Tag: Ports

  • Importers abandon 4,000 vehicles at ports

    Importers abandon 4,000 vehicles at ports

    Importers may have abandoned about 4000 vehicles at the Lagos ports because of their inab ility to pay the new 35 per cent tariff, The Nation has learnt.

    Sources said the vehicles got trapped at the ports under the new duty regime.

    A Customs officer, who pleaded for anonymity, said over 4,000 vehicles were trapped at the ports because of  the new duty rate.

    He said: “We are aware that many importers are finding it difficult to pay the new rate, but there is nothing we can do because it has been uploaded into our system. Once a clearing agent opens a site on his system and punches the name of the vehicle, its model and year of manufacturing, the amount he would pay as duty appears to him.

    “Except he pays the amount, the only alternative opened to him is to abandon the vehicle. And that is why we are having over 4,000 vehicles in the ports that have not been cleared by the importers. But my advice to them is to look for money, pay the duty and move their vehicles out of the ports before they become over-time cargo and confiscated by the  Customs.”

    A clearing agent, Mr Daniel Solomon, said they were paying between N480,000 and N486,915.70 as duty on 2009 Pathfinder Sport Utility Vehicle (SUV). Under the new regime, Daniel said they would pay N760,157 duty.

    An importer, Mr Folagbade Asekun, said they were sad over the increment. He said the government should have allowed the made-in-Nigeria vehicles to be rolled out before imposing the tariff, adding that the policy is like putting the cart before the horse.

    “Why do we need to pay through our nose since nobody has seen the made-in-Nigeria vehicles the government is talking about. The government should have allowed the manufacturers to come out with their brand of vehicles before introducing the high tariff. I understand that some of the would-be manufacturers have not commenced operations, not to talk of opening shops,” he said.

    There are fears that if not reviewed, the policy, may lead to diversion of imported vehicles to neighbouring countries and enhance smuggling through the land borders.

    Last weekend, it was learnt that some importers and their agents met in Lagos to strategise on how to bring in their vehicles through Cotonou.

    They alleged that the government imposed the 35 per cent duty and 35 per cent levy to get the money for next year’s elections.

    The charges, the agents said, were inimical to their business.

    A member, Manufacturers Association of Nigeria (MAN), Mr. John Aluya, claimed that over 2,000 containers belonging to importers were trapped at the ports because of the bureaucracy at the Ministry of Finance and the Customs.

    “There was a fiscal policy by the Finance Ministry on February 23, where the government said all those who have perfected their documentation be allowed to pay the old duty, but the Customs said no.

    “Over 2,000 containers of our members are trapped at the ports because of this wrong interpretation from the Customs and we are paying demurrage and rents, how can the country progress,” he asked.

    Customs Public Relations Officer at Tin Can Command Mr Chris Osunkwo said the 35 per cent duty on Tokunbo vehicles is being enforced by Customs formations across the country.

    In the past, importers paid between 10 and 20 per cent duty on vehicles.

    The Customs said the 35 per cent duty was imposed by the Federal Government.

    Importers are also expected to pay additional 35 per cent levy  from July 1.

    Under the regime, commercial vehicles, such as Danfo, which hitherto attracted 10 per cent duty, will now attract 35 per cent duty and 35 per cent levy.

    The 35 per cent duty has been uploaded onto Customs systems, making it impossible for importers or their agents to pay the old rate.

  • 106 ships to arrive Lagos ports from Dec. 20 to Dec.30

    106 ships to arrive Lagos ports from Dec. 20 to Dec.30

    One hundred and six ships are expected to berth at the Lagos ports between Dec. 20 and Dec. 30.

    The Nigerian Ports Authority (NPA) indicated this in its ‘Shipping Position’ made available to the News Agency of Nigeria (NAN) at the weekend in Lagos.

    According to the document, 22 ships will sail in with various brands of vehicles; 10 ships with petroleum products and 44 others with containers.

    The NPA said that the remaining ships would sail in with general cargoes, bulk wheat, rice and salt, truck heads, semi-trailers, gypsum, base oil, steel products and boats.

    It said that nine ships laden with petroleum products and four other ships containing bulk fertilizer and wheat, as well as used vehicles, were waiting to berth and discharge their goods.

