With mind set on ameliorating the ordeals importers and exporters, businesses, motorists, residents, port users and other commuters pass through while commuting on daily basis to Apapa port city, the management of the Nigerian Ports Authority (NPA) recently renewed efforts towards reviving the Eastern Ports in order to divert traffic to those ports, writes AMAKA ANAGOR-EWUZIE.
After the concession of cargo handling operations of the seaport in 2006 (13 years back) to private terminal operators, cargo throughput in the nation’s port more than doubled, and over 70 percent of this volume is today imported and exported through Apapa and Tin-Can Island Ports, both situated 10 minutes apart each other in Apapa metropolis, Lagos.
Consequently, as volume grew to peak in 2014 (five years back) entrance into Apapa port city became a hard nut to crack as importers and service providers including other road users, started facing serious man-hour loss and additional costs due to delays experienced on transit over persistent traffic gridlock bedevilling the port city.
Findings show that recurring gridlock in and out of Apapa poses a serious threat to smooth movement of goods, and it also increases cost of doing business as importers experience delay over late resumption and examination of cargo by officers of the Nigeria Customs Service (NCS) and delay during the movement of cleared cargo from ports to importers’ warehouse, all due to the traffic situation.
Statistically, Apapa and Tin-Can Island Ports handle close to 70 percent of the entire Nigerian import cargo, due to their advantage location, high level of efficiency and availability of modern port infrastructure.
Obviously, apart from the Onne Port, most of the other Eastern ports including Warri, Calabar and Rivers Ports, are nearly lying idle. This is partly because the channels into these ports need to be dredged, other facilities need to be upgraded and incentives provided to enable shippers consider these ports as choice destination for their consignments and attract more oceangoing vessels to call at their quay walls.
BusinessDay search reveals that after concession of the ports, the Federal Government withdrew the 30 percent incentive granted to vessels calling at Eastern ports before concession.
This is why unconfirmed source said while $4,000 and $4,500 stands for freight charges on (one by 20ft and one by 40ft containers) coming to Lagos, an additional surcharge is imposed on importers to enable vessels call Eastern Ports. This increased the freight on containers destined to the Eastern ports to over $5,000 and $5,500 for one by 20ft and one by 40ft containers.
For Iheanacho Ebubeogu, general manager, Security of the NPA, government agencies operating in the nation’s seaport must review tariff and charges on ships calling ports in the Eastern part of the country with imported cargo by at least 30 percent.
He said the rebate will encourage effective utilisation because if cost differential between Lagos and Eastern ports is down by 30 percent, importers will be attracted to use the ports.
“When I mean review of tariff across board, NPA tariff has to come down, NIMASA should review their Coastal and Inland Shipping (Cabotage) tariff, Customs tariff should come down so that people can be motivated. I do not want us to think that addressing security alone will achieve this,” he said.
To address security challenges facing the port, Ebubeogu said, there is need for synergy between NPA and other security agencies to ensure comfort to shipping and prevent host communities from interfering with shipping through piracy and other related crimes.
The National Bureau of Statistics (NBS) report stated that a total of 71,903,266 metric tonnes of cargo was recorded at all Nigerian ports in 2017 as against 70,819,092 cargo traffic in 2016. It further stated that 43,019,889 of the cargo traffic were inwards while 28,883,377 were outward.
A breakdown shows that while Apapa Port recorded about 18,909,238 metric tonnes of import and export cargo in 2017; 15,520,925 metric tonnes were recorded in Tin-Can Island Port; 3,462,425 metric tonnes were recorded in Rivers Port; 1,947,347 metric tonnes of import cargo recorded in Onne Port; 2,159,099 metric tonnes of import and export cargo handled in Calabar Port, and 4,514,481 metric tonnes of import cargo were handled in Delta (Warri) port within the period under review.
