The Nation Newspaper

Category: Maritime

  • Rumble at port over storage charges

    Rumble at port over storage charges

    The move by the Nigeria Shippers Council (NSC) to force terminal operators to return port charges to the pre-2009 arrangement suffered a temporary setback last week, despite  that the Minister of Transport Senator Idris Umar has waded into the matter, it was learnt.

    The pre-2009 port charges were approved  by the government but the terminal operators have since engaged in what they called prograssive increase in port chages.

    However, the NSC as the port  regulator, said the terminal operators must revert to the old rate because the increase in the charges was illegal.

    This has caused a disagreement among the NSC, freight forwarders and the terminal operators in the last few weeks; and the role of the NSC as the commercial regulator of the port system, sources close to the Bureau of Public Enterprise (BPE) said, has been put to test.

    The minister, it was gathered, has summoned a stakeholders’ meeting in Abuja to address the  issues raised in a petition by the freight forwarders’ group against terminal operators for imposing arbitrary charges. But the meeting, it was learnt, could not resolve the matter.

    A source close to the meeting said while the representatives of the freight forwarding group and others said their position, the representative of the terminal operators, maintained an unusual silence because of the litigation their umbrella body, Seaport Terminal Operators Association of Nigeria (STOAN), has instituted against NSC at the Federal High Court, Ikoyi Lagos on the matter.

    The plea by the Minister that stakeholders should be open in their discussions on the port charges, it was learnt, was ignored by the aggresssors who cited their case at the court.

    The role of the NSC as the commercial regulator of the port system, sources close to the meeting said, had been put to test based on its inability to enforce the advertised new charges and the alleged inability of the minister to resolve the matter before the meeting ended.

    Also, the inability of the Executive Secretary of NSC Mr Hassan Bello who chaired the meeting after the minister left, to resolve the issue, findings revealed, did not go down well with the freight forwarders because of the unpleasant practices in the ports system.

    But the Director, Media and Publicity to the National President of ANLCA  Joe Sanni said the pricing mechanism of services in the ports, should be established by the government to attract businesses to the port.

    “Progressive storage charges have no known legal basis, neither is it practised anywhere in the world. Therefore, it must be dropped forthwith. That’s the crux of illegal charges. A standing committee of critical stakeholders must be established to meet every month to brainstorm on the brought-up operational challenges in the ports, for discussions.

    “Decisions arrived at, at such meetings should be passed on to the Nigeria Shippers Council, to engage relevant stakeholders, before implementation. Key Performance Indicators-KPI also needs to be introduced to monitor the performances of ports operators

    “A robust auditing of the major stakeholders in the port system has to be introduced and continuously sustained to serve as guiding rules to raising cargo through put in the maritime industry,” he said.

    In a statement by STOAN’s spokesman, Mr Bolaji Akinola,  the APM Terminals attended the meeting despite  the suit filed against it by STOAN at the Federal High Court.

    “APM Terminals’ representatives made it clear that they were at the meeting without prejudice to an ongoing court case on progressive storage charges and did not say anything at the meeting.

    “While various persons expressed different opinions at the meeting, it would be very wrong to imply that an agreement was reached on reversal of storage charges or on the powers of the Nigerian Shippers’ Council. These matters are sub-judice. It is therefore wrong to make comments or pass judgment on a matter that is pending before a court of competent jurisdiction,” Akinola said.

    Those at the meeting included the officials of NSC, BPE, Maritime Workers Union (MAWUN), APM Terminals, National Presidents Association of Nigeria Licensed Customs Agents (ANLCA), National Association of Government Approved Freight Forwarders (NAGAFF), National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) and the Association of Registered of Freight Forwarders, Nigeria (AREFFN).

  • Guidelines on ANCLA’s election out

    The Electoral Committee of the Association of Nigeria Licensed Customs Agents (ANLCA) has issued guidelines on its forthcoming election billed for Port Harcourt Area Chapters.

