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Ports record high ship, cargo traffic

By on September 1, 2014

Despite cases of diversion of Nigerian cargo through the neighbouring port of Cotonou and unfavourable business environment, Nigerian ports continue to record impressive traffic, reports Francis Ugwoke

The ports industry in the past few years has been in turbulence. So many factors have been attributed to this development. The unfavourable business environment, including the gridlock in Apapa as the centre of ports activities,  as well as corruption have all contributed to make the nation’s ports industry unfriendly. This development may have been among the reasons why the Federal Government few months ago took a decision to  have a commercial regulator  in the name of the Nigerian Shippers’ Council (NSC).The agency of government is saddled with the responsibility of promoting efficient trade facilitation in the ports as  could be obtained in other  world ports. This, it has started doing, and industry stakeholders have expressed optimism that the industry is heading towards efficiency so soon.

But despite what the ports have faced, including diversion of  cargo through the neighbouring ports by Nigerian importers who smuggle such goods into the country, Nigerian ports have  continued  to enjoy good ship and cargo traffic.

This is without losing sight  of the over N100 billion  revenue loss suffered last year in the ports. This was however attributed to the high tariff placed on rice importation.   Government had in a bid to encourage local rice production placed tariff on rice importation at 110 per cent. This affected the importers who were discouraged to do business, leaving the lucrative trade to smugglers who use the neighbouring ports.     Government had in response this year decided to tinker with the policy by removing 40 per cent levy on rice import, leaving a 70 per cent tariff, a rate that many still consider high. That positive decision, among others,  according to industry stakeholders,  may have  contributed to the  good  cargo and ship traffic report announced during the week by the Nigerian Ports Authority (NPA), a  15.4 per cent increase in cargo throughout.

The Traffic Report
In the report issued during the week  by the Assistant General Manager, NPA, Mr Iliya Musa, a total of 2,719 ocean going vessels called at the nation’s ports, a figure which showed   an increase of 12 per cent when compared with the 2013 figure of 2,427 vessels during the same period. The report showed that there was  a  total  Gross Registered Tonnage (GRT) of  vessels  of 70,659,820 Metric tons (mt)  in the ports during the period. This was an increase of 17.57 per cent over the corresponding 2013 first half GRT of 60,096,179.metric tons.

A breakdown showed that the premier port of Apapa   recorded a GRT of 17,367,180, showing an increase of 7.2 per cent over 16,189,825 gross tons achieved in 2013. A total of 727 vessels called at the premier port during the period. In Tin can Island Port,  a GRT of 23,493,612 was recorded. This figure showed  an increase of 0.1 per cent over 19,666,634 gross tonnes recorded during the same period in 2013. A total number of 892 ocean going vessels called at the ports   within the period.

In Rivers Ports, a total gross registered tonnage of 3,676,757 was recorded. This showed 7.6 per cent growth over 3,418,309 gross tonnes achieved during the same period in 2013. A total of 228 ocean going vessels were handled within the period under review. Similarly, Onne Port, known for its oil and gas consignment, recorded a GRT of 19,769,896.

This reflected   an increase of 12.4 per cent over 17,586,716 gross tonnes that was  recorded in the corresponding period of 2013. 425 vessels  were handled within the period. It was a total GRT of 2,011,358 in Calabar port, a seaport known in the shipping sector as a dry area. The rise showed 50.3 per cent over 1,337,475 gross tonnes of 2013, with 137 ocean going vessels handled in the period under review. The Delta Port equally recorded 70,659,820 gross tonnes, showing an increase of 17.6 per cent over the 2013 figure of 60,096,179 gross tons.
The port recorded 2,719 vessels.

The report showed that the cargo throughput was  41,317,962 million metric tonnes. This was an increase of 15.4 per cent over 35,812,858mt achieved in 2013. A breakdown of the cargo throughput showed that Liquefied Natural Gas (LNG) shipment was 10,418,248mt, an increase of 23 per cent over 8,462,535metric tonnes in the first half of 2013. General Cargo stood at 5,975,098mt, showing an increase of 1.3 per cent over 5,900,817mt realised during the same period in 2013. The record for dry card stood at 4,841,816 metric tonnes as against 4,573,322mt   in 2013. This showed an increase  of 5.9 per cent.

The figure for refined Petroleum product was 10,189,177mt,  showing an increase of 3.6 per cent when compared with the 2013 figure of 9,835,719 metric tonnes. The figure for laden container throughput was 509,946TEUs, a growth of 14 per cent over 447,388TEUs figure of 2013. A total of 154,846 units of vehicles were also handled in the period under review showing,  an increase of 16.5 per cent during the same period in  2013 figure of 132,930 units.

Ports will continue to boom
Reacting to the good result during the half year, the Managing Director of NPA, Habib Abdullahi, assured that the present management would continue to be focused and consistent in its effort to achieve its vision of being the  leading seaport in Africa.    He said the management would continue to pay attention on rehabilitating port infrastructure, regular dredging of the channels and implementation of sound financial policies. He further attributed the  success recorded so far in the operations at  the ports to the Transformation Agenda of President Goodluck Jonathan.

He said the government had provided the enabling environment for increased participation of both foreign and local investors in the port industry.
The NPA boss is also optimistic that the ports will continue to boom given friendly environment.  Officials of NPA claimed that part of the reasons why the ports traffic improved was because of aggressive marketing drive by  the authority and  terminal operators.
The authority has appealed to importers using neighbouring ports to change their mind and use the nation’s ports.

Place of ports regulator
Among the reasons also given for the improvement in ports traffic  include the concerted efforts being made by the Nigerian Shippers’ Council (NSC) to bring about best business practices since its appointment as Ports Commercial regulator early this year. The regulator has since its appointment   made efforts to promote trade facilitation in the ports. The target has been to improve clearing process at the ports so that  shippers do not suffer delay while clearing their goods.  The regulator has also taken some steps to ensure that some inappropriate shipping charges, among others,  imposed on shippers are dropped.

Views from stakeholders
Industry stakeholders who spoke to THISDAY said they were impressed with the increased cargo throughput in the ports. Some of them attributed the rise to the decision of the federal government to remove the rice levy which made the tariff on the product to be 110 per cent. This, the freight forwarders said had made more rice importers to bring in the product.

According to a freight forwarder, Chief Okey Chukwuma, among the reasons include the ease with which importers now get their Pre-Arrival Assessment Report (PAAR) as against what was the case during the first two months that it was introduced.

He said if importers find it easy to clear their goods out of the ports, it will further facilitate trade. It makes the importer to conclude what he has at hand and place order for more goods, especially for  importers of perishable goods.

He commended the new ports regulator for making efforts to bring about efficiency in the ports system.  Chukwuma added that  there would continue to be rise in cargo throughput  if the efforts of government agencies at ensuring efficiency   are sustained.
He added that  with improved cargo handling equipment and  complete  rehabilitation of the ports infrastructure, including roads in Apapa and Tin Can ports, shipping business would continue to boom.

 

[This Day]