Frontline maritime expert and Chief Executive Officer of Eyis Resources Limited, Mr. Lucky Eyis Amiwero has called the attention of President Goodluck Jonathan to the prevailing congestion in Nigerian ports with a view to enhancing the sector for improved economic growth.
Frontline maritime expert and Chief Executive Officer of Eyis Resources Limited, Mr. Lucky Eyis Amiwero has called the attention of President Goodluck Jonathan to the prevailing congestion in Nigerian ports with a view to enhancing the sector for improved economic growth.
In a letter written to the President and dated 3rd September and which was also addressed to the Minister of Finance, Dr. Ngozi Okonjo Iweala, the Secretary to the Government of the Federation, Mr. Ayim Pius Ayim, and the Minister of Transport, Senator Idris Umar, Mr Amiwero pointed out that the situation has assumed an alarming proportion, which if not urgently checked, will create serious economic imbalance and devastating effect to port system.
Amiwero attributed the congestion at the port to the refusal of shipping companies to transfer the containers owned by their lines to off-dock facilities.
He said that “the situation is presently associated with delay in the positioning of containers for scanning, physical examination and delivery, which sometimes take weeks with the inefficiency and cost still borne by the importer or licensed customs agents”.
The letter further pointed out that the decision of the management of Lillypond Terminal to pull-out of the concession agreement due to lack of supply of ships to the terminal indicates that due procedure is not being followed at the Apapa port.
According to him, the Lillypond Terminal is supposed to be allocated cargoes from APM Terminal in Apapa, because, it is traditionally an off-dock terminal which normally removes pressure from Apapa port by regular allocation.
He pointed at the example of another terminal operator;Tin Can Island Container Terminal , which according to him, usually stem containers to its off-dock facility at SCOA and allocates at no cost to the importer or licensed customs agent, but lamented that APM Terminal has refused to do the same.
He however stressed the“need for the immediate take over by Nigeria Ports Authority of Lillypond Container Terminal to reduce the rate of congestion, demurrage, rent and inconveniences experienced by importer/licensed customs agents”.
He also called on the President to expedite action in ensuring that a port regulator is appointed to checkmate the excesses of the terminal operators and shipping companies, especially as it concerns the charges for services not rendered.
“Some of the charges are not tied to services, which contravene Article VIII of WTO: Fees and Formalities Connected to Importation and exportation, which states, all fees charged must be tied to services”, he pointed out.
According to him, “the Terminal Handling Charges (THC), Scanning and Examination Fees and Delivery Charges (DCs) is the most controversial rate charged by the Terminal Operators that is duplicated in the operation at the ports”
Amiwero pointed out that if the congestion is left unchecked, it will result into the imposition of congestion surcharge as well as additional freight cost to Nigerian importers.
Other implications according to him includes: “High insurance charge to our imported goods, High Clearing cost on demurrage and rent, the continue loss of containers by importers to auctioning due delays, the close down of essential factories that rely on circle supply”
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