Stakeholders see cumbersome clearing process, others as hindrance to port concession

Cumbersome cargo clearing process coupled with lack of a favourable business environment at most Nigerian seaports have continued to throw spanner in the efforts put into the development of port terminals by concessionaires in charge of cargo handling at the port, stakeholders in the maritime sector have said.

The concerned industry stakeholders also finger other challenges such as non-inclusion of some clauses and appendixes in the concession agreement and dredging difficulties at the ports as other major stumbling blocks to the unsuccessful attempts to lease the facilities to private investors.

According to them, for a more effective and successful concessioning of the ports, there is a need to review the existing concession agreement to incorporate well thought out legislation that will resolve regulatory and law enforcement issues.

Speaking at a maritime forum recently in Lagos, I. G Umar, assistant general manager, corporate and strategic planning, Nigerian Ports Authority (NPA), said even with some ports already concessioned there was a huge need to review the status quo to ensure effective utilisation of the facilities.

Highlighting other challenges subduing the success of the port concession agreement, Umar said the inability of NPA to increase its tariff (simplified Tariff, 1993) to grow its revenue base to match the demand of terminal operators and continuous attack of vessels by pirates were also taming the industry’s growth.

“The Customs procedure for container examination is also cumbersome, thereby forcing some importers and exporters to by-pass the regular process, and this in return reduces revenue for the NPA,” Umar said.

Other challenges also identified by him include: non availability of adequate tug boats and pilot cutters, overtime empty containers and government containers occupying space in the terminals, and the lack of a trailer park, which leads to congestion of access roads into the ports.

Despite the noted challenges, Umar listed more cargo throughput; shorter dwell time of cargo; shorter turnaround time of vessels; better port infrastructure in terms of equipment and plants; better security of cargo in the ports; reduction in litigation and its attendant costs; revenue increase, and reduced cost of maintenance of ports’ facilities for NPA as some of the benefits of port concession.

These shortcomings, Umar however said can efficiently be tackled if the monitoring and compliance department is empowered to discharge its duties effectively, adding that the funds to manage the department should also be included in the concession agreement.

Continuing, he further suggested that port managers should be empowered to handle most of the issues emanating from the ports, saying that the frequent visits of government officials to terminals should be drastically reduced.

According to him, the communication channel in the ports should also be carefully adhered to; for instance, the reporting line for terminal operators should be from the ports to the managing director and not otherwise.

In a nutshell, he solicited for a comprehensive review of the current concession agreement, voicing that some sort of waiver should be granted to the NPA to match the corresponding speed the terminal operators have in getting approvals.

ODINAKA MBONU