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Home » Do you think that the concession agreement with the terminal operators should be renewed?

Do you think that the concession agreement with the terminal operators should be renewed?

Compiled by Joshua Yousouph

by Joshua
September 23, 2024
in Vox Pop

Yinka Bakare (National President, NAFFAC)

YINKA BAKARE

I do not think all the terminal operators currently operating at the Nigerian ports deserve their concession agreement to be renewed. While some of them are trying their best to improve their services, we have some of the concessionaires that did not add one single equipment since they took over. I think the authorities involved should critically look into the renewal and ensure that only those who have done well should be retained.

 

Pius Ujubonu (ANLCA Chieftain)

The concessionaires have really brought some marginal improvements in the ports. The only thing we need to do is to ensure that a legal impetus is given to any authority saddled with the responsibility of regulations. The regulation ought to be scheduled into three very deliberately thought-out operational efficiency conditions such as: Economic, Technical and Labour. The concessionaires ought not to be people who are brought into Nigeria with a singular purpose of money making. The economic regulation ought to cover the competitiveness and also engender international best practices. Technical Regulation has to do with ensuring sound technical knowledge, ensuring skill transfer and ensuring that the Proper, equipment is on ground for efficient service delivery and also proper infrastructural improvement in the areas they operate. The labour ratio must be insisted upon, technical skill, proper work environment insisting on safety measures and comparative emoluments with a strong hold on parity between local content and expatriate staff. By and large those who have performed optimally in the  index proposed by me may be given consideration .

 

Festus Ukwu (National Secretary, NCMDLCA)

Well, for the past years that the ports have been concessioned, there have not been any improvement in their services. There have not been any new machineries or whatever that has been purchased to improve the services to the customer or the freight forwarder. There has not been any improvement whatsoever. I believe in the concession agreement, there are certain elements that they were supposed to meet up with especially within this first phase, before any renewal should be done. They are not worthy of the renewal. This time around there should be a clear clause on what the standard should be, so that, any of them that does not live up to that standard, should be thrown out of the port and concessioned to another company who will meet the expectations.

 

Francis Omotosho (Registrar, NAGAFF Academy)

The renewal of the concession agreement should be looked into critically. As a matter of fact, many of them should not be reconsidered. The reason being that many of them were not able to handle the ports in a professional way. I mean to develop the infrastructures needed as well as put all the necessary facilities and equipment needed for smooth flow of cargo operations.

If they turn it into a place where they can make money without putting anything back to develop the very essence of that concession. In order to have efficient and effective smooth operation of the port operations. So, I don’t see more than two of them coming back. Virtually most of them have not met expectations. The renewal is overdue and the government should meet critically and come up with professionals, port planners and port logistics service providers who are really ready with conditions.

 

Babatunde Mukaila (Former National Secretary, ANLCA) 

Non-renewal of the concession agreements of terminal operators will cause disruptions of port activities. A stringent oversight of the regulatory government agencies on terminal operator is necessary; more than ever to checkmate their complacency for strict adherence to terms and conditions of their contracts.

 

 

 

Stanley Ezenga (General Secretary, Western Zone NAGAFF)

Over the years that they have been operating in the port, they were not able to provide scanners to scan boxes that are dropped from the ship. That means they have failed and reneged on the agreement. So, if the government refuses to renew the agreement, it means that they are in breach. Therefore, they should be penalized. Or, perhaps, the reason the government has not been able to renew it is one or two things that they were unable to do in the first 10 months. And the government are now pointing out those areas that need to be taken care of.

 

Frank Obiekezie (National Secretary, AREFFN)

I am aware that they went to court with Shippers’ Council some time ago, over issues of compliance. And now that the government is tinkering with the Shippers’ Council Act, I am sure that they may not be in a hurry to renew their licenses. Until maybe after that law is passed and they have to pledge allegiance to the law. And then explain why we are not able to meet up some of the terms, especially some of the ones we know. We know that the terms include terminal operators providing sufficient equipment for prompt processing of business. But this is not the case. Sometimes their charges are arbitrary. So, I believe that before they will give them new extension, all these things will have to be sorted out properly.

 

Dr. Segun Musa (Deputy National President, Air and Logistics, NAGAFF)

Well, I’m totally in support of concessioning from day one, but with a caveat. That is if they can play according to rules. So far, so bad, terminal operators are also a major player in delay of clearance of cargo because they make more money from storage and demurrage. So, when you look at the port activities, you hardly differentiate it from what we used to have in those days before the ports were concessioned. I’m not totally in support of a renewal for now, unless and until we are able to see the affirmation that there’s going to be improvement. To me, there has not been any value added to the clearance of cargo through those private terminals. There has not been any value added. It’s just additional charges and storage. They are private sector operators, so, allowing them to operate is a good thing. But they need to play according to the rules of the game.


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