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Tag: Shippers’ Council

  • Shippers Council to block revenue leakages

    Shippers Council to block revenue leakages

    • Cargo Tracking Note coming

    The management of the Nigerian Shippers Council (NSC) is to block leakages in the importation of cargoes – as part of its efforts to introduce a new port order.

    The council will convene a joint-stakeholders’ meeting next month to iron out loss of revenue at the ports.

    The meeting, it was gathered, will be held before NSC signs the contract for the implementation of the Cargo Tracking Note (CTN).

    The introduction of CTN, it was gathered, will not attract additional cost in doing business at the ports.

    Speaking with The Nation at the weekend, NSC Executive Secretary Mr Hassan Bello said the council was introducing the scheme because 80 per cent of cargoes imported into the country are under-declared, leading to loss of huge revenue and unnecessary delays in the cargo release process.

    Bello said the problems associated with quick cargo clearance at the ports would be eliminated with the implementation of the CTN.

    ”Cargo Tracking Note will reduce under-declaration of cargoes by Nigerian shippers because the council would have got information on what is inside every container before the vessel will come to the country.

    ”CTN will also help the Federal Government to identify dangerous goods coming into the country and immediately this is observed by Shippers Council, an alert will be issued to the security agencies and the Nigeria Customs Service for immediate action.

    “When the CTN comes on stream, cargoes will no longer come into the country without the council giving the vessel permission to sail in after having all information like the Gross Tonnage of the ship and the reason the ship is visiting the country, among others,”he said.

    Bello said emphasis would be  on   trade information which will help in clearing and monitoring goods  coming into the country to ensure they are not under-declared.

    His words:“For example, you import furniture but you say it is not furniture but walking sticks. Almost all importers under-declare and this leads to loss of revenue for the government. It also leads to delay and that is why Customs, sometimes, insists on physical examination.

    He said he was happy the Central Bank of Nigeria (CBN) is excited about the scheme.

    “Apart from being a totally paperless exercise, CTN is not going to add to the cost of doing business in Nigeria. Shippers will not pay any charge for the CTN, neither will the government. Information on the cargoes will be shared with the Nigeria Customs Service officials to enable them prepare and pass cargoes out of the port if they are not  dangerous cargoes.

    ”Shipping companies will no longer delay a cargo unnecessarily, because they would have had clear and prior information on what a container is loaded with.

    Bello said the CTN introduced two years back was an aberration, noting that the NPA had no business running the CTN. He said all over the world, Shippers Councils operates CTN because it deals with tracking cargoes. So, when it was given to NPA, ‘’we became a laughing stock because that time we were not very strong.

    “Customs is very key to the success of the scheme and I am so happy we have introduced it to the service, and its management has been very responsive.”

    He said the scheme would not be introduced until stakeholders are adequately informed.

    The Shippers Council, according to him, plans to meet the manufacturers association, NACCIMA trade group, shippers and carriers, shipping companies and terminal operators. “Infact, everybody will be introduced into it because the project  is cardinal to our function as an economic regulator’’.

    “The CTN that was introduced about three years ago brought a lot of delay, and it was not accepted by the industry because it had cost attached, but this one is at no cost to the economy and directly, there is no cost at all to the shippers; that is very important,’’ he said.

    Continuing, he said:“CTN will do three things, it will fasten the process of clearance at the ports in the sense that we have advanced information of the cargo that is coming. It will block pilferages and leakages, you cannot import wrist watches or you cannot import tyres and say they are tiles. If we block that, even the ship sometimes, they cut their gross registered tonnage (GRT) because the amount they are to pay is tied to it. This is the beginning of the new port order and we are talking about transparency, predictability and efficiency.

    “Gone are the days when all the agencies would do things in different direction. Shippers Council has come to introduce supervision, integration, equilibrium, balance and synergy in ports operation. We are going to have a big stakeholders’ meeting where we are going to launch our Standard Operating Procedures (SOP) that would be obeyed by everybody,” Bello said.

     

  • Your stery on Shippers’ Council

    SIR: Our attention has been drawn to a story in The Nation of Wednesday July 22 with a banner headline …Shippers Council seeks probe of N20 billion Calabar Port dredging.

    We are terribly embarrassed not only by the headline but also by the content of the said story which is wrongly attributed to us.

    The first paragraph of the story says that the Nigerian Shippers Council (NSC) in Cross River has urged President Muhammadu Buhari to probe the N20 billion contract awarded to Calabar Channel Management (CCM) for dredging Calabar Port.

    The story was attributed to Mr. Mike Ogodo, President Nigerian Shippers Association (NSA) but which your reporter referred to as President (NSC).

    The Nigerian Shippers Association (NSA) is a trade group within the maritime industry while the Nigerian Shippers’Council (NSC), the ports economic regulator, is a parastatal under the supervision of the Federal Ministry of Transport.

