Some stakeholders in the Nigerian maritime industry have cautioned that the coming on stream of Lekki Deep Seaport in Lagos may turn existing seaports in Lagos to mere feeder ports.
The stakeholders, who are also leading freight forwarders, include the former National President, Association of Nigerian Licensed Customs Agents (ANLCA); Prince Olayiwola Shittu, former President of National Association of Government Approved Freight Forwarders (NAGAFF); Chief Eugene Nweke and former Chairman, Governing Council, Council for the Regulation of Freight Forwarding in Nigeria (CRFFN); Aare Hakeem Olanrewaju.
Arising from a consultative meeting recently in Lagos, the stakeholders took note of the fact that Lekki port is ready for operations and added that, this may be a turning point in the fortunes of ports in Lagos, especially Apapa and Tin Can ports, which are being managed by private terminal operators. They raised alarm that these ports may lose cargoes to a more modern and bigger Lekki port.
In a statement sent to Shipping Position Daily and signed by Chief Nweke, the group noted that “with the commissioning of the first deep seaport, even as it sets for full operations, it has become necessary and also advisable that the crop of brown ports managed by private operators has to square up for competition to avoid serving as mere feeder port”
The stakeholders also advised that “in this regard, the ongoing negotiations for port concession renewals, should consider such critical industry components ranging from the right definitions of operational activities and phrases and operational rebates and lax tax regime”.
Reasoning along the same line, they however called for a tax relieve for the terminal operators who manage the terminals in the ports in Lagos as well as those in the eastern operational flanks.
The stakeholders called on the government to consider these challenges, in view of the fact that the review of port concession agreement with the terminal operators is currently ongoing.
According to them, negotiations for port concession renewals should consider such critical industry components ranging from the right definitions of operational activities, phrases, operational rebates and tax regime.
In the statement, the meeting also disclosed that it reviewed available statistics on Cargo Trans-shipment operations within the sub-region adding that the available statistics prompted the meeting to reconsider the ideal workings of an efficient ports, as thus:
“To facilitate movement in any given port, raft such as boats, ships and barges are required to move both people and goods, but to facilitate trade, the port has to provide the docks, floats, piers, gangway, tugboat, and other conveniences that will make the ships to be properly engaged and utilized and as well accommodate and maintain seamless flow of watercraft traffic.
“With the increase in the volume of world trading activities on the sea (imports and exports), it is considerate to posit that the size and efficiency of a port is an indication of how successful the surrounding regions are as such ports are vital components of shipping business.
“Unfortunately, with noticeable port congestion and traffic gridlock in and along our port corridor, the economic benefits of port concession of 1996 seem to be an uphill task and the core objective almost a mirage. This situation has thrown up new industry sections like Barge operations, increasing bonded terminal operational activities, unfortunately regulatory function is not promptly coordinated, leading to the high costs of shipping and port business in Nigeria, unfriendly and uncompetitive.
“The meeting noted that with the commissioning of the first deep seaport, even as it sets for full operations, it has become necessary and also advisable that the crop of brown ports managed by private operators has to square up for competition to avoid serving as a mere feeder ports. In this regard, the ongoing negotiations for port concession renewals, should consider such critical industry components ranging from the right definitions of operational activities and phrases and operational rebates and tax regime”, the communique said.
The meeting resolved to further its consultation with the concerned agency (ies) with the aim to genuinely brainstorm on: why port must be seen as an efficient organization at all time; to appreciate the essence of the global integration of performance indicators for port efficiency in the ports system; to consider other viable requirements for an efficient port; to set an achievable goal towards achieving port efficiency performance indicators and to boost port competitiveness.
The communique, however, explained that the consultative meeting was prompted by noticeable professional absence in the emerging trends and at the ongoing global discourse by the comity of global freight forwarding nations.
It added that the agenda at the global consideration include but not limited to the following: the evolution of the SMART BORDERS Concept which it said was in support of the Sustainable Development Goal ( SDG) of the United Nations (UN) Agenda 2030.
“It recalled that the concept makes room for Customs to ensure: timely delivery of raw materials to industries; reduce unfair business competition; open opportunities for all business interests to access raw materials; create a transparent, conducive and predictable conditions for trade/passengers; facilitate legitimate trade that will in turn contribute positively to economic growth as well as boost job creation.
