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  • Govt to phase out physical examination of cargoes

    Govt to phase out physical examination of cargoes

    The Federal Government has directed that physical inspection of cargoes at the ports be phased out.

    This was disclosed yesterday after a meeting held between the ministers of Marine and Blue Economy, Adegboyega Oyetola, his counterpart in the ministry of Transportation, Senator Said Ahmed Alkali and the Comptroller-General of the Nigeria Customs Service (NCS) Bashir Adewale Adeniyi

    The directive, it was gathered, is part of the efforts of the government to stop NCS personnel operating at the seaports from physically sorting out goods for inspection, thus ensuring efficiency and competitiveness and end corruption and other bottlenecks.

    At the meeting, they agreed that the use of modern technologies like scanners is important to addressing the issue of ports congestion, so as to ensure efficiency and competitiveness.

    The resolutions were contained in a statement jointly signed by the spokesperson to the Minister of Marine and Blue Economy, Ismail Omipidan and the National Public Relations Officer of Customs, Abdullahi Maiwada.

    To this end, Adeniyi has been charged to enforce the use of scanners at the ports, and urged private investors to invest in the deployment and maintenance of scanners at the nation’s ports.

    The meeting took the decision because the most harrowing part of the experience at the port is the cargo clearing process.

    For the examining officer, physical cargo inspection can be life threatening.

    Cargo scanning is a non-invasive method of inspecting and identifying goods in transit to specified destinations. It is frequently used to scan freight shipping containers and this means that scanners can be mounted on trucks to scan vehicles, containers and other objects, without opening them.

    According to the statement, the meeting, was held at the Ministry of Marine and Blue Economy and had the Managing Director of Nigerian Railway Corporation (NRC), Fidet Okhiria attending virtually.

    The meeting also resolved to ensure a new construction that will bypass the fixed scanner at Apapa port, so as to ensure the unhindered progression of scanning process during crucial infrastructure development.

    “In a significant milestone for Nigeria’s maritime landscape, a pivotal strategic meeting was held at the Ministry of Marine and Blue Economy on Monday, 15 January 2024.

    “The primary thrust of this collaborative venture was to deliberate and actualise initiatives that would not only open up ports but also foster seamless cooperation and trade and facilitation. A key focal point of discussion was the strategic integration of the Non-Intrusive Inspection Technology (NIIT) to bolster operational efficiency in Nigerian Seaports.

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    “Acknowledging the pivotal role of NIIT in actively decongesting ports, the meeting entrusted the Comptroller General of Customs with the mandate to champion and prioritize cargo scanning over traditional physical examination methods,” the statement read.

    Immediate action, the statement said, “was endorsed to rectify and optimize all existing scanners at prominent ports such as Apapa, Tincan Island, Onne, and PTML. Simultaneously, the existing mobile scanners will be strategically deployed to facilitate expeditious cargo inspections.

    “The Nigerian Railway Corporation (NRC) pledged continued commitment to freight cargoes to Inland container depots/dry ports, a strategic move to alleviate congestion at major ports. Plans were unveiled for the efficient evacuation of containers from Port Harcourt to Aba, with future extensions envisaged for Onne Port.

     “Against the backdrop of rail track construction, the NRC concurred on a pragmatic approach by agreeing to bypass the fixed scanner at Apapa. This ensures the unhindered progression of scanning process during crucial infrastructure development.

      “The meeting advocated for exploring Public-Private Partnerships to oversee the installation and maintenance of scanning technology. This collaborative model aims to sustain efficiency and foster innovation in cargo inspection processes.

    The collaborative synergy witnessed at the meeting “underscores the unwavering commitment of the Nigerian government to cultivate a conducive and efficient trade environment. The anticipated implementation of these resolutions is poised to positively impact port decongestion, trade facilitation, and overall operational efficiency and competitiveness.”

  • Govt may auction abandoned cargoes at Lagos ports

    Govt may auction abandoned cargoes at Lagos ports

    Minister of Marine and Blue Economy, Adegboyega Oyetola has bemoaned the huge number of overtime cargoes abandoned at the Lagos Ports Complex (LPC), Apapa, and  Tin Can Island Port in Lagos, saying the efficiency of the two ports was being threatened by the abandoned goods.

    The huge number of the cargoes, the Minister said, has become worrisome to the federal government because of its ripple effect on port operations and the nation’s economy and directed the owners to clear them on time before they would auctioned by the government.

    The Minister disclosed this yesterday, during his maiden visit to headquarters of the Nigerian Shipper’s Council (NSC), in Apapa, Lagos.

