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The cost of doing business at Nigerian seaports has increased by 250 percent in the concession era, contrary to the expectations of stakeholders in the industry.
CLIFF ALOZIE-ERONDU
Investigation has shown that port users now pay more to get their consignments released, against the terms of agreement reached by the Nigerian Ports Authority (NPA) and the new terminal operators in the Memorandum of Understanding (MoU).

Investigation reveals that prior to the concession exercise, port users paid N375 for 20-footer and N750 for 40-footer containers; now N1,000 and N1,500 respectively on demurrage at the AP Moller terminal at Apapa port. Sources say that importers now pay $1,020 for a container coming into the country against $620. Before the concession era, they paid $300 for 20-footer container for emergency terminal congestion.

Some importers say although AP Moller now berths vessels coming into the country without delay, identification of containers still takes some time, which eventually results to congestion at the port.

Mike Ayinde, chairman, Bonded Terminal Association, laments that AP Moller has abandoned the agreement it reached with operators of bonded terminals four months after the take-off -- that it would be giving them containers for a period of 18 months until AP Moller stabilizes.

Ayinde says several attempts to meet with the terminal operators to discuss the matter have failed, regretting that the concession exercise was not meant to drive the indigenes out of business.

"Apapa port controls about 70 percent of the general cargo that comes into the country and any monopoly at the port will certainly affect the cost of doing business." Any increase from the terminal operators would automatically be passed to the final consumer, which defeats the purpose of port concession by the Federal Government, according to Ayinde.

If the situation persists, he fears, they will have no alternative but to reduce their workforce, stressing that such exercise will further throw more people into the already saturated labour force.

Government intervention therefore is sought to avoid further hardship on both the bonded terminal operators and the generality of Nigerians, advising that AP Moller should adhere to the term of agreement.

Reacting to the issue of congestion at the port yesterday, Comptroller-General of Customs Jacob Gyang Buba denied such allegation, saying that what caused the hiccups was that importers left their cargoes on the premises.

He said if there was congestion or delay at the port, they would speak with the service provider, but acknowledged that AP Moller had contributed in the transformation of the port that was formerly built for only bulk cargoes





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