The Nigerian Shippers’ Council has been tasked to ensure that it does not set pricing of port services, without consultation with relevant stakeholders.
This charge was given yesterday by various maritime industry personalities who spoke at a summit organized by the Maritime Reporters Association of Nigeria (MARAN) tagged: "Achieving Fair and Equitable Port Pricing System In Nigeria" in Apapa, Lagos.
The Nigerian Shippers’ Council has been tasked to ensure that it does not set pricing of port services, without consultation with relevant stakeholders.
This charge was given yesterday by various maritime industry personalities who spoke at a summit organized by the Maritime Reporters Association of Nigeria (MARAN) tagged: "Achieving Fair and Equitable Port Pricing System In Nigeria" in Apapa, Lagos.
Leading the train of speakers, General Manager of Administration and Human Resources of Sifax Group; Dr. Phil Ofulue charged the Council to make wide consultations with stakeholders before setting port prices.
According to him, terminal operators cannot set port charges to be too low in order to be able to recoup their investments at the port.
"No single operator can single-handedly fix rates on her own, we have our constraints which the government agencies know, you cannot go to the bank and take loan at very exorbitant rate and expect that in 10 years, by charging peanuts you will recoup your investments" Ofulue said.
"I hope you will give ample opportunity to hear everybody out, Rome was not built in a day, so don't expect things to be rosy" he added.
Also speaking at the event, Secretary of the Nigeria Shipowners Association (NISA); Capt. Niyi Labinjo pointed out that the role of the Shippers’ Council is key, because government cannot regulate itself.
Labinjo charged the Council to get a legislation to back its role in the port, in order not to have its orders questioned by port operators.
"There is need to curtail the avalanche of law suits that will challenge the powers of the Nigerian Shippers’ Council if the legislation for its regulation is not put in place”, he advised.
"Before you know it, everybody will be going to the court to challenge your powers" he said.
On his part, President of the Lagos Shippers’ Association; Reverend Jonathan Nicole pointed out that one of the routes where unrealistic pricing exist is the collection of unlawful levies by customs officers, shipping companies and other government agencies.
Nicole said that despite the 7% of total revenue on customs duties collected as incentives and the 1% PAAR levy by the Customs, there are un-receipted charges like; general purse, endorsement fee, customs examination fee, CIU fee, among others.
On the part of the shipping companies, he pointed out that there are hidden charges such as handling fee, packaging, and others.
President of Association of Registered Freight Forwarders of Nigeria (AREFFN); Dr. Frank Ukor charged the Shippers’ Council to monitor changes in charges set by terminal operators and shipping companies.
He said that container deposits belonging to Nigerian shippers are trapped with the shipping companies who have refused to release them to their owners, rather, "they are doing business with our money".
He also alleged that there has been connivance between terminal operators and shipping companies in order to delay cargoes at the port so as to attract more demurrage.
Responding however, the Executive Secretary of the Nigeria Shippers Council; Barrister Hassan Bello assured that the Council is not going to set port pricing system in isolation.
Bello who was represented by Mrs Celine Amaka from the commercial shipping department of the council solicited the corporation of all stakeholders in delivering on its mandate.
He assured that the council is aware of its interim regulatory role, but that the passage of the National Transport Commission Bill and the Ports and Harbour Bill will further complement the efforts of the council.
Presenting a paper titled: "Pricing and Supply of Port Services In Nigeria; Role of Commercial Regulator", Bello identified that "pricing can make or mar a port and that is why we look at it as a very important tool, the right pricing can lead a port to prosperity and growth, the wrong one can guide it to inefficiency or extinction, high pricing will deprive the port of its patronage by vessel and cargo owners".
"Low pricing may bring clientele to the port, but congestion may be the order of the day, investment cost may also not be recovered in the long run" he said.
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