Despite Port Concession, Nigerian Ports Crises Still Persist

Even though government concessioned the nation’s seaports in 2006 for greater efficiency, the Nigerian Ports system is still bedevilled with series of crises fuelling annual revenue and business losses.

ABIOLA Seun writes |

Before 2016, Seaports across the country were bedevilled with series of challenges which made cargo clearance out of the seaports a tall order. Nigeria seaports were inefficient that it was easy for needle to pass through the eye of a camel than clearing agents to clear cargoes out of the seaports.

Then, cargo handling equipment was obsolete and not efficient. Also, average ship waiting time before berthing was 21 days; vessel turnaround time was 5 days while dwell time for cargo was as high as over 30 days.

The ports had poor infrastructure (roads, rail, quay, buildings, equipment, and yard) and were heavily congested leading to insecurity and pilferage, delays in cargo clearance and inefficiencies in cargo handling largely due to manual processes.

But, when the government introduced Concessioning, Nigerian ports began to experience turn around one of which was a direct impact of investments by terminal operators, the ports also witnessed increased ship traffic and throughput, leading to a 400 per cent rise in container throughput from 400,000 twenty-foot equivalent units (TEUs) in 2006 to 1.6 million TEUs in 2014.

The investments have also led to the eradication of ship waiting time at the container terminals, as ships now berth on arrival. Vessel turnaround time has been reduced from five days to 41 hours while average dwell time for cargo clearance went from over 30 days to just 14 days.

In addition, due to improved security and lighting of the terminals, the ports now run a 24 hours and seven days a week operations.

But, to achieve this, Nigerian government had to change the role of the then ineffective Nigerian Ports Authority (NPA) and was relieved of many of its responsibilities to allow for efficient and effective seaports.

The NPA then was stripped of cargoes handling and terminal maintenance to only providing and maintenance of common user facilities such as ports internal road networks, main gates, waterfront security, and marine services was transformed into the technical port regulator.

Though, stakeholders have acknowledged the investment of terminal operators and the quick turnaround they have brought to the Nigerian seaports, the nation’s seaports still reek under various crises which have affected its productivity and contributions to the nation’s economy.

These include the bureaucratic red tape, limited access to the ports due to traffic congestion, constant delay, illegal charges, technical and security breakdown which had also led to high cost of operation and competitiveness.

According to a report by the Organised Private Sector (OPS), tagged Maritime Ports Reform In Nigeria: Feedback from the Organised Private Sector (OPS), about N2.5trillion of corporate earnings are lost annually to the port crises and over N600billion lost in customs revenues.

The report read, “There have been concerted efforts over the years by stakeholders (Federal Government in collaboration with private sector and development partners) to reposition the ports for efficiency and attainment of global best operational standard.

“These efforts notwithstanding, operators and users of the Nigerian Ports are increasingly faced with bureaucratic red tape, limited access to the port due to traffic congestion, constant delays, illegal charges technical and security breakdown which had led to high cost of operation and competitiveness.”

The report which was prepared by the Lagos Chamber of Commerce and Industry in collaboration with Manufacturers Association of Nigeria NECA, NACCIMA, NASME, NASSI and the Centre for International Private Enterprise is pointers.

The OPS however recommended quick adoption of single window and fixing of the dilapidated Ports access roads.

It read, “The Presidential Enabling Business Environment Council (PEBEC) should urgently issue an ultimatum of not more than 90 days for all statutory agencies to be on single window platform. PEBEC should always urgently drive the issue at the customs clearing/ trading platform by all MDAs mandated to operate in the cross border sphere.”

Speaking on the traffic gridlock, the OPS said, “Traffic gridlock and poor traffic control system have affected smooth cargo evacuation and there is need for coordinated and integrated traffic control system on the port access road.”

In the report, the OPS complained about security agencies operating at the seaports but working at cross purposes.

“Multiple security agencies working at cross purposes. There is a need for security agencies to synergise their operational strategies to remove duplicated procedures which breed inefficiencies and corruption. Full automation with minimal human interface is also recommended.”

“None passage harmonisation or signing of all pending maritime sector bill and advocacy group and PEBEC urged to work with the National Assembly to complete the passage, harmonisation and signing of the pending maritime sector bill and fix the access roads to, from and within APAPA, Tin Can, Warri and Calabar ports.”

The report however concluded that the success of the port reform largely predicated on the buy-in of all stakeholders, political will of the presidency and PEBEC through active and sustained enforcement, monitoring and sanctions where necessary.

“Overall political will, active enforcement and monitoring framework and flow right from the presidency down to the MDA is the most essential enabler to succeed and sustain the present port reforms. We believe that the success of the on-going reforms in the port is largely predicated on the buy-in of all stakeholders, political will of the presidency and PEBEC through active and sustained enforcement monitoring and sanctions where necessary.”