Analysts expect Amaechi to tackle Apapa gridlock, deliver on 48 hours clearance

Putting an end to the persistent gridlock on roads leading to Apapa and Tin-Can Island ports, delivering on 48 hours cargo clearance and development of different kinds of ships under Nigerian ownership, are the major tasks waiting for Rotimi Amaechi, minister of transport, to deliver in 2016, analysts say.

According to them, the minister needs to oversee the restructuring of existing policies that affects importation such as rice and national automotive policies that have succeeded in reducing the volume of businesses at the port, and also created business opportunities for neighbouring ports of Benin republic, Togo, Ghana and Cameroun.

“Owing to the man-hour loss on roads leading to the two major seaports in Lagos including the adverse effect on port operation, the transport minister needs to take decisive action towards ending the perennial gridlock on Apapa roads,” said Tony Anakebe, a maritime analyst.

To him, the new minister needs to open-up Nigerian seaports through comprehensive overhauling of the aforementioned issues in order to ensure free movement of goods and services in and out of the port as well as timely delivering of cargo to importers’ warehouse. Anakebe, who bemoaned the nation’s cumbersome clearing system, pointed out the need to enthrone a seamless clearing system that will make it easier for importers to clear and take delivery of their goods with minimal hitches. He added that this also helps to reduce the rate of avoidable demurrage and storage charges that importers pay to shipping companies and terminal operators, which in turn results to high cost of doing business at the port.

“The number of government agencies involved in cargo clearance at the port has to be reduced so that importers could be clearing their goods within the space of 48 hours in line with the international best practices, and this will also help to fight corruption in the port. There should be an automated container tracking system between the shipping companies, terminal operators and Customs to help fast track cargo clearance,” he explained.

To tackle Apapa gridlock, Bolaji Akinola, chief executive officer of Ships & Ports, suggested that there is need to consider the repair, reconstruction and expansion of the Ijora/Wharf Road and the Apapa-Oshodi Expressway.

He said that government needs to create satellite park(s) that can hold a minimum of 10,000 trucks per time, and also discontinue the delivery of petroleum products by road, among other measures to solve the problem of gridlock.

Emmanuel Ihenacho, chairman of Integrated Oil and Gas Limited told BusinessDay in an interview that there is also need for the minister to champion the implementation of the provisions of the Coastal and Inland Shipping (Cabotage) Act, promoted under the auspices of the Nigeria Maritime Administration and Safety Agency (NIMASA), to raise the participation of indigenous shipping companies in Nigeria’s shipping business.

Ihenacho, who stated that Nigerian shipping companies are dying because there is no policy provision that ensures they have access to finance, cargoes and proper training, also pointed out that the minister needs to put a proper development plan in place to help develop different kinds of ships under Nigerian ownership.

Explaining further, he said that Nigeria has a very diverse economy where different kinds of ships are used to bring in imports and they include roro vessels, general cargo ships, tanker vessels and others, thus the need to develop fleet in line with the diversity of Nigeria’s international trade.

To achieve this, he suggested that ship owners can be empowered from the Cabotage Vessel Financing Fund (CVFF) and the Ship Acquisition and Building Fund (SABF), so that Nigerians will have money to buy bigger ships and also create opportunity to fly Nigerian flags in foreign nations. “In terms of the policies that will drive the sector, we need to revisit NIMASA Act to take out things that are not relevant to the development of shipping, running of safe shipping and cleaner ocean.”

Uzoamaka Anagor-Ewuzie