop shop. We have our strengths in oil and gas. Some of our biggest clients include Exxon, Chevron, Total and Schlumberger.

Nigeria’s largest trading partner is the US and Nigeria is the 13th largest exporter to the US. Most of that is crude oil. How important is the US market for your business?

It is very important. The friendship has always been there and there have always been trade ties. I know they rely heavily on our oil. I believe that there are close ties between both countries.

What is your vision for the company going forward?

Continuously improving infrastructure is paramount. I think there will be JVs (joint ventures) or synergies in the near future – buying into them or them buying into us. We started in 1975 but we also want to know where we are going to be in the next 10 to 15 years. JVs will definitely help the company in terms of growth and expansion.

Are you considering any JVs with other local Nigerian shipping companies or international companies?

I think it would be more international. When you look at the other local companies that are in the same industry, I think we are quite different because we had an international clout from an early stage. That is very good for us. We opened a Lagos office a year after opening the UK branch for example. You need a clear vision of where you want the company to go.

What would be your final message for the international community and investors?

I think we are right for them to come in and invest. We are monitoring the Government to ensure that the infrastructure is actually being put in place for investors to come in. I think we are all on the right track – the focus is there and that is very important. I think the direction and the focus is there and there is a lot of awareness. It is just a matter of time now. I believe that will happen very soon.