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Home Ports and Shipping

Nigerian ports to achieve hub status as Nigerian shippers return

byCT Report
31/03/2017
in Ports and Shipping
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ABUJA: After 11 years of dumping Nigerian ports for neighbouring countries like Ghana, Togo and Benin Republic, shippers and importers from Niger Republic have resumed movement of transit cargoes through Nigerian ports. Transit cargoes are consignments of landlocked countries passing through the corridors of maritime nations to another landlocked countries. LEADERSHIP, our sister publication, had earlier reported that Nigeria was set to reclaim over N136 billion it is losing to neigbouring countries’ through diversion of transit cargoes originally meant for the nation’s ports.

Nigerian ports that used to be transit corridors for Chad, Niger republic, Burkina Faso and Northern Cameroon handled 10 million metric tonnes of Nigerien cargoes between 1998 to 2006. But since 2006, about 70 per cent of  cargoes belonging to Niger Republic that  were usually transited through Nigerian seaports have been lost to neighbouring Ghana, Togo and Ivory Coast. To this effect, the representative of Niger Shippers’ Council in Nigeria, Alhaji Idi Homissou, said immediately after ports concessioning in 2006, the landlocked countries stopped using Nigerian corridors because the concession enjoyed from Nigerian Ports Authority vanished under terminal operators.

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The Niger Shippers’ Council representative said Nigerien Shippers have returned to begin movement of their cargoes because of Nigeria’s proximity to Niger Republic. Niger shares about 1,500 kilometres of boundary with Nigeria and with a coastline of about 800 kilometres, Nigerian ports remain the natural gateway for Niger’s access to the sea. Besides, Nigerian ports are also nearer to Jibiya, a border town between both countries, than Togo, Benin Republic and Ghana. While Ghana to Niger is about 3,400 kilometres, Lagos to Jibiya in Niger is just 1,300 kilometres. Homissou said, “One of our shippers want to bring a ship load of 30,000 metric tonnes of cargo next week but they will first discharge 5,000MT in Nigeria before going to Benin Republic because they want to test the corridor”. He assured that if encumbrances are removed and concessions enjoyed are returned, Nigerien shippers will discharge at least 60,000MT in a month. “If it is possible, our shippers would be bringing two ships of 30,000MT every month. In fact, 15 containers of spare parts for Niger refineries is on its way and the shipper whose containers were delivered earlier in the year called me to say he is bringing another 10 containers from Dubai”, he hinted. Homissou also stated that 2017 will be a year of business for Niger shippers and that Nigerian ports will benefit it. “2017 is a year of business for our shippers and they are bringing in cargoes to check the experience compared to Cotonou and Togo and Ghana ports”, he noted.

Speaking on the challenges encountered by Niger Shippers in Nigeria, the Republic of Niger representative asked for quick release of consignments from the border post, even as he complained about container deposit by shipping companies which, he said, is eating deep into the profit margins of the shippers. He said, “The delay at the border is one of our challenges. If a consignment is at the border, the same day at least 24 hours, the goods should be allowed to cross the border since it is under Custom escort. Also, everything has been done here in Nigeria and Federal Operations Unit of the Nigeria Customs Service escorted the goods; so Customs command at the border should not delay the exit of the goods. “Also, Customs escort should be physical because some officers come by air and if there is special goods in container, it requires physical escorts. We have problem with the escort because we want them to charge by numbers of officers and not by the number of trucks. If you will say 20 trucks, there can be 20 officers and on each consignment we pay N25,000. This is too much for shippers to afford”, he lamented.

Homissou added that even though in Benin Republic they pay N5000, they can’t compare Benin standard of living to Nigeria. “Therefore, we accept N25,000 but by number of convoys and not by trucks and I believe three officers are enough for 10 trucks”, he stated. Also speaking with LEADERSHIP Friday, the Executive Secretary of Nigerian Shippers’ Council, Barr. Hassan Bello, said transiting cargoes through Nigerian seaports will transform Nigeria into a hub centre. According to him, this will mean more revenue to more terminal and shipping charges as well as levies vessels paid to the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Ports Authority (NPA). His words: “Transiting cargoes through Nigerian ports will have added advantage of turning Nigeria into a hub centre and it is Nigerians that will transport these containers to border of Niger Republic. “There will be employment and more throughput means more revenue for Nigerian government this is apart from the prestige”. Bello who confirmed that the Nigerien Shippers were testing ground to prepare for their full return to Nigerian seaports noted that the Council, Customs and NPA are doing everything to retain the trade. He said, “They are testing the ground, but we have created excellent cooperation and this was led by the Nigerian Ports Authority. NPA led us to Niger republic and they are doing everything with the terminals to ensure that everything is good and Nigeria Customs Services are also at the forefront of catching this transit trade.

“Customs has decentralised the transeer, before it was only issued in Abuja but can also be gotten in Lagos now. Customs  acccepts insurance bond instead of bank bond; they also provide escorts. There are still issues and we are still talking. Shippers Council is meeting with NPA to set up a transit committee among  NPA, Nigeria Customs Service and Niger Shippers’ Council”. Bello also stated that the the Council on both sides were working with the concessionares and shipping companies on how to make the corridor more  attractive for landlocked countries. “The concessionaires went to Niger Republic to sell their terminals to the shippers. We also took terminal operators to Niger and they also came to Nigeria and visit many places. they even went to port Harcourt up to the western port. They said they want to use Port Harcourt ports in other to drive traffic to the Eastern port”, he stated.

Tags: Nigerian ports to achieve hub status as Nigerian shippers return

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