Intrigue as terminal operators mount pressure on NPA over concession renewal

Findings have revealed that some terminal operators whose concession agreements expired and were given six months temporary renewal license have started piling pressure on the management of the Nigerian Ports Authority (NPA) through the Bureau of Public Enterprise (BPE) to approve permanent renewal license for them out of fears that their agreement might be revoked.

Recall that the NPA Managing Director, Mohammed Bello-Koko recently revealed that five terminal operators were given temporary concession renewal of six months after their concession agreement expired and that works are ongoing to ensure the affected terminal operators get a permanent renewal license depending on what they hope to offer in terms of investment at the ports.

However, speaking with the Nigerian Tribune exclusively, a close BPE source who wouldn’t want his name in print explained that some of the affected terminal operators have gotten in touch with the agency to see how their six month temporary approval can be confirmed to permanent approval.

According to the BPE source, “Yes, some terminal operators recently got six month temporary approval due to some reasons. First, the way the ICRC now handles concession renewal process is different. For government to give any concessionaire approval for permanent concession agreement, the concessionaire must give commitment to certain obligations which includes what he or she is bringing to the table in terms of investment.

“The affected terminal operators includes ENL Consortium, operator of terminal C and D, at the Lagos ports complex, Apapa; Josepdam Port Service Limited, operator of terminal 1, 1a and 2 of the Tin-Can Island Port; Port and Cargo Handling Services (P&CHS), operator of terminal 6,7,7a, 8 also of Tin-Can Island Port; Five Star Logistics Ltd, operator of terminal 9 and 10 also at the Tin-Can Island Port; and AMS Terminal, a terminal operator at the Delta Port in Delta State.

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“They have been meeting with BPE and even the Federal Ministry of Transportation and we are looking at having their concession agreement renewed.

“The NPA and the ICRC wants to know what these terminal operators hope to bring onboard in form of investment, and we have been talking to them. Hopefully, their temporary six month concession agreement will be confirmed into permanent agreement and everything will fall in place.

“The NPA raised the issue of dilapidating port infrastructure but repairing the ports will mean that the terminal operators will have to stop work for such repairs to take place.

“The terminal operators don’t seem to want to stop work, so we want to reach an agreement with them that they will fix some of the issues raised by the NPA as regards collapsing port infrastructure.

“They are the ones using the port, so it’s not out of place if they fix some of the repair works, even if they will be allowed to enjoy waivers in what they pay to the NPA as levies.”