    The rules require voters to produce receipts for payments for special levies and dues,  possession of form C-30 of Customs’authorisation for the voter to operate this year. They added that the presentation of the original copy of letter indicating the company the voter is representing, among others, is necessary.

    The Chairman of the electoral body, Alhaji Mukaila Babatunde Abdulazeez, told his members not to engage in multiple authorisations.

    “Members are warned against multiple nomination letters because they would be rejected and seen as a deliberate attempt to subvert the electoral process.“

    The sanction for such illegality, he said, was disenfranchisement.

  • Customs moves against smugglers

    The Nigeria Customs Service (NCS) Federal Operations Unit (FOU) Zone ‘A‘ Ikeja, Lagos has intensified its anti-smuggling war against those importing prohibited goods into the country.

    Its Public Relations Officer Mr Uche Ejesieme said the campaign against smuggling in Oyo State became more necessary as December is fast approaching.

    According to him, the unit has been able to reduce the activities of smugglers in Lagos and Ogun states based on the structure put in place by its Acting Area Controller Usman Turaki.

    Officers and men of the unit, he said, seized goods worth over N100 million last month and goods worth over N130 million in September.

    He said most of the seizures were made in Lusada, Atan and Igbesa in Ogun State.

    The unit, he said, also recorded some seized goods in Oyo axis.

    The image maker, however, attributed the seizure to the proactive measures put in place by the service and Turaki.

    “If you look at the amount and quantity of the seizures, particularly in September and October, you will notice that there is a huge difference. This is so because the area controller has put in place some proactive measures to displace the smugglers and end their antics.

    “These are places that before now, no team has ever tried to extend their activities to those areas but because of the renewed vigour and determination, coupled with the courage of the new controller, we’ve been able to break all their rank and file and discovered most of the secret routes they use in perpetrating their illicit trade,” he said.

  • Establish more dry ports, govt advised

    The Federal Government has been advised to establish more dry docks to create jobs and boost the shipping business as the sea ports now attract over 5,000 vessels yearly.

    The Chairman, Nigerian Ports Consultative Council (PCC), Chief Kunle Folarin, made the call in Lagos.

    He said dry docks were necessary to improve on ship maintenance and seaworthiness, considering the number of vessels received at the sea ports.

    He said more cargoes would be attracted to the ports and trade within the sub-region would be improved if more dry docks were established.

    Folarin said the floating docks and the dry docks should be completed with the materials for seaworthiness of vessels.

    “A ship cannot sail without being seaworthy and a ship is supposed to be dry-docked within a time-frame. Then you need dry docks to perform such compliance requirements.

    “We probably have one (dry dock), and we are talking of Nigerian ports attracting over 5,400 vessels,” he said.

    Folarin said the ship owners could use the dry docks for compliance with sea-worthiness certification; for repairs, and for trans-shipment of cargo to other areas within West and Central African regions.

    He suggested that the marine environment should be well-utilised through infrastructure development for optimal gain.

    “In the context of Nigeria, we know that we have massive maritime potential.

    “Nigeria has all the potential to become a key player. If we have fully utilised the opportunities provided by our maritime domain; we would have seeing ship-building yards in Nigeria.

    “Certainly, our ports would have been the preferred port and hub for trans-shipment. We would have established competitive port costs that would attract more traffic to the ports.

    He suggested that a manpower-building programme should be set  up by the government and its agencies.

    He said more gains would come from developing skill-acquisition in terms of nautical science, survey, foundry, ship-building skills as complementary to other manpower development programmes.

  • Trade facilitation excites importers, clearing agents

    Trade facilitation excites importers, clearing agents

    As the Yuletide approaches, the Nigeria Customs Service (NCS), Apapa command, has embarked on programmes to facilitate trade at the country’s biggest port, and the importers and clearing agents are happy for it, The Nation has learnt.

    Its Area Controller, Mr Charles Edike, it was gathered, had adopted the trade facilitation programme of the Federal Government by fast-tracking cargo clearance procedures and implementing  Customs policies on quick cargo clearance to the fullest to generate more revenue and boost the  economy.

