Empty container crisis: NPA mediates between APM Terminals, Shipping Lines

Following the public outcry over the delay in evacuation of empty containers leading to yard congestion at the APM Terminals, Apapa, Lagos, the Nigerian Ports Authority (NPA) has convened a crucial meeting comprising the major shipping lines and APM Terminals, Apapa to discuss the challenges and chart a way forward.

General Manager, Corporate and Strategic Communications of the NPA, Mr. Ikechukwu Onyemekara who disclosed this to newsmen in Lagos on Wednesday, informed that the meeting which held recently at the instance of the Port Manager, Lagos Port Complex, Adebowale Lawal had in attendance major shipping lines including: Maersk Line, Hapag Lloyd, Pacific International Lines, PIL, CMA CGM, COSCO Shipping and APM Terminals, (APMT).

According to Onyemekara, “The NPA requested all the shipping lines to submit an updated list of their holding bays, including locations and capacity.

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“The Port Management emphasized the need to be involved in the examination of those holding bays so as to keep abreast of the potential operational challenges”.

On the terminal capacity at the APM Terminals, Onyemekara noted the shipping lines and the Management of APM Terminals agreed to enhance the process of communication available to each shipping line to guide their container movement.

He stated that the shipping lines also blamed the significant congestion during the period under review on a simultaneous gate closure to all the shipping lines by the management of APM Terminals, Apapa.

He, however, said that the APM Terminals Apapa management insisted that the terminal reached its full capacity due to increased import and export volume, arguing that there was a notable delay in the evacuation of both imports and exports by the shipping lines.

Speaking on the resolutions reached at the meeting, the NPA spokesman observed that it was resolved that the APM Terminals, Apapa should regularly communicate yard stock levels to the shipping lines to improve planning and coordination.

“It was also resolved that the notification period prior to terminal gate closure should be revised as follows: five days initial notice in advance; three days reminder before closure and one-day final notice before closure.

“While it was further resolved that APM Terminals Apapa was to engage off-dock terminals by moving import containers to off-dock terminals to create more space within the terminal, the Port Management should actively participate in the inspection and assessment of holding bays to better understand and manage capacity and operational challenges.

“While all parties acknowledged their respective responsibilities, it was agreed that better communication, timely notification and strategic use of holding bays and bonded terminals were critical to alleviating pressure on terminal capacity”, he submitted.

He thereafter quoted the Port Manager, Lagos Port Complex, Adebowale Lawal as emphasizing the urgent need for enhanced coordination among terminal operators, shipping lines, and the port management to address the growing challenges related to terminal congestion, especially due to the accumulation of empty containers.

Recall that there have been insinuations suggesting that APM Terminals Apapa is not receiving empty containers, allegedly contributing to yard congestion. However, the terminal operator has clarified that the management of empty container evacuation into the terminal – and subsequent shipment onto vessels – is the exclusive responsibility of shipping lines, which own and control all containers.

APM Terminals Apapa Terminal Manager, Steen Knudsen had said that due to a sharp and sustained surge in import cargo volumes over recent weeks, shipping lines have had to prioritise discharging incoming laden containers over evacuating empties. This operational shift has resulted in a growing inventory of empty containers within the terminal, significantly limiting yard space.

“As a result of this accumulation, APM Terminals Apapa has had to temporarily restrict the reception of additional empty containers until the existing stock is cleared by the shipping lines,” Knudsen said.