Dera Nnadi, mni, CAC, Customs Command of Nigerian Customs Service
The Customs Area Controller (CAC) of TinCan Island Port Customs Command, Compt. Dera Nnadi has presented a clear picture of the real challenges of Nigerian ports operations and also provided strategic solutions.
In his lead paper presented at the Nigerian Shippers Council (NSC) Stakeholders Sensitization Summit in Apapa on Thursday, titled: ‘The Roles of Nigeria Customs Service in the Evacuation of Cargoes from Seaport to the Hinterland’, he listed the key challenges of port operations to include but not limited to Inadequate Infrastructure, Inefficient Port Operations, Regulatory and Customs Delays, High Volume of Traffic, and Security Issues.
Others according to him include Poor management practices, lack of automation, and inefficient handling processes contribute to longer turnaround times for ships and cargo. This inefficiency can be due to bureaucratic delays, lack of coordination among port operators, and insufficient workforce training.
Explaining more on the Impacts of Port Congestion, Compt. Nnadi mentioned issues bordering on Economic Costs, saying “Congestion leads to increased operational costs for shipping companies due to longer waiting times and higher demurrage charges. These costs are often passed on to consumers, leading to higher prices for goods.
He also noted that Reduced Trade Competitiveness remains another key setback stressing that “Ports that are known for congestion can deter international trade partners and investors. This loss of competitiveness can impact the broader economy by reducing trade volumes and foreign exchange earnings.
Another major impact of Port Congestion includes Supply Chain Disruptions as Congestion causes delays in the delivery of goods, disrupting supply chains. This can result in inventory shortages, production delays, and increased costs for businesses relying on timely shipments.
On Environmental Impact, he explained that “Ships idling at congested ports produce higher emissions, contributing to environmental pollution. Additionally, increased truck traffic and congestion within port cities exacerbate air quality issues.
There is also the issue of Loss of Perishable Goods as delays in port operations can lead to spoilage of perishable goods, resulting in financial losses for exporters and importers and potential food shortages.
The last but not the least impact of port congestion according to Compt. Nnadi is Strained Infrastructure which translates to “Overloaded port infrastructure can deteriorate faster, requiring more frequent repairs and maintenance, which can further disrupt port operations and increase operational costs.”
However, he rolled out Way Forward and Solutions to Mitigate Port Congestion to include Infrastructure Investment, Operational Efficiency Improvements, Streamlining Customs Procedures, Enhancing Hinterland Connectivity, Capacity Planning and Management, Public-Private Partnerships, Improving Security Measures, and Implementing green port initiatives, such as shore power for ships and using cleaner technologies can reduce the environmental impact of port operations.