    The effective manner the Comptroller-General of Customs Alhaji Dikko Abdullahi has directed his officers to implement his six-point agenda, it was learnt, was responsible for the success the service had recorded in Apapa and other notable commands in terms of the modernisation and transformation of Customs’ operations, a development, which importers and other operators said, had contributed to the quick clearance of cargoes from the Apapa port.

    The Area Controller, Apapa command, stakeholders said, had no option than to embark on trade facilitation because he had received the needed support of his Comptroller-General to organise and manage the highest revenue yielding command in the country, cum the West and Central Africa sub-region.

    His zeal and patriotism for the development of  the economy, findings revealed, was responsible for why he was moved to Apapa command to carry out the onerous task which, stakeholders said, he had  done diligently.

    The President, Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu, said Edike does not joke with trade facilitation of the Federal Government.

    “No paper stays on Edike’s table for more than 15 minutes before he releases them for quick cargo clearance.This is also because he has made the principle his watch word since his assumption of office as the Controller in Apapa Area Command and in all the commands he has been posted.

    “He believes that when any document experiences delay, the implications can be more. Thus, as far as he is concerned, prompt treatment of documents is a must in his command. According to him, the documents represent money and the government needs the money to develop the country and provide jobs for the youths,“ he said.

    Shittu also described Edike as a humble and listening Senior Customs officer who attend to every issue brought to his attention to attract business to the port.

    “With the support of Alhaji Dikko, Edike was been able to reactivate the erstwhile dormant Container Terminal in Ijora, through constant and consistent stemming of containers to the terminal, a development that has not only kept the inland terminal alive up  till today, but has also assisted in giving a lease of livelihood to importers and those of us in the cargo clearance business.

    Also, a senior officer of the command, who does not want his name in print, said the Area Controller had inculcated his trade facilitation message in his officers and tutored them on why they must delay documents to avoid sanctions.

    “Edike has tutored us that when you delay import documents, you increase the cost of clearing such goods, because you make the importers to accumulate demurrage and you delay the purpose for which such goods would have been put to used for the proper development of  the economy.

    “It is through his rare determination to block revenue loopholes and ability to combat corruption following the instruction given by the CGC that has made it possible for our command to collect an unprecedented N30,499,921,212  in September and N31,567,536,965 in October, this year. The figure is far more than the amount the command generated in the same period last year,” the officer said.

    Also, the Chairman of the Lillypond Container Terminal chapter of ANLCA, Prince Chuks Njemanze, said he was impressed with the performance of Edike on  trade facilitation and stemming of containers to Lillypond terminal.

    As part of efforts to solve the problem of server and network failure frequently encountered by importers and clearing agents at the ports, the Customs, he said, had inaugurated a newly built 160-meter communication tower for trade facilitation and launched a world-class Information Communication Training (ICT) centre at the Apapa command to boost the efficiency of its officers and men.

    Addressing reporters on behalf of other stakeholders in Lagos, the Chairman, Apapa Chapter of ANLCA, Mr Olumide Fakanlu,  said they were happy with the way the Area Controller was handling the Fast-Track Scheme (FTS) introduced by Customs to boost cargo clearance procedure at the ports.

    If not for the way the scheme was being handled, Fakanlu said, “the situation at Apapa port would have worsened because the terminal operator cannot handle more than 200 containers per day. “

    Fakanlu also berated the unnecessary additional storage charges the importers and their clearing pay terminal operators.

  • Fed Govt rakes in N973m at Seme

    The Nigeria Customs Service (NCS) Seme command generated N973, 540,612.78 as revenue last month.

    The amount is the highest monthly revenue so far collected by the command this year.

    The command, it was learnt, also made 24 seizures with duty paid value of N32,019,613.

    The seized items included bags of rice, frozen poultry products and other prohibited goods.

