With the port concession review currently ongoing by the Nigerian Ports Authority (NPA) fifteen years after the port reform, many port terminals expect their contract agreements to be renewed by the Federal Government. TOLA ADENUBI, in this piece, x-rays major port users’ assessment and evaluation of each terminal operator:
THE port reform of 2006 was a move by the Federal Government aimed at improving the nation’s port efficiency and competitiveness. With many of the port terminals battling congestion issues despite the investment of Rubber Tyred Gantry (RTGs) and Reach Stackers by some of the terminal operators over the years to improve seamless cargo evacuation, stakeholders who interface with the terminal operators have asked the Federal Government to show non-performing operators the exit door and bring in new investors onboard while others think merging some port terminals will further improve the nation’s port system.
Call for sack
For the major assemblage of customs brokers at the nation’s port, the Association of Nigerian Licensed Customs Agents (ANLCA), it is time for the Federal Government to show non-performing operators the door. Speaking to the Nigerian Tribune exclusively on the performance of the terminal operators fifteen years after, the National Vice President of ANLCA, Dr. Kayode Farinto, explained that while some terminal operators have achieved commendable strides in enhancing efficient port operations, others have simply not done enough.
According to the ANLCA Vice President, “Yes, some terminal operators have improved their port efficiency through acquisition of modern port handling equipment. Port terminals like the Port & Cargo Handling Services (P&CHS), APM Terminals and very few others have brought in new equipments, at one point or the other. While some port terminals have acquired new cargo handling equipment, others have not invested a kobo in their terminal.
“These set-of port terminals are still using the equipment they inherited from the Nigerian Ports Authority (NPA) in 2006. To us at ANLCA, this type of terminal operators should be shown the way out. These terminal operators are still using obsolete equipment.
“Let’s ask ourselves, why were the ports concessioned? The ports were concessioned because the NPA as at that time was unable to provide modern cargo handling equipment. Fast forward to fifteen years after the port concession, any port terminal that has not been able to add value by bringing in new equipment like RTG’s and others should be shown the exit door and new investors allowed in.
“Look at P&CHS, they last brought in ten RTG’s. Any terminal that has not been found to have added value in terms of modern port equipment should be shown the way out. There are many investors out-there waiting to invest massively in our port system.
“Aside P&CHS, I know Ports and Terminal Multiservices Ltd (PTML) and APM Terminal have tried in their respective capacities to bring in new cargo handling equipments. What about Apapa Bulk Terminal Limited (ABTL) and ENL Consortium? Have they been able to meet up with expectations in terms of bringing in new equipment? Equipment is not what is hidden. If they have, we will see them when we go to these port terminals to clear cargoes. Non performing operators should have their agreement terminated.”
Call for merger
For the largest gathering of freight forwarders, the National Association of Government Approved Freight Forwarders (NAGAFF), merger of non performing port terminals instead of outright termination of port concession contract is a better solution to the current crisis rocking Nigerian port terminals.
Speaking with the Nigerian Tribune exclusively in Lagos, National President of NAGAFF, Chief Increase Uche, explained that port terminals like Josepdam Port Services (JPS) and Tincan Island Container Terminal (TICT) should be merged to create more yard space for cargoes instead of the current congestion woes bedeviling many port terminals at the nations’ port.
In the words of Chief Increase Uche, “Port terminals like JPS and TICT should be merged to have more yard space for cargoes. Also, P&CHS and Five Star Logistics Terminal should be merged to have more space for cargoes. Why am I calling for merger, I am calling for merger because the port terminals have failed to manage the spaces given to them effectively, and that is why we have congestion inside the port terminals.
“A major reason why many of them have failed to manage the spaces given to them effectively is because many of them have not invested massively in cargo handling equipment at their terminals. Aside West African Container Terminal (WACT) in Onne, Rivers State and PTML, many of them have not been able to manage port spaces professionally.
“At TICT, it was only between 2006 to 2008 that they performed effectively. Since 2009, chaos have set in and most of the port terminals couldn’t meet up with effective cargo delivery. Most of the port terminals became non-user friendly. Shippers started diverting cargoes to neighbouring ports because of the congestion at out port terminals. Many of our port terminals are filled with cargoes littering everywhere.
“For cargoes that have overstayed inside the port terminals, the operator should move such cargoes to bonded terminals. Port operators shouldn’t allow cargoes to overstay in their port terminals. However, port terminal operators have shown over the years that they have failed in managing their container yards effectively. The traffic gridlock on the ports access roads is a spill-over of what is happening inside our port terminals.
“If port terminals like JPS and TICT are merged, there will be more space for cargo business. Same thing should apply between P&CHS and Five Star Logistics. We don’t subscribe to termination of contract of non-performing port terminals, rather, we suggest that there should be mergers.”
Call for calm
For the Maritime Workers Union of Nigeria (MWUN), the Federal Government should take steps to retain the current crop of terminal operators. The President-General of MWUN, Comrade Adewale Adeyanju stated that the terminal operators had already done what he thought was their best as employers of labour.
“We will still insist that this present terminal operators be retained. They have already done what I think is best of them as employers of labour. Our fear is that in the process of shopping for new investors, government should not bring somebody that will turn the industry upside down. It is a case of the devil that we know is better than the angel that we don’t know.
“We are not saying that government should not review the operations of the terminal operators but we are saying that they should allow peace to reign in the industry because from 2006 till date, we can say that there is element of improvement in terminal operations. The dockworkers, over the years don’t have conditions of service, it was when the terminal operators came in that we had such,” the MWN PG stated while talking to newsmen.
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