Importers under the aegis of the Nigerian Importers Integrity Association (NIIA) have said that the nation’s seaports are operating well below capacity and should not transfer long-standing (overtime) containers to off dock 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, the NIIA said that such transfer is unnecessary since there is “ample space in the main ports”.
According to NIIA President, Godwin Onyekazi, “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 per cent yard occupancy for most terminal operators; effectively undermining the reason to transfer overtime cargo to Ikorodu.”
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 argued, “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.