We are losing fortunes to port congestion —NECA

The Organized Private Sector (OPS), under the Nigeria Employers’ Consultative Association (NECA), has cried out at the huge fortunes their members are losing daily due to the congestion of Apapa Port.

To this end, the association has called on the Federal Government to direct the Customs Service to exercise 100 per cent waiver of the massive demurrage incurred by companies due to the port congestion and delays.

The Director-General of NECA, Mr. Olusegun Oshinowo, raised the fresh alarm over colossal loss being  incurred on their businesses, while speaking with journalists about the effect of the Apapa port congestion on their members.

While expressing concerns over the adverse effect of the port congestion on their members, the NECA DG specifically lamented the colossal loss incurred by companies involved in the importation of sensitive raw materials and finished products, including pharmaceuticals materials.

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He pointed out that it has become an Herculean task to clear goods from the port; adding that “where these goods and raw materials are finally retrieved, they may have to be destroyed due to quality challenges related to temperature issues, having overstayed beyond safe period in the ports”.

To compound the already bad situation, Oshinowo stated that there is a heavy demurrage that is being incurred as a result of the congestion and delays, which is neither the fault of the companies nor within their control.

He explained that demurrage on 20 feet and 40 feet containers are N60, 000 and N90, 000 per day respectively.

Oshinowo explained further: “Where the container stays from June and only released in mid-August, it would have accrued a demurrage of N6.84m in one 40 ft container alone. This is apart from the increased freight costs from transporters due to the significant down time of haulage trucks caused by the congestion”.

This, according to him, accounts for the rising cases of abandoned containers and imports at the ports.

While commending the on-going efforts by government to clear the ports of congestions, he called for urgent steps to be taken to stem the dire economic hardships companies are going through in using the ports.

The NECA DG, therefore, called on the Federal Government to direct the Customs Service to exercise 100% waiver of the massive demurrage incurred by companies due to the congestion and delays.

This according to him will put action to Government’s avowed commitment to improving ease of doing business in the country.