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Ports' Still In The Woods

Published by Guardian on Sun, 02 Oct 2011


UNLIKE the days of old, hustlers, who provided cheap labour for importers and terminal operators, are nowhere to be found. But roads (now shrunk by expansion activities) are still dotted with potholes and blocked drainages littered with excreta. Worse still, the major road that leads into the port is partly blocked by protesting truck drivers. This was the picture of Apapa Wharf last Wednesday afternoon, five years after a major concessioning programme that led to the emergence of 26 private terminal operators for the country's seaports, was completed.The deal was to signal a regime of better cargo handling, increase in turnaround time and improved ports' management while ending years of waste of public resources in trying to achieve the same objectives.While the operators do more volume of businesses compared to the past when the terminals were managed by government, port users are becoming more disenchanted with the growing cost of clearing. Still, extortion, multiplicity of government agencies, infrastructure decay, piracy and pilfering are still as worrisome as they were in pre-concessioning era.Last week, some truck drivers went on strike to protest what they described as unfriendly mode of operations of container line terminals. Except those who 'settle' security operatives in charge of traffic (it could cost between N8,000 to N12,000), it was learnt that it takes a truck driver an average of four days to deliver goods and return empty containers to the shipping company. In worst-case scenario, which has become the norm for sometime, a queue of trucks waiting to discharge empty containers extends from the Apapa Wharf to Westminster (or Mile 2 in rare occasions), thereby blocking Oshodi-Apapa Expressway.The situation was a direct result of the manner the terminals were allocated, which left no parking lots for returning trucks, noted Bayo Ade, a haulage operator. The concessionaires, who were expected to make provision for such facilities as part of business decision, simply fenced off their areas, which they use for landing containers only. Yet, they have adopted computerised check-in format, which the protesters claimed is slow and cumbersome.It was learnt that stakeholders had suggested a way forward that would compel each operator to set aside a parcel of land for empty container trucks. Instead of taking up the challenge, the operators allegedly pass on the responsibility to ship owners, asking them to acquire a yard outside the terminals where empty containers could be kept pending arrival of ships.The idea, which a source privy to meetings on the issue said had gathered momentum until certain stage, was expected to solve crisis that builds around returning container trucks, which have become eyesore around the Apapa axis. But shippers rejected the proposal on grounds of cost. Yet, part of the cost of such arrangement, which both terminal operators and ship lines avoid, is transferred to haulage operators who regularly pay for missing containers said to be on the rise in recent times, as traffic-wearied drivers sell containers at will and abandon trucks in transit for owners.Notwithstanding, an expert, who canvassed port extension, noticed that building container yard would only abate the situation slightly since the same number of trucks would still go into the terminals 'except that they would not carry containers.'Port extension is not strange. The government did that in 1970s. There is a large parcel of land occupied by companies and individuals along Lagos ports, which can be acquired. This is the only solution considering the rate of increase in volume of importation today, which is higher than the size of the ports. The government should focus on port expansion and infrastructure upgrade.'SECURITY guards who interacted with The Guardian, noted that terminal managers, security operatives (both public and civil), clearing agents and other port custodians connive regularly to 'move' imported goods without the knowledge of their owners.'Every night, they still meet, decide what they want to move out and go ahead to do that. And you know that the companies we work for don't pay us well. So when they call us to assist in moving out the goods, we don't usually have choice. Sometimes, they give you N10, 000 a night, which is equivalent to your monthly salary. How can you reject that'' questioned one of the guards.Another guard, narrating his encounter with a stranger who came to his duty post in a popular Apapa terminal at 2am to 'discuss business with me', said piracy is a regular challenge at the Apapa Wharf. He revealed that robbers regularly penetrated security operatives with vehicles at night, right from the gate and break into the terminals by cutting the barbed wires. 'A gang of 12 came into AP Moller Terminals when I was still there. We confronted them and arrested three. Battle with robbers and pirates was becoming too much, that was why I resigned,' disclosed the youngman, who said he is happier doing the same job for a company contracted to rehabilitate the rail system transiting through the port.There is growing worry over the efficiency of port security system with some insider sources arguing that the situation was better managed under government's control than now. When the lease process was completed, the operators contracted security operations to private companies, which rely on cheap labour offered by secondary school leavers to carry out the jobs. Except that the barely-educated youngmen are supervised by retired ex-service personnel, investigation shows that no serious mental security training is given to them before postings. 'The question is whether even the supervisors themselves are equipped with the necessary know-how to monitor ports in the wake of rising terrorist activities,' asked a retired Army Major, who is close to port activities.An employee of a related company said the concessionaires had not measured up to the expectation of the International Ship and Port Facility Security (ISPS) Code as regards human capacity building. 