    According to the document, 16 ships are currently discharging containers, crude palm oil, raw sugar, truck heads and petroleum products at the ports. (NAN)

     

  • ‘Why the ports enjoy  more patronage’

    ‘Why the ports enjoy more patronage’

    DESPITE the high cost of cargo clearance, Nigeria’s ports are busier than those in neighbouring countries because of the viability of the economy, Senior Special Assistant to the President on Maritime, Olugbenga Leke Oyewole.

    He said this in Lagos while responding to allegations by shippers that the cost of cargo clearance is higher at the ports than what obtains in the ports of adjoining countries, such as Cotonou in Niger Republic, adding that the economy is doing well.

    He said: “We have the largest population in the sub-region, therefore, more things are likeliy to come here. For instance, if a ship takes a car to Cotonou and another one to Nigeria, the one that comes to Nigeria takes $300 more than the one to Cotonou. That shows it is fertile and it is good for them to continue to blackmail this country to ensure that government stops collecting this money.”

    Besides, he said unlike in past when there were security concerns in the Nigerian waters, the government has put the issue of sea piracy under control.

    “When last did you hear about piracy in our waters? Two or three times in about five months as against the regular basis, which it occurs before. President Goodluck Jonathan has tried in that regard, so are we not qualified to be removed from such list of high piracy zone. We also need to move against them to remove our name, he added.

    Oyewole also commented on the inaccessibility of the Cabotage Vessel Financing Fund (CVFF) by operators. He said discussions were ongoing on the matter in Abuja. He said: “There are ongoing efforts to ensure that people get this loan.”

    The Minister of Transport, Senator Idris Umar, also said the Federal Government has approved six firms as beneficiaries of the CVFF, but that nothing has come out of it.

    The minister said: “Realising the importance of the participation of the indigenous operators in the achievement of sustainable development and enhancement of indigenous capacity, the Coastal and Inland Shipping Act (Cabotage Act) was enacted and provides for the establishment of the Cabotage Vessel Financing Fund. This is intended to assist indigenous operators to acquire vessels. For purposes of disbursements, four primary lending institutions namely Diamond Bank, Fidelity Bank, Skye Bank and Sterling Bank have been appointed.

    “Out of the several applications received for the CVFF facility, six applications have been processed and endorsed by these aforementioned Primary Lending Institutions (PLIs) and accordingly recommended by the management of NIMASA (Nigerian Maritime Administration and Safety Agency) to the ministry and are being evaluated for approval.”

    The CVFF is funded by the two per cent of the contract sum performed by any vessel engaged in the coastal trade which is collected the NIMASA.

    The fund is meant to be disbursed to enable purchase of more vessels to boost the nation’s local fleet.

     

  • Fed Govt okays N1.46b for ports’ projects

    Fed Govt okays N1.46b for ports’ projects

    TO ensure safety at the ports, the Federal Government has approved $3.5 million (about N560 million) for the construction of 100 pieces of channel marking buoys in them.

    The government also approved N900 million for land reclamation. The benefiting ports are in Lagos, Warri (Delta State), Port Harcourt (Rivers) and Calabar (Cross River).

    Transport Minister Senator Umar Idris told reporters after the weekly Federal Executive Council (FEC) meeting in Abuja yesterday that the job, which will be handled by Messrs Marina Energy Ltd, would be completed in 25 months.

    The briefing, which was coordinated by the Special Adviser to the President on Media and Publicity, Dr. Reuben Abati, was attended by Ministers of Petroleum Resources Mrs Diezani Alison-Madueke, Trade and Investment Dr Olusegun Aganga, Minister of State for Finance Yerima Ngama and Health Prof Onyebuchi Chukwu.

    The buoys, he said, would help to delineate the channels leading to the ports and also enhance safe navigation.

    Idris said land was being reclaimed at Obang-Iju-Ibiro-Oba-Ojinba-Okujagu-Ama waterfront, a job for which N7.9 billion was approved last year, to make it navigable.

    He said: “However, because of compelling needs and of course the need to enhance the work added to the recommendation by the consultants for additional work and the need to reclaim additional hectares and in some areas to put in more reinforcement on the project, the Council approved the augmentation in the sum of N900 million.”

    Aganga said Nissan had shown interest to partner with a local company, Stallion Group, to manufacture vehicles in Nigeria.

    Mrs Alison-Madueke said the International Finance Corporation (IFC) had decided to support Nigeria’s gas pipeline infrastructure, adding: “The IFC made a great point of commending Mr. President highly for his power privatisation programme. As the chief executive officer said, it has been one of the most successful that they have seen in the world. And being the world’s super national infrastructure financing organisation, we took this commendation very seriously.”

