News
An importer and President
of the Nigerian Importers Integrity Association (NIIA), Godwin Onyekazi, has
said that the nation’s seaports, especially container terminals, are operating
well below capacity and should not transfer long-standing containers to offdock
facilities especially the Ikorodu Lighter Terminal (IKLT) in Lagos.
Speaking against the
backdrop of clamour by some clearing agents at Ikorodu for the Nigerian Ports
Authority (NPA) to transfer long-standing containers from the main port to
IKLT, 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 transfer of containers but
the present economic downturn has resulted in less than 40% yard occupancy for
most terminal operators; effectively undermining the reason to transfer
overtime cargo to Ikorodu,” he said.
The NIIA President said
the maritime sector suffered a huge blow in 2016 with ever increasing foreign
exchange rates and a sharp decline in cargo volume.
According to him,
“Businesses, banks and social institutions surrounding the ports have closed
down as an extension of the reduction in business faced by the ports.
“A recent statement by the
Senate in November 2016 highlighted the fact that the containers that have
already been transferred to the Ikorodu Lighter Terminal have been abandoned
with goods worth billions of naira rotting away daily; alluding to the fact
that inadequate maintenance measures exist for the containers there. Therefore,
moving even more containers will result in a sharper decline in the condition
of containers and cargo, and lead to wastage.”
He said moving overtime
containers can also be seen as a means to boycott terminal operational
procedures as owners of the containers will look to avoid paying their accrued
charges but rather intercept or 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, he argues,
“undermines the integrity of terminal operators’ authority and processes
leading to complete loss of revenue to terminal operators despite handling
costs incurred and fulfilled financial obligations to the government over the
years on such containers.”
He said the bid to
transfer overtime cargo to Ikorodu Light Terminal will only result in huge
additional cost burden to government given that the logistics cost of moving
the containers from various terminals to Ikorodu will be borne by the Nigerian
Ports Authority (NPA).
“This move will result in
additional handling of containers which comes with increased cost of doing
business for terminal operators; as well as likely claims from damages from
handling during such a transfer.
“There exists also the
risk of loss of cargo to the consignee/importer due to allegations of diversion
of cargo in transit from previous transfers 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.
“Combined with the
recession, this move will only serve to compound the woes of the already
suffering maritime sector; it will not bring additional business or progress
whatsoever,” he said.
Onyekazi added that the
Nigeria Customs Service (NCS) is more certain of collecting appropriate import
duties on the containers at the main ports.
Credit: ShipsandPorts
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