FG’s silence on downward review of tariffs on containers against EODB—Ikeji
The Secretary, Road Transport Employers Association of Nigeria (RTEAN), Haulage Section, Chief Godwin Ikeji has sent a passionate appeal to the federal government and seaport authorities to consider cancellation of container deposit and review of other tariffs paid on imported goods.
According to him, the downward review has become valid to lessen the cost of business associated with the current gridlock along the port access routes in Lagos port complexes.
In an interview, he said such rational policy review will further deepen the government’s ongoing drive in deepening Ease of Doing Business (EODB).
Currently, operators deposit as much as N200, 000 per 40-foot container within Lagos and N400, 000 outside Lagos. Twenty-foot container deposit is N100, 000 within Lagos and N200, 000 outside Lagos.
This is in addition to shipping company charge of N170, 000 and terminal charge of N180, 000 as well as automatic demurrage of N100,000 and other charges from Customs and clearing agents.
Ikeji spoke passionately on container deposit, saying operators are getting more discouraged as navigating away from the Lagos port areas remains frustrating and consume unprecedented time and resources.
Container deposit is paid by importers or clearing agents before moving containers out of a shipping terminal. The deposit serves as a guarantee that the operator will return the container in good condition.
According to him, “We have been advocating that the container deposit should be abolished for years. If the deposit is abolished, the shipping agents will be forced to go in search of their containers and the unnecessary delay at the ports may even reduce.
“We are in an emergency situation and everyone needs to understand and cooperate. It is not normal when someone spends three weeks on the road just trying to return containers.”
“The container deposit puts a lot of pressure on businesses who rush to the ports to return empty containers with the hope of getting their deposits back. Most of the trucks lined up on Lagos roads are laden with empty containers and this is the reason for the gridlock.
RTEAN chief scribe added further that “If the deposit is abolished, the pressure will reduce and people can relax and return containers at their convenience.”
Corroborating Ikeji’s stand, Coordinator, Save Nigeria Freight Forwarders (CNFF), Dr Osita Chukwu, said “Removing the deposit is the best thing that can happen to this country at this time. It will ease a lot of tension and reduce the cost of doing business. I personally part with millions of naira on container deposit and that cost of course will be transferred to the final consumer”.
