Oluyinka Onigbinde
Stakeholders in the nation’s maritime industry have given reasons most of the Inland Dry Ports (IDPs) in the country are yet to take off, while the few that have commenced business are underperforming or inefficient.
The poor rating of the ICDs is, despite the country setting high export ambitions and plans and use the dry ports to encourage exports from the hinterland.
Even though it has been long conceived, we recall that the concept of dry ports in Nigeria was mooted during President Olusegun Obasanjo-led administration. Around 2003, the administration approved the creation of Inland Container Depots (ICDs) in various parts of the country, with emphasis on areas lacking seaports.
Toeing this path, the then-Minister of Transportation, Rotimi Amaechi, in November 2017, said the Federal Government had approved six ICDs, one in each of the country’s geo-political zones.
The ICDs are located at Erunmu, Ibadan for the Southwest; Isi -Ala Ngwa, Abia, in the Southeast; Funtua, Katshina; Zawachiki, Kano for the Northwest; Heipang, Jos, for Northcentral and Jauri, Maiduguri for the Northeast.
However, notwithstanding the laudable initiative, checks by Shipping Position Daily revealed that no significant gain has been achieved from the initiative. This is even as stakeholders have blamed several factors for this
In a chat with our correspondent the immediate past Executive Secretary of, the Nigerian Shippers’ Council (NSC) Mr. Hassan Bello noted that the concept of the dry ports is a noble one, he said the establishment of dry ports was an economic decision to bring shipping closer to the people and as well help to untap a lot of resources.
Bello however blamed the slow pace of some state governments for the poor performance of the inland dry ports.
“Unfortunately some government are more cooperating than others, Kano state government for example spent like N2.6 billion on road infrastructure to make sure that there is road, light, water everything at the Dala dry port, right now Dala is connected to rail, they are building a big terminal for exports, so one of the aims of the dry port terminal is for exports (actually more than imports); imports is also good, but we should concentrate more on export because that will make Nigeria and bring the foreign exchange that will stimulate the economy”, he said.
He also noted that lack of modern rail transport system to some of the dry ports is a major factor inhibiting their performance.
The former NSC boss called for government’s deliberate intervention in the dry ports’ project, even as he argued for a law, specifically for the creation and existence of the dry ports, as panacea to making the ICDs function optimally.
According to him, “the concept of this dry ports is a noble one, it’s an economic decision to bring shipping closer to the people, it will also untap a lot of resources. So, if one were to find a port within his vicinity, then he will do everything to use that port, in order to minimize cost and you know access to port is also important”.
“So, these dry ports were set up and not all of them now will be successful or done at the same time, but Kano, for example, is preparing to go, in the next two months Kano will start, not only import, but export as well.
“In Funtua, they’ve started importing equipment and Funtua is agriculture base, so Funtua is another potential, then there is Ibadan dry port which is being handled by the Chinese company and is about to go into the construction and you know it’s a private sector thing and not a government stuff”, he explained further.
“Dry ports are strategically positioned to enhance production and industrialization so that we will be import-independent, we should cut our imports and increase our exports. So, I think the dry ports have done well, there is Kaduna existing already”, he added.
He said also that, “so much depends on rail, but the capacity of the rail at this moment is a little bit shaking, but they’ve already connected Kano, because they will also make a lot of money in this venture”.
Bello explained further that, Nigeria “must give a legal framework for the existence of dry ports and integrate them into the world of logistics chain”.
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On his part, a former president of the National Association of Government Approved Freight forwarders (NAGAFF) Dr. Eugene Nweke noted that the underperformance of the ICDs is not as a result of the investors not willing to invest, but said the problem with the ICDs has to do with the issue of the security situation in the country, Customs escorting system and the topography of the mode of transportation.
He said “We have encountered with the Kaduna dry port which is supposed to be the first dry port that has the same function as a seaport.
“I was a member of the steering committee; there are only three forms of challenges affecting the inland dry ports – the first challenge has to do with the issue of security situation in the country, the second problem has to do with Customs escorting system and the third one has to do with the topography of the mode of transportation”, he added.
“It is not too convenient for anybody to ply our highways with containers, because reasonable cases of diversion have been recorded, now the only one that can equally do that is the rail track, and our rail tracks are still under developed. So, till all these three key issues are put together then we can now see whether their performance is effective or not, but for now, nobody can lay claim that the operators of the inland dry port are not doing very well, because it’s not their fault, he said.
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