    Ngama said the Islamic Development Bank (IDB) had budged $2 billion for investment in Nigeria.

    The government, he said, would organise a summit for the new owners of the sold power companies and some interested financial institutions, adding: “To further reap the benefit of our successful privatisation of our distribution companies (Discos) and generation companies (Gencos), it became apparent that those private owners need to be assisted, not only them also all other companies that bought privatised institutions and those that have concessions as well as those that are involved in public private partnership (PPP).”

  • Fed Govt blamed for corruption in ports

    Fed Govt blamed for corruption in ports

    A group, Save Nigeria Freight Forwarders, Im-porters and Exporters Coalition (SNFFIEC), has berated the Federal Government for not allowing Nigerians to reap the benefits of the port concession carried out seven years ago.

    The group blamed the government and the concessionaires who took over the ports from the Nigerian Ports Authority (NPA) and the Customs for corruption, inefficiency and high cost of operations at the ports.

    The group, during an interaction with reporters in Lagos, said ports privatisation in other countries were done to benefit the economy, the citizens and successor companies, noting that the exercise had not benefited Nigerians except the few ‘money bags’ and foreigners who took over the ports from the NPA.

    Its National Coordinator, Comrade Chukwu Osita, told reporters that ports concession anywhere in the world is done with the primary aim to improve efficiency, bring about better port infrastructure and services with the attendant benefits to all parties. He noted that in Nigeria it is only the concessionaires that are benefiting while Nigerians continue to grapple with high cost of operations at the ports.

    He noted that the Federal Government actually had good intention towards the ports but failed to follow it through with the right appointments and policy implementation to ensure transparency and corruption-free operations in line with global best practices.

    Osita stated that President Goodluck Jonathan’s transformation programmes in the Nigerian ports, which were meant to reposition the ports will not succeed because the system in place in the ports has been polluted with bribery and corruption. He said this has brought with it inefficiency and has made it unbearable for the stakeholders.

    He said that there are numerous challenges, which demand urgent attention by the government to save the ugly situation. Osita cited some of the issues to include the faulty Nigerian Custom Cargo Alert System, multiplicity of cargo clearance points and delays in the scanning of containers. He said scanning of containers by the Service Providers is delayed because the scanning companies deceived the government and brought in very old and refurbished equipments that break down often.

    Osita said there are infrastructural decay and maintenance neglect and IT failures in some of the Customs Commands while shipping companies delay service delivery. He said the issue of withholding of container deposits by shipping companies to the detriment of the clearing agents who might have taken the risk of getting loans from the banks to clear the goods for their principals is going on unabated.

    The group stated that unclean and unconducive ports environment, lack of provision of parking lots to enable stakeholders discharge their legitimate duties by the concessionaires, amendments and forgeries of vital documents and lack of equipments.

     

     

     

     

    Osita blamed the Federal Government for its inability to allow the Nigerian Shippers Council to perform its regulatory functions effectively saying this is impacting negatively on the Nigerian shippers adding there are lots of delays in documentation and movement of goods in the ports; even exited containers are not always allowed free flow by the Federal Operations Unit of the Nigeria Customs.

    He said that freight forwarders are made to pay too many taxes and those of them who dare to tell the public the true situation in the ports are witch-hunted by the Customs, their licences are blocked for minor reasons while issuing of new licences or renewal of old ones attract exorbitant fees.

    The group also blamed the government for ‘tactically’ ensuring that the Eastern ports at Calabar, Port Harcourt and Warri are underutilised thereby causing pains for importers who must have to use the often congested Lagos ports with its attendant problems to the importers. They advised the Federal Government to establish a Ministry of Ports and Customs which they believe will help in handling the issues concerning the ports better than what the Ministry of Transport is currently doing.

    They promised to unmask perpetrators of bribery and corruption in Nigerian seaports, Customs, Borders and Air Cargo Terminals very soon.

     

  • Ports fee collection tears groups apart

    The move by the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) to resume the collection of transaction fees granted it by the Federal Government at the ports may suffer another setback unless the council carries along stakeholders, The Nation has learnt.

    Investigation revealed that the feud between the Association of Nigeria Licensed Customs Agents (ANLCA) and the CRFFN over the mode of collecting and sharing the fees is yet to be resolved.

    The charges approved by the government then, include, N1.50 per kilometre for air cargo, N1,000 per 20 ft container, N2,000 per 40 ft container, N500 per car/jeep, N1,000 per truck or 20ft equivalent, N2,000 per truck or 40ft equivalent, N3.50 per tonnes for general cargo and N1.00 per tonnes for dry bulk cargo.

