• Thursday, April 25, 2024
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Building alternative to Lagos through investment in cargo handling equipment, the WACT example

onne-port

Obviously, Nigerian shippers have been in need of an alternative to the ports in Lagos, Apapa and Tin-Can Island Ports.

The search for an alternative port especially one that can compete favourably with their counterparts in Lagos, begun few years back, when congestion within the ports and roads leading to Apapa and Tin-Can Island Ports, started to take toll on shippers and other users of the port services.

At that time, access in and out of Apapa where the two ports are located, became hard nuts to crack as gridlock on the Apapa-Oshodi Expressway and Apapa-Ijora/Wharf Roads (two major access roads into both ports), compelled laden containers and empties to spend weeks on transit in and out of the port city.

The delay resulting from the persistent traffic, forced cargo owners to pay large sum to shipping companies and terminal operators as demurrage and storage charges for not taking delivery of their consignments and returning empties as and when due.   

The situation worsened as years went by without help in sight, when it became absolutely necessary that among other viable solutions to solving the traffic problem bedevilling ports in Lagos, was the need to build strong alternatives to them, where shippers especially those situated in the Southeast, South-south, North-East and North-Central could allocate their consignments to, as port of destination.

Consequently, shippers recently started diverting cargoes from ports in Lagos to Eastern ports especially Onne Container Terminal, which started recording tremendous growth of 17 percent in 2017, 21 percent in 2018 and 20 percent growth attained so far this year.

With these opportunities in mind, the management of the West African Container Terminal (WACT) started positioning the Onne container terminal to become a viable option for Nigerian shippers.

Located in Onne port, part of the Onne Oil and Gas Free Zone, WACT in addition to excellent hinterland connections to the rest of Nigeria, offers excellent customer service with trained operators, modern handling equipment and superior e-commerce capabilities.

Due to increase in vessel and container traffic, WACT, last Wednesday, launched two new Mobile Harbour Cranes (MHCs) worth $10million (N3.6billion) for discharge of cargoes at the terminal.

The Mobile Harbour Cranes (MHCs), which is coming on the heels of 10 new specialised terminal trucks and two new reach stackers already acquired, are expected to increase the turnaround time of vessels at the terminal.

The two new container cargoes handling facilities bring WACT, one of the most efficient container terminals outside Lagos, at par with its peers in Lagos, in terms of equipment and operational efficiency.

WACT, which has capacity to handle 314,000 Twenty-foot Equivalent Units (TEUs), 570 meters berth length and 12 meters depth alongside, now has a total of two Mobile Harbour Cranes; 20 equipment handlers; nine fork lifts; 22 terminal trucks and 375 reefer plugs.

Speaking at the commissioning, held in Onne, Rivers State last Wednesday, Aamir Mirza, managing director, WACT, said the massive investment at the terminal has attracted 700 direct and 2000 indirect employments in the country.

Mizra described the $10 million investment as a key enabler to customers’ satisfaction.

“Our vision is to make WACT the best-performing container terminal in West Africa. We believe this vision can be realised early enough if the government can support us to reduce the challenges of security by ensuring the safety of vessels on our waters, and improve road connectivity, among others,” he said.

Mirza said the cranes would enable volume growth resulting in increased productivity; reduced port stay and provide bunker savings; improve reliability in cargo delivery times; reduce the impact of crane breakdown/idle time on overall terminal operations; and increase customers satisfaction and speedy delivery.

Also, Hassan Bello, executive secretary of the Nigeria Shippers’ Council (NSC), said the new cranes will aid efficiency and improve vessels turnaround time at the terminal.

He reiterated the Federal Government’s commitment to encouraging more importers to patronise Onne Port, adding that government is determined to see shipping make significant contributions to the economy.

“Our terminals need to grow and show efficiency. We are happy with the competition. We need options, choice for shippers where they will discharge their cargoes,” he said.

According to him, the commissioning of the Mobiles Harbour Cranes is no doubt significant because it will improve efficiency. “We are happy with the increase in volume of cargoes and in the long run, more Nigerians would be employed and it will make the terminal operation contribute to the economy.”

“The more efficiency we have, the more cargoes we will get because Nigeria is a natural hub due to the market that is available here and I am happy today that this terminal is becoming one of the most efficient in West Africa. It gladdens our hearts that the main reasons of concessioning the port to private sector will be realised by this terminal, and we will use this terminal to benchmark the performance of others.”

Umana Okon Umana, managing director, Oil and Gas Free Zone Authority (OGFZA), who lauded WACT, described the investment as a show of confidence in Nigeria’s economy.

“WACT has sent Nigerians out for training because it is a very specialised equipment, and the objectives of free zones is to attract Foreign Direct Investment that will support job creation, transfer of skills and technology and what government loses by tax revenues, it takes back in employment, skills and transfer of skills,” he said.

Hadiza Bala Usman, managing director of the Nigerian Ports Authority (NPA), who commended the company for acquiring new cranes, urged shippers to patronise Onne Port.

Represented by Al-Hassan Ismaila, Onne port manager, Usman said the government was looking into the security of vessels on the nation’s high sea.

“The Onne Port is a nexus to connecting the North-East, North-Central, South-South and South-East. So, cargoes for these sections of the country are expected to be discharged through this port. We are calling on shippers to patronise Onne Port because of the friendly environment, and the synergy between the agencies of government operating at the port,” she added.

Several stakeholders including the representatives of shipping companies, Customs, freight forwarders, truck operators, importers, exporters and government agencies, who graced the event, expressed confidence on WACT.

To them, government needs to support the terminal operator by increasing the depth of the channel to Onne, address the security challenges and improve the state of East-West Road, because improving infrastructural issues and road connectivity, will position Onne to becoming a leading port in West Africa.   

Emenike Nwokeji, former chairman of Association of Nigerian Licensed Customs Agents (ANLCA) Onne Port Chapter, described the commissioning of the equipment as a sign that there are other parts in Nigeria with better equipment like Lagos Ports.

“We have the deepest channel that is why Onne is called ocean terminal and any ship that cannot berth in Onne, cannot berth anywhere in Nigeria,” said Nwokeji, who commended the management of WACT.

He said the new cranes would likely increase the cargo throughput of the port by bringing cargoes meant for east and large chunk of northern markets to Onne Port.

“We are delighted because more businesses would be coming to Onne due to the improved turnaround time for vessels calling the ports,” said Okey Okoro, chairmen, National Association of Government Approved Freight Forwarders (NAGAFF), Onne chapter.

WACT was one of the first Greenfield container terminals to be built in Nigeria under public private partnership.

 

Amaka Anagor-Ewuzie