    Its Area Controller, Mr Willy Egbudin, described the revenue as a product of increased compliance by stakeholders and non-compromise by his officers.

    He said the command would ensure it collects all revenue due to the Federal Government from importers transacting business through the border.

    He pledged to make the border un-attractive for smugglers and those engaging in illegal activities.

    Egbudin said the smugglers who changed route to other areas, such as Shaki in Oyo State and Idiroko in Ogun State were not finding it easy as the Customs operatives there were tackling them, seizing their wares and crushing their unlawful investments.

    “In carrying out the directives of our Comptroller-General, Dikko Inde Abdullahi, I have constantly sensitised and reminded our officers and men on the zero tolerance for smuggling stance.On this, there is no going back. We are sending a strong warning to smugglers that daring us means a venture into big regrets.We are ready to deploy our logistics for intelligence, interdiction,arrest, seizure and diligent prosecution of suspects.

    ‘’We shall continue to apply the strategy of enlightenment and sensitisation with all our stakeholders and keep dissuading them from smuggling and other border-related unlawful activities.We appreciate those complying for their patriotism and urge those deviating to emulate the good examples for a better economy and brighter future for all Nigerians,” he said.

    The Area controller assured the  public and travellers across the border that Customs officers at strategic and approved points would assist in facilitating legitimate trade and reduce crime.

  • Customs sacks 52 officers

    •Urges importers to key into PAAR

    The Management of the Nigeria Customs Service (NCS) has approved the dismissal of 52 officers for corruption, warning importers and clearing agents still handling non-compliant cargoes to key into the Pre-Arrival Assessment Report (PAAR) programme of the Federal Government or face its wrath.

    The dismissal order, findings revealed, had been approved by its Comptroller-General Alhaji Dikko Abdulahi based on a report.

    The Customs boss, it was gathered, told the top executives of the Association of Nigerian Licensed Customs Agents (ANLCA), who met with the management team of the service last week, in Abuja, urging them to tell their members to stop finding faults in PAAR.

    The meeting, it was learnt, was called by Customs to find solutions to some of the challenges confronting ANLCA at ports.

    A senior official of ANLCA at the meeting, who craved anonymity, said an effort by him and other clearing agents to plead on behalf of the affected officers was rejected by Dikko.

    The CGC, it was gathered, said  when he first received the unsubstantiated news, he called about 15 senior officers among them and warned them one by one to desist from the act but all to no avail until the new report about their involvement was brought to his attention.

    The Customs boss, it was gathered, also told the ANLCA chiefs that he needed to take the drastic step against the affected officers to serve as a deterrent to others.

    Dikko, it was learnt, however, told the visiting ANLCA chiefs that he was happy with the crop of Customs Intelligence Unit (CIU) officers.

    He described the CIU officers as the best ever, praising them for displaying professionalism in their work.

    The ANLCA President, Prince  Olayiwola Shittu, said PAAR was working.

    He said the initial challenges faced by the agents were caused by human errors which had been addressed by the Customs.

  • Cargoes worth N500m trapped at port

    Cargoes worth over N500million belonging to some manufacturing companies are trapped at the Lagos ports complex, following the industrial action embarked upon by clearing agents and truck owners over storage charges.

    The goods are also trapped because of the traffic gridlock on the Oshodi-Apapa Expressway and the delay in moving their trucks to the ports, The Nation has learnt.

    A clearing agent close to the importers Mr Rasak Balogun said the delay in moving the goods out of the port, was already affecting their targets for the last quarter of the year.

    Besides, he said banks, were on their necks to service their loans as the year is fast running to an end.

    On the challenges of servicing the loans, Balogun said: “The increase in ship and cargo dwell time has slowed down activities in cargo clearance and this has caused build-ups and tension at the ports. The delay has resulted in the payment of huge demurrage to shipping companies and rent to terminal operators by importers and clearing agents.

    “Once your goods are trapped at the port, you are in trouble because you cannot use the raw materials  and the bank will not allow you to rest until you pay their money.’’

