Shippers’ Council moves to reduce shipping service costs by 35 percent.

In its continued efforts at reducing costs of doing business in the nation’s ports, the Nigerian Shippers’ Council (NSC) is planning to enter into a Memorandum of Understanding (MoU) with shipping service providers.

Barrister Hassan Bello, Executive Secretary and Chief Executive Officer (ES/CEO) of the Council gave the hint in Abuja, yesterday at a workshop organized by the Ports Economic Regulator and the Union of African Shippers’ Councils (UASC) in collaboration with United Nations Conference on Trade & Development (UNCTAD).

Bello said that the plan would help to reduce shipping charges by 35 percent.

He explained that the target of the MoU would be on shipping services, adding that the high cost of shipping services has been as a result of lack of procedures and transparency.

Bello said, “The Nigerian Shippers Council is about to sign a very important MoU with the shipping companies which will bring down the cost of doing business in Nigeria by 35 per cent.

“If we perfect our system, we will have efficiency, we will have competition and it will bring down the cost. The cost of transportation will also reduce.

“The cost of transportation is also part of the cost of production and right now the cost of transportation is very high. “The deployment of the Single Window and the Cargo Tracking Note will also bring down the cost of port business.”

Transportation Minister, Mr Rotimi Amaechi had identified high freight rates, arbitrary imposition of surcharges as trade barriers in Nigeria, West and Central African countries.

Amaechi said this problem has been an obstacle to the development of international trade in the region.

The Transport Minister said there was the urgent need to proffer lasting solutions that will address such arbitrary and unjustifiable costs.

He called on members of the Union to “re-appraise and proffer workable solutions to matters relating to negotiations on freight rates, transport costs, port charges and other issues affecting transportation of cargo in the region”.

Amaechi pointed out the great economic potentials in the sub-region especially in the maritime sector, adding that this must be harnessed and exploited through concerted efforts and collaboration of member states for the sustainable growth of national economies.

“It is our fervent hope that in the challenging trading climate, UASC members would strive for greater meaningful dialogue with trading partners, providers and users of shipping services, as well as other key stakeholders in the maritime supply chain.

“It would assist in alignment of stakeholders interests leading to the development of more efficient and sustainable maritime supply chains and shipping services”, he said.

He promised that the federal government of Nigeria will adopt the resolutions and communiqué reached at the workshop and the meeting and implement them for the benefit of all stakeholders in the trade and transport industry.