The Nation Newspaper

Tag: Ports

  • ‘Multiple agencies at ports killing export business’

    The Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has decried the proliferation of agencies at the ports, saying it is a major disincentive to export.

    Its Director-General, Mr. Emmanuel Cobham, urged government to revisit the plight of indigenous exporters and initiate policies that would make incentives available for them.

    He, however, commended the government for its efforts on port reforms, urging that it should be continued to boost its benefit in the economy.

    On the effects of importation of foreign goods on local businesses, Cobham said: “Indiscriminate influx of foreign good weakens the local currency, adversely affects the growth of the local economy, creates trade imbalance, reduce foreign exchange earnings, increases the inflationary rates and results in job cuts.

    “Every government all over the world is interested in protecting her own industry and market as it has consequence on the Gross National Products (GNP) and Gross Domestic Products (GDP). Consequently, the Federal Government needs to put in place policies that will protect home industries. This is to prevent unemployment which will in turn increasee poverty rate, protect our industries and secure the needed foreign exchange.”

    On the effects of the Common External Tariff (CET), for West African countries, on businesses in the sub-region, the NACCIMA chief said it has the capacity to increase trade among the Economic Community of west African States (ECOWAS) nations that are involved in the regime.

    CET could encourage more investments along the region, however countries with poor infrastructure would be at the receiving end as the cost of their final products may not be competitive with those of the better developed countries, he added.

    Adding his voice to the concerns raised in some quarters on the delay in appointing ministers by He said the fact that appointment of ministers is a serious business in governance and care must be taken to pick individuals best suited for the job for optimal performance.

    He said:“President Mohammadu Buhari has requested for the understanding of Nigerians on this issue and I think we should oblige him this favour. We should not behave as if it does not matter who eventually becomes a minister in this administration. Understanding the direction of this government on social-economic issues is vital; if we do we will appreciate the long wait to appoint ministers inorder to have credible people on board.”

    He said Apapa grid-lock has created a lot of strain on the public especially those involved in the export business  and importation  as the road is the gate way to the ports where business are done.

    “It negatively affected businesses, it created a strain on the system, resulting in time wastage to the extent that the volume of trade and revenue generation by both individuals and government was reduced. For instance, the traffic caused by the trucks operating at the Tank Farm located around the Apapa Port and Tin can Island Port area couple with the trucks collecting and discharging their containers in the ports added to worsening the extent of the grid.

    ‘’The way forward as I see it; is for the road to be rehabilitated, the Tank Farm relocated or an attempt made to increase the capacity of the holding bays.”

  • Ports injustice

    •An NPA order allows a firm, INTELS, to profit from impunity at our ports

    The concept of fairness has always been central to the free enterprise system. But the Nigerian ports have waxed astir with a case of palpable unfairness suggestive of legitimised monopoly. This is in the context of a recent directive purportedly handed by the Jonathan administration in its dying days.

    According to the directive, the only port concessionaire in the country known as INTELS has been given exclusive rights to handle all vessels with cargoes of oil and gas in its ports in Warri, Onne and Calabar. This implies a monopolistic privilege.

    The mysterious order emanated apparently from the desk of the top brass of the Nigerian Ports Authority (NPA) at the behest of the former minister of transport under the Goodluck Jonathan administration. Why should such an order go out of the portals of a minister in a democratic system dedicated to the rule of law, due process and the principle of equality?

    The activities of INTELS have generated resentment among port operators in the aftermath of the 2006 ports reforms undertaken under the President Olusegun Obasanjo administration. INTELS alleged monopolistic practices within the oil and gas domain were a part of the reasons for the reforms. The idea was to make the ports free for every vessel or company bringing goods to our shores.

    The reforms were sequel to a committee set up by the Obasanjo administration in the interest of free enterprise. The committee was headed by Dr. A.S.P. Sekibo. When it finished its work, the committee’s recommendations were unambiguous. It asked the NPA to “ensure that cargo owners are free to patronise any truck of their choice for the freight of cargo discharged in the Oil and Gas Free Zone,” emphasising that “importers of oil and gas cargo should be free to choose their ports of preference.”

    Again, the government has an ongoing agreement with NPA and the Bureau of Public Enterprises designed to create an atmosphere of trust and collegial peace. The contract, in article 18.2, stated that “no change, amendment, or modification of this agreement shall be valid or binding upon parties hereto unless such change, amendment or modification shall be in writing and duly executed by the parties hereto.”

