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Meeting the challenges of the port in 365 days
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As reform gradually enters into the third year, stakeholders are looking forward for better operations in the maritime sector, writes CLIFF ALOZIE-ERONDU
The maritime industry will hold quite some challenges both to the Federal Government and the operators in the sector this year.
The challenges will come because of demand from the stakeholders to enshrine professionalism in the entire sector in the post reform era.
Operators had to cope with service providers last year because most of the reform programmes where still at the final stages. But this year may be different as stakeholders are looking forward to enjoying the benefit of the reform exercise.
They are expecting more competition among the terminal operators, as well as drastic fall in the cost of clearing goods at the port, which was the basis for the concession programme.
For the port industry, terminal operators may be under duress to provide superior services especially in the area of making available cargo handling equipment and cranes, as well as infrastructures that will house both the customs and other necessary agencies involved in clearing procedures. Although few terminal operators are working hard to meet the expectations of Nigerians but some others are still struggling to sustain their businesses because of high capital intensity of plants and machineries.
What may constitute hiccups for port development this year might be the passage of Port and Harbour Bill, which has been pending at the National Assembly.
The terminal operators are still entertaining fear on what will happen to their investments if the concession agreement is revoked. Apart from these obstacles, the terminal operators will be expected to implement the 48 hours cargo clearance, which took centre stage last year.
Already, reactions had already commenced from stakeholders who are clamouring for a reduction in the cost of doing business at the port.
Recently, members of National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) carried out a protest in which they picketed Sifax Group, one of the terminal operators at the Tin Can Island Port, and are planning to seal up other terminals, because of high port charges. This may be a regular trend this year, if nothing is done to address some of these issues.
Freight forwarders Bill
The freight forwarder Bill is another document that received the baptism of the National Assembly last year and it is being coordinated by the Nigerian Shippers’ Council (NSC). The Bill seeks to unify the freight forwarders in the country. But unfortunately, it seems the Bill may not succeed in uniting the stakeholders in this sub-sector of the maritime industry because of their inability to resolve their differences. The splintered groups are seeing the Bill as being championed by few individuals in the sector to achieve their own selfish desires. To some clearing agents, they want Nigerian Shippers’ Council (NSC) which is responsible for articulating the bill to define who a fright forwarder is; to know whether their association is included before leaders can be elected for the council.
However, this year, Nigerians want to see the freight forwarders, harmonising themselves to elect effective and credible leadership that will move the council forward.
Lifting of ban
In the last couple of years, outright ban on so many trade goods affected the economy negatively, because most of the items that were under the prohibition list were not being produced in the country.
This resulted to liquidation of so many factories because they were not getting enough materials to complete their production. Moreover, so many businesses closed down because their trade fell into prohibition list, while others sold their factories to pay off bank loans. But this year, Nigerians expect something different. At least, the blanket ban on virtually all the trade goods should be modified.
According to Boniface Aniebonam, the chairman, Board of Trustee of National Association of Government Approved Freight Forwarders (NAGAFF), Nigerians are expecting something better this year.
He said many stakeholders are looking forward that some goods should be removed from import prohibition list.
48 hours cargo clearance
For the Nigeria Customs Service (NCS) a lot of improvement has taken place over the last two years, but the issue of 48 hours cargo clearance is still a problem which the organisation has to deal with as the year unfolds. Operators are looking forward to a year when they will take delivery of their consignments within two days as it is being done in other developed countries of the world.
Destination Inspection scheme
The Destination Inspection was successfully implemented in 2007 but with some hitches basically because of inadequate machines or intermittent breakdown of the scanners.
But this year, industry operators will be expecting something better because of increase in volume of goods coming into the country. If terminal operators were able to improve on the number of equipment, plants and machineries at the port, the scanning companies should not be exception. The terminals will need more scanning machines to generate more Risk Assessment Report (RAR), and avoid situations where importers have to wait for one or two weeks before containers are positioned for scanning. If the necessary actions are taken to implement the Destination Inspection, it will not only eliminate delays, but will prevent capital flights, increase import duty revenue, as well as help in the collation of data for national planning this year. It will in addition provide a modern mechanism for rapid verification of imports, reduce frauds, fiscal policy evaluation and correct tariff classification.
Banks on their own part are expected to play an important role for the Destination Inspection scheme to work.
The electronic confirmation of Form M by the authorized banks caused a lot of hiccups last year, and need to be corrected for proper interface with other agencies involved in the delivery of consignments at the port.
Nigerian Ports Authority
The Nigerian Ports Authority (NPA) will be more efficient in discharging of their landlord role this year, since the bulk of terminal operation has been handed over to the concessionaires. The reformed NPA will now be expected to do more of pilotage, towage and other duties which were not properly taken care of before the port was concession to the private companies.
It is further expected that the International Ships and Ports Security (ISPS) Code will be given more attention by the NPA with the joint effort of the new terminal operators. For Wharf Rats who go about vandalizing cars, containers and food items imported at the port, it will no longer be business as usual.
