How lack of inter-agency collaboration killed Warri port —Expert

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7 years ago

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An industry expert and Group Head, Strategic Studies, Dangote Group, Olugbenga Abidoye has explained how Warri port narrowly missed being a hub in the Nigeria’s ports system due to lack of collaboration between agencies of government in the Nigerian maritime sector.

Presenting a paper titled, “Inland Waterways Operations and Logistic” during a recent maritime event held in Lagos, Abidoye stated that for inland waterways to succeed, there must be a buy-in by all the agencies involved in the handling of cargo and clearance from the port.

According to Abidoye, “In the late 1990 s, the Nigerian Ports Authority (NPA) observed that whereas the Lagos ports were always witnessing congestion of cargoes due to the volume of throughput, other Eastern ports were always lying virtually empty.

“It was also realised that between 40 per cent and 50 per cent of the cargoes trapped in the congestion at the Lagos ports belonged mainly to consignees from the Eastern part of the country. So, NPA approached the shippers who were traders under the Onitsha Market Traders Association (OMATA).

“NPA told OMATA members to use Warri port and tranship by inland waterways to Onitsha inland port. Upon several deliberations, the traders agreed to the suggestion but with a proviso that there would be no Customs examination of their cargoes at the Warri port.

“The argument of the OMATA members was borne out of fear of double taxation because if they agree to use Warri port, and then tranship by inland waterways to Onitsha inland port, it means they will pay Customs duty at Warri port and also get levied same duty at Onitsha inland port. That was what the traders wanted to avoid, which was reasonable.

“The concern of OMATA members was conveyed to the Nigerian Customs Service (NCS), but the Service kept mum. Since that time till date, the Customs have not responded to the concern of the traders, and thus the beautiful initiative which would have revived Warri port and propped up inland waterways transportation was already dead on arrival.”