Jonathan Nicol is the president of Shippers Association of Lagos State. In this interview with AMAKA ANAGOR-EWUZIE, he explained how corruption and extortion in the port corridor have contributed in the difficulties shippers are facing in the nation’s seaport. Excerpt.
What implication does what is happening in Tin-Can Island port such as the inability to evacuate containers due to congestion on the road and within port terminal, extortion by traffic managers and cost of haulage hold for Nigerian economy?
The issue of dilapidated Tin-Can Island road is real. Amazing that Government did not make arrangements to repair the very bad portions of the road to allow trucks in and out even if it is one lane. The contractors should be working both day and especially nights on that axis.
Under normal situation, Port and Terminal Multiservices Ltd (PTML) should exit 150 containers daily. But now, hardly they exit 50 trucks from a modern Terminal with modern technology. The shortfall is shippers’ woes, which results in the payment of heavy demurrages that is why the Federal Government should declare a state of emergency to deal with the infrastructural decay holistically.
Goods are trapped at the Tin-Can Island Port and cost of goods is going up. In such situation, workers will lose their jobs and industries will be shut due to lack of raw materials. With goods trapped in the port, there will be shortfall in revenue slightly for government in the fourth quarter of 2020.
Extortion in the port especially in the area of cargo evacuation is like a man without a name. Should we call it allegations or advanced fee fraud that no one can defend but it exists. Corruption in our corridor is now a normal way of ease of doing business. A four headed monster.
Let us look at what recession means to the port industry and how do you think that government can help to lift the industry from recession?
Our own recession was self-induced. Recession started with absolute neglect of major infrastructures in the port, for instance, bad roads. They probably didn’t know that people reap what they sow. We went into export but have no facility to cushion it.
Government jettisoned manpower development for accumulation of wealth, whichever way it comes. Export trade that should have supported the economy is under threat. Goods are trapped unexpectedly and have been so for many months. The effect of the recession if care is not taken will be full blown then unemployment will not be controlled.
We believe that the government is aware of the implications and they will listen to the citizens’ outcry. Indeed, the times are hard. Imports are trapped and exports are equally trapped. At a point especially towards the last quarter of 2020, 40 vessels waited at the Tin-Can Island Port anchorage to berth because of lack of space in the terminals.
Given the situation, cost of clearing will increase. Demurrages and storage charges will also increase but government taxes would remain sacrosanct such as government’s Value Added Tax, Customs Duty.
Costs of goods have gone up astronomically and there is no price controls. The situation in our style of business makes regulations unworkable. Recession will ground the economy.
So, how would you review the port industry in 2020?
Not much happened with the bad roads and traffic around the port environment. Goods were not evacuated as expected due to the numerous challenges.