Already, with the level of security consciousness in place, the port will no longer be all comers’ affair this year.
The challenges will come because of demand from the stakeholders to enshrine professionalism in the entire sector in the post reform era.
Operators had to cope with service providers last year because most of the reform programmes where still at the final stages. But this year may be different as stakeholders are looking forward to enjoying the benefit of the reform exercise.
They are expecting more competition among the terminal operators, as well as drastic fall in the cost of clearing goods at the port, which was the basis for the concession programme.
For the port industry, terminal operators may be under duress to provide superior services especially in the area of making available cargo handling equipment and cranes, as well as infrastructures that will house both the customs and other necessary agencies involved in clearing procedures. Although few terminal operators are working hard to meet the expectations of Nigerians but some others are still struggling to sustain their businesses because of high capital intensity of plants and machineries.
What may constitute hiccups for port development this year might be the passage of Port and Harbour Bill, which has been pending at the National Assembly.
The terminal operators are still entertaining fear on what will happen to their investments if the concession agreement is revoked. Apart from these obstacles, the terminal operators will be expected to implement the 48 hours cargo clearance, which took centre stage last year.
Already, reactions had already commenced from stakeholders who are clamouring for a reduction in the cost of doing business at the port.
Recently, members of National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) carried out a protest in which they picketed Sifax Group, one of the terminal operators at the Tin Can Island Port, and are planning to seal up other terminals, because of high port charges. This may be a regular trend this year, if nothing is done to address some of these issues.
Freight forwarders Bill
The freight forwarder Bill is another document that received the baptism of the National Assembly last year and it is being coordinated by the Nigerian Shippers’ Council (NSC). The Bill seeks to unify the freight forwarders in the country. But unfortunately, it seems the Bill may not succeed in uniting the stakeholders in this sub-sector of the maritime industry because of their inability to resolve their differences. The splintered groups are seeing the Bill as being championed by few individuals in the sector to achieve their own selfish desires. To some clearing agents, they want Nigerian Shippers’ Council (NSC) which is responsible for articulating the bill to define who a fright forwarder is; to know whether their association is included before leaders can be elected for the council.
However, this year, Nigerians want to see the freight forwarders, harmonising themselves to elect effective and credible leadership that will move the council forward.
Lifting of ban
In the last couple of years, outright ban on so many trade goods affected the economy negatively, because most of the items that were under the prohibition list were not being produced in the country.
This resulted to liquidation of so many factories because they were not getting enough materials to complete their production. Moreover, so many businesses closed down because their trade fell into prohibition list, while others sold their factories to pay off bank loans. But this year, Nigerians expect something different. At least, the blanket ban on virtually all the trade goods should be modified.
According to Boniface Aniebonam, the chairman, Board of Trustee of National Association of Government Approved Freight Forwarders (NAGAFF), Nigerians are expecting something better this year.
He said many stakeholders are looking forward that some goods should be removed from import prohibition list.
48 hours cargo clearance
For the Nigeria Customs Service (NCS) a lot of improvement has taken place over the last two years, but the issue of 48 hours cargo clearance is still a problem which the organisation has to deal with as the year unfolds. Operators are looking forward to a year when they will take delivery of their consignments within two days as it is being done in other developed countries of the world.
Destination Inspection scheme
The Destination Inspection was successfully implemented in 2007 but with some hitches basically because of inadequate machines or intermittent breakdown of the scanners.
But this year, industry operators will be expecting something better because of increase in volume of goods coming into the country. If terminal operators were able to improve on the number of equipment, plants and machineries at the port, the scanning companies should not be exception. The terminals will need more scanning machines to generate more Risk Assessment Report (RAR), and avoid situations where importers have to wait for one or two weeks before containers are positioned for scanning. If the necessary actions are taken to implement the Destination Inspection, it will not only eliminate delays, but will prevent capital flights, increase import duty revenue, as well as help in the collation of data for national planning this year. It will in addition provide a modern mechanism for rapid verification of imports, reduce frauds, fiscal policy evaluation and correct tariff classification.
Banks on their own part are expected to play an important role for the Destination Inspection scheme to work.
The electronic confirmation of Form M by the authorized banks caused a lot of hiccups last year, and need to be corrected for proper interface with other agencies involved in the delivery of consignments at the port.
Nigerian Ports Authority
The Nigerian Ports Authority (NPA) will be more efficient in discharging of their landlord role this year, since the bulk of terminal operation has been handed over to the concessionaires. The reformed NPA will now be expected to do more of pilotage, towage and other duties which were not properly taken care of before the port was concession to the private companies.
It is further expected that the International Ships and Ports Security (ISPS) Code will be given more attention by the NPA with the joint effort of the new terminal operators. For Wharf Rats who go about vandalizing cars, containers and food items imported at the port, it will no longer be business as usual.
Already, with the level of security consciousness in place, the port will no longer be all comers’ affair this year.
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