Dr. Frank Ukor is the founder of the Association of Registered Freight Forwarders of Nigeria (ARFFN). In this interview with Anozie Egole, he speaks on the challenges in the sector, in freight forwarding as well as the way forward.
“It is not possible that the terminal operators can just move containers to bonded terminals without the consent of the importer
What is your reaction to the proposed amendment of the CRFFN Act?
The proposal is in order; it is long overdue, normally the amendment comes every 5 five years. We commend the management of the CRFFN for that and also the National Assembly for carrying out that amendment. On the tenure elongation, I think it should remain for that two years and on the two persons each from each of the geopolitical zones, it is in order. On the changing of the name of the registrar to Chief Executive Officer, I disagree with that, he can’t be the CEO. As it is, most associations, like engineers I think they all have Registrars. So let the Registrar be the way it is; what they should do is to ensure that the Registrar is in charge of the system, it must not necessarily be the CEO before the Registrar can do that.
Some stakeholders in the industry have been calling for the relocation of the tank farms in Apapa, as a means of addressing the traffic gridlock in the axis, what is your position on that?
It has been long people have been saying that, if they should do it, it will be a very good development; they should relocate the tank farms because it is causing a very serious gridlock there. So I am strongly of the opinion that it should be relocated to another place and this area should be left for those going to the ports to lift cargoes.
There have been accusations by some freight forwarders that some Customs Area Controllers collect money from importers before cargoes can be transferred to bonded terminals, what do you have to say about this?
It is what they have been doing and it is very wrong and they should be called to order to desist from doing so, because it is not proper and it is very wrong. Why will they collect money before transferring a container and before it gets to the terminal they will still collect money to release them. That is why the cost of doing business in Nigeria is very high, because the customs are compromising and it is adding to the cost of doing business.
There is an allegation of illegal transfer of cargoes to bonded terminals by terminal operators without the consent of the consignee, is it true?
I don’t think that is happening, because before consignments are moved to bonded terminals the Area Controller must sign it before it can be transferred. So it is not possible that the terminal operators can just move the containers without the consent of the importer and then the importer does not come here directly to clear, he does that through his agent who will normally request for transire to transfer these goods. So the issue of terminal operators transferring the cargoes without the consent of the consignee; I doubt if it is possible, but if they do it, it is very wrong, they have no right to transfer cargoes without the owner through his agent requesting for the transfer. But if they do that, it is very wrong, because the importer can sue the terminal operator and claim damages; it is not proper. If they want to transfer the container they must seek the approval of the importer through his agent.
Recently NAGAFF unveiled a 100% compliance team and few weeks after ANLCA also launched a task force, what is your take on that?
I will wait for the president of AREFFN, he will be the person to answer that question, I am no longer the president of ARFFN. But if NAGAFF has formed their own and called it 100% compliance team and ANLCA has done their own and called it task force, ARFFN and other associations should come up with something, we will look into it and find out a good name, I can’t do it alone. The association has to meet and come up with a name because if I suggest a name now, it will not be proper. When they have their next meeting they will agree and come up with a name whether they will like to form a task force or a compliance committee, they will decide. It is possible that AREFFN will form their own team we cannot rule it out, we will play along with what is happening in the industry, if other associations are forming teams we will do our own. But I thought that the best would have been, since CRFFN is the body regulating all the association, they would have come up with a body that will do that and not the various associations. So both NAGAFF and ANLCA should not form that, CRFFN should be the body to do that. They should select numbers from various associations to form that or whatever they want to call it; whether compliance team or task force. I know they have compliance subcommittee within the CRFFN, the blame goes to CRFFN for not living up to their billing. CRFFN should ban both the 100% compliance team and the task force and set this thing up on their own and put all the associations together, that is why they are there. They are there to regulate all the freight forwarding associations, that is what they should do.
There seems to be crisis in ARFFN, what is happening in the association now?
There is no crisis in ARFFN, people are free to resign their positions at any time, even the president can be asked to resign if we discover he was not doing very well. As for the secretary, we found out that he was lacking in some areas and the board gave him a query and he decided to resign, that was his decision. The board didn’t sack him, they only gave him a query and he decided to resign, we are very happy that he resigned because he has not been doing well at all, but we don’t wash our dirty linens in the public, that was why we decided to do it ourselves.
Would you say the terminal operators complied with the directive of the NPA on demurrage for cargoes during the lockdown?
They didn’t comply, they were charging demurrages but what happened was that the Nigerian Shippers’ Council has said that when they charge, you should pay and after the terminal operators will refund the money. Instead of causing problems if you go into tug of war with the terminal operators and the shipping companies, you will be the person to lose. So the best thing is if they give, try and pay; later you report to Shippers Council who will later collect the money and refund to you.
What do you think is frustrating the proper utilization of Lillypond terminal?
Since there are no areas where trucks can park, individuals don’t have parks, let government utilize the place properly, let individuals use that place and pay so that the government can make money. That place was very functional as customs command, so it won’t be nice if it is allowed to be wasting like that. What happens is that containers are transferred there normally from Apapa and that was where the government was making their money before. It can be used as park where trucks can park and when they are set to load, they will go and load; government or the owners of the place can generate revenue through this means.
There seems to be issues between barge operators and presidential task team on restoration of law and order in Apapa, what is your reaction to that?
My reaction is this: it is very wrong for the presidential task team to go the barge operators and be expecting barges to pay. You know what is happening is that the task team are the ones causing the delays on the road, one of the managers of these truck unions say they now pay between N170, 000 to N300, 000 to get a truck from Mile 2 to Tin-Can to go and load. So you see, I understand that is cost about N170, 000 to go through the barges to deliver these goods. So if the presidential task force is going to fight these people, it is very wrong because it is the money that they will get that they are fighting for. I thought they should be very happy that the barges are helping to ease the gridlock why then are they going to arrest them; it is not proper at all.
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