Apart from shallow channels, which make it impossible for bigger vessels to access Eastern ports, dilapidated port infrastructure is another major problem. While the Calabar Port suffers from shallow draught, the Onne Port is contending with insecurity such as pirate attacks and sea-robbery among others.
Other challenges include deplorable berths, dearth of finger mooring jetties to berth NPA crafts, lack of operational vehicles and fire hydrants at quays. Also, cargo handling equipment and the port quays areas are also insufficient to facilitate trade efficiently.
Also, the recurring high siltation at the Calabar Port impedes safe navigation of vessels and the Port Harcourt Port is seriously suffering from persistent pirate attacks, which made the port unattractive for foreign shipping lines.
Determined to turn things around by bringing port services closer to shippers in the commercial cities in the East and some part of the North, such as Onitsha, Nnewi and Aba, among others, the NPA management recently announced that it was working with professionals in the maritime sector to make the Eastern ports attractive for business.
Already in 2018, the NPA commenced the dredging of Warri port at the cost of $44.861 million (N16.150 billion). The dredging project has since been completed and it was said that vessels have started calling at the port.
Few months back, the NPA concessioned the Old Warri Port to the Ocean and Cargo Terminal Services Ltd after a competitive bid worth $100.78 million, to run the port for 25 years.
Warri terminal is a multipurpose terminal which is designed to handle all kinds of cargoes. It will handle containers, general cargoes and any other kind of cargoes from all over the world including wet cargoes. It has the capacity to accommodate 12,000 Twenty-foot Equivalent Units (TEUs) of container and warehouse capacity of about 4000sqm.
“BPE, NPA and other relevant government agencies should look forward to an efficient port management system when we formally take over the control of the terminal while the clients are in for an unparalleled customer-focused service delivery that will put them at the heart of our operations. We will also adhere strictly to the terms of the concession agreement too,” assured Adekunle Oyinloye, group managing director of SIFAX Group, the lead partner in the consortium setting up Ocean and Cargo Terminal Services Ltd.
The concession exercise was well commended by the people of Warri as Ogiame Ikenwoli, Olu of Warri, pledged his support for the Ocean and Cargo Terminal Services Limited as the company formally takes possession.
“It has always been my wish that the port is fully utilised. Warri is now ready for business and economic growth. The relative peace that the town had enjoyed in the last few years is a pointer to the readiness of all stakeholders to move Warri towards economic development and social integration. I want to urge the company to take advantage of the peaceful environment to positively affect the host communities especially in the area of job creation,” he said.
Also, in the face of shallow draught; the NPA has been encouraging shipping companies to use Flat Bottom Vessels (FBV) to attract more cargoes to the port in Warri.
Last year, the NPA deployed equipment worth over $30 million in Onne Port, Rivers State. They include six pilot cutters, tug boats and 17 meter offshore patrol boats, and they were deployed to make the port attractive and stem the cycle of criminalities within and around the port.
Hadiza Bala-Usman, managing director of the NPA, said the measure was taken to boost efficiency, security and make the port attractive for business as Onne Port Complex remains one of the key ports under the NPA.
Val Orhobabhor, a Warri-based Customs broker and former National Financial Secretary of the Association of Nigeria Licensed Customs Agents (ANLCA), said the dredging project at Warri channel had been completed.
Olayiwola Shittu, former president of Association of Nigerian Licensed Customs Agents (ANLCA), who commended the NPA for repositioning the port for greater efficiency, urged other stakeholders to collaborate with the NPA in its efforts to make the port a hub of maritime activities.
While Felix Abraham, a stakeholder said the deployment of the equipment to Onne has assisted the port in taking its rightful position as hub for the East and Central Africa sub-regions in oil and gas and has an advantage of accessibility and proximity to commercial centres in the East.
“Activities such as pipe coating, waste treatment and boat building are provided by companies located in Onne. The port is highly industrialised with modern facilities and equipment that can stand the test of time anywhere in the world,” he added.
Amaka Anagor-Ewuzie