    The clarification has become necessary given that at no time was the Executive Secretary/CEO nor any officer of the council made such a call nor granted a press conference calling for a probe.

    We hold The Nation in high esteem but we were embarrassed by the story.

    We therefore  disassociate ourself from the said story and request for an urgent retraction in order to set the records straight.

     

     

    • Ignatius N Nweke 

    Deputy Director(Public Relations)

    Nigerian Shippers’ Council, Lagos

     

  • Shippers Council seeks probe of N20b Calabar Port dredging

    Shippers Council seeks probe of N20b Calabar Port dredging

    The Nigerian Shippers Council (NSC) in Cross River State has urged President Muhammadu Buhari to probe the N20 billion contract awarded to Calabar Channel Managemnt (CCM) for dredging Calabar Port by former President Goodluck Jonathan.

    The shippers lamented that the dredging contract has become a conduit pipe through which successive administrations in the country looted funds, adding that every 10 years, the contract is awarded, money paid while contractors disappear from site after collecting money.

    NSC President Mike Ogodo told reporters yesterday that this is the third time the dredging has been abandoned.

    He alleged that CCM that the former ruler awarded the N20 billion contract does not have any known office in Calabar, the state capital.

    The shippers also urged the governor, Ben Ayade, the House of Assembly as well as the entire country to look into the matter

    Ogodo said: “From information in public domain, a contract is awarded for the dredging of the Calabar Port every 10 years. The first was by the government of General Sani Abacha in 1996. This contract has no evidence of execution. The little unknown Chinese company showed up for a while and  vanished. And it was all over with the dredging of our dear Port. Ten years later in 2006 under President Olusegun Obasanjo, the same contract was awarded again to two Dutch companies at a total cost of $56 million. Both companies abandoned the job.

    “They vanished like their Chinese friends of 1996. Meanwhile our pain grew, our suffering persisted as shipping activities at the port grounded to a halt and the port fell out of favour with shipping lines due to the shallowness of its access.”

    He added that on November 17, last year,   represented by ex-Vice President Namadi Sambo, Jonathan began the dredging of the port to the joy and happiness of all stakeholders who had worked hard behind the scene and prayed to make that event a reality.

    He said: “We are shocked that CCM that won the N20 billion contract  has no identifiable office in Calabar. It will serve public good for this company and its Managing Director, Mr Peter Hekken, to come  clean with stakeholders and the Nigerian public and explain why they are no longer interested with the continuation of the job. They should tell Nigerians and the authorities how much of Nigerian tax payers’ money they have collected for this job and how much verifiable work they have executed.

    “The Nigerian Ports Authority (NPA) signed off this contract on behalf of the Federal Government with the approval of the Federal Executive Council granting it the direct authority to fund the project.

    “It is for this reason we hereby call on the management of the NPA  to inform Nigerians and the new administration of how much money it has disbursed to CCM with respect to this contract and for what quatum/work value. Is it true that NPA has fully disbursed N20 billion to CCM?”

  • How to reduce human traffic at ports, by Shippers Council

    How to reduce human traffic at ports, by Shippers Council

    Nigerian Shippers Coun-cil (NSC) Executive Secre-tary Hassan Bello has expressed shock over the huge number of importers, clearing agents and “wharf rats” entering the Tin Can Island Container Terminal (TICT) daily.

    He urged the terminal operators to embrace automation to reduce the human traffic.

    Speaking during a visit to the terminal, Bello said the uncontrolled human traffic was a threat to the port and the economy.

    He said: “You don’t need to have flock of agents to transact business at the terminal. I don’t think other terminals have this large number of crowd outside their gates. That is why we are in consultation with the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) to know the number of quacks engaging in the clearing and freight forwarding business in our ports and send them away from the port environment.”

    He asked the management to provide facilities for the registered clearing agents, stressing the need to sanitise the terminal for the comfort of users, especially clearing agents and their importers.

    Bello said the Federal Government would protect the terminal operators’ interest by ensuring a conducive business environment.

    He urged the concessionaires to embrace measures that would encourage efficiency and smooth cargo clearance from their terminals.

    Responding, TICT Managing Director Mr. Etienne Rochers said the bottlenecks were caused by factors outside the terminal.

    He blamed some of the government agencies at the terminal, saying they were the major cause of the crowd outside their gate.

    “I would say that the biggest challenges as you pointed out are the infrastructure outside and the bottlenecks. Generally speaking, it is not our fault because it is outside the terminal. There is need to look at how some of the bottlenecks can be removed,” he said.

    He pointed out that truck turnaround time at the gate is an average of one hour, adding that it takes a longer time for cargoes to leave the terminal.

    He asked the NSC to address some of the challenges facing the terminal.

    TICT, he said, releases between 400 and 500 containers daily.

