The Nation Newspaper

Category: Maritime

  • How shipping companies, terminal operators milk Nigerians

    Shipping companies and terminal operators are making several billions of naira yearly at the nation’s seaports from storage charges they have unilaterally imposed on importers, The Nation has learnt.

    The charges are in respect of rates importers are forced to pay on weekends and public holidays that the shipping companies are not opened for business.

    Speaking at the official opening of their secretariat at Tin-Can Island port, Lagos, the Association of Nigeria Licensed Customs Agents’ (ANLCA) Chairman,  Prince Kayode Oyinlola, berated the shipping companies and terminal operators for collecting excessive money for services not rendered.

    He  bemoaned the amount deducted from their container deposits while their trucks are waiting to discharge empty containers because of lack of holding bays in most of the terminals.

    Police, quarantine and other agencies, he alleged, impede the government’s trade facilitation programme by blocking the release of containers through frivolous excuses.

    Oyinlola said: “These issues are not exhaustive, but are enough to catalyse us into action to recue our members from unwarranted hardship.”

    e high tariffs charged at our home ports.

    The importers also alleged that it takes terminal operators more than three days to position their containers after they have requested for them.

    The spokesman for the importers, Johnson Eromosele, alleged that the terminal operators have also consistently asked them to pay storage charge even when the operators fail to position their containers for examination.

    The amount they pay, Johnson said,  most of the time, is  inflated, adding that most of the terminals at the Lagos ports,  do not have suitable examination bays,  where all containers confirmed for examination by the Nigeria Customs Service can be positioned.

    The importers are furious that the terminal operators cause undue      delays in the clearing process, resulting in increased port charges which over time erode their gains and customer confidence.

    Findings also revealed that when a consignee submits all the necessary documents to some of the terminal operators and makes request for an invoice to enable the clearing process, the invoices are sometimes delayed till the following day before they were issued.

    This delay, the importers claim, gives rooms to the shipping companies and terminal operators to milk Nigerians.

    “When the importer, clearing agent, or the truck driver presents a Terminal Delivery Order (TDO) to the terminal operators, most of the time, they find it difficult to locate the container, thus causing undue delay and still , they go ahead to demand for storage fees,” Johnson said.

    Investigation however  revealed that the terminal operators have unilaterally increased the storage charge in violation of the last approval given by the Federal Government through the Minister of Transport on May1, 2009.

    Sources at the Federal Ministry of Transport said in the said approval, “it was emphasised that the rates are the absolute maximum any terminal operator is allowed to charge, and under no circumstances shall any of the operators charge an importer any amount higher than the rates approved by the government. But the terminal operators have since embarked on progressive increases in the storage charge thus violating the government’s order.”

    The Federal Government, through the Nigerian Shippers’ Council, the official said, has directed all shipping companies and shipping agents to ensure the refund of container deposit fees within 10 days after the empty container has been returned to the terminal.

    “Failure will attract interest on the outstanding amount of deposit at the Central Bank of Nigeria (CBN) prevailing commercial rate until refund is made,”  he said.

    Findings revealed that more than 35 per cent of container deposits collected for shipping companies by terminal operators are not refunded despite the efforts by importers and their agents  to return empty containers on time and in good condition.

    To resolve the issues, the Federal Government, a source said, has ordered joint examination of the condition of containers before the truck drivers will move them out of the port and when it is returned, so that nobody will use it to exploit the importers.

    The terminal operators and the shipping companies, it was learnt, also feed fat on the importers because of endemic traffic situation in Apapa and Tin-Can Island ports.

    The Federal Government, through the Nigerian Shippers’ Council, it was learnt, has pegged fees paid for container cleaning and maintenance to N1, 500, while the free period prior to payment of demurrage has been increased from five days to 10, in line with sub-regional and international practices.

    Before the recent move by the government, Nigerian port had five demurrage-free days, Ghana, eight days, while Benin Republic, has 10 days.

    The Seaport Terminal Operators Association of Nigeria (STOAN), it was learnt, is not happy with the reversal in the storage charges and it has gone court to seek redress.

  • SON targets N5.7b yearly revenue on vehicles

    SON targets N5.7b yearly revenue on vehicles

    •ANLCA,  others kick

    The Standards Organisation of Nigeria (SON) is set to rake in N5.7billion yearly with its planned implementation of N20,000 pre-shipment inspection levy on  imported vehicles.

    The amount, findings revealed, would accrue to the agency, based on the average of 250,000 vehicles imported into the country annually.

    But the President, Association of Nigerian Licensed Customs Agent (ANLCA), Prince Olayiwola Shittu,  has threatened that the association will withdraw its services if SON goes ahead with the fee.