    The INTELS monopoly is taking place without any tweaking of the contract based on any meetings or consultation. Barely two years after the 2006 port reforms, the Minister of Transportation, Prince John Okechukwu Emeka, released a directive similar to the one recently unleashed by the Jonathan administration.  But the Yar’Adua administration stepped in and restored the rule of law. The former president responded to a flurry of petitions from INTELS’ fellow port operators.

    The ports reforms constituted one of the legacies of the Obasanjo tenure, and it is worthy of emulation in compliance with best practices around the world. For the Jonathan administration to have revived this act of lawlessness only underlined some of the capital wrongs of his era.

    Oil and gas forms a major plank of the nation’s imports, and for just one company to corral it as though the industry exists for its own profiting is the sort of impunity that this nation should not accept. It runs against every tenet that justice inspires in commerce. Indeed, every port operator does not run the ports for charity. They pay dues to the federal purse, and it will asphyxiate some and invigorate others. That accounted for the port reforms. INTELS is the metaphor of this impunity.

    The concept of equality of ports and port operators opens the system to efficiency and choice. Vessel owners and cargo owners will pick ports that work best for them, not only in efficiency but also in reaching their ultimate consumers or customers. What if a port in Warri is forced to handle cargoes intended for Lagos customers? The cost of carrying the goods to Lagos will cost the business in time and money.  It negates simple business sense.

    The Buhari administration will do well to reverse the order.

    “The ports reforms constituted one of the legacies of the Obasanjo tenure, and it is worthy of emulation in compliance with best practices around the world. For the Jonathan administration to have revived this act of lawlessness only underlined some of the capital wrongs of his era. The Buhari administration will do well to reverse the order”.

     

  • Lack of infrastructure in ports hampers agro exports

    Lack of infrastructural facilities in ports is negatively affecting agro exports as the ports are struggling to cope with commodity traffic.

    National President, National Cashew Association of Nigeria (NCAN), Mr Tola Faseru said ports have serious capacity problems, adding that this has lead to slow processing times. In most ports, he said lack of infrastructure hampers agro exports most as it cause delay in movements of produce in the major ports.

    Though the concessionaires have initiated the modernisation of facilities, most of the improvements, he observed, however, were designed to boost agro exports.

    This, he maintained, made it difficult for agro exporters to ship cargoes and experience waiting period to load the commodities.

    He urged the government to made capacity building a major concern along with improving the rail and road connectivity to minor ports, stressed the need to reposition the ports as a gateway for trade.

    According to him, the potential for agro export growth is enormous, but observed however that the nation’s share in the global market for agricultural products is still severely hampered, by a lack of infrastructure in the ports. Tackling logistics infrastructure deficit, he noted would open up large new trade opportunities both inside and outside the country as well as enhance returns on existing trade.

    He urged stakeholders in the industry to work together to boost exports and strengthen the domestic market by mapping out obstacles to the country’s trade.

    For watchers, high-cost logistics, poor infrastructure and lack of export financing are among the major bottlenecks that have long hindered agro exporters from expanding their reach.

    Currently, exports are still less significant to spur growth in compared to domestic consumption and direct investment, which are the top drivers of economic expansion.

    Another concern to address is the building up of the capacity of small and medium agro enterprises to increase their competitive edge over tighter competition from foreign goods, in the industry.

  • Govt vows to decongest Manila’s ports

    The government expects operations at Manila’s ports to be back to normal by early next year, but notes that there is a need to expand capacity to accommodate an expected increase in transactions in the coming years.

    “My purview is to solve the problem and hopefully by January or February, this is all over,” Cabinet Secretary Jose Rene Almendras told reporters during the Manila Ports Forum.

    Trade Secretary Gregory Domingo told reporters in the same event the conditions at the ports have been improving and are expected to continue.

    While there were more containers coming in than empty containers being shipped out from the ports during the January to October period, he said the situation has been reversed this month.

    “There are more containers being taken out so that means there is reduction on empty containers starting November. That’s a very big step to the solution,” he said.

    Even as more empty containers are being removed from the ports, congestion remains, given an abnormal increase in the volume of imports.

    Almendras said while the government initially expected the congestion at the ports to be resolved by November with shipments for Christmas usually arriving in October, there has been an abnormal increase in volume of imports, particularly for construction materials, this month.

    “We are seeing significant increase of importation of construction materials. We are seeing, and even the ports outside are telling us, some of them are reporting 20 percent increase in the volume of cargo coming in for construction and capital goods,” he said.