“In this direction, the meeting resolved to carry out a robust review on the level of compliance to the SGD from the Nigeria freight forwarders perspective and document same for a global representation. Equally, the meeting took a holistic review of the present clearance process and procedures within the customs ports with deep reservations, even though, commending its efforts at reinstalling mobile scanning machines at some ports. It therefore, resolve to further its professional consult and engagement”.
The statement also added that, the consultative meeting narrowed its reflection for the day on the following global concerns:
a). Today Freight Forwarding practices revolves around a Growing E-Commerce Logistics Solution – where information communication technology drives the international trade security and value adding supply chain.
Notably, both the World Trade Organization and World Customs Organization now focuses attention on “Exploring the Integrated E-commerce Logistics Solutions “.
b). Revisit the current annual growth rate in the thriving: Business to Customer ( B2C), Business to Business (B2B) and the Producer to Consumer (P2C). It noted the grappling challenges inherent in this increasingly demanding innovative logistics solutions. Wherefore, it posited that, there will be need to chart a course towards the growing need to choose the right kind of Customs procedures that will open new potential for improvement and advancement of the evolving new markets concepts.
c). Reconsider the update and possibly outcome of the WTO treatise consideration to E-commerce, especially as it relates to the ‘plurilateral’ discussion following the proposals submitted by the ‘plurilateral’ members, among the developing countries, including Nigeria, expressing their discomfort with the US model of digital trade rules centered around “Free Data Flows”.
d). Expresses serious concerns on the E-commerce Moratorium. Though the WTO’s Customs Duties E-commerce Moratorium has been halted since 2019. However, the increasingly globalization disruption points to the fact that, trading goods electronically may not be easy to abate. As such this Moratorium if continued may mean a continuation of Zero customs duties on goods which are traded via electronic transmissions. Above all there will be tariff revenue losses as well as the loss of policy space for those who may try to support their domestic industries in electronic traded goods.
In view of this, the meeting resolved to further its strategic consultative goals with the management team of the Nigeria Customs Service, as it stands, without mincing words the Customs can not boast of deploying requisite energy in this aspect of trade model and inherent revenue generation thereof.
e). The meeting as well contemplated on the options to discuss and kick start a domestication process for the FIATA newly introduced two (2) globally approved and applicable imports clearance documents across the WTO signatory countries.
However, the meeting resolved to stare action for a while, with a convince that the man made crisis in the CRFFN will fizzle out soonest, so as to prompt the essence and effectiveness of the freight forwarders consultative forum obligations.
f). The Consultative meeting reviewed the available statistics on Cargo Transhipment operations within the subregion. The available statistics prompted the meeting to reconsider the ideal workings of an efficient ports, as thus:
■. To facilitate movement in any given port, raft such as boats, ships and barges are required to move both people and goods, but to facilitate trade, the port has to provide the docks, floats, piers, gangway, tugboat, and other conveniences that will make the ships to be properly engaged and utilized, and as well accommodate and maintain seamless flow of watercraft traffic.
■. With the increase in the volume of world trading activities on the sea ( imports and exports), it is considerate to posit that, the size and efficiency of a Port is an indication of how successful the surrounding regions are, as such ports are vital components of shipping business.
■ Unfortunately, with noticeable port congestion and traffic gridlock in and along our port corridor, the economic benefits of port concession of 1996 seems to be an uphill tasks, and the core objective almost a mirage. This situation has thrown up new industry sections like Barge operations, increasingly bonded terminal operational activities, unfortunately regulatory function is not promptly coordinated, leading to the high costs of shipping and port business in Nigeria, unfriendly and uncompetitive.
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The stakeholders were however silent on the crisis rocking the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN).
“The meeting purposely, choose not to review nor dwell on the happenings with the CRFFN administrator, trusting that, since the new honorable Minister of Transport has resolve to wade into the crisis in the CRFFN and by extension listen to the myriads of operational challenges that has bedeviled the practitioners as posited by the various Freight forwarding interests groups via summits/conferences communiques”, the statement added.
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