NPA Goes Tough on Concessionaires

Nigerian Ports Authority (NPA) has threatened to deal with any terminal operator which defaults in meeting its contractual obligations to the agency in line with the port concession agreement.
Managing Director of the agency, Malam Abdusallam Mohammed, who gave this warning in Calabar, Cross Rivers state capital last week also threatened to hold local port management in all port locations responsible for non-compliance with the provisions of the agreement between NPA and terminal operators in their respective ports.
According to him, the concession agreement that was entered into by both NPA and the terminal operators is governed by certain rules in terms of rights and responsibilities and both parties should be seen to adhere strictly to them.
“The relationship we have with terminal operators is managed by certain rules in terms of rights and responsibilities.  I feel that any terminal operator that defaults should be compelled to pay whatever penalty arises.  No terminal operator should hold the NPA to ransom”, he explained.
“It is important for all terminal operators to realize that they have an obligation under the agreement that we have with them and there are provisions of the agreement that constitute conditions for defaults which are major breaches.  All terminal operators should be made to comply with all their obligations at the right time”, he added.
Specifically, he directed that “under no circumstance should a terminal operator stay with an invalid insurance or refuse to renew its performance bond”, pointing out that, “these are the only guarantees that we have which protect the NPA in respect of some liabilities”.
The Managing Director charged the Local Ports Management to ensure the periodic assessment of the performance of the terminal operators in their domain as provided in the agreement, adding that it was also their responsibilities to ensure that all the development plans for the terminal operators, both in fixed and movable assets were appraised and approved at the appropriate times. 
And in line with the emerging dispensation of stricter observance of port concession rules, the Port Manager, Calabar Port,  Malam Ahmed Dandare disclosed that a terminal operator; Messrs ECM Terminals has already been penalised for defaulting  in the payment of lease fees, a  penalty as stipulated in section 18.5 of the Lease agreement. He however added that the defaulting company is yet to pay the penalty.