Nigerian maritime sector is one of the key sectors of its economy. Its strategic role is a major factor responsible for growth of Nigeria’s economy (largest economy in Africa with $446.543 billion GDP 2019), as well as creating employment opportunities for Nigerians. If properly managed, Nigerian Ports has the potential of tripling its throughputs made in the first three months of 2019 (18.8 million metric tonnes).
The great potential of the nation is the reason why most international companies expanding into West Africa consider Nigeria because it is the gateway to the region, in addition to its position as the largest market in the region. Nigeria has the largest population in Africa (more than 200 million people).
The competitive advantage of our Ports due to its vast coastline and navigable inland waterways strategically placed on the Atlantic coast of West Africa also gives us an edge. The Ports (Tin-can and Apapa-Wharf) remains a pillar of not only the maritime sector, but also Nigeria’s economy. The maritime sector is one of the largest revenues generating sector of the nation’s economy.
Majority of Nigerians use one or more products that passed the Ports directly or indirectly, a confirmation of the importance of our Ports. However, congestion and traffic gridlock (scenarios associated with delays, queuing and extra time of voyage and dwell time of ships, delayed cargoes at the port) adversely affects it, thereby having unpleasant consequence on Port Logistics and supply chains. This issues often escalate into extra costs, insecurity, safety, loss of trade, disruption of trade and transport agreements, making our Ports unattractive.
The economic implications of these challenges are that shippers now divert their cargoes to ports in neighbouring countries such as Cotonou in Benin, Lome in Togo, Tema in Ghana and Abidjan in Cote D’ivorie. The apparent loss of these cargo volumes translates to a huge foregone revenue to the government. Some of the negative effects of congestion to the nation’s economy includes higher handling cost of containers, increase in the price of consumer goods, unstable operations of production companies, decrease in per capita income of employees, environmental challenges, decreased competition etc.
An average of 5000 trucks struggle to access Apapa Ports daily through very bad and narrow roads, with no railway to aid access. All these affects businesses in and around the Ports especially that of Lagos Ports operations causing increase of operating cost, longer dwell time of cargoes, low turn-around time as well as increased demurrage for shippers and importers, making the Ports unattractive for business.
Another reason for congestion is the over reliance on Lagos ports by shippers. Even though Nigeria Ports Authority operate other container and general cargo terminals in Port Harcourt, Calabar and Warri. They have not been able to create incentives for shippers to increase patronage. Congestion affects Port efficiency levels, performance, productivity and profitability etc.
It is caused by excessive demand, manpower challenges, inconsistent policies, poor and obsolete infrastructure, lack of use of modern technology to tackle challenges resulting from globalisation and modernisation, bad roads etc.
In 2012, World Bank conducted a study measuring the performances of different Ports in some cities in Africa (Lagos, Durban, Mombasa and the catchment Ports of the Suez Canal in Egypt) using notable indicators such as cargo dwell time, operational dwell time, storage dwell time and transactional dwell time. It discovered that the average cargo waiting time at most of the Ports was approximately 20 days.
Additionally, the government should provide more space for Police stations in Apapa because visitors vehicles are usually parked along the roads as well as impounded and accidented vehicles which cause traffic congestion
While it is interesting that despite Nigeria’s huge population and a vast import dependent economy, our Ports are no longer the leading container Ports in West Africa. Port of Lome, Togo has overtaken Nigeria due to modern reforms it had, thereby tripling its capacity from 311,500 containers in 2013 to 1.1 million in 2017 with depth of 16.60 meters. It is the only deep-water Port in West African coast that can accommodate 3rd generation ships. Its huge success is also due to the commissioning of its Container Terminal (LCT).
On the other hand, Nigeria’s Apapa Port in Lagos (1million TEU) lost 30 percent of its container traffic over five years due to congestion and poor service. This challenge is partly responsible for why Nigerian Ports are ranked very low globally (183 out of 185 countries) and interestingly Nigerian economy do loss about $55 million (N20.8 billion) per day due to congestion. This number will keep increasing until urgent steps are taken to solve the challenges of congestion and traffic gridlock.
The reason for this challenge can be attributed to lack of implementation of modern technology system to drive operation, adoption of strategies such as Port centric logistics (PCL) to manage this challenge, bad roads, broken down trucks on roads, container accidents coupled with incessant pollution, flooding, corruption etc.
Congestion around the Port has become a big challenge and therefore requires urgent action from the government. Also, they should provide more truck holding bays or garages to contain the trucks and tankers coming to the Ports.
Also, Petroleum tank farms should be relocated from Apapa (their various tank farms in the area) to some other locations as this would help to reduce the numbers of tankers coming for loading which are responsible for congestions around the Ports. Also, more efforts should be made to decongest the Ports, as this will help increase import and export activities as well as save time and costs. It will also help stimulate growth in the economy.
The government should also construct wider roads around the Ports as most of the roads around the Ports are in bad shape and are getting smaller to contain the present rapidly growing volumes of influx of goods coming into the country. Additionally, more opportunities should be given to trains to convey cargoes such as liquid to bulk cargoes as well as move out containerised cargoes.
Additionally, the government should provide more space for Police stations in Apapa because visitors vehicles are usually parked along the roads as well as impounded and accidented vehicles which cause traffic congestion.
Lastly there should be regular stakeholder meetings with (operators, residents and stakeholders) to create better ideas of managing traffic situations around Ports.
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