    He told The Nation that the group is against the implementation of the controversial levy because importers will equally lose the same amount in return.

    “I heard that the Standards Organisation of Nigeria (SON) wants to be charging N20,000 per vehicle that is imported into the country. When we calculated the money based on an average of 250,000 vehicles imported per annum, we understood that the agency will be collecting N5.7 billion every year. The policy has not gone through the National Assembly, it has not been appropriated and this is the same agency that receives budgetary allocation every year from tax payers’ money,” he said.

    He stated that  SON may be allowed to collect the fees if the Federal Government through the Nigeria Customs Service, agrees to pay clearing agents 10 per cent of its total revenue collection.

    “The day SON forcefully starts the collection of the money, our members will stop work.

    “The negotiation is that SON can collect N20,000 but the government must be ready to give us 10 per cent of the revenue we generated to Customs. That will be the yardstick for our negotiation. We have tried to keep peace in the port for over four years, we have never gone on strike because we are a professional body but if that is the only language the government understands, we will down tools.

    “The least we are asking through Customs from the Federal Government is 10 per  cent of the total collection. We are entitled to it, Cotecna, SGS and the other Service providers were contractors to the government and they were collecting one per cent FOB but when they couldn’t manage RAR and Customs came up with a superior system, and that is PAAR. The service providers couldn’t get the cheap money they were making in those days, so they went through the Ministry of Investment to get another contract with the SON so that they can be making a minimum of N5billion per annum. That is why in no distance time, we shall tell them we are life-wire of the ports. If they want us to close the ports, we shall assist them to do so,” Shittu said

    It would be recalled that SON had last month appointed three companies including Cotecna Destination Inspection Limited, Quality Assurance Projects Limited and Medtech Scientific Limited to verify Nigeria-bound vehicles before shipping into the country with an inspection fee of not less than N20,000 per vehicle.

     

  • LCCI berates govt on revenue target for Customs, FIRS

    LCCI berates govt on revenue target for Customs, FIRS

    The Lagos Chamber of Commerce and Industry has faulted the revenue targets given by the Federal government to the Nigeria Customs Service and other government agencies at ports.

    Its President, Alhaji Remi Bello, said there were negative manifestations in the manner of import valuation by the Customs.

    “Reports reaching the chamber indicate many instances of upward review of values of imports in complete disregard to the values of invoices of such imports.

    “Importers have been made to pay import duty and other charges that are far beyond what they ordinarily should have paid. Many investors have suffered untold hardship as a result of this practice, especially when there is no effective dispute resolution system in place.”

    He said the idea of giving targets to revenue generating agencies could result in some unintended consequences.

    The Federal Government had last week, said it has raised the revenue targets of the Nigeria Customs Service and the Federal Inland Revenue Service in order to make more money available in view of dwindling crude oil revenue.

    He said there is a risk that best practice principles will be compromised by the agencies in their desperation to meet set targets.

    He noted that the downward trend of oil price in international market is a setback for the nation’s economy.

    The LCCI President said that the current scenario of sliding oil price from $114 per barrel in June to $85 per barrel now, is the lowest the price has fallen in three years with implications for the capacity of government at all levels to meet their statutory obligations.

    He said: “On top of that, we are struggling with the problem of crude oil theft which is taking its toll on output. For an economy that is 95 per cent dependent on oil for its foreign exchange earnings and 85 per cent dependent on it for revenue, this development should be a cause for concern,” he said.

  • NIWA to penalise dredging operators violating the rules

    The management of the National Inland Waterways Authority (NIWA) has threatened to penalise any dredging operator in Lagos State who fails to comply with its rules and regulations.

    NIWA’s Lagos Area Manager,  Muazu Sambo, told The Nation that the agency will not allow dredging firms to violate the stipulated rules.

    Sambo listed some of the rules and regulations that operators need to follow as: Registering with the agency, conducting Environmental Impact Assessment  before operations and possessing a statutory certificate.

    The Area Manager said the other rules include conducting proper survey, possessing work permit and consulting with professionals, adding that it is necessary and compulsory for dredging operators to comply with all the rules and regulations of NIWA while carrying out their dredging activities.

    “NIWA will no longer tolerate non-compliance with rules and regulations by dredging operators, and any operators found violating government rules will be sanctioned.

    “Compliance with our rules and regulations will bring about effective operations on the waterways,“ he said, arguing that the rules are necessary so that government could keep record of legal operators in the state and their activities.

    “The laws are to ensure that operators are doing the right thing on the waterways. The safety of operators matter to the government, therefore, rules and regulations need to be applied to ensure effective and smooth operations on the waterways, “ he said.

