Stakeholders chat path as Shippers’ Council takes over as new ports regulator

Eight years into the port concession exercise, the Federal Government recently appointed the Nigerian Shippers’ Council (NSC) as the interim commercial regulator for the Nigerian seaport. The Council is to among other responsibilities, mediate in the many differences among the service providers, the government agencies and the port users.

The appointment of NSC to act as an interim port economic regulator, according to Idris Umar, minister of transport, was duly approved by President Goodluck Jonathan after due consultations with top government officials. This position, Shippers’ Council would hold pending the passage of National Transport Commission (NTC) Bill by the National Assembly.

As a result of this, industry stakeholders, who spoke at a one-day stakeholders’ breakfast meeting organised by the Council, have highlighted some pressing issues that need to be addressed by NSC as a regulator so as to achieve efficient port operation.

Ernest Ndukwe, the pioneer chairman of the Nigerian Communication Commission (NCC), who observed that the port industry plays a critical role in the nation’s economic development, noted that economic regulation would bring efficiency in port operations if properly handled by the Council.

According to him, Shippers’ Council needs to encourage enterprise, maintain orderliness, prevent non-competitive practices, protects consumers’ interests and promote efficient service delivery in the system. He emphasised the need for the regulator to be self-sufficient in terms of funding without depending on the regulated bodies for funding so as to avoid compromise.

“There is need for the establishment of rules and legal framework to empower the regulator to approve tariffs, ensure fair competition, and resolve matters arising among operators and other stakeholders. The regulator needs to have powers to register operating license and provide operating rules, summon any operator to appear before it, approve guidelines for cost allocation formula and to either continue or discontinue a particular service at the port,” Ndukwe explained.

Supporting this, Adebayo Sarumi, former managing director of Nigerian Port Authority (NPA), who said that there is need for a port regulator to check the excesses of freight forwarders, logistics service operators and ship owners, also expressed misgivings that the Council may not succeed in its mandate without an enabling law.

Although the Council has been appointed to serve as an interim port regulator, he noted that there is need for government to expedite action in the passage of the Ports and Harbours Bill to provide statutory backing to the Council so as to perform better as the economic regulator for the nation’s ports.

In his own view, Umar, who solicited the support of all stakeholders to enable the Council succeed in its new mandate, charged the management of the Council to secure the collaboration of all stakeholders to enable it succeed in its new role.

“There is need for more funding to enable NSC effectively achieve its mandate. Currently, Shippers’ Council gets only one percent from the seven percent port development levy. There is need for an increase of that allocation which definitely would affect other agencies that are currently benefiting from the seven percent,” he said.

Speaking from the terminal operator’s perspective, Vicky Haastrup, chairman of Seaport Terminal Operators Association of Nigeria (STOAN), who stated that the appointment of an economic regulator for the port is long overdue, was also of the opinion that the regulator would moderate the services of all players to ensure improved performance in operation.

In terms of cost of doing business at the port, Haastrup, who doubles as the executive vice chairman of ENL Consortium, charged the regulator to look into the charges imposed on importers by some government agencies that are not in tune with the international best practices, such as fees imposed by the Standard Organisation of Nigeria (SON), National Environmental Standard and Regulation Enforcement Agency (NESREA) among other agencies, whose charges add to the cost of doing business at the port.

“There is need to pass the Ports and Harbour Bill; establish a waterfront coast guard to enhance the security at the water channel for safe shipping. There is also need for the regulator to adjust the lease period of terminal operators so as to enable investors to inject more money into the development of port infrastructure,” she emphasised.

Haastrup further observed that there is need for the development of inland and railway transportation especially for the haulage of goods in and out of the port, to reduce congestion and pressure on the port access roads that are currently frustrating the efforts of terminal operators in achieving timely delivery of goods to the importers warehouses.

The Federal Government needs to maintain stable import policies to protect the private sector investment at the port.

Earlier in his keynote address, Salihu Ibrahim, chairman, governing council of the NSC, assured that the appointment of the Council will improve services at the port. This, he added, will also provide a platform for central administration of commercial operations which will usher in uniform charges and rates for uniform operations and activities at the port.

Uzoamaka Anagor