  • NPA, Shippers Council quarrel over berth rent

    The Nigerian Ports Authority (NPA) and the Nigerian Shippers Council (NSC) are flexing muscles over control of the ports.

    The NSC is said to be irked by what it called the arbitrary hike in berth rent by NPA without its consent as commercial regulator of the ports.

    NSC Executive Secretary Mr Hassan Bello, it was learnt, has stopped the arbitrary hike because the Council was not consulted before it was imposed by the NPA.

    Bello’s action followed a complaint by Port and Terminal Operator Limited (PTOL), a concessionaire at Port Harcourt Port in Rivers State.

    A Shippers’ Council team led by Bello was informed by PTOL General Manager Abdullahi Ahmed that NPA informed terminal operators of the hike during a meeting.

    Bello was said to have expressed concern that NPA met with the terminal operators without informing the council.

    Ahmed told Bello that his company spent about N3.2 billion to re-inforce berths 1 to 3, which are part of the area concessioned to it by the NPA.

    Berth 4, sources said, will cost about N4 billion to maintain.

    If the maintenance had been done about two years ago, a source said, it would not have cost more than N2.7 billion

    In a July 22 circular, NPA was said to have notified termminal operators of the increase in berth rent.

    Efforts to get NPA’s reaction through its Public Relations Officers,  Musa Illiya and Isa Suwaid, failed. Illiya’s phone was switced off and a text message sent to  Suwaid was not replied as at the time of filing this report.

    Meanwhile, Bello has said Nigeria cannot be classified as a maritime nation, until it has an impressive fleet.

    What qualifies a country as a maritime nation, according to him,  is the number and quality of its ships and vessels.

    Bello told The Nation that the Council is working out modalities to make it a truly commercial and economic regulator of the port.

    “Since Mr President announced NSC as the economic regulator of ports in the country, we have been working hard. We have been consulting with all shipping lines, Nigerian Maritime Administration and Safety Agency (NIMASA), NPA, Customs etc. This is because we recognise that there are many interests,” he said.

    The Council, Bello said, would support local operators to own ships.

    “If we have indigenous carriers, it will boost the nation’s portfolio. Even if we cannot own vessels, at least, we can charter. This we have made clear to Mr. President.

    “Shippers associations ought to be the owners of the business. They are, by right, supposed to dictate the pace of the industry. The original intention is gradually being lost,” Bello said.

    The port, he said, plays a crucial role in the economy of many countries, promising to make Nigeria’s ports the hub of maritime operations in Africa.

    A right pricing mechanism would promote the ports prosperity, he said, adding: “Wrong pricing can guide port to inefficiency or even extinction. Also a high pricing could deprive a port of high patronage of vessels and cargoes.

    “Wrong prices will reduce demand for cargo services and when the demand for port services as  equipment at the ports would be underutilised. Even with monopoly, high port prices will hurt those the port is suppose to serve.

    “Low port prices, on the other hand, could bring life into a port, but congestion may be the order of the day,” he said.

  • Ebola: NMA urges Fed Govt to police borders, ports

    Ebola: NMA urges Fed Govt to police borders, ports

    •Unilorin to establish virology complex

    The Nigerian Medical Association (NMA) has urged the Federal Government to police the country’s borders and ports to avert further spread of the Ebola Virus Disease (EVD).

    In a communique at the end of the National Executive Council meeting in Awka, Anambra, yesterday, its national president, Dr Kayode Obembe, commended the federal and Lagos state governments for their response to the health challenge.

    He, however, observed that the essential structures and framework for containing the outbreak on a national scale were not yet in place.

    The NMA pledged its commitment toward the health of Nigerians, saying that it would join forces with governments and their agencies to prevent the spread of EVD to other parts of the country.

    It noted that as part of the response to the outbreak, the NMA had put in place a national EVD Response Committee, headed by Prof Michael Asuzu, and similar committees at the state levels.

    The body said the controversy that trailed the establishment of the office of the Surgeon-General of the Federation was regrettable.

    It said if the office was created, it would have a nationwide structure in place, to promote the enforcement of public health issues and lead the force against emergencies, including the EVD.

    “The importation of EVD to Nigeria clearly demonstrates that we are very prone and more at risk really in the Ebola virus as a¸ open to several diplomatic and international travels.

    “We therefore call on the FG to police the nation’s borders and ports to avert a further spread of the disease. NEC, therefore, calls on the FG to take steps to further ensure the creation of functional EVD control committees at all levels of government.

