Dr. Eugene Nweke.
The Sea Empowerment Research Centre (SEREC) has released a statement regarding the increase in charges at the ports, the statement was signed by Chief Eugene Nweke and the full texts are provided below.
The Sea Empowerment Research Centre (SEREC) is deeply concerned about the recent announcement by CMA CGM Nigeria to increase local charges, which is largely influenced by the Nigeria Port Authority’s (NPA) adjustments to Port & Marine Fees.
*Background*
The Nigerian ports situation is alarming, with the delayed implementation of the $700 million rehabilitation budget exacerbating concerns. SEREC has emphasized the need for a transparent project management system and a definitive rehabilitation project vision.
*Key Recommendations*
– *Immediate Implementation*: Commence the implementation of the approved rehabilitation budget to address pressing concerns such as congestion, poor berth production, and ship turnaround time.
– *Transparent Project Management*: Establish a transparent project management system, including a project monitoring team, regular progress updates, and clear communication with stakeholders.
– *Prioritise Critical Infrastructure*: Identify and prioritise critical infrastructure needing rehabilitation, such as quay walls, cranes, and handling equipment.
– *Stakeholder Engagement*: Engage with stakeholders, including port operators, shipping lines, cargo owners, and industry players, to address concerns and needs.
– *Address Underlying Issues*: Address underlying issues, including inadequate maintenance, insufficient investment, inefficient port operations, corruption, and bureaucratic inefficiencies.
*Additional Concerns*
The NPA must effectively explore outsourcing key port terminal development to a reputable third party. The recent 15% increase in charges without reconciling economic, commercial, and operational implications is alarming, considering the agency’s history of mismanaging proceeds from cargo handling and treatments, which the government indicted the agency of, leading to the decision to concession the port since 2006.
*Far-Reaching Consequences*
The increased charges may lead to:
– *Higher Costs*: Higher costs for importers and exporters, potentially impacting Nigeria’s competitiveness in the global market.
– *Trade Disruptions*: Trade and commerce disruptions, as importers and exporters seek alternative routes or shipping lines.
– *Regulatory Disputes*: Regulatory disputes due to the NPA’s failure to obtain regulatory clearance from the Nigerian Shippers Council.
Most importantly, to demonstrate administrative transparency, bearing in mind that the ports are public enterprise, as such the NPA must be bold to publish efficiency status of the concessioned ports post port concession, thus demonstrating its good intentions with the 15% port charges increment.
Wherefore, it is the views of SEREC that, to mitigate these concerns, the industry economic regulator (NSC) and the NPA must engage with stakeholders, provide transparency, and prioritise stakeholders’ interests. Collaboration between the Ministry, NSC, and NPA is crucial to create a more efficient, competitive, and sustainable maritime industry in Nigeria.
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