    Meanwhile, the NSC has donated a pick-up van to the Federal Roads Committee on Surveillance Action Against Road Abuse (FERCSARA) to aid the body’s operations of decongesting Lagos ports’access roads.

    Speaking on behalf of the Executive Secretary/Chief Executive Officer of the Council, Hassan Bello; the Deputy Director, Compliance, Monitoring and Enforcement, Cajetah. C. Agu, while handing over relevant documents, said the vehicle was donated to FERCSARA as part of its agency’s corporate social responsibility (CSR).

    The deputy director said the Shippers Council’s gesture was in response to the request from the group for an operational vehicle to facilitate their activities.

    He enjoined the inter-agency body to make judicious use of the vehicle to justify the continued collaboration of the Council with stakeholders to restore sanity in all the ports’ access roads.

    Responding, the Chairman, Western Zone of Federal Roads Committee on Surveillance and Action Against Road Abuse, Chief Austine Kelly, expressed the appreciation of his group to the management and staff of the Council for the gesture.

    According to him, Nigerian Shippers’ Council as the Economic Regulator is father to different players in the maritime sector, adding that the FERCSARA will always support the Council’s aspiration of tackling Apapa gridlock.

    He said that the vehicle will aid FERCSARA in its task of ridding the ports access routes of all impediments to free entrance and exit.

    He thanked the Executive Secretary of the council, Mr Hassan Bello for the collaboration.

     

  • Shippers Council plans new port order to reduce congestion

    Shippers Council plans new port order to reduce congestion

    To reduce congestion at sea ports, over 70 per cent of in-coming cargoes are to be examined at off-dock terminals, under a scheme being planned by the Nigerian Shippers Council (NSC), it has been learnt.

    Diversion of cargoes to neighbouring countries will also end under the council’s proposed new port order.

    Off-dock terminals are dry ports such as the Inland Container Depots (ICDs).

    The planned new order will promote efficiency and reduce cargo dwell time and the ports’ cost of doing business.

    A senior Federal Ministry of Transport (FMoT) official said under the proposed order ports, business would become more attractive, adding that NSC is also a port community system to make smooth its relationship with other agencies to generate more revenue for the Federal Government.

    “The new port order is for service-providers, users and all stakeholders in the maritime industry to enable them operate in line with global best practices and generate more revenue for the government.The order entails making the nation’s sea ports competitive, efficient and cost effective in delivery of services as well as making the ports user-friendly.

    “It will also lead to improvement in marine and terminal handling services delivery that will lead to reduction in the turnaround time of vessel and reduced cost of vessel operations,” the official said.

    The official continued: “The port community system involves every player, what he does, timing of activity and cost for such activity. It is a command and control centre, which creates a nexus between all existing systems in the industry. It is a means of integration among all players to boost efficiency and transparency at ports.

    “Since its appointment as port economic regulator by the Federal Government in February, last year, the NSC had in October, last year directed, reversed the storage charges at the ports to the rates, which were in force as at May 1, 2009, topping it up, in favour of shippers, with an increase in the free storage period at the port from three days to seven days.

    “As part of the moves to make the ports attractive for business, the NSC   directed shipping companies to reduce their shipping line agency charges from N26,500 to N23,850 per TEU and from N48,000 to N40,000 per TEU. It also imposed a maximum of 10 working days on the terminal operators as the period within which refund on container deposits by importers or their clearing agents should be effected. Although, the directive has been challenged in court, but we still consider it as good move by NSC to bring hope and sanity to our port system.

    “The objective of the system is to establish a framework that will promote the competitiveness of the nation’s sea ports beyond its neighbouring ports of Cotonou, Ghana, Togo, Cameroun and other ports in the sub-region.’’

    NSC Executive Secretary Mr Hassan Bello, the official said, was determined to enthrone an efficient port system that would facilitate trade and lead to increased revenue generation for the government.

    “One of the reasons for the concession of the ports to private terminal operators was to reduce cost. Cargo dwell time and the cost of doing business must come down for our ports to be competitive; it must be relative to operation and services that are being rendered by the terminal operators and the shipping companies. That is the mandate given to NSC as a port economic regulator and that is what its management is trying to enthrone in our ports to boost the nation’s economy,” the official said.

    Meanwhile, the Nigerian Ports Authority (NPA) has apologised to NSC for not involving the interim port economic regulator in last year’s tariff hike.

    Findings revealed that NPA wrote to NSC, introducing the tariff hike, but withdrew the letter when the terminal operator took offence over the matter.

    Speaking during Bello’s visit to NPA Managing Director Alhaji Sanusi Lamido Ado-Bayero in Lagos, last week, NPA’s Executive Director, Marine and Operations Mr David Omonibeke promised that the authority would carry the NSC along before increasing port charges.

    Omonibeke explained that the NPA did an increment last in 1993. He exonerated the agency from the high cost of doing business at ports.

    NPA, he said, was still collecting $920 after leading a ship to berth.