    Oyetola, therefore, have called on the Acting  Comptroller-General, Nigeria Customs Service (NCS), to collaborate with the ministry to free up the Lagos ports, through the auctioning of the 6,000 identified containers at the port.

    Sources closed to the terminal operators said the worth of the abandoned cargoes is over N200 billion.

    Some of overtime cargoes, the Minister said, have been in the port since 2011 and have become nuisance to the ports and tagged their non-removal as a loss to the economy.

    Cargoes are classified as overtime when they have stayed at the ports for over 30 days without clearance and delivery.

    Oyetola pointed out that some of the importers might have abandoned their goods at the port because they could not afford to pay demurrage as a result of unnecessary delays in evacuating their consignment

    Findings have shown that overtime cargoes occupy between 30 and 35 per cent of some of the terminals in Lagos.

    Oyetola called for a concerted effort and proper measures by the government agencies at the port to address the endemic problem.

    He assured that his ministry would engage the leadership of Customs on the issue so as to evacuate the cargoes .

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    He also bemoaned the few number of scanners available for cargo examination saying that physical examination process embarked upon by security agencies would not encourage trade facilitation and revenue drive of the Federal Government.

    His words:”Well talking about the abandoned cargoes, I went on a tour, it was in Apapa port that they took us to where we have overtime cargoes. And they said some have been there since 2011. So I now want to believe that it is likely to happen in other ports. Particularly, Tin-Can and Apapa ports they have about 6000 abandoned cargoes.

    “You can imagine how much space the cargoes are occupying and the type of revenue the country is loosing. So I am going to engage the management of the Nigeria Customs Service to see what we can do. There must be a time frame by which a cargo can stay otherwise declared abandoned.  To have kept cargo since 2011, it is unrealistic and unacceptable,” he said

    “Marine and Blue Economy has always been there but we are just beginning to look at it in a more coordinated manner.

    “This Marine and Blue Economy evolves around economic growth, improved standard of living and employment. I am charging us to be more creative by seeing ourselves as civil servants in business,” the Minister said.

    The Minister however, said that he was impressed with the accomplishments of the Council so far and he promised to partner the agency in tackling the issues highlighted as requiring urgent  attention.

  • ‘60% of Nigeria’s cargoes diverted’

    The Managing Director/CEO, Cowry Asset, Johnson Chukwu, has urged the Federal Government to redfuce import charges and fix the roads leading to the nation’ s sea port to facilitate trade and end cargo dicersion to ports of neighbouring countries.

    He said over 60 per cent of  cargoes coming to West African countries, are destined for Nigeria, but only 30 per cent of it are discharged at the sea ports because of high import charges, bad port roads and inconsistent in government policy.

    Speaking yesterday in Lagos, on ‘Port Charges: How Plausible,’ at a seminar organised by the Shipping Correspondents Association of Nigeria (SCAN), Chukwu wondered why Nigeria should allow Cote d’Ivoire to build the largest seaport in Africa when a larger chunk of cargoes are destined to the country.

    According to him, Nigeria is rated the largest supplier and manufacturer of cement, and wondered why there is no effort to facilitate export of the product.

    He warned that if the common ECOWAS tariff is fully implemented, Nigeria will lose business because the   tariff means that once a tariff is paid in one country, no other tariff would be paid in any other country in region.

    In his key note address, the expert absolved the shipping companies and terminal operators of the high charges because having faced a lot of infrastructural challenges which impact negatively  on their business.

    “We do not have enough infrastructure  to handle the volume of cargoes we receive. Sixty per cent of the cargoes coming to West Africa are destined to Nigeria. But only 30 per cent of the cargoes are discharged in Nigeria. If 60 per cent cargoes are destined to Nigeria, why should we allow Cote dÍvoire to build the largest seaport. The shorter the value chain the lower the cost”he said.

    In her remarks, the Managing Director of Nigerian Ports Authority (NPA), Ms Hadiza Bala Usman said that NPA as a regulator has a tariff price which encourages a unified charge.

    Usman who was represented by the Manager Audit, Mrs. Sarah Oghomienor, however, acknowledged the fact that port charges are designed to cover operational expenses because everybody is in business to make profit.

    Port charges, she said, is as a result of all deficiencies  like the road infrastructure.

    But the Director General of Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Dakuku Peterside, said that the Federal Government official gazette no 158 Marine Environment Management (sea protection levy) Regulation 2012 empowers NIMASA  to impose levies on all commercially operating vessels of 100 GT and above in Nigerian waters.

