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Sunday, 14 February 2016

FG partners Niger, Chad on efficient cargo transit

By Uche Usim

FOLLOWING Ghana’s takeover of the regional cargo transit market from Nigeria, the Nigerian Shippers’ Council (NSC) has entered into a strategic partnership with Niger Republic and Republic of Chad to ensure that cargoes destined for the two landlocked countries transit through Nigerian ports.

The Executive Secretary/Chief Executive of the Council, Mr Hassan Bello, made the disclosure recently when the management played host to members of the Senate Committee on Marine Transport.

According to him, the partnership would ensure quicker transit of cargoes meant for the two nations; as they are much more closer to Nigeria than any other maritime nation in the sub-region.

He however blamed terminal operators and shipping companies for cargo diversion to ports of neighbouring countries where they enjoy friendlier and more competitive charges.

Bello said that the Council was not comfortable with the fact that Niger Republic will go all the way to Cote d’ Ivoire and Ghana to transit its cargoes when Nigeria is closer.

The Shippers Council boss further revealed that his management was recently approached by Chad during the United African Shippers Council (UASC) conference held in Ghana on the same efficient cargo transit business, regardless of the security challenges in northern Nigeria.

“Chad is ready to partner with Nigeria in transiting the country’s cargoes. Under the Nigeria-Niger Joint Commission, the Council is encouraging Niger Republic economic operators to utilize the Nigerian transit corridor for their imports and exports. You can imagine Niger Republic going all the way to Cote d’ Ivoire and Ghana to pass their cargoes.

“They are a landlocked countries, so that is where their cargoes are routed through Ghana and Cote D’ Ivoire. It doesn’t make sense. The destination should be Nigeria so that we can move the cargoes. We can use our trucks and even employ people to move these cargoes. But because that time our ports were not efficient, so they moved to Ghana and co but now our ports are reasonably efficient. We have been talking with Niger, soon they will start shipping their consignments through Nigeria. This is the effort of the Nigerian Shippers Council”.

Continuing, he said, “at the meeting in Ghana, we were approached by Chad also; despite the security problems, we want them to also use Nigeria as transit for their cargo”, Bello explained.

He however lamented that the operational efficiencies achieved from the port concession exercise in Nigeria is being eroded by excessive and high charges, abuse of agreement by terminal operators and shipping companies.

He said that terminal operators had a field day because there was nobody to check what they were doing.

“So the Federal Government appointed the Nigerian Shippers Council as economic regulator because there was none. NPA could not regulate because NPA are landlords, they have services they charge for, so they cannot regulate at the same time”, he explained.

In comparing port charges in Nigeria and other neighbouring ports, Bello stressed the need for Nigerian port operators to bring down their charges in order to bring back the cargoes lost to Cotonou port and others.

“In Apapa port, the dwell time is 19 to 25 days; in Cotonou it is 12 to 14days; in Mombasa; Kenya it is five days and in Durban it is four days. In Nigeria, after three days they start charging you, but in Benin Republic they give you seven days; in Ghana it’s 11 days and in Cameroon it’s 11days. So we have introduced seven days, but the matter is being contested in court.

“Terminal handling charges in Nigeria is N67, 500, in Benin it is equivalent of N24,000, in Ghana it is N9,000. That is why goods are going through neighbouring ports. What our terminal operators do not understand is that we are in competition with many ports, so we have to reduce the charges. You have to increase efficiency and be competitive in order to attract cargoes to Nigeria.”



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