    ANLCA members mainly generate the money. Sources, however, said it has directed its members not to pay except the interest of the association is represented in the council.

    The customs agents, it was learnt, are also demanding to know the amount that would accrue to them before they would lend their support.

    At a meeting held by the executives of the group, it was gathered that ANLCA resolved to frustrate efforts to collect the fees except it is shared based on their own formula.

    ANLCA, sources said, is proposing 60/40 formula because it has the highest number of members at the ports. The National President of the group, Prince Olayiwola Shittu, said it was high time the association got a good percentage from the revenue it collects for the government.

    He  said the association still maintains its earlier position on the collection of the controversial transaction fees,  which tore the Council apart last year.

    He said ANLCA is not responsible for the woes of the council, insisting that its members must take a centre stage in the activities of the council.

    “I have told them that if the situation that presented itself that time happens again, we will still maintain the same position. We are the generators. We are the ones that are going to pay, yet some people want to collect the money and spend it. It is not acceptable. The condition we gave was that they should go back to where we stopped and they have accepted.

    “Which means that the CRFFN today must be populated by custom agents like you and I. Yes, we are all federation of freight forwarders, but what is your specialty? Are you the seller of satchet water, transporter, or ship chandler? Why must the money come from only custom agents? It does not make sense. How many other departments of CRFFN have been recognised,” he asked.

    Shittu urged the council to take a cue from India where the role of custom brokers is recognised as one of the revenue spinnerrs for the country.

     

  • Govt moves to make dry ports functional

    The Federal Government is set to make dry ports functional to reduce congestion at sea ports and bring shipping services to importers’ doorsteps.

    The government, sources said, would soon declare the dry ports as ports of destination and centres of exports in all its locations.

    The dry ports are in Ibadan, Kano, Isiala-Ngwa (Abia), Jos, Funtua (Katsina State) and Maiduguri.

    Acting Executive Secretary of the Nigerian Shippers’ Council Mr Hassan Bello said the dry ports, otherwise known as Inland Container Depots and Container Freight Stations, were created by the government to solve the perennial problem of port congestion.

    He said the dry ports were being driven by Public-Private Partnership (PPP) model, adding that the government had been facing the teething problem of appropriate legal framework for the dry ports project to take off.

    He said the dry ports would be more effective if arrangement was made for an effective rail service.

    The Shippers’ Council boss said the Federal Ministry of Transport recently inaugurated a committee to examine the challenges facing the take-off of the dry ports.

    The management of the Council, sources said, is also set to stop terminal operators from introducing arbitrary charges at port to facilitate trade at ports.

    Shippers’ Council, sources said, is worried about the unholy activities of some terminal operators who will like to charge arbitrarily and it is set to checkmate their activities.

    Bello, the source said, would soon announce port charges that would be acceptable to importers, exporters and the port concessionaires.

    The Council, investigation showed, has succeeded in stabilising freight rates on Nigerian-bound cargoes to boost economy activities in the country.

    Bello told the paper that the council had embarked on negotiation with global shipping lines to stabilise freight rates.

    He said the appointment of a commercial regulator for the shipping industry would end the monopoly of powers.

    Bello said commercial regulation would increase and encourage participation of more private investors and increase the mechanism for settlement of disputes.

    He said the regulator would control the entry and exit of operators, adding that the NSC had been saddled with that responsibility.

    The chief executive also noted that there was a tendency by some shippers to short-change the government through false declaration.

    False declaration, he explained, would add so many days to the cargo dwell time, adding that this would result to demurrage and congestion.

    “We have been intervening in areas of tariffs, benchmark-ing and service delivery. A law passed in 1978 must have got some requirements for review. Now that port facilities are run by the private sector; large reforms in rail, road sector, it is expected there should be a commercial regulator,” he said.

  • NPA to develop Delta ports

    NPA to develop Delta ports

    The Nigerian Ports Authority (NPA) is to develop the Delta port and harness its potentials to make it attractive for business, NPA Managing Director Mallam Habib Abdullahi has said the authority .

    Speaking during inspection of the construction of some infrastructure at the ports, Abdullahi said his visit was part of efforts by the NPA to rebuild the port and reposition it.

    He said NPA would carry out the dredging, channel marking, wrecks removal, acquisition of new crafts and rehabilitation of the moles at Escravos to increase business activities at the ports.