     

    Peterside who spoke through the Head Shipping Development, Mr Ogadi Anthony said that the agency introduced the Marine Environment Sea Protection Levy via the Marine Notice dated August 9, 2012.

    “The Sea Protection Levy (SPL) is to be paid by all commercially operating vessels of 100 GT and above in Nigerian waters and also on all potential oil polluters, installations and pipelines,” he said.

    Other maritime experts at the forum urged the Federal Government to put in place policies that will end cargo diversion and boost the economy.

  • Rail to carry 80 percent of cargoes by Dec

    Rail to carry 80 percent of cargoes by Dec

    About 80 per cent of cargoes landing at Apapa Ports, Lagos would be freighted by the railway by December, the Minister of Transportation Mr Rotimi Amaechi has said.

    He said more locomotives and wagons, which would make this realisable, were expected before December, adding that when  they arrive, Nigerians would witness a huge improvement in cargo business.

    He said the government was committed to the Nigerian Railway transformation to ensure that it takes its place as the heart of the transportation initiatives of the government.

    Amaechi spoke through the Managing Director of the Nigerian Railway Corporation Mr Fidet Okhiria at the weekend.

    He said since independence, the Corporation had been the backbone of the nation’s agricultural revolution, adding that though the train lost some grounds substantially to trailers and other articulated vehicles in the sector, the railway is making sufficient inroad in line with the focus of the government.

    “We are working to ensure that the railway is repositioned and given its pride of place. We are determined to ensure that before December at least 80 percent of all cargoes at least from the sea are carried by the rail. That is why the repair work on the narrow gauge linking to Apapa is ongoing. We have also insisted that the Lagos-Ibadan standard gauge line must terminate at Apapa. That is why the government is also determined to commence the Lagos-Calabar coastal rail line, which is a Port to Port idea. When all these fully materialises, we would have a robust system that recognises that all the modes of transportation especially railway have their fair share of traffic re-distribution.”

    Amaechi disclosed that the two locomotives delivered to the Corporation on Thursday were not part of the 20 promised by General Electric (GE), but part of the ones earlier ordered by the government as part of its commitment to the upgrading of the services provided by the corporation. He said 10 more locomotives would be delivered in September.

    Earlier, the minister had promised that GE would bring in 20 locomotives and 200 coaches by last May 29, to help jumpstart its involvement in the railway system, as a concessionnaire of the narrow gauge.

    Amaechi added that when the GE finally delivers, the corporation would have enough rolling stock to deploy and provide service to its customers.

    He said these locomotives could still come in before year end.

    He said the process of concessioning the narrow gauge is ongoing, disclosing that the federal government has appointed transaction advisors to perfect the guiding document for the exercise.

    He however assured Nigerians that the Federal Government would take decisions that would be in the best interest of the country.

     

  • 60 cargoes of Nigeria’s crude unsold

    Oversupply has continued to weigh on different West African grades of crude oil with little fresh trading, it was learnt.

    Many buyers, according to report, expected differentials to soften further as pending tenders hindered new deals.

    According to Reuters, there were some 60 unsold cargoes of Nigerian crude, including 20 from the June loading plan.  The July Forcados export plan has not been issued, meaning there were between six and eight additional cargoes that would likely come into the market.

    The report noted that traders said Forcados would likely sell initially at a discount to dated Brent until it proved its reliability. Shell just lifted force majeure declared on the Forcados crude grade after more than a year.

    Oil prices hovered close to one-month lows after unexpected surge in U.S. inventories and the return of Nigerian Forcados crude aggravated investor concerns about an already oversupplied market.

    China’s crude oil imports rebounded to the second highest on record in May, making China the world’s top buyer for the month amid concerns over tightening crude supply to Asia and an extension of producer cuts to March next year.

  • 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 to attract 3m cargoes

    The Acting Executive Secretary/Chief Executive Officer of the Nigerian Shippers’ Council (NSC), Mr Hassan Bello, has led a trade delegation, comprising port concessionaires, administrators, government officials and other shipping service providers, to Niger Republic.

    The visit is expected to attract over three million metric tonnes of cargo to Nigeria’s sea ports.

    The trip, according to a statement, was at the instance of the Ministry of Transport to convince the land-locked Niger Republic to patronise Nigeria’s sea ports.

    Bello said: “What we are doing is part of efforts of the Federal Government of Nigeria and the Government of Niger Republic to discharge their international law obligations as coastal/transit state and landlocked state.”

    He said the meeting between Nigerian maritime industry operators and the Niger Republic business community was facilitated by the Nigeria-Niger Joint Commission for Development.

