Stakeholders differ on removal of overtime cargoes from ports

Divergent views have trailed the removal of uncleared and overtime containers from the seaport terminals to the Federal Government’s approved warehouse known as Ikorodu Lighter Terminal (IKLT) in Lagos.

While some argue that there is need to ensure that overtime cargoes are transferred from the ports to government warehouse to decongest the port terminals, others believe that the nation’s seaports are currently operating below capacity, and does not provide ground for cargo transfer.

Lucky Amiwero, National President of National Council of Managing Directors of Customs Licensed Customs Agents (NCMDLCA), said that the Federal Government needs to remove the uncleared and seized cargoes to the government warehouse as statutorily provided, in order to decongest the ports and raise revenue.

Speaking in letter dated June 12, 2018 and addressed to President Muhammudu Buhari, Amiwero said that Nigeria Customs is statutorily authorised to after 15 days or such time, to transfer all uncleared goods from the terminal to the government warehouse.

“Custom is to charge rent on all goods deposited in government warehouse as contained in section 20-(b) which clearly states the rent to be paid while goods are deposited in Customs area provided by the government,” Amiwero added.

 Godwin Onyekazi, President of the Nigerian Importers Integrity Association (NIIA), who kicked against the move, said that the nation’s seaports operates below capacity and does not create any need to transfer overtime containers to offdock facilities especially the IKLT in Lagos.

Reacting to the call by some clearing agents to transfer long-standing containers from the port to government warehouse, Onyekazi said such transfer is unnecessary since there is “ample space in the main ports”.

“Congestion in the terminals has always been cited as the reason for transferring containers but the present economic downturn has resulted in less than 50 percent yard occupancy for most terminal operators; effectively undermining the reason to transfer overtime cargo to Ikorodu,” he said.

Continuing, he said that: “Containers already transferred to the Ikorodu Lighter Terminal have been abandoned as goods worth billions of naira rots away daily. This alludes to the fact that inadequate maintenance measures exist for the containers there. Therefore, moving more containers will result in decline in the condition of containers and cargo, and lead to wastage.”

Onyekazi further said that moving overtime containers can also be seen as a means of boycotting terminal operational procedures as owners of the containers avoid paying their accrued charges but rather obtain their cargo at reduced or no cost at all; thereby encouraging importers to abandon their cargo at the port with the aim of facilitating movement to Ikorodu in order to avoid charges.

“This undermines the integrity of terminal operators’ authority and processes leading to complete loss of revenue to terminal operators despite handling costs incurred for terminal handling, and this could jeopardise their ability to fulfill their financial obligations to the government.”

He however said that the consignee may lose the cargo to incident like diversion of cargo on transit and pilfering due to insecurity at Ikorodu terminal. “The extra cost to be incurred to carry out the transfer can be avoided, especially in times like these when all sectors should be focused on saving, and not wasting public funds.