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Shippers’ Council decries excessive charges at ports

By on September 5, 2016

The Executive Secretary/Chief Executive Officer, Nigerian Shippers’ Council, Mr. Hassan Bello, has said the operational efficiency achieved from the concession of the nation’s ports is being eroded by excessive charges, among other challenges.

Bello said since the takeover of the ports by private terminal operators, some modest achievements had been recorded, especially in the areas of operational efficiency on the sea side, infrastructural developments in the ports, increased throughput and increased safety and security of cargo.

In a presentation made available to our correspondent, he said, “The operational efficiency achieved from the concession is being eroded by inefficiency on the landside, excessive charges, abuse of concession agreement, undue delay in cargo clearance (rent-seeking), low level of automation of the port process and massive capital flight and leakages in revenue accruable to government.”

According to him, statistics show that the volume of Nigeria trade is about 180 million tonnes of sea borne cargo per annum, and annual freight generated by this trade is about $6.8bn (N1.088tn).

Bello said, “More than 80 per cent of this is earned by foreign firms and the bulk of goes out of this country to the detriment of our economy.

“The shipping industry in Nigeria accounts for about 85 per cent of Nigeria’s means of conducting international trade, and generates the much-needed foreign exchange to the Nigerian economy, primarily from shipping freight rates.”

The NSC spends a little above N1bn annually for the automation of its system, he said.

“The Nigerian Maritime Administration and Safety Agency is also automating its system; Nigeria Customs Service is well ahead of automation. It is the aggregate of all the automation that would be integrated as a unified platform and we will have a national single window.

“National single window is not built on nothing, it is built on separate systems but these systems must be integrated. Nigeria Shippers’ Council is playing its part to encourage trade facilitation, and spending N1bn plus annually.”

 

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