    The NSC boss told The Nation the Council aims to attract up to three million metric tonnes of Niger Republic’s consignments to the Nigeria’s sea ports annually.

    “At present, Niger Republic is doing about 2.5 million metric tonnes in Benin Republic, 1.5 million metric tonnes in Togo, and close to a million metric tonnes in Ghana. Nigerian ports can do up to three million metric tonnes annually, and up to 2,000 Niger Republic-bound containers monthly from our projection. Don’t forget also that Nigeria has strong diplomatic relations with Niger Republic, and an international obligation to landlocked countries around it. We believe the visit will open up a bundle of business opportunities for our ports.

    “It may interest you to know that, until the year 2006, about 70 per cent of Niger Republic cargo transited through Nigerian ports, as against the current zero percent. So, the mission is aimed at attracting back Niger Republic’s cargo to Nigerian ports and ensuring access of their cargo to Nigerian seaports,” Bello stated. Major imports into Niger Republic, like Nigeria, are mostly consumer goods, while the country exports uranium, sesame seed, Arabic gum, groundnut and skin.

    “Niger Republic is an oil producing country, and looks up to the ports of neighbouring countries to export crude,” he said.

    Bello, who assumed the mantle of leadership at the NSC in December last year, said his major concern is to reinvigorate the Council to play its role of trade facilitation.

    “We have started the process of reinvigorating the shippers’ associations all over the country. We are the secretariat of all the shippers in Nigeria – importers and exporters – and we must now begin to really protect their interests,” he stated. Bello said, under his leadership, service delivery will become the watchword for all NSC staff.

    “Service delivery is important. We are here to serve the shippers. We have been solving their problems and attending to their complaints but now we need to automate the process. We’ll acquire toll-free numbers where they can call in and lodge their complaints and receive prompt attention from our staff,” Bello said.

     

  • Shippers’ Council to attract 3m cargoes

    The Acting Executive Secretary/Chief Executive Officer of the Nigerian Shippers’ Council (NSC), Mr Hassan Bello, has led a trade delegation, comprising port concessionaires, administrators, government officials and other shipping service providers, to Niger Republic.

    The visit is expected to attract over three million metric tonnes of cargo to Nigeria’s sea ports.

    The trip, according to a statement, was at the instance of the Ministry of Transport to convince the land-locked Niger Republic to patronise Nigeria’s sea ports.

    Bello said: “What we are doing is part of efforts of the Federal Government of Nigeria and the Government of Niger Republic to discharge their international law obligations as coastal/transit state and landlocked state.”

    He said the meeting between Nigerian maritime industry operators and the Niger Republic business community was facilitated by the Nigeria-Niger Joint Commission for Development.

    The NSC boss told The Nation the Council aims to attract up to three million metric tonnes of Niger Republic’s consignments to the Nigeria’s sea ports annually.

    “At present, Niger Republic is doing about 2.5 million metric tonnes in Benin Republic, 1.5 million metric tonnes in Togo, and close to a million metric tonnes in Ghana. Nigerian ports can do up to three million metric tonnes annually, and up to 2,000 Niger Republic-bound containers monthly from our projection. Don’t forget also that Nigeria has strong diplomatic relations with Niger Republic, and an international obligation to landlocked countries around it. We believe the visit will open up a bundle of business opportunities for our ports.

    “It may interest you to know that, until the year 2006, about 70 per cent of Niger Republic cargo transited through Nigerian ports, as against the current zero percent. So, the mission is aimed at attracting back Niger Republic’s cargo to Nigerian ports and ensuring access of their cargo to Nigerian seaports,” Bello stated. Major imports into Niger Republic, like Nigeria, are mostly consumer goods, while the country exports uranium, sesame seed, Arabic gum, groundnut and skin.

    “Niger Republic is an oil producing country, and looks up to the ports of neighbouring countries to export crude,” he said.

    Bello, who assumed the mantle of leadership at the NSC in December last year, said his major concern is to reinvigorate the Council to play its role of trade facilitation.

    “We have started the process of reinvigorating the shippers’ associations all over the country. We are the secretariat of all the shippers in Nigeria – importers and exporters – and we must now begin to really protect their interests,” he stated. Bello said, under his leadership, service delivery will become the watchword for all NSC staff.

    “Service delivery is important. We are here to serve the shippers. We have been solving their problems and attending to their complaints but now we need to automate the process. We’ll acquire toll-free numbers where they can call in and lodge their complaints and receive prompt attention from our staff,” Bello said.