    “We are deeply concerned that many states are yet to establish reliable isolation facilities and the relative unavailability of Personal Protective Equipment,” it stated.

    The University of Ilorin is set to establish a Virology complex to carry out researches on Ebola virus disease (EVD) and how to curtail its spread.

    The Vice Chancellor of the University, Prof. Abdul-Ganiyu Ambali, spoke at the News Agency of Nigeria (NAN) Forum in Abuja yesterday.

    He said the university recognised its responsibility in conducting researches as well as community development services which was why its senate set up a committee on Ebola recently.

    In terms of the community service, Prof. Ambali said the university published information on Ebola regularly on its website and on its weekly bulletin to educate readers.

  • Fed Govt probes abandoned power equipment at ports

    Fed Govt probes abandoned power equipment at ports

    • Customs releases 248 containers

    The Federal Government has ordered a probe into a multibillion naira abandoned power equipment at the ports, The Nation has learnt.

    It ordered the probe after the Customs released the 248 containers of abandoned equipment to the Minister of Power, Prof Chinedu Nebo.

    The equipment were abandoned  in Lagos, Onne and other ports across the country. Their abandonment is  believed to have stalled the power projects in over 11 states.

    Some of the equipment were imported in 2003; others arrived in the country about seven years ago.

    Some were to be delivered at projects sites across the country, others were meant for Abo, Nbese substation, Kano Hadejia transmission substation, Oba-Nnewi substation, Danbata substation, Omotosho, Egbin and Aja lines, Akwa Ibom’s 33Kva line, Iganga-Ibora substation, Ikorodu Odogunyan-Sagamu transmission line and Nsukka-Ayangba line.

    It was also gathered that had the equipment been installed, power supply would have improved.

    Receiving the equipment from Customs, Comptroller-General, Alhaji Dikko Abdullahi, who was represented by Zone ‘A’ Coordinator, Mr. Victor Gbemudu, Prof Nebo said he was happy that Customs understood the power challenge.

    “It is my pleasure to address you today. It is a day of joy and gladness at the flag-off of this very critical event on the release of 248 containers of electrical equipment and power installations. These equipment which had been abandoned at various bonded terminals in Lagos, have been held since seven to 11 years ago.

    “We have inspected some of them; we wish to express our most profound gratitude to the Controller-General of Customs, and his staff for making it possible, seeing a day like this,” he said.

    Nebo said the Customs agreed to release the containers to the defunct PHCN, which was represented by the Transmission Company of Nigeria (TCN), noting that the equipment had been paid for.

    Recovering the equipment and installation, according to the minister, was part of the transformation agenda of the Jonathan’s administration in the power sector to maximise resources and minimise waste.

    “These containers could have remained at the ports forever and nobody would have bothered. But we saw the need to recover what rightfully belongs to the Federal Government of Nigeria to the benefit of the general public.

    “We have synergy with the Nigeria Customs Service and we are impressed with the understanding of the Nigerian Customs for their mutual co-operation with the Ministry of Power.

    “We express our profound gratitude to CG for making it possible, the power project was stalled by overstays of these containers, but the Customs service has graciously agreed to release it to the TCN.

    “The containers could have remained here forever and nobody will bat an eyelid, but we saw the need to recover what rightfully belongs to the government of Nigeria and put it to use for the benefit of our people,” he said.

    The minister, who promised to revamp the NIPP projects, said the evacuation of the containers had started.

    He said it was part of the expectations of the government that, by 2020, the country would have the capacity to produce 20,000 megawatts of electricity and this would be a huge leap for Nigeria and President Jonathan in the power sector.

  • Consumers want SON returned to Ports

    Some consumers over the weekend in Abuja called on the Federal Government to return the Standards Organisations of Nigeria (SON) to the ports.

    They told the News Agency of Nigeria (NAN) that the increase in substandard products in the market had made the return of SON operatives imperative at the entry points.

    They said the presence of SON was needed at those points to complement the duties of the other security and regulation agencies.

    Chief Omeya Okoh said the nation’s markets would continued to be inundated with fake and substandard products “because of weak restrictive measures at the sea and air ports”.

    According to him, the withdrawal of SON from the ports is inimical to the fight against substandard goods.

    “It is better to stop those products at the point of entry than deploying measures to find them after they have entered into the market.

    “The current effort of SON at curbing substandard product is, to best of my knowledge, not effective because our markets are flooded with fake goods.

    “I call on the Federal Government to return SON to the borders and ports in order to reduce this menace,’’ he said.