    Sources close to the Nigerian Ports Authority (NPA) at Apapa port said there were over 2,500 un-cleared containers in one of its terminals because of the crisis over storage charges.

    The sources said unless the Minister of Finance and Co-ordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, exercises her powers under Section 152 of CEMA to waive demurrage and other charges on the affected goods, next year might be difficult for most of the affected companies.

    An importer, who pleaded for anonymity, said he took a loan to import some of the items that are trapped at the port.

    “The majority of us in the manufacturing business take loans from the banks to remain in the trade. Once there is a delay in bringing the unfinished imported items to our company, our machines would suffer and we also have to pay staff salary.

    “Don’t forget that before we can move the goods out of the port now or later, we pay a lot of money to the shipping company, the terminal operators and the truck drivers.

    “The delay we are facing was caused by the neglect of improving port facilities by the Federal Government. The major responsibility of the government is to make the ports attractive for business in terms of duty and associated fees; and to make access in and out of the ports easy for users.

    “But when a journey of less than 15 minutes from Mile 2 to Apapa ports now takes almost eight hours for truck drivers, who can withstand the rigour, it calls for the government’s attention; more so, when it is clear that some of the terminals cannot handle more than 200 containers in a day and the manufactures are not the only importers patronising the port,” he said.

  • Shippers Council vows to eradicate arbitrary port charges

    The Nigeria Shippers’ Council (NSC) is determined to stop arbitrary charges to make the ports attractive to business, The Nation has learnt.

    The NSC, sources said, was more determined to close the gaps created by the Federal Government during the concession of the sea- ports to private investors about nine years ago.

    The council, it was learnt, has expressed its readiness to pursue the case to a logical conclusion to improve the performance of the ports by regulating charges and making the ports more cost effective.

    After the final determination of the case, NSC, it was gathered, would ensure that arbitrary charges by shipping firms and terminal operators become a thing of the past in all the seaports.

    A senior official of the Federal Ministry of Transport, who craved anonymity, said at the weekend that the management of the council and the officials of the ministry had embarked on the journey to achieve efficiency at the seaports.

    The era of imposing arbitrary charges that have often been described by importers, exporters and clearing agent as uncharitable, the source said, had gone.

    Shippers’ Council, it was learnt, was going tough because during the concession, the agreement was that the terminal operators were not to increase charges without observing due process. Part of the agreement, the source said, was to call a stakeholders’meeting at which such charges would be discussed and approved before implementation.

    The terminal operators and shipping firms, the official alleged, introduced new charges in the past without calling a meeting of stakeholders.

    “It was this that prompted the agitation for the appointment of a commercial regulator to oversee the activities of stakeholders, including providers and receivers of shipping services. The freight forwarders had on many occasions gone on strike to protest the action of the service providers in increasing charges and for other deplorable conditions in the system. They had argued that this was so because there was no regulator to check the activities of the terminal operators and shipping companies, most of whom are sister companies of the terminal operators. It was based on this problem that stakeholders applauded the Federal Government when it approved the Shippers’ Council as the Economic Regulator,” the official said.

    Since the appointment of Mr Hazzan Bello as the Executive Secretary of the council, it was learnt, the council had started regulating  operators, importers, exporters and clearing agents.

    The NSC, it was gathered, had vowed to check excessive charges against importers to reduce prices of imported goods and make the ports competitive and attractive for business.

    Bello expressed optimism that the council would deliver on its new mandate.

    The council, Bello said, was determined to meet the expectations of Nigerians in terms of port operation, efficiency and port charges.

    He assured genuine importers that  irregularities and arbitrariness in the ports system would be addressed.

    The NSC, he assured, would look into the high cost of doing business at the ports, and what was responsible for the diversion of goods meant for ports to neighbouring ports of Cotonou.

    The President, Association of Nigerian Customs Licensed Agents (ANLCA), Alhaji Olayiwola Shittu, urged the council to review charges  imposed on importers.