    A channel management company, Abdullahi said, would be contracted to assist in dredging and maintenance of the channel and wrecks removal.

    The Port Manager, Mr Obumneme Onuenyenwa, regretted that despite the huge potential of the ports, only about 40 per cent of the land owned by it had been developed.

    He raised the alarm that some unauthorised persons were encroaching on the land belonging to the port, urging the management to tackle the problem.

    He listed some ongoing developments in the port to include its perimeter fencing, and the rehabilitation of the quay walls by Julius Berger and China Harbor Engineering Company.

     

  • Senate committee visits Lagos ports

    Senate committee visits Lagos ports

    The Senate Committee on Finance visited the Lagos ports yesterday to access the preparedness of the service providers to hand over the destination inspection scheme to the Customs Service.

    A source said the committee visited the ports based on the fact that the Customs last year lost N58.7 billion to waivers granted by the Federal Government.

    The committee, the source said, was at the ports to protect public interest and stop the abuse of waivers.

    Its Chairman, Ahmed Makarfi, said the reason for the visit was to make the Customs Service the ultimate provider of the service being rendered by three providers.

    He said they were at the ports to see the level of the training given to Customs officers and men and the type of equipment that would be handed over to them when the service providers leave in June.

    He said the National Assembly was set to accelerate the passage of the Customs Excise Management Act (CEMA) before June and labelled those criticising the move by the Senate to give Custom the new law as fifth columnists.

    He said lawmakers considered the passage of the bill crucial to the nation’s economy.

    According to Makarfi, the Bill when passed will address the funding challenges experienced by the Service at the moment, noting that the 48 objections raised against the Bill have been resolved through dialogue.

  • Minister angry over delay at ports

    Minister angry over delay at ports

    The Nigerian Ports Authority (NPA) management and some top Customs officials have incurred the ire of the Minister of Transport, Senator Idris Umar, over last Thursday’s long queue at the Apapa port.

    They have been asked to explain what caused the queue.

    The Minister is also seeking to know why the port looks like a “disorganised market” despite President Goodluck Jonathan’s efforts to make it user-friendly.

    For almost an hour last week, the minister and his team walked from the gate to APM Terminals office to find out the cause of the delay in the movement of trucks.

    He was accompanied by the Minister of State for Works, Alhaji Pateh Alli; the Senior Special Adviser to the President on Project Monitoring and Evaluation, Prof. Sylvester Monye; the Permanent Secretary in the ministry, Mr Nebolisa Emordi; NPA Managing Director, Mallam Habib Abdullahi and some Customs officials.

    Dissatisfied with the reasons given by NPA and Customs official, the minister released all trucks cleared by Customs, including the ones chained by NPA officials.

    Umar said he was not happy with what he saw.

    President Jonathan, the Minister said, reduced the number of government agencies at the ports to stem congestion, free the port access road, ease cargo clearance, facilitate trade, make the port attractive for business and boost revenue generation.

    Facing an official, he said: “Tell me why the port is disorganised? Why are these vehicles stationed on the main access road to the port? Who chained this vehicle down here to obstruct traffic? This is unacceptable to us. It is unacceptable to this government. This is a very bad situation and we must be very serious in addressing the problem.

    ”It is an embarrassment for me to come to the port and I am not happy. I made some public utterances out of frustration. I cannot understand why the port will continue to operate as if it is a disorganised market. Mr President said we must sanitise the port and we must sanitise it. The Customs is involved, the NPA is involved, the clearing agents are involved, the transporters are involved, the shipping line, everybody needs to cooperate. I am not here to apportion blames but from what I have seen, I am not happy.

    Attempts by an NPA official to explain that they were not responsible for the state of the port was rebuffed by the minister.

    The Minster said: “Everything in the port is under NPA. What is written on the gate? Is it not NPA? You cannot be shifting responsibility for God’s sake. You keep on saying there is no solution to this problem. That is unacceptable to this government.

    “We must be pro-active. The queue is just there, no movement, nothing. The drivers are not inside the trucks and nobody seems to know what is happening.

    “NPA, you own the port. You must not allow this. Anybody who has not finished its documentation must not be allowed to load, not to talk of blocking the access road.”

    Monye told The Nation that the port was becoming “a national embarrassment.” He said NPA seemed to have lost control of the port.

    “NPA needs to have a stronger administrative control because the clearing agents have taken over the port from what we have seen.”