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Home » Should the Shipper’s Council be involved in the review of terminal operators’ concession agreement? 

Should the Shipper’s Council be involved in the review of terminal operators’ concession agreement? 

by Joshua
March 14, 2023
in Vox Pop

Captain Tajudeen Alao (National President, Master Mariners)

The Nigerian Port Authority concessioned the port to the terminal operators. So it is their prerogative to renew and review the concession. But if there are differences, complaints and issues and there is need for an arbiter, the Shippers’ Council being the commercial regulator should come in. The responsibility is for the minister, but it is now delegated to different agencies under different functions. Basically every agency has a schedule officer and schedule unit in the Ministry. Decisions of the agencies must go to the Ministry for final approval. Port concession is a major issue that should not stop at NPA level; it goes further. The Ministry will take it further to ICRC and then to the Federal Executive Council. What the Minister said is in order. They could be involved at this stage or they could finish with NPA and then the Minister can now ask Shipper’s Council to look into it.

 

Simeon Nwonu (Deputy National President, NAGAFF)

One of the major problems we have in government is the inter-relationship of the functions of government agencies. Sometimes there is no clear demarcation between what a particular agency does from the other. For instance, there has been a problem between NAFDAC and SON where NAFDAC asks for some specification of a product and SON says it is their own duty. This is causing a lot of dis-functionality in the system. So the onus lies on the government to clearly define the functions and specifications of each agency. The NSC is the regulator of the Port, while NPA is the landlord of the port. So where does the functions of NPA begin and stop? And where does that of the NSC begin and stop? Otherwise, the NSC is supposed to be in charge of the re-issuance of the concession to the terminal operators. NPA is to monitor ships as they come and ensure they pay their landing fees and all the necessary charges and hands off. But the NSC should be the one to foresee what they are doing. So if there is need for government to reissue license to already-existing concessionaire in any port, the NSC should take an upper hand.  The Transport Minister has a duty to define the functions of each agency under his purview.

 

Captain Williams Ogunsakin (South West Director, MESAN)

The battle between the Nigerian Shippers Council and the Nigeria Port Authority is strong, because NSC is in charge of freighting, freight forwarding and other shipping services while the control of vessels coming into the port is by the NPA. The job of the NPA is to facilitate ships coming into the port and should ensure that they are well berthed. As far as the ship berths, the job of the NSC begins in taking care of the cargo. The two agencies have stakes. I don’t know which of the agencies have a higher stake. If you look at Act that regulates NPA, it gives them powers over every port. Even the private ports, NPA has jurisdiction over it.  But the Act has been enacted long ago before Shippers Council came into being. The NSC, by law should be subject to NPA but they are autonomous. They are independent as well. The stakes of the two agencies should be looked at and resolved amicably.

 

Festus Ukwu (National Secretary, NCMDLCA)

If the Minister is giving the Nigerian Shippers’ Council authority over renewal of concession of terminal operators, it is abnormal. NPA monitored and coordinated the concession abinitio. They are the custodian of the ports. They are the ones in charge. Shippers Council is the economic regulator, but the landlord of the port is NPA, who should renew the concession. So for anybody to say that Shippers’ Council should be the one to review the renewal, it has a political undertone. I know that NPA will never allow that. It is abnormal, it is never done. NPA is responsible for the concession and renewal.

 

Clinton Okoro (APFFLON PRO, Tin Can Chapter)

This has been an issue, because Nigerian Shipper Council has always had some clashes with the Nigeria Ports Authority. NPA is the landlord of the port, but I don’t know if they have some agreement with NSC to oversee the renewal of the concession of some of these terminal operators. Sometime last year, there was a meeting at Eko Hotel and it was publicly made known that Nigerian Shippers Council should be one of the regulators of the port. I think by the Act, they have been empowered also. The gap there is that the two of them should collaborate together.  It was categorically said that day the a Nigerian Shippers Council is supposed to be aware of anything as regards concessioning and make their own input. The whole thing still boils down to the Minister of Transportation to strengthen and clear the differences between the NSC and NPA.

 

Engr. Matthew Alalade (Former President, Merchant Navy)

During Obasanjo’s regime, it was the NPA that was responsible for concession agreement with terminal operators. Now that the Minister has given another directive to the Shippers’ Council, maybe they feel NPA is not doing much as expected as regards the concession. Normally as the port economic regulator, the Nigerian Shippers’ Council is expected to be involved in the concession of the port. So let the Shippers Council continue; it is the same government, if they say NPA should hands-off. It will be overlapping if the same agencies are doing the same thing. I think the government should spell out what each agency should do.

 

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