    He alleged that the terminal operators and shipping firms forced importers to pay demurrage even when it was their fault that the importers could not take delivery of their goods on time.

    Shittu urged the National Assembly to shippers, clearing agents and consumers of imported goods by ensuring that the bill to empower the council on its new role as port economic regulator was passed into law to stem the  tide of a litigation that could scuttle the good intention of the Federal Government to make imported goods cheap and available to Nigerians.

  • Customs goes tough as Yuletide approaches

    The Nigeria Customs Service (NCS), Seme and Western Marine Commands have raised the anti-smuggling tempo by deploying senior officers to the remote areas of the land and part of the Atlantic Ocean to deal with the smugglers during the yuletide, investigation has revealed.

    The working relationship between the two commands, it was gathered, emanated from the report that the smugglers would on rampage from the beginning of this month till the end of December.

    The Area controllers of the two commands, findings revealed, have increased the current  patrols on land and the sea, fortified the approved check points and other swampy areas in Seme, Ojo, Sibiri, Igbesa, Agbara, Badagry, Owode-Apa and other areas where operational boats and vehicles could not access with highly committed young and youthful senior officers.

    When The Nation visited the Western Marine command last Friday, its Acting Area Controller Johnson Gabriel was directing some of his senior officers who were on top of their operational boat and armed to teeth to comb all the rivers linking the Atlantic Ocean from Lagos to Ogun, Oyo and Ondo states so that no smuggler would be able to use barges to smuggle rice and other prohibited items into the country.

    While the Western Marine officers are set to confront the smugglers at the sea, officers and men at the Seme command, it was learnt, have been mandated by their Controller Willy Egbudin    to comb all the bush paths in their area of jurisdiction to find the new hide-out of smugglers who specialised in bringing into the country all prohibited items like second hand clothing, bags, shoes, frozen chicken, bags of rice, used tyres and other items through the land and the swampy area.

    Over 50 dedicated officers deployed by the two commands, it was gathered, were instructed to also beam their searchlight on land and sea travelers around the border areas who might want to bring in bags of rice and frozen foods under the pretext that they are meant for personal consumption.

    When this reporter visited the Seme border yesterday, most of the vehicles operating around the area were stopped on the road, and Customs officers were see collecting contrabands including small quantity of rice and cartons of frozen from traders and those who claimed to be travelers.

    Customs sources at the border told the paper that such small quantities of rice ranging between 10kg and 25kg per trip are stored in commercial quantity by the so-called travelers for onward shipment into markets.

    Findings revealed that the command has put a check on the so-called travelers by seizing every bag of rice from persons coming into the country no matter how small it is.

    The move, investigation revealed, has made the area controller, Comptroller Willy Egbudin and his officers unpopular among many trans-border traders and travelers around the areas.

    The anti smuggling drive of the two commands now stretch to various swampy areas where vehicles could not access, in addition to the visible patrols of the waters and the land and proper manning of all approved checkpoints.

    The command has also increased foot patrol along the bush paths and raised its level of intelligence gathering for preventing, interdicting and uncompromising arrests of smugglers.

    Contacted, its Public Relations Officer, Mr Ernest  Olottah said the controllers have set in motion a system that makes the fight against smuggling more serious.

    Although the image maker was not specific on the collaboration between its command and the Western Marine, he was emphatic that all the Customs commands across the country are working together and operating as one.

    “You know we are in the first week of November, this is the time most of the people who engage in nefarious activities use to smuggle approved and un-approved imported items into the country through the land and the sea. They do this to deny the Federal Government the needed revenue to boost the economy.

    “But let me tell you that all our officers across the country have been put on the red alert by our Comptroller General, Alhaji Dikko Abdullahi to reduce to the barest minimum the activities of the smugglers during this season and beyond and we are determined to carry out his order and as directed.”

    Olottah warned all smugglers operating in the area through the land or the sea to desist as he said that there no hidden place for them operate.