Tag: Bello

Background Inland Container Depots (ICDs) also called dry ports because they are not situated close to sea or rivers, are equipped to handle and temporarily store containerised cargo as well as empty containers. The United Nations Conference on Trade and Development (UNCTAD) also defined ICD as “a common user facility with public authority status equipped with fixed installation and offering services for landing and temporary storage of export, laden and empty containers Carried Under Customs Control and with Customs and other agencies competent to clear goods for home use, warehousing, and export, temporary storage for onward transit and outright export.”

In view of the importance of the depots, the Federal Executive Council (FEC) approved the construction of six ICDs in the six geopolitical zones of the country under the build, own, operate and transfer (BOT) agreement in 2006. The project was gazetted in May, 2007.

The government’s action was informed by the unwarranted but avoidable congestion at the ports, which made shippers to pay huge demurrage on cargoes and miss targeted schedules on clearance of such cargoes.

With the gazetting of the initiative, the depots were allocated to six concessionaires. Eastgate Inland Container Terminal Limited got that of Southeast zone located at Isiala-Ngwa (Aba) in Abia State. It has a capacity for 50,000 twenty-foot equivalent units (TEUs). Catamaran Logistics Limited is in charge of the Southwest zone located in Ibadan, Oyo State and has a capacity for (TEUs), while Dala Inland Dry Port Limited, which is for Northwest zone is situated in Kano, Kano State and does 20,000 TEUs.

Others include Duncan Maritime Services Limited for North Central zone in Jos, Plateau State with capacity for 20,000 TEUs; Equatorial Marine Oil and Gas Nigeria Limited for Northeast zone located in Funtua, has capacity for 10,000 TEUs; and MIGFO Nigeria Limited for Northeast zone located in Maiduguri with 10,000 TEUs capacity

For effective implementation, the government directed that the Nigerian Shippers’ Council (NSC) within whose purview the project falls to sign memorandum of understanding (MoU) with the Nigerian Ports Authority (NPA), Nigerian Customs Services (NCS), Nigerian Railway Corporation (NRC) and security agencies.

The ICDs now

Seven years after the government approved the construction of the six ICDs, none is operational even though some have reached completion level. It is in view of this that operators in the industry are calling on the government for more intervention to see the six depots running effectively. Some of the operators believe that with the Yuletide drawing close, there would be increased influx of cargoes and consequently increased congestion.

Stakeholders’ view

President of the National Association of Government Approved Freight Forwarders (NAGAFF), Chief Eugene Nweke, described ICD as an equivalent of a seaport located in the hinterland because it receives containers by rail or other system from the seaport for examination and clearance by Nigeria Customs Services. It has all the loading and off-loading equipment needed to handle container and general cargo. He said the group fully supports the NSC and is ready to work them to ensure success of the project because it will hugely facilitate trade in the country. He said the establishment of the ICDs would drastically reduce the numerous trade obstacles being faced by importers.

He said: “The current nightmare being suffered in the ports, particularly in Lagos terminals, has made it necessary for the establishment of ICDs”, noting that the problem that would greatly militate against the success of ICDs is the inefficient rail system linking the ports in the hinterland. We appeal to the Federal Government to show more practical commitment to ensuring the ports are linked with rail. This is the only sure way to complete and reward success of the ICDs.

“ICDs essentially are targeted at facilitating trade by way of decongesting the ports. ICD also decentralise clearing and boost the economies of other zones. It opens up the hinterland. It is a wonderful concept, but the effectiveness of the project, no matter how beautifully and wonderfully packaged, must have inter-modalism, that is, the mode of moving the cargoes from the seaport to the hinterland where the ICDS are must be efficient. For instance, if you are moving cargo from Lagos to Kano or Aba, and the rail system is efficient, delivery of the cargo would be timely. Currently, the roads are not dependable. “

He said shippers, freight forwarders and other individuals involved in the movement of cargoes out of the ports are desirous of an agency that should be an in-between to serve as a mediator in times trade dispute and the NSC was conferred with the powers not just to mediate but to also protect the interest of Nigerian shippers. Therefore, any initiative the council takes should be in the interest of shippers and those involved in the movement of cargoes from the seaports. He commended the leadership of NSC for embracing partnership with the private sector noting that it is good of the industry.

Benefits of ICDs

The benefits of Inland Cargo Depots (ICDs) are numerous. The Nation learnt that with the ICDs, the establishment of customs clearance facility close to production and consumption centres would be inevitable. It will also improve container usage and result in reduction of movement of empty containers.

The Executive Secretary of NSC, Hassan Bello, told The Nation that when the ICDs becomes operational, it would improve the turnaround time of ships thereby reducing demurrage and avoiding pilferage and engender a system of efficiency in cargo delivery.

It was learnt that ICD will lower freight cost and increase trade flows as well as bring into being optimal use of surface transport. It will also lead to reduction in marine pollution activities around the seaport and pave way to easy and safe access to international shipping facilities in the hinterland giving a boost to inland trading. It will also result in revitalisation of export agriculture leading to multi-product economy, reduce urban-rural drift and increase government’s revenue. It will boost the rehabilitation of the rail transport system and reduce pressure on the roads.

Bello noted that the ICD project is part of the transformation agenda of the Federal Government to achieve efficiency at the ports, generate thousands of employment and boost the economies of the states where they are located. He said ICDs will bring shipping services to the door step of shippers across the nation, assist in decongesting the seaports thereby making them more user-friendly, help revive and modernise the railway as a primary mode for the long distance haulage of cargo and assist in the reduction of overall cost of transit cargo to landlocked neighbouring countries.

Bello told The Nation that the management of NSC is determined to make the ICD project succeed and the operation sustainable.