Kaduna Dry Port set to cut cost in the North-West

The cost of import and export business in the North-Western of the country may soon witness a significant drop, as the Federal Government perfects plans to launch the first inland dry port in Nigeria, analysts say.

The launch of the Kaduna Port will create more opportunities, as well as save time and cost for importers and exporters who usually travel to Lagos to do business. It would also decongest Lagos ports.

The completion of the Kaduna Inland Dry Port was facilitated by the declaration of Kaduna as an inland dry port of origin and destination on the 16th of May 2015, by the administration of former president Goodluck Jonathan.

The port, which was concessioned to the Inland Containers Nigeria Limited (ICNL), has the capacity to handle a minimum of 29,000 twenty equivalent units (TEU) of containers annually.

By this declaration, Kaduna Dry port, is now recognised by the United Nations Conference on Trade and Development (UNCTAD) as a port to which goods can be consigned from and from where goods can also be consigned to from another destination, which could be sea or inland port located anywhere in the world.
Although the Kaduna Port was not among the six inland ports approved for development by the Obasanjo regime in 2003,it is said to have commenced skeletal operations, as cargo now moves there from Lagos seaports direct by railway,for consignees to clear without having to visit Lagos.

Hassan Bello, executive secretary and CEO of the Nigerian Shippers’ Council (NSC) told BusinessDay exclusively, that the council, along with the Federal Government and the concessionaire, is ready to launch the port into full operation soon.

Bello added that the council is at its final discussion with the Nigeria Customs Service (NCS) and the Nigerian Ports Authority (NPA) to move into full operations at the port site.

“Cargo has started going to the Kaduna Inland Dry Port and we would soon launch the port. What we have done with Kaduna and other inland container depots is to ensure that we address the mistake of the current Nigerian seaports in the area of traffic management.

“We would install a modern traffic management system that would make use of the call-up system because we cannot afford to have congestion in the new port,” said Bello.

According to him, the concept of an inland dry port is to decongest the port and stimulate the economy, as most of the transit cargoes destined for Niger, Chad and other landlocked countries could more efficiently go through Kaduna.
“By so doing, the federal and state governments can earn foreign exchange and create employments for the youths. The launch of Kaduna Port will be a game changer in that region.”

An importer or exporter based in that region, who used to pay a minimum of N300,000 to lift a container from Apapa port to Kaduna, as well as pay transport and hotel bills to come to Lagos, would save cost as the terminal operator would oversee the movement of the consignment to the importer’s doorstep with ease,” said Emma Nwabunwanne, a renowned importer in Lagos.

The development, he said, would enable most of the cargo to be moved from the seaport to the dry port on rail, which is cheaper because ICNL has an existing partnership with the Nigerian Railway Corporation (NRC) to move containers from Apapa port to Kaduna, bi-weekly.

ICNL , the Kaduna port concessionaire is currently meeting with shipping companies, Customs and relevant government agencies, to ensure the port commence full operation, said Innocent Anoliefo, a director in ICNL. “Kaduna port will expand economic activity in Kaduna and promote international trade as well as enhance shipping in the hinterland.”

Tony Iju Nwabunike, a director in ICNL, said there are several opportunities for the Kaduna Port, judging from the volume of cargo throughput to Kaduna and the North-Western region of the country, which is nothing less than 30,000 TEUs.

“The port also targets most of the transit cargo that goes to neighbouring countries and people will use it because it would create opportunity for them to clear their cargo in Kaduna without additional cost of air tickets, accommodation and other issues that involve going to Lagos,” Nwabunike added.

 

AMAKA ANAGOR-EWUZIE