    Mr Patrick Aturu said all agencies responsible for discouraging smuggling and illegal trade must be empowered to perform their duties more effectively.

    “SON has done very well in the past while they were properly deployed. Their withdrawal from those points should be reversed.”

  • NSC to ease cargo clearance at ports

    The Nigerian Shippers’ Council says it will concentrate its efforts on ensuring that the clearance procedure at the nation’s sea port is made faster, even as it vowed that the agency would cut unreasonable charges in the system, because the ports are in competition with other neighboring ports.

    Its Executive Secretary Mr. Hassan Bello also said he was determined to make the ports attractive for business and accused maritime stakeholders of being impatient over its new regulatory role, even as he said the Council would not be blackmailed or rushed in its efforts to bring harmony and sanity into the port operation.

    Bello who said those  criticising  the Council of not living up to expectations in its newly assigned regulatory role at the port intended to blackmail  the council to abdicate its responsibility.

    He said that the Council will end arbitrary charges at the port when all stakeholders do what they are expected to do.

    “The Shippers’ Council will be accused all the time by stakeholders, if we are not accused then we are not doing our work. We have to be accused, abused everyday, but what we want is harmony, representation in Nigerian economy through the ports and nobody is going to rush us to do what we are not expected to do.

    “We are going to take a scientific approach, it is not a beauty contest or a popularity contest, but by the time there is harmonisation in the port,  I am sure everyone will see it, regulation is not ‘ABC’ that you recite for people to get impressed, it has to be scientific so that we can make the ports attractive for business,” he said.

    Bello said the council, as a commercial regulator is supposed to be allowed to study the situation in the industry for not less than three years for it to be properly grounded.

    He said he was happy that the council  has what it takes in terms of experience and past dealings to regulate the industry well,  and insisted that it will not carry out its regulatory on the pages of newspapers.

    “We are going to consult and have the buy-ins of the stakeholders before we do everything, even now we have started the regulation and regulation is consultation, transparency, unbiased and these are part of what we have embarked on” he said.

  • FAAN,Customs, others lose N200m to ports’ congestion

    As the protest by clearing agents and freight forwarders over air arbitrary charges by foreign cargo airlines lingers, the Nigerian Customs Service Federal Airports Authority of Nigeria (FAAN), Nigerian Aviation Handling Company (NAHCO), Aviance Plc Skyways Aviation Handling  Company Limited ( SAHCOL) and other  operators at the cargo wing of the Murtala Muhammed International Airport, Ikeja, Lagos  have lost over N200 million as revenue because of the uncleared cargoes at the tarmac.

    The loss is sa a result of the refusal of clearing agents and freight forwarders to clear cargoes flown in by international cargo airlines.

    A source close to a Customs clearing agent said, the agencies earn about N22m daily from major international airport on cargo operations.

    The bulk of such earnings come from Murtala Muhammed Airport, Lagos. Fifty percent of cargo volumes coming into the country are from the Lagos Airport, while Kano remains the second busiest in terms of cargo.

    For eight days, inbound cargoes piled up in Lagos and other airports, raising fears of further congestion if the matter is not resolved.

    Attempt by the Nigerian Civil Aviation Authority (NCAA) to resolve the matter failed at the weekend, as a meeting between the affected airlines, clearing agents and freight forwarders ended in deadlock.

    Agencies affected by the refusal of the clearing agents and freight forwarders to clear cargo include Nigerian Customs Service, FAAN, NAHCO and SAHCOL.

    NAHCO Aviance said it has not stopped the clearing of goods in its warehouse.

    In a statement signed by its spokesman, Mr. Sanya Onayoade, the firm stated that the clarification became necessary due to insinuations making the round that  it had stopped clearance of goods as a result of a disagreement between some major airlines and customs licensed clearing agents.

    While urging a speedy resolution of the issues by the parties, NAHCO Aviance said its facilities are open for business in both its export and import warehouses.

    It said to resolve the impasse, NAHCO had begun 24 hours cargo operations.

    ‘’This is sequel to the agreement reached between the organisation and Nigerian Customs Service to extend its hours of operation at the Cargo Airport Complex.

    ‘’With the commencement of the 24-hour cargo operations by nahco aviance, there would be prompt facilitation of cargoes.

    This would reduce the stockpiling of cargo at the tarmac and bulk breaking areas due to enhanced operational capacity.

    ‘This will also lead to proper maximisation of cargo potentials thus expediting on timely delivery to customers, smoother flow of operations and enhancing daytime capability,’’ it said.