The Nigerian Shippers’ Council is frowning at the monopoly that is currently being enjoyed by one of the leading terminal operators in the country; Integrated Logistics Services (INTELS) as the only destination for all oil and cargo related imports.
Executive Secretary of the Nigerian Shippers’ Council; Barrister Hassan Bello who dropped this last weekend in Lagos said that the Council is not comfortable with the situation, describing it as an abuse of dominance in a perfect market system.
The Nigerian Shippers’ Council is frowning at the monopoly that is currently being enjoyed by one of the leading terminal operators in the country; Integrated Logistics Services (INTELS) as the only destination for all oil and cargo related imports.
Executive Secretary of the Nigerian Shippers’ Council; Barrister Hassan Bello who dropped this last weekend in Lagos said that the Council is not comfortable with the situation, describing it as an abuse of dominance in a perfect market system.
He hinted that the Council is set to carry out a study and that this is one of the issues it will beam it's searchlights on.
Bello who was delivering a paper titled: 'The New Port Order' at a training programme for maritime journalists argued that it is wrong for any government or individual to declare that a single terminal should enjoy the privilege of importing all oil and gas cargo related imports into Nigeria.
The Shippers Council boss also condemned the coming together of terminal operators under any guise or association in order to fix port charges; he described the development as encouraging monopoly.
Speaking further, he said "Oil and gas cargo is not known to the concession agreement, it is a new thing that has been introduced, and what is oil and gas cargo? How can you as a government or any other body say that one terminal should enjoy that privilege? That is monopoly because, in the international carriage of goods, it is the shipper who will nominate the ship, the point of loading and port of discharge, it is voluntary"
"Nobody should force a shipper to go to a terminal that he does not want; this is an abuse of dominant position"
"So, we should be carrying out a study and this are issues we would consider because once competition is distorted the market will collapse"
"If there is competition, there will be a perfect market condition and this is what the shippers’ council is trying to achieve." Bello stated.
The Shipper Council boss admitted that in every industry, there will be one operator who is dominant as a result of efficiency which will make people prefer him to others, or as a result of capital investments in the right places.
He however said that the government cannot afford to replace public monopoly in the case of Nigeria Ports Authority during pre-concession era, with private monopoly of terminal operators at post-concession.
Drawing out an analogy, Bello observed that "In the communication sector, there is MTN being dominant, in the aviation sector, there is Arik because they have more aircraft and safety record"
"Dominant is encouraging, but what is bad is the abuse of that dominance, and we in Shippers Council have started because it will take you five years to lay down a philosophical frame work for regulation, but we have started it, what we want to do now is to have a study of the competitiveness in the industry"
"When a terminal is efficient, sometimes is it costlier. Sometimes ago, shippers brought the issue of INTELS to the council complaining of their charges, but we told them to go to other terminals" he said.
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