CLIFF ALOZIE-ERONDU
Why Inland Container Depots are yet to take off
As vital as Inland Container Depots are to the development of Nigeria’s import and export trade, little attention has been paid to this all important project by the government, according to most maritime stakeholders.
The rationale behind the delay of the project operators say is probably because those at the corridors of power are seeing it as an elephant project.
But whatever there reasons may be, Inland Container Depots, were designed to accommodate the increasing and significant improvements witnessed at the country’s seaports as a result of port reforms, and to meet the market demands, occasioned by globalisation of the world’s economy, hence, the Federal Government’s approval in March 15, 2006 for the sites to be established under Build, Own, Operate and Transfer (BOOT) model.
Apart from the idea of accommodating the increasing cargo throughput, Inland Container Depots are meant to bring shipping services to the doorstep of shippers across the nation and to contribute to the revival and modernisation of the railways as a primary mode for the long distance haulage of goods. It is also aimed at improving the turnaround time of vessels, thereby reducing demurrage, pilferage and freight rates, as well as creates opportunity for international shipping facilities in the hinterlands, while exportation of agricultural produce will also be revitalised.
However, these noble objectives of the Nigerian Shippers’ Council, stakeholders say, has in the last three years, struggled for survival in the hands of the six State Governments, that have failed to maximise the rare opportunity of enjoying the status of a dry ports.
Expressing dissatisfaction on the snail speed of the Inland Container Depots, the former managing director of the Nigerian Ports Authority, Adebayo Sarumi, said the mandate given to the State Governments of Erunmu in Oyo, Zawachiki in Kano, Isiala-Ngwa in Abia, Heipang in Jos, as well as Maiduguri and Funtua in Yobe, to give land to the concessionaires free of charge, is to ensure quick take off of the project. But he wondered how many of the states have actually complied to the Federal Government’s directive, stressing that even those that have done so, have not given the concessionaires the proper documentation that will ensure easy take off of the project.
According to Sarumi, even the lands which were taken away from the indigenes have not been adequately compensated, expressing dismay that if the project has taken off due to its urgency to the nation, the State Governments need to play their own parts. He pointed out that the states will be the number one recipients of all the good things that will come out of the Inland Container Depots, when it starts blossoming.
Citing example of the multiplier effects of such projects, Sarumi who is also the former Nigerian Shippers’ Council boss, said when government wanted to reduce the age of vehicles coming into the country to eight years, importers were bringing in a lot of cars to beat the deadline, which led to congestion at the Roll-On-Roll-Off (RORO) Ports. What the then governor of Cross River State Donald Duke did he explained, was to create a large car park that could carry about 10,000 vehicles at a time, and as a result, importers started bringing in their vehicles through the Calabar Port. This development, the maritime expert said, created jobs for freight forwarders, mechanic, hotels and many others in Calabar, insisting that the affected State Governments need to encourage the private sector to invest in the Inland Container Depots.
For the executive secretary of the Nigerian Shippers’ Council, Adamu Bio, the delay in kick-starting the Inland Container Depot operation, makes the shippers to travel over long distances with attendant risks and cost to clear containers at the already congested ports. He explained that although three Inland Container Depots have been given Certificate of Occupancy, yet the concessionaires are unable to do anything because of lack of fund. Biu further said that because of the huge sum of money involved in the project, some financial institutions are unwilling to lend money to the concessionaires added with the economic meltdown. In the order to facilitate the development of the sites, the executive secretary therefore advised that the Federal Government should take the first step by tarring roads leading to various Inland Container Depots, maintaining that it will serve as source of encouragement to the concessionaires to invest on the project.
The Shippers’ Council boss admitted that people could understand the plight of some northern states, but asking why Oyo and Abia State Governments have not taken advantage of the opportunity at their doorstep. He maintained that there will always be cargo as long as import and export trade continues, saying that port and related services are supposed to grow ahead of the Gross Domestic Product by 100 percent.
On his part, the registrar, Certified Institute of Shipping, Alex Okwuashi, said the intrinsic capacity of Lagos ports have long been exceeded in terms of number of cargo throughput and its holding ability, stressing that the last port was built by government in 1983 in Onne, Port Harcourt, which necessitates the development of Inland Container Depots and Container Freight Stations across the geopolitical zones by the government. He insisted that Nigeria has no alternative to Inland Container Depots unless it wants to import goods at a higher price.
The country, Okwuashi pointed out, has a cargo clearance system that is yet to be reformed, which makes Inland Container Depot mandatory. The registrar however, said that the off dock terminals like the ones scattered in Lagos was not the answer to the port problem because Inland Container Depots must be sited outside the port town. The bonded wares in Lagos , is rather bringing pressure from the port to the cities, he affirmed. The maritime expert emphatically pointed out that it is environmentally and economically wrong to have the off dock terminals around residential and office areas.
Moreover, the chairman, National Association of Government Freight Forwarders (NAGAFF), Abuja International Airport chapter, Musa Oluwasegun, said some importers do not make genuine declaration, which causes heavy block stack at ports, stressing that such developments have made it imperative for the development of Inland Container Depots. According to him, customs on their own part are afraid of what importers are bringing stressing the doubts and fears has made it necessary to provide a place outside the port, such as the Inland Container Depots, where these goods stay temporarily before examination are carried out on the consignments.
Oluwasegun maintained that in a situation where the importer is not ready to take his goods and the customs cannot examine the goods because the owner have not forwarded his papers, the best area for such cargo to stay is not at the port otherwise the country will be back to another round of congestion. He therefore advised that the Inland Container Depots are created and managed properly, importers do not need to consign there goods to the port, rather it should go straight to the depots.
The president, National Council of Managing Director of Licensed Customs Agents (NCMDLCA), Lucky Amiwero, on his part, insisted that Inland Container Depots cannot work, because government has not seen it as a viable project. He maintained that the former President, Olusegun Obasanjo, started the 25 years rolling plan in 2007 for the rail line project, regretting that this is 2009 and nothing has been done to commence the exercise. Due to lack of railway operation in the country, 45 to 50 percent of cargoes meant for other states are being channelled to Lagos , hence the introduced of Wharf Landing Fee by the state government.
Expressing his views, the out-going managing director of Maersk Line Nigeria , Tom Knusden, said instead of waiting for rail line indefinitely, concessionaires should start cargo transfer with trucks, stressing that it is the only way to avert congestion at the ports. Inland Container Depots he explained has worked in many other countries, wondering why it is not working in Nigeria . Government he insists should come out with development policy that will boost the morale of both the concessionaires and importers to start thinking on how to make the Inland Container Depots more viable.
Also for Sarumi, there was no need to transfer 2,000 containers to Onne Port , if the Inland Container Depots are working, explaining that government ought to have used such money for other developmental projects. Unfortunate he said, even the proposed new railway line does not have any connection with some of the sites of the Inland Container Depots. He therefore advised that government should not play with people’s investments in situations of uncertainty.
