In other to ensure smooth running of activities in the maritime sector in 2013, the National Association of Government Approved Freight Forwarders (NAGAFF) has called the attention of port stakeholders to major challenges of the year 2012 and how to address them and also reshape the port industry for optimum achievements in this year.
In other to ensure smooth running of activities in the maritime sector in 2013, the National Association of Government Approved Freight Forwarders (NAGAFF) has called the attention of port stakeholders to major challenges of the year 2012 and how to address them and also reshape the port industry for optimum achievements in this year.
In a press statement signed by the National President of NAGAFF, Mr. Eugene Nweke, a copy of which was sent to Shipping Position Daily last weekend, the association also strongly condemned the extension of the contract of the destination inspection agents by six months.
Nweke stated unequivocally that the three service providers have not lived up to the expectations of Nigerians and that rather than accepting this, the DI agents resolved to cheap blackmail by propagating that the Nigeria Customs Service personnel are not properly trained in the art of intrusive scanning operation and classification of products.
According to him, extending the tenure by six month will lead to a huge loss of money that would have naturally accrued to the Nigeria Custom Service. “Within the seven years contract duration, these service providers have not employed up to 2,500 Nigerians, while the Nigeria Customs has within the space of three years employed above 10,000 graduates, bringing its total staff strength to 20,148 staff”.
“The 1% CISS i.e. 1% of FOB is the attraction, because this is a whole lot of money that goes into private purse and does not go into the federation account. The 1% CISS constitute additional cost to the cost of cargo clearance in our international frontiers. Within the 6 months extension approved in 2013, an estimated total derivable collection from 1% CISS will amount to N21, 303, 000, 00(Twenty one billion, three hundred and three million Nara, only.)” he stated.
Speaking on the artificial congestion and cargo dwell time, the association commended the efforts of the presidential port reform committee in the aspect of transferring overtime cargo to the Ikorodu terminal and pointed out that the poor ports access roads still constitute a major challenge to the fluidity and smooth flow of cargo delivery.
“Trucking and logistics planning are hindered thereby impeding turn around trips of the truckers resulting to high cost of transportation within the inland delivery services. Government should review taxes especially on commercial trucks so that truckers can acquire new trucks and more forwarders can acquire their own trucks”, he suggested.
“CRFFN should evolve a mandatory mechanism or measures that will compel the forwarders to possess at least, Goods in Transit Insurance policy cover and as well partner and short list insurance companies and Brokers to remedy the incidences of losses associated with accidents along the inland cargo transportation characterized with dangerous topography”.
NAGAFF also advised that in 2013, the debate about who should be the regulator of the ports should be put to rest and that emphasis should be on the amendment of Shippers’ Council Act, because, according to its president, as it is, this is the only government agency that can act as the regulator of the ports.
“We make bold to state that with the councils earned experience over the years and with its physical structures on ground, the council is in a better position to transmute into a port commercial regulator, but adequate care should be taken towards ensuring that shippers’ council would not turn to be a 'receiver of a service from service providers'”, NAGAFF cautioned.
The association also sent a note of warning to shipping companies to put an end to manipulative practices that negate international best practices and to unconditionally jettison charges that have no cost functions attached because in year 2013, freight forwarding association intend to unite with the importers’ associations to resist arbitrary charges within the shipping companies as it obtains presently.
Speaking on the freight forwarding sector and the role of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), NAGAFF advised that the council should publish the freight forwarders professional scale of charges this year, while the truckers’ haulage charges should equally be standardized and published as the year unfolds.
“There cannot be a meaningful reform in the industry, if the CRFFN is not supported to play its legal role as a professional regulator of the forwarders who constitute the majority among other stakeholders”.
“Expectedly, the teething problem that bedeviled the council is a normal thing that is expected to occur, hence, CRFFN is a new order or a wind of change that will be resisted, but gradually, with time every forwarder will come to embrace it and work collectively for its sustenance, both the associations leadership and the CRFFN leadership are one happy family” it stated.
Speaking on the ongoing development of new deep-sea ports in Nigeria, NAGAFF said that the Ibaka deep sea port facility in Uyo, Akwa Ibom State is a futuristic response to preparing the Nigerian ports ready for the ever changing Ship building and dynamism in maritime environment.
“Today and the future of shipping transportation is one envisaged to thrive on the building and acquisition of Marco-polo vessels with 16,000-20,000 TEU's capacity per Voyage. The berthing facility for such vessel requires a deeper draught above 17meter for convenient anchorages.
“Ideally, with concerted commitment to sustaining this laudable ventures, in addition to the opening for operations, the lekki free trade zone, indeed, attaining a hub port status and making the Nigeria ports a future shipping destination within the West Africa sub region is achievable” the statement read.
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