Holding Bay: NPA Relaxes Suspension on Cosco Shipping, Three Others

ABIOLA Seun |

The Management of the Nigerian Ports Authority (NPA) has ordered the restoration of services to the four shipping Companies whose operations were suspended for their failure to comply with the directive of acquiring operating holding bays for their containers.

In a press statement by the Assistant General Manager, Corporate and Strategic planning, Isiah Suwaid, NPA warned that the affected shipping companies have been given two weeks, beginning from Friday July 20th 2018 to comply with four conditions to ensure sustainable relationship.

Among the conditions are:

The affected companies must increase the capacity of their Holding Bays ranging from 1,800 TEUs to 7,500 TEUS;

The affected companies will sign-off on the volume capacity of the Holding Bays verified at the end of the grace period;

At the expiration of the two weeks, an inspection will be conducted to ascertain compliance.

The Authority however warned, thereafter further sanctions will be applied on failure to meet the said conditions.

It would be recalled that a fortnight ago, shipping services of Maersk line, Cosco Shipping, APS and Lansal were suspended by the NPA for their inability to upgrade their Holding Bays capacities.

The suspension was for 10 days in the first instance. The two weeks period of grace granted the four affected shipping companies was sequel to a meeting the Authority held with officials of the companies over the weekend.

The decision by the NPA to grant the period of grace was after due consideration of their presentations at the meeting and a subsequent joint inspection on their existing facilities.

A formal letter dated 20th July, 2018 informing the affected companies of the review of the suspension order signed by the General Manager, Marine & Operations, Mr. Joshua Asanga on behalf of the Managing Director, Hadiza Bala Usman, has since been despatched.

However, some stakeholders described the relaxation of the suspension before it expires as a capitulation of the NPA in the face of pressure instigated by the suspended companies from high authorities.