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NPA to submit new concession agreement for approval on October 4

NPA secures $700m facility from Citibank to upgrade Apapa, Tin-Can Ports

There are indications that five terminal operators in Nigeria whose lease agreements have expired would receive a fresh contract, as the Nigerian Ports Authority (NPA) said it has concluded the much-awaited concession agreement report.

The terminals include ENL Consortium, Josepdam Port Service Limited, Port and Cargo, Five Star Logistics Ltd, the Tin-Can Island Container Terminal, and AMS Terminal in Delta State which had 15 year-concession.

Speaking in Lagos at the weekend during the visit of Mu’azu Sambo, minister of transportation, to the NPA, Mohammed Bello-Koko, the managing director of the ports authority, said the report would be submitted to the ministry of transportation before the close of business on Tuesday, October 4, 2022, for final approval and onward renewal.

The report is also expected to be sent to the Bureau of Public Enterprise (BPE), Infrastructure Concession Regulatory Commission (ICRC), Federal Ministry of Transportation (FMOT), and the Federal Ministry of Justice (FMOJ).

Read also: Apapa: NARTO in pact with MWUN to ease gridlock on port roads

According to him, there are still ongoing discussions with terminal operators on what is expected from them, and the authority is yet to get the necessary feedback.

The NPA boss also said that the long-awaitedLekki Deep Seaport will commence operations before the end of the year, as the NPA has acquired the necessary marine equipment to ensure smooth berthing of ships.

Bello-Koko, however, identified the challenge affecting port business in the country to include 100 percent physical examination of cargoes by the Nigeria Customs Service (NCS). He said the lack of scanners at the port also affected cargo examination, adding that having scanners will make the ports more competitive and preferred destinations for cargoes in West and Central Africa.

He, however, said that the terminal operators have expressed a desire to purchase and maintain scanners at the Nigerian seaports while Customs will operate them.

Bello-Koko said Nigeria needed to explore an alternative source of power generation for the seaport due to the rising cost of generating power in the port.

He listed matters that require urgent attention – such as the reconstruction of the quay apron at Tin-Can Island Port complex and collapsed jetty at Continental Shipyard Ltd, reconstruction of a collapsed berth at Federal Lighter Terminal (FLT), and fencing of common user port facility in line with the specification of the International Ships and Ports Facility (ISPS) Code.

He stressed the need to reconstruct the collapsed breakwater at Delta Port and to commence procurement of alternative sources of power.

Mu’azu Sambo, minister of transportation, commended the authority for the successes recorded in moving the nation’s economy forward, and for getting ready for the first deep seaport in Nigeria to commence operations.

He, however, urged the NPA to consider encouraging Nigerians to move their cargoes via the inland waters using barges to avoid dependence on the road.