• Wednesday, May 01, 2024
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BusinessDay

Apapa: Tough times for businesses, residents as rush to return empty containers heightens gridlock

Containers-Apapa

There are indications that the coming weeks will be very tough for residents and businesses located in Apapa port city, following the rush by importers and their agents to return empty containers after discharging their imported goods.

Usually, the first few weeks into the New Year is characterised by surge in business activities at ports following the rush by importers to clear backlog of containers and other spill over consignments from the ones that were not cleared during the festive period.

By implications, motorists, port users and commuters are expected to experience man-hour loss on their daily transit to the port city as the traffic gridlock persists.

Also, shippers may be forced to pay more to shipping companies as demurrage for the containers and storage charges to terminal operators for occupying space in the terminals as their cargoes spend longer time without clearing them from the ports, and offloading to return empty containers back to the ports.

This is coming few days after businesses, residents and commuters enjoyed relief during the one week Christmas and New Year celebrations period, where driving into Apapa became fun and free of traffic.

A recent BusinessDay visit to Apapa-Ijora-Wharf through Western Avenue, revealed that few days after the resumption of work from the Christmas and New Year holidays, that gridlock is returning to Apapa roads gradually.

Tony Anakebe, managing director of Gold-Link Investment Ltd, a Lagos-based clearing and forwarding company, who confirmed that Apapa traffic situation is expected to worsen in the coming weeks, said that the number of trucks coming to the ports is expected to increase, thereby providing temporary inconveniences to Apapa road users.

“The last quarter of every year usually marks the peak of importation activities at the ports. Judging from past experiences, the 2018 importation peak season is over but the importers and their agents will continue to clear the spillover while those, who were able to clear their consignments during the festive season, would have been able to discharge the goods in their warehouses, and ready to return the empty containers,” Anakebe said.

According to Anakebe, the situation means increased business activities as a result of the spillover from Christmas imports, before the volume would be expected to drop especially for the remaining part of the first quarter of this year.

Jonathan Nicole, president, Shippers Association of Lagos State, said that the poor condition of the access roads into Apapa and Tin-Can Island ports, have been a major challenge to doing business at the ports.

This, according to him, has been pushing up the cost of doing business for shippers and manufacturers, whose goods and raw materials spend days and weeks before getting to their warehouses.

Emma Nwabunwanne, a Lagos based importer said: “If traffic returns, trucks coming to evacuate cargoes will find it difficult to access the ports because they will be trapped on the road. This will be dangerous for port business and for the economy because the situation could lead to port congestion. It could also compel shipping companies to impose congestion surcharge on Nigerian ports.”

 

AMAKA ANAGOR-EWUZIE