Managing Director of NPA, Abubakar Dantsoho
The Sea Empowerment Research Center (SEREC) has reasoned that the recent hike in shipping fees by shipping companies cannot be unconnected with recent hike in ports and marine tariff by the Nigerian Ports Authority (NPA).
Accordingly, the pressure group expressed deep concerns about the negative impact the recent increase in local shipping charges by CMA CGM Nigeria would have on the national economy.
The Head of Research at SEREC, Fwdr Eugene Nweke, expressed the concerns in a statement on the development, pointing out that the CMA CGM increase would lead to rise in costs for importers and exporters, potentially impacting Nigeria’s competitiveness in the global market badly.
It added that the increase would cause trade disruptions as importers and exporters might seek alternative routes or shipping lines.
The SEREC maintained that the CMA CGM increase might lead to regulatory disputes due to the NPA’s failure to obtain regulatory clearance from the Nigerian Shippers Council before announcing increase in its tariffs.
The SEREC said the NPA ought to have published efficiency status of the concessioned ports, post port concession, thus demonstrating its good intentions with the 15% port charges increment.
According to the statement, the Sea Empowerment Research Center (SEREC) is deeply concerned about the recent announcement by CMA CGM Nigeria to increase local charges, which is largely influenced by the Nigeria Port Authority’s (NPA) adjustments to Port & Marine Fees.
“The Nigerian ports situation is alarming, with the delayed implementation of the $700 million rehabilitation budget exacerbating concerns. SEREC has emphasized the need for a transparent project management system and a definitive rehabilitation project vision.”
To justify the increase in its tariffs l, the centre urged the management of NPA to commence the implementation of the approved rehabilitation budget to address pressing concerns such as congestion, poor berth production, and ship turnaround time.
NPA is also advised to establish a transparent project management system, including a project monitoring team, regular progress updates, and clear communication with stakeholders.
Prioritize Critical Infrastructure: Identify and prioritize critical infrastructure needing rehabilitation, such as quay walls, cranes, and handling equipment.
Stakeholder Engagement: Engage with stakeholders, including port operators, shipping lines, cargo owners, and industry players, to address concerns and needs.
Address Underlying Issues: Address underlying issues, including inadequate maintenance, insufficient investment, inefficient port operations, corruption, and bureaucratic inefficiencies.
“The NPA must effectively explore outsourcing key port terminal development to a reputable third party. The recent 15% increase in charges without reconciling economic, commercial, and operational implications is alarming, considering the agency’s history of mismanaging proceeds from cargo handling and treatments, which the government indicted the agency of, leading to the decision to concession the port since 2006,” said the Centre.
It however called for a collaboration between the Ministry of Marine and Blue Economy, Nigerian Shippers’ Council and NPA to create a more efficient, competitive, and sustainable maritime industry in Nigeria.
