Royalty charges: SIFAX, Shippers’ Council meeting deadlocked

Tayo Oladipupo I

As reactions begin to trail the illegal royalty charges slammed on shippers who import through the Ports and Cargo terminals but wish to take their cargoes to off dock terminal, the management of SIFAX Group last week had an unfruitful meeting with the Executive Secretary of the Nigerian Shippers’ Council (NSC).
The meeting was ostensibly to persuade the management of Shippers’ Council to accede to the new charge which has resulted to public outcry against what port users described as insensitivity of the indigenous terminal operators.

According to an official of a terminal operator, the meeting had to be postponed because the two parties could not reach a conclusion over the matter.

A source who was at the meeting confided in our correspondent that all the attempts made by the indigenous terminal operator to justify the imposition of the new charge were rebuffed by the Shippers’ Council team who expressed its displeasure over the arbitrary charge.

The Ports and Cargo had complained that the economic downturn in the country is taking a toll on the organization, hence the decision to impose the new charge.

The economic regulator was said to have faulted the reason of the terminal operator, saying that was not enough justification to unilaterally impose the new charge without recourse to the appropriate authorities.

The terminal operator was said to have been reminded that the decision to slam new charge unilaterally negates the concession agreement which, among others stipulates that no terminal operator has the right to either increase or impose new charges without notification of the regulatory authorities.

However, the meeting was said to be inconclusive as it was deadlocked but rescheduled for next week when the two parties are expected to reach an amicable agreement.

Recall, that nigeriamaritime360.com had exclusively reported that shippers threatened to dump ports and cargo over the controversial charge.

The Executive Secretary of the Nigerian Shippers’ Council, Barr. Hassan Bello in company of his management staff went to shipping companies and their agents pleading with them to stop collection of container deposit from importers as a way of reducing burden of charges in the port.
The new charge by Ports and Cargo led to importers and agents threatening to dump the terminal if the concessionaire fails to reverse the decision.

The Vice Chairman of Clarion Bonded terminal, Mrs. Bernardine Eloka who claimed to be the largest user of the facility said Ports and Cargo imposed N121, 000 and N63,000 royalty charges on 40 and 20 feet containers respectively for importers stemming their consignments to off dock terminal.

Eloka described the new charge as illegal and capable of causing further economic hardship on Nigerians even as she said it was higher than what the government collects as royalty.

Muyiwa Akande, the spokesman for the Group had told our correspondent that management of the company would last week come up with the official position on the vexed matter.

It was however learnt that the delay to make official statement on the controversial issue may not be unconnected with the ongoing dialogue with the Shippers’ Council after which it is hoped, the indigenous operator will make its official position known.