How Shippers’ Council drives port efficiency amid operational challenges

After the cargo handling aspect of the port business was concessioned to private operators in 2006 with the Nigerian Ports Authority (NPA) playing the landlord role, the port was left without an umpire to regulate the activities of service providers and the government to ensure each party delivers on its mandate in line with the concession agreement.

This brought inefficiencies and high business costs for port users but in 2015, the government made the Nigerian Shippers’ Council the Port Economic Regulator.

Despite being gazetted as port economic regulator, NSC lacked the power to impose penalties on services providers for failing to meet their mandates.

This was why it started pushing for the Port Economic Regulatory Agency Bill. This bill will empower the NSC to take on a more significant regulatory role in Nigeria’s ports, overseeing tariffs, service standards, and port efficiency.

Abdussamad Dasuki, chairman of the House Committee on Shipping Services said at the last presentation of the bill, that it would enhance the governance of port operations, improve infrastructure development, and ensure fair competition among stakeholders.

“The NSC would also play a central role in making Nigerian ports globally competitive by adopting international standards. Overall, the bill would position the NSC to contribute significantly to improving the performance and outlook of the port sector, “the lawmaker said.

Meanwhile, Pius Akutah, executive secretary of the NSC, said the bill, which has been passed by the House of Representatives and is awaiting for the Senate, will bring about efficiency in the sector and reposition it for growth.

He said it would also harmonise trade laws in Africa to make it easier for people to practice in the maritime sector.

“With the law, we will monitor the trade within the border areas, enable Nigeria to capture its border trade and be able to plan. It will enhance productivity by driving partnerships among agencies of government,” he said.

Meanwhile, as the port industry continues to wait for the passing of the bill to empower the Council to deliver its mandate, the port is plagued by poor infrastructure, including inadequate road networks, and insufficient storage facilities.

Currently, the NSC has limited control over the physical infrastructure at the port which is under the purview of the Federal Ministry of Works. This has been limiting NSC’s ability to drive reforms and improve port operations.

Read also: Shippers’ Council assures of port efficiency, competitiveness

The port industry is also facing high port charges resulting from inefficiencies that increase cost

According to Akutah, reducing costs for importers and exporters while ensuring sustainable revenue generation for the government remains a delicate balancing act for port operators, shippers, and the government, but the ultimate goal is to make Nigerian ports competitive.

“Although Nigerian port has continued to struggle with congestion despite efforts to streamline operations, the Council is working closely with terminal operators and other agencies to mitigate the issues including managing traffic, improving port competitiveness to cut down delays, demurrage charges, and other inefficiencies that arise from congestion,” Akutah assured.

Globally, the port business is shifting from being manual-driven to becoming digitalised where clearing and releasing cargo are done swiftly without delay.

The global shift toward e-commerce and digital trade presents an opportunity for the NSC to enhance its digital capabilities and lead the way in port automation, Customs processes, and supply chain management.

Experts believed that through the adoption of blockchain, the Internet of Things (IoT), and other emerging technologies, the NSC can facilitate faster, more transparent and cost-efficient trade.

BusinessDay findings show that the Council is currently promoting the effective operationalisation of the National Single Window (NSW) for the nation’s port to digitalise its cargo-clearing processes.

At recent visit of the National Single Window Steering Committee to the NSC, Akutah pledged full support to ensure the effective operations of the platform.

The NSW is expected to create a trade portal that provides a single access point for agencies and service providers to access resources that would fast-track cargo clearance.

In addition, NSC has unveiled plans to begin the International Cargo Tracking Note (ICTN), a digital tool that determines the type and volume of cargo before arrival.

Akutah said the CTN will boost Nigeria’s security and enhance the Federal Government’s revenue from the seaports.

“The commencement of the International Cargo Tracking Note is in line with President Tinubu’s administration of renewed Hope Agenda, which seeks to diversify the revenue base of Nigeria’s economy,” he explained.