Stakeholders see port efficiency, investment growth in fair pricing system
For Nigerian port industry to achieve high level of efficient service delivery of international standard that is capable of attracting high level of foreign direct investment there is need for port operators and government agencies at the port to create a user friendly port through a good tariff and billing system, stakeholders have said.
This is owing to the fact that a good tariff system will not only position Nigerian port industry to compete favourably with neighbouring ports of international standard, but will also encourage high patronage due to high user confidence built over time. It is also expected that a good and accepted tariff system will also enable timely delivery of cargoes that will put an end to the problems of port congestion.
In terms of cost, a good tariff system is seen as a means of reducing the cost of doing business at the port. This is because high cost of doing business in Nigerian seaports has been the major reason why there has been massive diversion of Nigerian billed cargoes to ports of neighbouring countries of Cotonu, Togo and Ghana that are affordable, efficient and user friendly.
To achieve this, The Nigerian Shippers’ Council (NSC), which is the economic regulator for the port needs to ensure that the interests of all stakeholders in the sector are protected. The Council should carry every stakeholder along in trying to arrive at a good tariff system.
Also, the regulator must consult widely and allow all stakeholders ample opportunity to make inputs, and not develop port tariff that would be controversial. In doing this, the investment and operational cost of terminal operators including other investors at the port, need to be taken into consideration in determining tariffs at the port.
On the other hand, port operators including shipping companies and terminal operators need to also consult with other stakeholders including port users and the commercial regulator before fixing rates and fees in the port to avoid further controversy.
Celine Amaka Iroha, the chief operating officer, Monitoring and Compliance Unit, Nigeria Shippers’ Council (NSC), noted that the existing pricing structure in Nigerian port today, is confronted with the challenges of trying to satisfy conflicting interests, which include the government, port users, service providers and economists, who have different views on the intricacies of an efficient port tariff.
Listing the importance of a good tariff system at the port, Iroha pointed out that it ensures that port facilities are used in the most efficient manner; establishes charges that tend to retain the benefits arising from port improvement and ensure benefits are domesticated in-country, thereby helping to cushion capital flight.
She suggested that cost, utilisation of installation and volume of traffic in the port need to be taken into consideration before a realistic and adequate pricing system would be developed. For instance, shipping company billing system within port needs to be proportional to the costs generated by the ships.
In his view, Jonathan Nicol, President of Shippers’ Association of Lagos State, who bemoaned the impact of unstable foreign exchange rate on tariff determination, also suggested that foreign exchange transactions should be strictly handled by the banks, thereby eliminating to the barest minimum, the activities of black market in this regard.
“There are hidden charges in cargo handling fee, and freight charges, which varies from one shipping company in Nigeria to another. Therefore, there is need to streamline these charges with the shipping companies operating in Nigeria, Nicol further suggested.
He also suggested that once the Pre-Arrival Assessment Report (PAAR) is issued and signed by officers of the Nigerian customs, it should be accepted as the final document for the determination of Customs Duties and not be subject to queries from junior field officers.
UZOAMAKA ANAGOR-Ewuzie