    Bello urged NPA to ensure that the proposed Lekki deep sea port does not face the same challenges as Apapa and Tin-Can Island ports.

    He also urged NPA to facilitate dry ports operation.

    If the dry ports began operation, they would serve as ports of origin and final destinations, where people could send their cargos abroad and receive them, he said.

    Ado-Bayero promised to back NSC, saying: “We will give you all the necessary support to deliver on your mandate. Together, we will move forward and establish a relationship that would be sustained and maintained.

    “I wish you gridlock-free journey to your office.”

     

  • Shippers Council plans new port order to reduce congestion

    Shippers Council plans new port order to reduce congestion

    To reduce congestion at sea ports, over 70 per cent of in-coming cargoes are to be examined at off-dock terminals, under a scheme being planned by the Nigerian Shippers Council (NSC), it has been learnt.

    Diversion of cargoes to neighbouring countries will also end under the council’s proposed new port order.

    Off-dock terminals are dry ports such as the Inland Container Depots (ICDs).

    The planned new order will promote efficiency and reduce cargo dwell time and the ports’ cost of doing business.

    A senior Federal Ministry of Transport (FMoT) official said under the proposed order ports, business would become more attractive, adding that NSC is also a port community system to make smooth its relationship with other agencies to generate more revenue for the Federal Government.

    “The new port order is for service-providers, users and all stakeholders in the maritime industry to enable them operate in line with global best practices and generate more revenue for the government.The order entails making the nation’s sea ports competitive, efficient and cost effective in delivery of services as well as making the ports user-friendly.

    “It will also lead to improvement in marine and terminal handling services delivery that will lead to reduction in the turnaround time of vessel and reduced cost of vessel operations,” the official said.

    The official continued: “The port community system involves every player, what he does, timing of activity and cost for such activity. It is a command and control centre, which creates a nexus between all existing systems in the industry. It is a means of integration among all players to boost efficiency and transparency at ports.

    “Since its appointment as port economic regulator by the Federal Government in February, last year, the NSC had in October, last year directed, reversed the storage charges at the ports to the rates, which were in force as at May 1, 2009, topping it up, in favour of shippers, with an increase in the free storage period at the port from three days to seven days.

    “As part of the moves to make the ports attractive for business, the NSC   directed shipping companies to reduce their shipping line agency charges from N26,500 to N23,850 per TEU and from N48,000 to N40,000 per TEU. It also imposed a maximum of 10 working days on the terminal operators as the period within which refund on container deposits by importers or their clearing agents should be effected. Although, the directive has been challenged in court, but we still consider it as good move by NSC to bring hope and sanity to our port system.

    “The objective of the system is to establish a framework that will promote the competitiveness of the nation’s sea ports beyond its neighbouring ports of Cotonou, Ghana, Togo, Cameroun and other ports in the sub-region.’’

    NSC Executive Secretary Mr Hassan Bello, the official said, was determined to enthrone an efficient port system that would facilitate trade and lead to increased revenue generation for the government.

    “One of the reasons for the concession of the ports to private terminal operators was to reduce cost. Cargo dwell time and the cost of doing business must come down for our ports to be competitive; it must be relative to operation and services that are being rendered by the terminal operators and the shipping companies. That is the mandate given to NSC as a port economic regulator and that is what its management is trying to enthrone in our ports to boost the nation’s economy,” the official said.

    Meanwhile, the Nigerian Ports Authority (NPA) has apologised to NSC for not involving the interim port economic regulator in last year’s tariff hike.

    Findings revealed that NPA wrote to NSC, introducing the tariff hike, but withdrew the letter when the terminal operator took offence over the matter.

    Speaking during Bello’s visit to NPA Managing Director Alhaji Sanusi Lamido Ado-Bayero in Lagos, last week, NPA’s Executive Director, Marine and Operations Mr David Omonibeke promised that the authority would carry the NSC along before increasing port charges.

    Omonibeke explained that the NPA did an increment last in 1993. He exonerated the agency from the high cost of doing business at ports.

    NPA, he said, was still collecting $920 after leading a ship to berth.

    Bello urged NPA to ensure that the proposed Lekki deep sea port does not face the same challenges as Apapa and Tin-Can Island ports.

    He also urged NPA to facilitate dry ports operation.

    If the dry ports began operation, they would serve as ports of origin and final destinations, where people could send their cargos abroad and receive them, he said.

    Ado-Bayero promised to back NSC, saying: “We will give you all the necessary support to deliver on your mandate. Together, we will move forward and establish a relationship that would be sustained and maintained.

    “I wish you gridlock-free journey to your office.”

     

  • Shippers Council is interim port economic regulator

    Shippers Council is interim port economic regulator

    •Jonathan signed gazette before exit

    Former President Goodluck Jonathan signed the law em-powering the Nigerian Shippers Council (NSC) as interim port economic regulator two months before his exit last Friday, it has been learnt. He signed the gazette on March 27.

