Hyacinth Chinweuba
The Executive Secretary, Nigerian Shippers Council (NSC), Mr Hassan Bello, has disclosed that terminal operators who benefitted from the concessioning of the nation’s seaports have made significant investments estimated at N200bn within a period of 10 years.
Bello also said transparency in legal framework for the port concession review has become imperative.
The Executive Secretary disclosed this in Abuja at the ongoing workshop organized by the Ports Economic Regulator and the Union of African Shippers’ Councils (UASC) in collaboration with United Nations Conference on Trade & Development (UNCTAD).
In a paper presentation titled, ‘Development of Trade Support Facilities/Infrastructure and Benefits to Trade Facilitation and National Economic Growth: Inland Dry Ports, Truck Parks and Logistic Platforms’, he said the estimated investment has exceeded the N50bn planned in the concession agreement for the entire period of the concession.
According to him, the investment represents a multiple of about 400 percent of the planned investments.
Bello also said the terminal operators are still expected to make additional investments over the remaining years of the concession agreement.
He identified part of the gains of the port reform as the expansion of the existing cargo handling capacity at the ports to over 25 million tons per annum from 6.5milion tons per annum as was the case before the reform exercise.
Other gains of the reform, he added, was the reduction in budgetary allocation to the ports, increased revenue generation and volume of cargo handling in addition to improved cost efficiency.
Other benefits, according to him, were complete restructuring of the maritime sector and deepening of the country’s capital market.
He pointed out that the vessel turn around time has improved from five days to 41 hours, while container dwell time which used to be 28 days has gone down to 14 days.
Another gain recorded include improvement in operational time which used to be 8 am to 4pm but now 24 hours service.
Predicting a higher cargo traffic this year which he noted has been progressive as a result of the reform exercise, Bello called for a legal framework that will be transparent apparently under the ongoing port review exercise.
He explained that this was because after the port reform of 2006, port users said they were not consulted.
He said it took the NSC about seven months to lay its hands on the concession agreement between the government and the concessionaires.
Bello also identified the Inland Dry Ports (IDPs) and Truck Transit Parks (TTPs) as important infrastructure for trade facilitation.
Noting that seven IDPs have been concessioned while four others have been proposed privately for establishment, Bello said the IDPs will provide the impetus to revive and modernize the railway as a primary mode for long distance haulage.
He added, “IDPs will lower the overall costs of cargo to the hinterland as well as that of transit cargoes to landlocked connected neighbouring countries.
“IDPs will bring shipping services closer to the doorsteps of stakeholders in the hinterland and local businessmen are encouraged to take part in the container trade”.
He singled out the Kaduna IDP commissioned in January this year by President Muhammadu Buhari as the success story by the NSC.
He said the Kaduna IDP handles cargo throughput of over 250 containers monthly, stating that it opens trade windows for landlocked countries bordering Nigeria who are interested in using the ports as transit point.