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Home » FG Set To Re-visit Port Concession Exercise

FG Set To Re-visit Port Concession Exercise

by Joshua
December 18, 2014
in Uncategorized

There are indications that the the Federal Government ‎might be revisiting the port reform exercise it carried out in 2006, even as the National Economic Management Team has condemned the port concessionaires for failing to provide necessary infrastructures at the port.
‎This indication came to the fore yesterday at a stakeholders’ forum on ports infrastructure and operational challenges organized by the economic management team, which is chaired by former Governor of Anambra State, Chief Peter Obi.

There are indications that the the Federal Government ‎might be revisiting the port reform exercise it carried out in 2006, even as the National Economic Management Team has condemned the port concessionaires for failing to provide necessary infrastructures at the port.
‎This indication came to the fore yesterday at a stakeholders’ forum on ports infrastructure and operational challenges organized by the economic management team, which is chaired by former Governor of Anambra State, Chief Peter Obi.
Obi who was represented at the meeting by Director of Economic Research and Policy Management of the Federal Ministry of Finance; Mr. Gabriel Aduda‎ expressed concern at the alleged exploitation of genuine businessmen by terminal operators and shipping companies through collection of unwholesome charges.
The economic team Chairman said that government is ready to impose sanctions on concessionaires and shipping companies who fail to carry out their functions as stated in their concession agreement and that they were going to be made to provide necessary facilities at the port, especially the repair of access roads.
Apparently well inundated by the situation prevailing at the port, Obi lamented that it is not acceptable for port operators to capitalize on delays to make money off businessmen; he said “this is not acceptable and we have to find a way to ensure that it does not work like that anymore"
"If at this age we are having these issues and concessionaires would rather make money from demurrage and delays, then this is where we should push for reverse penalties, because if government has concessioned the ports, why should it now worry about where trucks are parked?"

"When it comes to providing facilities, it is the duty of the concessionaires and not government, let us run after the concessionaires, when we need to sanction them we will ensure that sanctions are put in place, such that if they don't have power to carry the burdens then they should let go of it" he said.
He assured that the Federal Government is ready to come in whenever it is needed for it to provide the enabling environment, and regulations.‎ He reiterated that the essence of the port reform exercise is to make Nigerian ports competitive in the region, and that government cannot be in business.
‎According to him, "Nigeria cannot be isolated from the global market, we must be more competitive to draw in more business and see more cargoes coming into the port, this is the focus of this team, and the port is a very vital part of these issues"
"Government has no business doing business, and the transformation agenda of President Jonathan has made it clear, these concessionaires need to actually start operating as businessmen, they don't need to wait on government to provide access and other things"
"As a concessionaire, you need to look around at the entire environment, what will enhance your business, but sometimes these things are caused deliberately to collect demurrages and exploit port users"
Maritime industry stakeholders also took time to analyze various‎ challenges experienced at the port to the team. One of them is the Manufacturers Association of Nigeria (MAN) represented by Mr. John Aluya.
MAN noted that the port concession exercise was not properly implemented because in order climes, it is the concessionaires that are in charge of repair of access roads. The association lamented delays experienced in clearing of raw materials from the port.
Also, importers, represented by the Shippers Association Lagos State (SALS) Vice President, Rev.‎ Nicodemus Odolo called for the creation of a maritime bank to serve the industry, even as he called for a central agency that will decide which ports cargoes will be stemmed to.
He stressed that shipping companies and terminal operators should be made to bear the demurrages from delays created by them. He noted that many of the concessionaires do not have handling equipment to deliver cargoes on time.
‎On his part, Mr. Lucky Amiwero, President of the National Council of Managing Directors of Licensed Customs Agents called on the government to empower the Nigerian Shippers’ Council to be able to correct the identified ills in the port system.
Amiwero canvassed the need for government to adequately fund the Council to be able to deliver on its mandate.
Chairman of Association Maritime Truck Owners (AMARTO); Chief Remi Ogungbemi lamented the absence of an adequate truck park for his members.
The team leader, Gabriel Aduda however said that Coordinating Minister of the Economy; Dr Ngozi Okonjo Iweala  is concerned about the prevailing complaints at the port and that the meeting was at the instance of the ministry and the economic team.


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