The 3rd Annual Maritime Conference
holding in Lagos has unveiled that Nigeria controls 70 per cent of the
economy of West and Central Africa.
holding in Lagos has unveiled that Nigeria controls 70 per cent of the
economy of West and Central Africa.
The conference with the theme, “ Port
Costs and Ports Charges: A Recurring Decimal under Port Reform Regime”,
was held in honour of Dr. Taiwo Afolabi,
Costs and Ports Charges: A Recurring Decimal under Port Reform Regime”,
was held in honour of Dr. Taiwo Afolabi,
Group Executive and Vice Chairman, SIFAX Terminal
The Chairman, Nigerian Ports Consultative
Council (PCC), Chief Kunle Folarin, who is also a maritime economist,
said Nigerian dominance was far from the formal trade alone and would
certainly be bigger if “we consider the informal
trade aspects of cargo movements’’.
Council (PCC), Chief Kunle Folarin, who is also a maritime economist,
said Nigerian dominance was far from the formal trade alone and would
certainly be bigger if “we consider the informal
trade aspects of cargo movements’’.
He said that ships’ traffic into Nigeria by latest data was over 5,307 units per annum.
“The potential is certainly bigger when
we consider the capacity of cargo traffic to Nigeria’s landlocked
neighbours such as Niger Republic and Chad.
we consider the capacity of cargo traffic to Nigeria’s landlocked
neighbours such as Niger Republic and Chad.
“In the real terms, over 85 per cent by value of all the goods and services that entered Nigeria came through the seaports.
“The current aggregate value exceeds $15 billion a year through normal import order.
Nigeria also imports over two million tonnes of non-oil cargo yearly.
Nigeria also imports over two million tonnes of non-oil cargo yearly.
“It is therefore, no doubt that the
maritime sector’s performance is indeed a major contributor to the
economy and must be given attention when discussing port costs and port
charges.’’
maritime sector’s performance is indeed a major contributor to the
economy and must be given attention when discussing port costs and port
charges.’’
He recalled that the available port
infrastructure in the 1970s could not handle more than 12 vessels at a
time in Apapa Port Complex, which resulted to long queue of ships
waiting to berth.
infrastructure in the 1970s could not handle more than 12 vessels at a
time in Apapa Port Complex, which resulted to long queue of ships
waiting to berth.
Folarin said that in 1970, ship owners
incurred huge running cost and this led to demurrage as a result of
penalties put in place by the chartered parties.
incurred huge running cost and this led to demurrage as a result of
penalties put in place by the chartered parties.
He said that the port cost and charges
reform policy of the Federal Government started in 1993 by the ministry
of Finance apparently to address the issue of rising costs in the
delivery of port services and several others.
reform policy of the Federal Government started in 1993 by the ministry
of Finance apparently to address the issue of rising costs in the
delivery of port services and several others.
The PCC boss said port concession system
started in 2006 by transferring operations of public sector activities
to private sector to improve productivity and achieve competiveness at
the ports.
started in 2006 by transferring operations of public sector activities
to private sector to improve productivity and achieve competiveness at
the ports.
He said that there was need for port
industry to be truly productive, competitive and earn a hub status in
the region, adding that otherwise, Nigerian ports would continue to
perform at best a little above average.
industry to be truly productive, competitive and earn a hub status in
the region, adding that otherwise, Nigerian ports would continue to
perform at best a little above average.
In a keynote, Afolabi, who was
represented by his daughter, Miss Mariam Afolabi, noted that the current
exchange rate of Naira to dollar was making port activities more
expensive.
represented by his daughter, Miss Mariam Afolabi, noted that the current
exchange rate of Naira to dollar was making port activities more
expensive.
“Many of the obligations of terminal
operators are expected to be discharged in dollars and how much naira
will be enough today to purchase the required dollars , ” he asked.
operators are expected to be discharged in dollars and how much naira
will be enough today to purchase the required dollars , ” he asked.
“So many questions are seeking answers.
These are matters of immediate and practical concerns to every Nigerian
and the regulatory authorities,” Afolabi said.
These are matters of immediate and practical concerns to every Nigerian
and the regulatory authorities,” Afolabi said.
In his remarks, a former Managing
Director of the Nigerian Ports Authority (NPA), Chief Adebayo Sarumi,
said that government should not run port operations which he explained
was indeed a business for the private sector.
Director of the Nigerian Ports Authority (NPA), Chief Adebayo Sarumi,
said that government should not run port operations which he explained
was indeed a business for the private sector.
Sarumi said that ports concession was a
business venture that concerned both the consumers and the producers of
shipping services.
business venture that concerned both the consumers and the producers of
shipping services.
“Up to the time I returned to NPA in
2003, NPA was using the tariffs that we got from Price Income and
Productivity Board, approved in 1993.
2003, NPA was using the tariffs that we got from Price Income and
Productivity Board, approved in 1993.
“It was so surprising to see that a
tariff of 1993 was still being used in 2004. There is no way you could
do that business gainfully.
tariff of 1993 was still being used in 2004. There is no way you could
do that business gainfully.
“What suffered was the quality of service NPA was giving. Low turnaround of ships and shallow channels,” Sarumi said.
He, however, urged government to ensure that ports infrastructure were in good shape.
