Mr. Yusuf Ismail is the Managing Director of the Inland Container Nigeria Limited (ICNL) operators of the Kaduna Inland Dry Port (KIDP). In this interview with Shipping Position Daily, he spoke extensively on the challenges of operating an Inland Dry Port. He also talked on sundry industry issues.
“We have customs that often escort those containers either by rail or road to the terminal in Kaduna”
“We have a way of positioning containers, so that when you have the key locked and sealed, it will not be facing outside that is one safety nature in place”
What has the experience been since last year when operations started at the Kaduna Inland Dry Port?
So far so good, we have been moving containers to Kaduna Inland Dry Port (KIDP) and as usual we have been using the road and I think we should appreciate the federal government’s concern in the efforts to ensure that the dry port functions as it is supposed to. In any part of the world where they operate dry port, it is the rail that moves most of the containers from seaport to the hinterland in other to reduce the cost of transportation. And that is the belief of the federal government and that is why the Nigerian Railway Corporation has taken it upon themselves to see that we commence operations using the railways.
What were the challenges that you faced before now?
Like every other business or businesses, you are bound to face challenges. First of all, for those who do not know about the dry ports, you need to do advertisement like radio jingles, seminars and conferences to ensure that you create awareness for the services and that is what we have been doing. So you need to move around to the neighboring states and the federal capital to create awareness that the dry port is in existence and for them to patronize it instead of coming to Lagos.
Do you also agree that Lagos ports are congested?
Yes, Lagos ports are congested, I have no doubt about that and I have said it several times that it is not the roads that are causing the gridlock. This is because before they repaired the roads people were saying that after the repairs, the traffic will go and I disagreed with them.
What we require should be done is that the traffic management, it needs planning. You create parking lots so that those that cannot enter the ports immediately will park somewhere before their time to enter the ports. If that is done the road will be free. And again the people that are operating the terminals need to be efficient. Well their terminals may not be enough to accommodate all the services they render, they need a terminal where they will stack loaded containers, they need a terminal where they will stack empty containers and they also need a terminal where they will handle export cargoes. So if the space they have cannot accommodate the influx of cargoes, then there is a problem, so definitely they cannot allow as many trucks to go in as possible. And that is why you need a truck park at the ports.
That means you are in line with what NPA did by opening Lillypond terminal for such purposes?
It is fine, I saw it this morning, hundreds of trucks were parked inside and that is why you don’t see trucks on the bridge anymore and by the time they open the Tin Can park too, you will see those things will be eradicated or reduced if not totally stopped.
Some people have alleged that the trucks on the roads are traceable to terminal operators not having holding bays, is that true?
Terminal operators do not need to have a holding bays, it is not their duty to have a holding bay; their own is to receive containers in the ports. It is the shipping company that is bringing containers into the ports that is supposed to have a holding bay. But if the terminal is big enough you don’t need a holding bay outside it; all should be in the terminal, and you are efficient (you work 24hours), so as the trucks are coming and going out; there will be no need for them to be outside. We need to investigate whether they have increased the capacity of the terminal. As you are seeing the KIDP, we are looking for space in the ports to enable us stack our won containers, but there is no space. So we will continue to pay demurrage to APMT and that will increase the cost to our customers.
What is the level of cooperation that you enjoy with the Nigerian Railway Corporation?
They are ready to cooperate with us and they are actually cooperating. I think we have moved 18 wagons to KIDP to flag-off and they have promised to support the Kaduna Inland Dry Port.
On the average , what is the difference in cost to move container by road and by rail?
I think moving containers by road to Kaduna is about N700,000 now , while the railway will be about N500,000 that is about N200,000 difference. So if you have 10 containers you have saved up to N2million and that is a lot of savings Apart from that, you have the benefit of safe and timely arrival.
At the moment what facilities do you have at the Kaduna Inland Dry Port?
We have a warehouse; we have terminal and offices for Customs, NAFDAC and all the necessary government agencies. We have a warehouse with a space of about 4,000 square meter , we have port code; so we are connected to CBN online to enable us open Form ‘M’ with CBN. And we have also approached Federal Ministry of Finance to give us pre-shipment inspection agents that will be present at the ports and they are working on it. We have Truck Park and the Kaduna state government is also doing a lot, they are constructing roads, they gave water borehole in the place and they have given us a generator and a transformer. So I think they have done enough; the facilities are good, it’s a well-fenced facility that we have.
How did ICNL/KIDP achieve this because we have others who are still struggling to survive?
That is commitment by the owners of the business, the state and the federal government. We have support from all the stakeholders to ensure it works.
There was a time when there was fear of the safety of containers being moved to Kaduna and down to Lagos. What measure of safety will you assure the customers now?
As far as I am concerned, containers are safe; in the sense that we have ways we stack our containers on the truck that is the 20ft. If it is 40ft we have a way of positioning containers, so that when you have the key locked and sealed it will not be facing outside, that is one safety net in place. Secondly, we have customs that often escort those containers either by rail or road to the terminal in Kaduna.
What do you have in stock for people who are contemplating patronage of the KIDP?
They should better come, because they have a lot of benefits from allowing KIDP to pick their containers and cargoes to the dry port. First of all, you will reduce your stress of coming here; you have cost savings on your hotel accommodation and transportation. You also have cost savings on transportation of your cargoes also to Kaduna. Use KIDP, you will sit in your house and your container will come and meet you, because by the time your container gets to Kaduna your agent will come to the terminal and do the necessary and you take your container out.
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