    Under the NSC (Port Economic Regulator) Order 2015, the council is empowered to regulate tariff, rates, charges and other economic services at the ports.

    The Federal Ministry of Transport (FMoT) is mandated to support the council in the discharge of its duty.

    “With the law in place, the Nigerian Shippers’ Council has been empowered to monitor all matters relating to the cost, standard and quality of services rendered by the regulated service providers, a FMoT source said.”

    Under the gazette, NSC shall:

    • regulate economic activities at the ports;

    • set and enforce standard operating guidelines for the ports;

    • regulate Nigerian ports concession agreements; and

    • carry out other related acts that are incidental to its role as the port economic regulator.

    Bello said the law would help NSC to promote competition, attract Foreign Direct Investment (FDI) and increased business activities at the ports.

    He lamented the high cost of doing business at the ports, which he said made them to be less competitive within the sub-region.

    Bello said the council has appointed CPCS, Nafith and Mark Analytical to help it discharge its obligation.

    Despite NSC’s new power, it was learnt that the Nigeria Customs Service (NCS) will continue to collect the seven per cent Port Development Levy (PDL); the distribution proceeds will also reflect the operational realities of the benefiting ministries, departments and agencies (MDAs).

    The service providers, which NSC will regulate, over Nigerian Ports Authority (NPA); seaport terminal operators; shipping companies and agencies; off dock terminal operators; cargo consolidators; logistics service providers; freight forwarders and clearing agents; inland container depot operators; stevedoring companies; Council for the Regulation of Freight Forwarders in Nigeria (CRFFN) and other port service providers

    Some NSC junior workers told The Nation that they are happy that the plot to stop the council’s gazetting before Jonathan’s exit was thwarted.

    They alleged that terminal operators, shipping firms, truck workers and some banks worked against the NSC being gazetted.

     

  • How to achieve 48-hour cargo clearance, by Shippers Council

    The Nigerian Shippers’ Coun-cil (NSC) is set to enforce the  48-hour clearance of goods at the ports to make them competitive, its Secretary, Mr. Hassan Bello, has said.

    The Council, he said, believes that the ports lost their comparative advantage to ports of neighbouring countries because of bureaucratic bottleneck.

    “NSC is not happy with the clearing procedures and the inability to achieve the 48-hour cargo clearance,” he said, adding that he may adopt measures that will fast-track cargo clearance from any terminal to boost trading at the ports, adding that he could resort to automation to reduce human contact in cargo clearance.

    The council’s ultimate aim is to provide platforms for cargo clearance so that the ports can meet international standard, Bello said, urging stakeholders to support his organisation in finding a solution to the problem.

    He said: “The idea is that the Nigerian Shippers’ Council is the referee in this friendly context, and the more we interact with the service providers and government agencies, the better understanding we will get on quick cargo clearance.

    “We need automation in every port instead of doing many things manually. We need to streamline these processes and develop standard operating procedures, and check the presence of government agencies at the ports on what they are doing and the Customs to also up their game in automation.’’

    Bello what on: “They have led the way but we need other stakeholders to come and buy in. Importers need to make genuine declaration of their goods to help the process and the clearing agents too must pay the actual duty to reduce the time. So, we are doing a lot of consultation while we supervise and moderate. Customs has been leading in so many areas of what our ultimate aim is – which is automation, providing platforms for cargo clearance so that our ports will become efficient. The trade facilitation issue they have pioneered is something very commendable and it is a starting point as far as we are concerned.”

    He spoke of the need to streamline cargo clearance procedures and ensure that the ports can compete with others in West and Central Africa.

    “Nigerian ports are in competition with other ports within the sub-region, so we have to streamline our clearance procedures – the way we do business – so that we attract more cargoes to Nigerian ports,” he said.

    “We need to develop standard operating procedures. We need to check the presence of government agencies in the ports on what they are doing and what they must not do to boost trade,” Bello added.

     

  • Hurdles before Shippers’ Council

    Hurdles before Shippers’ Council

    Last year, the Federal Government appointed Nigerian Shippers’ Council as port economic regulator. Although stakeholders say the Council has, to some extent, brought sanity to the ports, they, however, want in-coming administration to lend support to it on issues relating to international best practices to boost the economy, writes Maritime Correspondent OLUWAKEMI DAUDA.

    One of the observed lapses in the concession agreement that handed over the nation’s ports to private investors in 2006 was Federal Government’s failure to appoint an economic regulator. This lacuna, according to operators and stakeholders in the maritime industry, left port users especially Nigerian importers holding the short end of the stick, with no regulator to monitor the activities of port service providers, shipping companies and terminal operators.

