The Inland Dry Port (IDP) dream actually started in 2006, when the then-Federal Executive Council approved the commencement of Inland Container Depot ( as they were ten called) project at six locations in the country under Build Operate Own and Transfer (BOOT) agreement. To give a further vent to its determination to get it off the ground, the ICD policy was gazetted through a Federal Republic of Nigeria Official Gazette No.30 volume 94 of 21st May, 2007.
The United Nations Conference on Trade and Development (UNCTAD) defines an ICD as “a common user facility with public authority status equipped with fixed installation and offering services for landing and temporary storage of export, laden and empty containers Carried Under Customs Control and with Customs and other agencies competent to clear goods for home use, warehousing, and export, temporary storage for onward transit and outright export”.
An Inland Dry Port is an equivalent of a seaport located in the hinterland. It receives container by rail from the seaport for examination and clearance by Nigeria Customs Services. It has all the loading and off-loading equipment needed to handle container and general cargo.
Last week, this newspaper reported its findings about the state of the two leading and functioning Inland Dry Ports (IDPs), namely: Kaduna Inland Dry Port and Dala Inland Dry Port, located in Kaduna and Kano states respectively.
Our finding was that, despite the huge investments, the two IDPs which have been showcased as success stories have not performed optimally, due to no fault of theirs.
Even though their promoters have since shed more lights on the real issues, we are particularly unhappy that the dream of creating inland dry ports is gradually dying.
While it is true that the IDPs are expected to receive containers from Lagos ports, for delivery to consignees in the hinterland, this has not exactly been the case.
The promoters of the two leading IDPs have since the report, got across to our Editorial Team. They have thrown more light on the fate of the IDPs in Dala, Kano state and Kaduna in Kaduna state.
We recall that, sometime in 2016, the then-Executive Secretary of the Nigerian Shippers’ Council; Mr Hassan Bello met with concessionaires of the various Inland Dry Ports in the country. He gave a simple message, which was – get the projects back on track on get sacked.
At that meeting, Bello, whose Council superintends the dry port projects also disclosed that a new agreement had been drafted with specific and achievable time lag.
The meeting was attended by representatives of all the dry ports concessionaires from across the country, and the agenda was one – to tell them how displeased the Nigerian Shippers’ Council is about the progress made so far.
To give vent to the Council’s displeasure, Bello threatened to terminate the concession agreements with operators of the various facilities. A new agreement was also given to the concessionaires.
He said that the time lag of execution of the dry ports projects was included in the new agreement which was also in tune with the legal framework of Public Private Partnership (PPP).
He told the concessionaires that, “If we notice some inertia or unwillingness on the part of any concessionaire, we will not hesitate to terminate the agreement”.
He actually meant business, because this newspaper was present at the meeting. All the concessionaires who were in attendance assured him that they would redouble their efforts.
Sadly, since 2016, only two IDPs have been fully-commissioned and working. That is, the Kaduna Inland Dry Port (KIDP) and the Dala Inland Dry Port.
As good as they are, Nigeria has been battling with getting these facilities that are located in Isiala-Ngwa (Aba, Abia state), Ibadan in Oyo state, Dala in Kano state, Jos in Plataea state, Funtua and Maiduguri, to take-off.
The proponents of inland dry ports argue that their benefits include the fact it will come with establishment of customs clearance facility close to production and consumption centres, improved container usage and reduction in the movement of empty containers, improved turn- around time of ships thereby reducing demurrage and avoiding pilferage.
The Federal Government of Nigeria has also promised that the IDPs would have the status of a port, that is, it will come with issuance of “Through Bill of Lading” by shipping lines and thereby assuming liability from dispatch to destination ports, lower freight to increase trade flows, optimal use of surface transport and the decongestion of the sea ports and reduction in marine pollution activities around the seaport.
Added to these are the fact a dry port offers easy and safe access to international shipping facilities in the hinterland giving a boost to inland trading, revitalization of export agriculture leading to multi-product economy and the avoidance of employment opportunities stemming urban-rural drift and increase in revenue to the government as well as rehabilitation of the surface transport system and enhanced usage of containers.
The fact that Kaduna and Dala dry ports have come on stream, gives hope that the story of the IDPs is not an entirely bad one.
What this means is that at least two IDPs have crossed a major step towards functioning like a seaport.
Sadly, none of the IDPs in the South is nearing any significance milestone. In fact, none of them can boast of 30 percent completion.
Nevertheless, we commend the Nigerian Shippers’ Council for holding on to the inland dry port dream, even in the face of all challenges.
We however, urge the Council to assist other IDPs, especially in the areas of investors and securing the total buy-in of the state governments where those IDPs are to be located.
But, more importantly, we urge the Federal Government to fulfill its own side of the IDP bargain. The government promised to link the KIDP and Dala Inland Dry Ports to the Nigerian Railway Corporation facilities, such that containers goods can be moved to and from the IDPs more efficiently.
It is very sad that, thus very important factor that is needed to make the IDPs efficient and fulfill their obligations to their investors is lacking. How can an IPD be relying on road haulage for container freighting?
The IDPs are not yet functioning at any point near-capacity yet. This is because of the rail lines issues, and also because they are not yet ports of destination and port of origin in the global sense of it. This is as important as the rail link.
We are aware that Dala has gone in taking advantage of its designation as a port of origin and destination in 2022. But can the same be said of KIDP?
Finally, declaring an IDP as a port of origin and destination is not all that is required. The Federal Government must take it further and ensure that there are adequate infrastructures and rail link in the facilities that are ready.
It is important that the Federal Government makes a success of the duo of Dala and Kaduna IDPs, soi as to encourage those that are in the works.