'They are profit-driven. That is why they cannot sponsor their staff to acquire the skills.'ISPS Code is an amendment to Safety of Life at Sea (SOLAS) Convention (1974/1988) on minimum security arrangements for ships, ports and government agencies. Coming into force in 2004, it prescribes responsibilities to governments, shipping companies, shipboard personnel, and port and facility personnel to detect security threats and take preventative measures against incidents affecting ships or port facilities used in international trade.On the success of the lease, a retired staff of the Nigerian Ports Authority (NPA), said much should not be expected because 'the managers were merely used by those in government as fronts to acquire them. Having served here before, the only improvement I have noticed is the partition of the whole place. That implies only those who have real business in the terminals can enter.'MEANWHILE, the old debate on the most suitable management model Nigeria needs to get its ports out of the woods has resurfaced. This came to the fore recently at the third series Maritime Round Table held in Lagos, where stakeholders sharply opposed one another on the effectiveness of the leasing programme. As predicted by former Head of Interim Government, Ernest Shonekan, who chaired the event, the debate was, indeed, 'in-depth and revealing.'Managing Director of NPA, Umar Suleiman, scored the concessioning exercise high, even though he acknowledged some challenges that could have been addressed during the programme design. He pointed to a recent appraisal of the Senate, which he said passed a vote of confidence on most of the concessionaires, as a positive scorecard of the programme, saying: 'all the economic parameters have been achieved.'Umar, whose paper was presented by the Executive Director (Finance and Administration), Adetola Atekoja, said the exercise made provision for technical regulator whereas economic intermediator was clearly missing in the blueprint. Attempt by NPA to play both roles, he said, often overburdens its responsibility, leading to hitches that could have been avoided. He cited telecommunications revolution as relevant case where the government puts clear structure in place to galvanise commercial activities necessary for the sort of results delivered.'The state of ports' infrastructure at the end the lease period (which ranges from 10 to 20 years time) is a major factor for measuring its success,' he said, assuring that the authority would ensure that public infrastructure is handed over in good conditions. 'Common facilities have to be maintained to keep them in good condition,' he pointed out.Corroborating NPA's assessment, from operator's point of view, Dallas Hampton, managing director of AP Moller (APM) Terminals Limited, said efficiency at ports has improved tremendously, with his company increasing the volume it did in its first year of operation by over 200 per cent. He added that turnaround time has increased, while the cost of shipping is also reduced.In a sharp contrast, National President of the Association of Nigerian Licensed Customs Agents (ANLCA), Alhaji Prince Olayiwola Shittu, argued that the programme had increased the pains of cargo clearing. He said only six out of the 26 concessionaires operate efficiently while the few efficient ones, such as APM, either operate from wrong location or face other hurdles that run parallel to the agitation of the public as regards cargo clearing. These, he said, create major constraints for clearing agents.According to him, the government's poor commitment to leasing objectives is a major setback; it increases inefficacy and corruption at ports, which he described as 'settlement centre for public agencies in the country.'Nigeria needs incentives for change. Hence, operators must be encouraged to change. Concessionaires are not competitive because they agree on fees they charge; and the charges increase regularly without regulation from any quarter.'There is no lead agency at the ports. Every agency struggles to send representatives to ports because they know that agents will always give money. When we say we can't continue to give, we are tagged. When we continue, prices of commodities keep increasing because Nigeria is an importing economy. Until we are ready to sanitise ports, there will not be a leeway. Complete sanitisation is what the port needs. You cannot sanitise one section and leave another,' Shittu declared.He described NPA as a 'paper-signing organisation' that is incapable of leading the desired change, adding that the authority is over-bloated and needs to be trimmed down for better performance and cost efficiency. He called on the government to urgently resolve the perennial puzzle on the role of NPA in modern port administration.Interestingly, a one-time Managing Director of the authority, Adebayo Sarumi, who midwived the concessioning programme, said it was high time the government took a strategic decision on the future of NPA as landlord of ports. He noted that bureaucratic tendencies are still rife at ports like ever before while the presence of multiple government agencies is a source of worry.In his paper, which was presented by Coordinator of the Maritime Round Table, Dr. Chinelo 'Amaka Chizea-Koko, the obvious absence of infrastructural support for the needed expansion, if not addressed, could stall the reform process. He called for timely completion of on-going discussion on commercial regulation and the need to put in place robust structure for adequate technical supervision.Stakeholders also examined what they saw as absence of law that regulates all legal issues relating to port administration in the country. On this, pioneer Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA) and Secretary General of Abuja MoU, Mrs. Mfon Ekong Usoro, said a bill needs to be sponsored by concerned entity. She, however, highlighted constraints, including funding, that could impede such legislative process.Presenting a graphical details of the performance level, Coordinator of the Maritime Round Table, Dr. Chinelo 'Amaka Chizea-Koko, noted that Nigeria has done fairly in relation to legislation, restructuring, policy oversight and private sector involvement when compared with other ports across the world.
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