    However, the need to close the gap created by lack of a post-concession regulator of the port system was not lost on government. This was why, having noticed that service providers were taking advantage of the vacuum, government decided to appoint an economic regulator to act as referee in port activities. Consequently, the Federal Government in February 2014, appointed Nigerian Shippers’ Council (NSC) as the Economic Regulator of the ports.

    More than a year down the line, the NSC is now in the centre of public scrutiny. How has the council fared in its new role as port economic regulator? Has the council delivered benefits to stakeholders in the maritime industry? What have been its major challenges?  And how has it positioned itself to continue playing its role under the incoming administration of General Muhammadu Buhari? These are some of the questions agitating stakeholders’ minds.

    To the Executive Secretary, NSC, Mr. Hassan Bello, an understanding of the mandate of the council should form the basis for assessing its performance so far. His words: “In our capacity as Port Economic Regulator, our role is to consult, coordinate, moderate and harmonise the various processes and procedures with a view to achieving operational efficiency at our ports.

    “Where there is unreasonable resistance, we shall not hesitate to apply appropriate sanctions to ensure compliance. We shall remain, independent, neutral and consultative and all decisions will be on the buy in of stakeholders. We are also to assess options for competition; to decide on entry rules; to regulate on pricing freedom; to monitor outcomes and all that.”

    But has the council delivered on its mandate? Bello said: “Effective regulation requires much more than just competent economic and financial analysis, but must also manage often complex interaction with the regulated firms, consumers, politicians, courts, the media, and a range of other interests.”

    Nigeria’s road to a sub-regional hub; while giving insight into what the council is doing, is to create a new port order. Bello said the council has established a new platform for everyone to integrate and make the Nigerian ports the hub in the sub-region and an international logistics centre.

    According to stakeholders, the new port order involves a situation where the cargo is scanned before it is stacked. As the ship is discharging, the cargo is also being scanned, and the image is used by the Nigeria Customs Service (NCS) to commence clearing process in terms of segregating the cargo for whatever line of inspection, such as:  green, yellow and red light, as the case may be.

    “We are working with the Central Bank of Nigeria (CBN), Customs and other relevant stakeholders so that every payment made in the maritime domain is reflected on the platform. In doing this, we have designed a template and standard tariff system that will ensure 30 to 40 per cent reduction in cost to achieve harmony in tariff. This involves all service providers,” Bello said.

    He also explained that the system harmonises every transaction in such a way that transfer of containers to off-dock terminal does not attract extra charge in terms of payment of royalty to the terminal operator. According to him, transfer of containers to off-dock facilities should not attract extra charge, assuring that the practice will be discontinued as it amounts to double charges to the shippers.

    Explaining further, the NSC Executive Secretary said the idea of harmonising the system creates transparency as the importer trades with certainty as to how much to pay and how long to take delivery of the goods. This new port order, he said, will eliminate all the wastages in the system so that the cost of doing business is reduced. Part of the arrangement is that the owner of the cargo should know when his cargo arrives to prepare him to make arrangements to clear his goods in good time.

    “We are also working to streamline and professionalise freight forwarding to strengthen its position in the ports. We prefer to have them in companies rather than individuals,” Bello added. According to him, in doing all these, the council is not competing with any government regulatory agency, but thrives to actualise the mandate of making Nigerian ports the hub in the sub-regional and international logistics centre.

     

    Operators,  stakeholders react.

    The President, Association of Nigerian Licensed Customs Agents (ANLCA), Price Olayiwola Shittu, said his group was aware that Bello was not happy that the nation’s seaports have lost their comparative advantage in terms of cost, especially in cargo clearance and that the council is set to make the seaports attractive.

    Bello, the ANLCA Chief said, is determined to ensure that the country recoups its losses and also restore stakeholders’ confidence in the seaports. He, however, said the problem of the ports came about before the Federal Government appointed the NSC as an economic regulator, after the ports were concessioned. Shittu said this was responsible for the legal tussle the council is fighting and the inability of Nigerians to reap the full benefits of the port reform programme of the government.

    Shittu, however, said the involvement of stakeholders is an important source of legitimacy and public acceptability for regulatory agencies and their decision-making procedures. As a start-off, the NSC, he said, met with all stakeholders, including clearing agents, shipping agents, importers and private terminal operators to understand the challenges facing them individually and how to resolve the problems and unite the stakeholders.

    The Nation learnt that the council also met and received the support of the Nigeria Ports Authority (NPA), whose former managing director, Mallam Habib Abdullahi, affirmed that ‘’it would amount to failure on the part of NPA if the NSC fails’’. At the meeting,  Abdullahi said he was ready to cooperate and support the council in its new role as the economic regulator. The council also had similar consultations with the NCS and the CBN. At these meetings, the chief executive officers of the agencies gave assurances of their support.

    A senior official of the Federal Ministry of Transport, who craved anonymity, said after the implementation of the Federal Government’s port reform programme, which led to the concessioning of port terminals, the importers and other stakeholders noted a vacuum, namely the absence of an economic regulator to act as a referee. This vacuum, the official said, made it difficult for Nigerians to enjoy the gains of the programme.