    Sambo said that the authority would address the incidence of multiple taxation affecting the operators, stressing that, according to legislation, NIWA was the only body licensed to collect tax from operators.

    He said the authority would collaborate with the Auditor-General of the Federation, Federal Ministry of Justice and Nigeria Police to tackle the issue of multiple taxes.

  • Calabar Port: Dredging ignites hope on $10b investment

    Calabar Port: Dredging ignites hope on $10b investment

    •Investors worry over litigation

    Optimism has been rekindled over the  $10 billion investment in Calabar port following the flag-off of its dredging by the Federal Government.

    The huge investment, operators said, had been put on hold for seven years.

    The flag-off ceremony was done by  the Minister of Transport,  Senator Idris Umar, who represented President Goodluck Jonathan.

    But some of the major investors at the port, it was gathered, are worried over the litigation that may follow the flag-off ceremony by the company that bided for the contract before the procurement process was cancelled by the management of Nigerian Ports Authority (NPA).

    Some of the companies that have huge stakes in the port, include General Electric, Tinapa Business Resort, Calabar Free Trade Zone, ECM Terminals Ltd, Intel Services and Cocoa Industries.

    Some of the officials of the companies, who spoke with The Nation under the condition of anonymity said they are happy over the efforts of the government to dredge the channel, but are worried over the controversy surrounding the award of the N20 billion contract by NPA, which they said may stall the process.

    The shallow nature of the water channel, they said, has made it impossible for bigger vessels to sail through, thus contributing to the reason many importers are not patronising the port and the reason why they have not made profit on their investment.

    Findings revealed that the draft at approach of the port was 6.4 metres at high tide and 5.4 metres at low tide.

    The concession agreement, the investors said, stipulated that the Federal Government will take the draft to 9.5 metres and that the Bureau on Public Enterprise (BPE) had told them that the draught would be achieved on start of business.

    Between August 2007 and December 2012, it was learnt, only 680 vessels patronised the port. ”The non-completion of the dredging of the channel to the advertised draft of 9.4 metres is the biggest threat to the development of the port with adverse effect on our financial projection and cargo throughput was predicted on the completion of the dredging as assured during the concession exercise.

    “Companies like Flour mills, Unicem and Dangote and others do not enjoy the economy of scale in their vessel nominations to Calabar due to the fact that their full load arriving vessel has to lighten some cargo tonnage in Lagos before calling at Calabar Port due to draft limitations. Hence, a cargo ship load that could have come at once per voyage ends up being conveyed down to Calabar Port in two or three voyages,” the official said.

    Findings revealed that no container ship visited the port in the last four years.

    The Minister at the venue said the dredging would be performed by the Calabar Channel Management (CCM) and Messrs Niger Global Engineering and Technical Company Limited.

    He explained that the channel would be deepened from its present eight metres to 10 metres.

    Investigation revealed that it may take the dredging firms up to two years before they will complete the remaining 24 kilometres to be dredged.

    Sixty killometers of the channel, the Minister said, has been accomplished through the past dredging efforts.

    The Calabar port, he said, would attract more ships by the time the contractors finished their job.

    In his speech, the Cross River State governor, Senator Liyel Imoke said he was not happy about the poor state of the port.

    He said nine years after, the Calabar channel dredging contract had not been completed.

    “We hope that this time around, the project will come to stay. This project is not about dredging of Calabar port channel, It has become a sentimental issue to us.”

    He said the port has been severely under served the people of the area and that it has not realised its true potentials.

    The governor, however, noted that the successful completion of the project will boost the economy of the state, noting that many companies depend on the port to realise their objectives.

    In his address, NPA’s  Managing Director, Mallam Habib Abdullahi said his agency  would ensure the success of  CCM in its operations and overall management of the channel.

    He assured that the activities of CCM would open up  market for Calabar region and the entire South- South.

    A member of NPA board, Senator Florence Ita Giwa urged the the government  to modernise the Ikom B ridge and Odukpani  road, saying that, without it, the dredging would amount to nothing.

  • Customs rakes in over N79b in Apapa, Seme

    The Nigeria Customs Service (NCS), Apapa Area Command has generated about N78.6 billion in the third quarter of the year the Comptroller, Eporwei Edike, has said.

    Edike, told The Nation, that N30.5 billion was generated in September, while N22.7 billion and N25.5 billion came in July and August, respectively.

    Also, the Seme Command of the Service added N963.7m revenue in September.

    The amount generated by the two commands is well over N79 billion.

