Waiver on harbour dues will not improve fortunes of Eastern Ports – Freight Forwarders 

Clearing Agents operating at the nation’s seaports have said that the 10 percent rebate on harbour dues to ramp up patronage of ports in eastern and Delta axis is not enough to encourage oceangoing vessels.

Recall that the Nigerian Ports Authority (NPA) had announced a 10 percent rebate for ships that use port facilities in the ports in Warri and Koko in Delta state as well others in Calabar, Port Harcourt and Onne.

NPA approved a 10 per cent discount on harbour dues in all concessioned terminals at the Eastern ports. Mr. Jatto Adams, the NPA General Manager, Corporate and Strategic Communications, in a statement in Lagos said that the discount was part of efforts to increase patronage this the of the Eastern ports.

According to him, ports that will be affected by thee initiative are Calabar, Rivers and Delta Ports.

But, the president, National Council of Managing Director of Licensed Customs Agents (NCMDLCA), Mr. Lucky Amiwero, said the decision is flawed and not far reaching enough to impress ship owners or importers.

“First, it is not shipowners that determine the final destination of goods. It is importers and the shipowner is obliged to deliver the goods wherever the shippers indicates. If a shipper is going to change the preferred port for the discharge of his goods, it is not by granting waivers on harbour dues to ship owners”, Amiwero said.

He said the impediments to greater patronage for eastern and Delta ports go beyond the uniform harbour dues used in all terminals. Low draught of navigation channels, nearness to market, overbearing security presence on the main roads out of the ports and poor road network are some of the issues militating against optimum utilisation of ports outside Lagos.

“The waiver on harbour dues is of no effect. The decision was not informed by any evaluation of the peculiar challenges facing the area nor were experts and stakeholders consulted before hand. It looks more like a populist move to just impress the people. But it is not going to change anything in the short or medium term”, Amiwero stated.

According to him, seeking greater utilisation of eastern and Delta ports would require a multi-pronged approach to not just woo shippers but create the environment that will not compromise the ease with which they need to dispose of their goods.

“Most companies, a larger share of consumers, relatively good road networks and a tolerable level of security presence are all factors that make the western ports the default and first destination of choice for importers. This was not determined by shipowners and shipping operators.
“So the federal government needs to undertake a thorough evaluation of the situation before rolling out measures. It is clear no study was done before this waiver was announced.

“Even then, 10 percent is not attractive enough for ship owners. It should be more than that. Government should have been thinking along the line of offering rebates to importers who truly need some reprieve to reduce the costs they incur”, Amiwero said.

He called on the government to suspend the waiver offer and work out a comprehensive package that will have something to offer every player in shipping chain.