    “The inefficiency in the procedures and operations of agencies and port users is adversely affecting and undermining Nigeria’s competitive advantage in international trade, which Bello is now set out to correct,” the official said, adding that the effective regulation being put in place by Bello is gradually paying off.

    “The benefits of a regulated port industry, which Bello is trying to establish at NSC, would lead to improved revenue generation, infrastructural development, creation of efficient market, reduction of cost of business and improved Global Competitive Index and consequent attraction of Foreign Direct Investment (FDI),” the official emphasised.

    Another senior official of the council, who does not want his name in print, however, said the regulator needs to provide a level playing field amongst competitors, as the regulator needs to be independent, transparent, legitimate and credible. He added that the global competiveness of Nigerian ports has a major role to play in the attraction of FDI.

    Regulation, a win-win for all. Terminal operators are believed to be top beneficiaries of the emerging port order ocassioned  by the coming of a port economic regulator. Part of the benefit is the protection of their investments from undue interference. This leads to guaranteed return on investment and increased profitability; predictability in processes and procedures; assurance of level playing ground; availability of Common User Information Service provided by the regulator; strengthening of complaint and arbitration mechanisms, among other benefits.

    Apart from the private terminal operators, the government will also enjoy improved revenue generation; improved infrastructural development; creation of efficient market; reduction of cost of doing business; improvement of the nation’s Global Competitive Index and consequent attraction of FDI.

    For the shipping companies, there will be improved delivery of marine and terminal handling services, leading to reduced turn-around time of vessel and reduced cost of vessel operations. There is also the benefit of improved image due to increased customer confidence, transparency, efficiency and effectiveness and consequent improvement in image.

    The presence of an economic regulator ensures the strengthening of complaint and arbitration mechanisms, prompt issuance of Ship Sailing Certificate and consequently, avoidance of demurrage accumulation against shipping companies and other effects.

    For the freight forwarder, it ensures professionalisation of freight forwarding practice. This, on its own, leads to elimination of touting, sanitisation of the port environment, and harmonisation of clearing processes and procedures, and consequently, reduction of clearing charges.

    The NPA will also enjoy the effect of the presence of an economic regulator because it will lead to enthronement of clearer Standard Operating Procedure (SOP) derived from International Laws (Conventions) and Practices. The NPA will also enjoy transparency, efficiency and effectiveness and consequently, improvement in image, improved revenue generation, improvement of competitive advantage in the sub-region, and strengthening of complaint and arbitration mechanisms among others.

    The NCS is not left out either. The emergence of the economic regulator will translate to improved revenue collection, enthronement of clearer Standard Operating Procedure (SOP) derived from international conventions and practices, improved level of compliance by importers, exporters and freight forwarders and others.

    Above all, the ultimate beneficiaries are the consumers. The economic regulator will ensure harmonisation of clearing processes and procedures and the consequent reduction in cost and time of cargo clearing, reduction of Cargo Duel Time, in particular, and generally the trade cycle.

    When the new port order comes on stream, providers of haulage services will also enjoy decongestion of port access roads, leading to improved truck transit time at ports; there is also the ability of re-fleeting of rickety trucks; installation of electronic gating and call system guaranteed loading opportunity for truckers.

    A regulator’s many challenges are exciting as the benefits of an economic regulator for the ports. For instance, the council encountered one of its challenges in the course of performing its duty in October last year. That was when, in consonance with its new roles, the council published notices directing shipping companies and terminal operators to reduce certain charges, increase free storage time, and announced interventions in other levels of pricing.

    The move did not go down well with shipping companies and terminal operators, who filed two separate actions against the council and obtained interim injunctions restraining it from implementing the directives contained in its notices to them. The substance of the actions challenged the exercise of powers of the council and questioned the validity of the council’s appointment as the economic regulator by the government.

    Not done yet, 12 shipping line agents under the umbrella of Association of Shipping Line Agents, filed a suit seeking court’s declaration that the council does not have the power to introduce or impose local shipping charges on them, and that the notices issued by the council were illegal. In the counter-claim, the council had sought for the ‘Shipping Line Agency Charge’ levied by the plaintiffs to be declared illegal, and for payments collected thereby to be refunded.

    Delivering judgment on the two similar matters, Justice Ibrahim Buba of the Federal High Court agreed with the counsel to the NSC, Mr. Emeka Akabogu that the NSC was properly appointed and empowered by virtue of the Constitution of the Federal Republic of Nigeria to undertake its role as an economic regulator. Justice Buba ruled that in the clear absence of any existing law in Nigeria making provision for an economic regulator for the ports, Section Five of the Nigerian Constitution was the adequate basis for the President to issue orders in relation to the subject, as government exists for the welfare of citizens. The court thus affirmed that the NSC was validly appointed as the economic regulator for ports in Nigeria and could exercise powers in that regard.