    The Command’s Public Relation Officer (PRO), Ernest Olottah, said the revenue was N182 million higher than the N781 million generated in August.

    He attributed the increase to higher trading activities and reduction of smuggling activities in the area.

    “In the month of September, the Command generated higher revenue because trading activities were higher than in the previous months.

    “Willy Egbudin, the Customs Area Controller of the Command, has deployed all personnel and available logistics on intensive vehicular and foot patrols along the border lines and all routes, including non-motorable areas.

    “These patrols and other anti-smuggling activities are paying off as unrepentant smugglers are fleeing the area.

    “Also, we are heading towards the tail end of the year so trading activities would increase and this would enable us to surpass our monthly target of N1.1 billion,” he said.

    He said the revenue generated in  September was the highest monthly collection made by the Command between 2013 and 2014, adding that the Command would realise the N13bn revenue target for the current year.

    He said the Command made 31 seizures in the month under review, including rice, vehicles, narcotics, frozen poultry products and general goods.

  • Police partner agents on security

    THE Commissioner of Police in charge of the Western ports, Mrs Hilda Harrison, has urged stakeholders in port operations to give useful information to the police on port security, to assist the force in carrying out its duties.

    The female police chief however, warned that any operator who violates the rules would face the  music.

    She gave the warning at the National secretariat of the Association of Government Approved Freight Forwarders (NAGAFF) in Lagos.

    She promised to reduce bribery and corruption in the port to boost maritime business.

    “We all see, we all do and we are doing nothing about it. It is so sad and so painful because bribery diminishes a man. It is very shameful.

    “If you fear God and respect yourself, you will not take bribe and you will not be corrupted,’’ she said.

    She said the law does not allow bribery and corruption and advised stakeholders to guard against it.

    She urged other agencies operating in the maritime sector to support the Police by ensuring that the security at the port is not compromised, adding that security at the seaports is a serious business that must not be violated.

    Her mandate, she said, is to ensure that stakeholders in the sector abide by the rules and regulations in the ports, noting that the ports have its restricted area .In his speech, the NAGAFF President Chief Eugene Nweke said that the association will continue to partner with police in ensuring that the seaports are adequately secured.

    He said NAGAFF is involved in public advocacy, noting that security at the ports is important  to boost cargo clearance.

  • ‘Protect waterways against pollution’

    The rate of polluting the nation’s territorial waters, illegal fishing and duping of hazardous wastes has been on the increase, The Nation has learnt.

    A member of the Fishery Society of Nigeria (FISON), Gbolahan Adetona, said the country needs to work with foreign partners to develop the needed capacity in tackling the crisis caused by pollution, hazardous waste dumping and illegal fishing

    Adetona said the dumping of toxic waste in the maritime domain and the increasing crimes on the coastline require commitment on the side of the Federal Government and the Nigerian Maritime Administration and Safety Agency (NIMASA) to provide capability and cooperation with foreign partners to build its maritime capability.

    Adetona pointed out that security experts around the Horn of Africa have developed theories over the increasing hazardous wastes dumping and piracy

    He said Singapore, Indonesia, Malaysia, the Philippines and Thailand had set the stage for cooperation between states, both in information exchange and mobilisation of resources.

    Another member of the group, Mrs Lola Adebajo, observed that the insecurity in Africa’s waterways had forced insurers to hike rates for ships passing through the region.

    Specifically, coastal and inland states had seen their vital trade links threatened by pirates, a situation that led to rising costs that their populations must bear.

    “As at now, there are no clear answers as to the best ways to ensure maritime security, nor are there clear answers as to what percentage of resources nations should allocate to maritime security to best facilitate the goal of furthering development,” she said.

    Since piracy is not the only threat to maritime security, another member, Mr Sesan Olanipekun, advised the government to adopt best practices that can be implemented.

  • Boat operators decry multiple charges

    The Federal Government has been urged to build more Jetties to boost water transportation in Lagos State, to address the problem of multiple charges facing boat operators in the state.

    The President, Association of Tour Boat Operators and Water Transport of Nigeria (ATBOWATON) Tarzan Balogun, said the federal, states, local governments and the Nigeria Inland Waterways Authority (NIWA) officials collect different dues from their members, urging that  government should harmonise the fees.

    He lamented that insufficient jetties and boat stations have impeded water transportation in the state.

    “A jetty is a point where boat operators assemble to convey passengers to their various destinations; it is also an arrival and departure point.

    “Some people in Lagos prefer to use water transportation as an alternative to road transport because of the traffic challenges on the roads.

    “But, the challenge we are facing is the issue of jetty. We do not have enough jetties that we can operate from,’’ Balogun said.

