Stakeholders seek equitable port pricing to encourage private investment, efficient operation
Industry stakeholders who participated at a one-day seminar on pricing of port services in Nigeria have argued that equitable pricing of port services would lead to increased private investment in the port as well as efficient port operations.
The stakeholders who spoke at the seminar organised by Maritime Reporters’ Association of Nigeria (MARAN), themed ‘Achieving Fair and Equitable Port Pricing System in Nigeria’, said high pricing of services in Nigerian ports leads to low return on invested capital in the long run due to poor patronage by port users resulting from cargo clearance bottlenecks such as port congestion. In a communiqué made available to BusinessDay, the stakeholders noted that fair prices of port services in Nigerian ports must be worked out to discourage cutting of corners and engaging in acts that only help foreigners to dominate the nation’s shipping sector.
The communiqué further mandated Nigerian Shippers’ Council, which was recently appointed the interim economic regulator for Nigerian ports, to ensure that the interests of all stakeholders in the sector were protected.
“The council should represent the interest of both the service providers and the port users in trying to achieve an equitable pricing system. The high investment and operational cost of terminal operators should be taken into consideration in determining tariffs at the port terminals,” the communiqué said, further noting that charges in the ports needed to be harmonised such that the difference between demurrage paid to shipping companies and storage fees paid to terminal operators are clarified and harmonised.
Speaking on the on ‘Pricing and Supply of Port Services in Nigeria: Role of a Commercial Regulator’, Celine Amaka Iroha, chief operating officer, monitoring and compliance unit, Nigerian Shippers’ Council, who represented Hassan Bello, the executive secretary, said that the role of an economic regulator was crucial in protecting and ensuring a level-playing field for all stakeholders. She added that Nigeria should emulate global best practices that allow the regulatory authorities to enforce standards and safety, or to oversee use of public goods and regulate commerce in a market economy.
The communiqué, which recommended that operators should not be allowed to fix rates and fees on their own, also called on the Federal Government to establish, without delay, the enabling legislation to provide legal backing to the new commercial regulator (NSC) in order to save it from distractions arising from possible litigations.
Also speaking, Jonathan Nicol, president, Shippers’ Association, Lagos State chapter, observed that there was need to deal with the issues surrounding foreign exchange transactions in the port system by the banks through the elimination of black market that encourages money trafficking.
“Freight charges in Nigeria vary from one shipping company to another. Therefore, there is need for the commercial regulator to streamline the existing shipping freight charged by shipping companies operating in Nigeria,” he added.