    The court further ruled that the ‘Shipping Line Agency Charge’ (SLAC) being collected by the shipping companies is illegal. The court, therefore, ruled in the case filed by the shipping companies that the plaintiffs should render account and refund all money collected under the heading of ‘SLAC’, declaring that it is illegal.

    Responding to the court cases, Hassan Bello said: “We’ve resisted attempts to increase charges and we said no to impunity, economic brigandage, fleecing of Nigerians.” It was not the only hurdle before the council. The council also had to take on other responsibilities adjunct to its core mandate, which included the conceptualisation of Inland Container Depots (ICDs) and Container Freight Stations (CFS). The Council was also the arrowhead of the creation and nurture of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN).

    Beyond that, the Council, in its efforts to protect the interest of Nigerian shippers, has, for a long time, been perceived as a toothless bulldog because of the divergent interests operating at the nation’s seaports and the lackadaisical attitude of those in power. For instance, for many years, the Council fought unsuccessfully to check the arbitrary imposition of charges by the multinational shipping lines.

    Moving forward, the consensus is that the appointment of the NSC as economic port regulator was a step in the right direction and that the Council has not fared badly. Operators and stakeholders say there are still a number of issues confronting the nation’s shipping sector, which need to be addressed by the incoming administration of Gen Muhammadu Buhari.

    Some importers, clearing agents and stakeholders, who spoke with The Nation, said prominent among them are competitive pricing, alleged arbitrary charges by shipping companies and other government agencies. They argued that these issues must be resolved so that importers, who patronise the nation’s seaports do not suffer unnecessarily in terms of delay and cost.

    The Shippers’ Council, stakeholders say, needs the support of the in-coming administration to regulate effectively the commercial activities of all operators, which include terminal operators, shipping companies, the importers, exporters and clearing agents, among others.

  • Shippers Council as economic regulator, the journey so far

    Shippers Council as economic regulator, the journey so far

    Following the appointment of Nigerian Shipper’s Council (NSC) as the Economic Regulator of Nigerian ports in February last year, a Lagos based maritime lawyer, Emeka Okereke,  examines activities of the agency and concludes that it needs serious legal and legislative platforms to achieve the desired objectives. He called on the Federal Government and the National Assembly to expedite action in strengthening the agency’s effectiveness and efficiency to carry out this objective.

    The recent Federal High Court judgment delivered by Justice Ibrahim Buba affirming the 2014 pronouncement of the Federal Government of Nigeria making Nigerian Shippers’ Council (NSC) as Ports Economic Regulator calls to question if the intended benefits of port reforms have been achieved.

    Prior to 2006, port reforms – concessioning of the ports to Terminal Operators and Shipping companies, one  could not easily forget the lamentations by stakeholders, particularly the importers and freight forwarders over  undue delay in cargo  handling and delivery, poor equipment profile, high cost of doing business at the ports and other adverse and uncompetitive level with neighbouring ports.

    In an effort to bridge the yawning gap in the port reform process, the Federal government in February 2014 after agitations from stakeholders appointed Nigerian Shippers’ Council as Ports Economic Regulator.  Its duties were essentially to address options for competition, to decide on entry roles, to regulate on pricing freedom and to monitor outcomes among others. This was indeed  a welcome development given the overwhelming acceptance by the stakeholders in the industry.

    In the past six months, some terminal operators and Shipping companies have embarked on a wide range of  judicial journey querying the competence of the regulator in slashing their unwarranted and arbitrary charges amounting to a staggering sum of N150Billion surreptiously collected from importers. The terminal operators and shipping companies dominated by foreigners still believe that the old order must continue. The period of capital flight, massive corruption, unwholesome practices which made our ports unattractive to importers and foreign investors  must not change.

    As we know, the global competitiveness of Nigerian Ports has major role to play in the attraction of Foreign Direct Investment into the country. Port reforms,  no doubt has brought in tremendous benefits to the national economy.

    However, there is still need to harness other potential areas,  especially the need for the Federal Government to give Legal and Administrative backing to its pronouncement of 2014. It is only in Nigeria that a Port reform process involving private companies was conceived without a government agency as a regulator.

    Now that the error has been corrected by appointing NSC as ports Economic Regulator, all necessary appurtenances attached to it must be made, the Council must be backed with appropriate legal, legislative and policy frameworks to achieve this  all important objective.

    We call on the National Assembly  and  the Executive to expedite action on providing necessary legal backing to encourage and inspire the agency to effectively tackle this assignment.

    Within the past on e year the council has made enormous contributions to the national economy and we can’t afford to lose sight of these achievements. We must encourage the council to carry out its mandate for benefit of Nigerian economy and Nigerians in general.

    Kenechi Okereke  is a maritime lawyer bases in Lagos .