    He listed places like Badagry; Amuwo Odofin; Epe; Ikorodu; Makoko; Lagos Island; Ajah; Takwa Bay and Apapa, as locations where the jetties could be sited for easy movement of people within the state.

    Although, he said there are some functional jetties in some of the areas mentioned, many of them, he pointed out are in a deplorable  state and needed to be upgraded.

    “The few jetties around Lagos State are not enough to convey passengers on the waterways. The water transportation users are far more than the jetties we have now.

    “There are some areas in Lagos that need the service of boat operators, but the lack of jetties in such environment have denied them our services,” he said.

    He said the issue of multiple charges needs to be addressed by the government because it impedes their business.

    “The Federal Government agencies collect their charges, Lagos State government collects tax, the local governments collect their own dues too.

    “Nigeria Inland Waterways Authority (NIWA) collect their own charges as well, all these multiple charges kill the industry and can frustrate operators out of business,’’he said.

  • Calabar Port: Dredging ignites hope on $10b investment

    Calabar Port: Dredging ignites hope on $10b investment

    •Investors worry over litigation

    Optimism was rekindled over the   $10 billion investment in Calabar port following the flag-off of its dredging last weekend.

    The huge investment, operators said, had been put on hold for seven years.

    The flag-off ceremony was done by  the Minister of Transport,  Senator Idris Umar, who represented President Goodluck Jonathan.

    But some of the major investors at the port, it was gathered, are worried over the litigation that may follow the flag-off ceremony by the company that bided for the contract before the procurement process was cancelled by the management of Nigerian Ports Authority (NPA).

    Some of the companies that have huge stakes in the port, include General Electric, Tinapa Business Resort, Calabar Free Trade Zone, ECM Terminals Ltd, Intel Services and Cocoa Industries.

    Some of the officials of the companies, who spoke with The Nation under the condition of anonymity said they are happy over the efforts of the government to dredge the channel, but are worried over the controversy surrounding the award of the N20 billion contract by NPA, which they said may stall the process.

    The shallow nature of the water channel, they said, has made it impossible for bigger vessels to sail through, thus contributing to the reason many importers are not patronising the port and the reason why they have not made profit on their investment.

    Findings revealed that the draft at approach of the port was 6.4 metres at high tide and 5.4 metres at low tide.

    The concession agreement, the investors said, stipulated that the Federal Government will take the draft to 9.5 metres and that the Bureau on Public Enterprise (BPE) had told them that the draught would be achieved on start of business.

    Between August 2007 and December 2012, it was learnt, only 680 vessels patronised the port. ”The non-completion of the dredging of the channel to the advertised draft of 9.4 metres is the biggest threat to the development of the port with adverse effect on our financial projection and cargo throughput was predicted on the completion of the dredging as assured during the concession exercise.

    “Companies like Flour mills, Unicem and Dangote and others do not enjoy the economy of scale in their vessel nominations to Calabar due to the fact that their full load arriving vessel has to lighten some cargo tonnage in Lagos before calling at Calabar Port due to draft limitations. Hence, a cargo ship load that could have come at once per voyage ends up being conveyed down to Calabar Port in two or three voyages,” the official said.

    Findings revealed that no container ship visited the port in the last four years.

    The Minister at the venue said the dredging would be performed by the Calabar Channel Management (CCM) and Messrs Niger Global Engineering and Technical Company Limited.

    He explained that the channel would be deepened from its present eight metres to 10 metres.

    Investigation revealed that it may take the dredging firms up to two years before they will complete the remaining 24 kilometres to be dredged.

    Sixty killometers of the channel, the Minister said, has been accomplished through the past dredging efforts.

    The Calabar port, he said, would attract more ships by the time the contractors finished their job.

    In his speech, the Cross River State governor, Senator Liyel Imoke said he was not happy about the poor state of the port.

    He said nine years after, the Calabar channel dredging contract had not been completed.

    “We hope that this time around, the project will come to stay. This project is not about dredging of Calabar port channel, It has become a sentimental issue to us.”

    He said the port has been severely under served the people of the area and that it has not realised its true potentials.

    The governor, however, noted that the successful completion of the project will boost the economy of the state, noting that many companies depend on the port to realise their objectives.

    In his address, NPA’s  Managing Director, Mallam Habib Abdullahi said his agency  would ensure the success of  CCM in its operations and overall management of the channel.

    He assured that the activities of CCM would open up  market for Calabar region and the entire South- South.

    A member of NPA board, Senator Florence Ita Giwa urged the the government  to modernise the Ikom B ridge and Odukpani  road, saying that, without it, the dredging would amount to nothing.