The last may not be heard of the legal battles engaged by the Seaport Terminal Operators Association of Nigeria (STOAN) on one side and the Association of Shipping Line Agencies (ASLA) on the other hand against the Nigerian Shippers’ Council (NSC) which doubles as the economic regulator of the Nigerian ports as STOAN has filed a fresh suit against the Council.
Recall that Primetime Reporters reported last weeks that the Nigerian Shippers’ Council (NSC) was to open its defense against the duo last Monday in case filed separately by STOAN and ASLA against NSC.
It would also be recalled that the Nigerian Shippers’ Council (NSC) on Wednesday 29th October 2009 published an advertisement announcing the reversal of storage charges at the ports to that, which was in force as at May 1, 2009. NSC also ordered an increase in the free storage period at the port from three days to seven days.
The Council equally directed shipping companies to reduce their shipping line agency charges from N26, 500 to N23, 850 per TEU (20-foot containers) and from N48, 000 to N40, 000 per FEU (40-foot containers), even as it directed shipping agencies to refund container deposits to importers and agents within 10 working days after the return of the empty containers.
However, shortly after publishing the order which was to come into effect on 3rd November, 2014, the terminal operators under the aegis of the Seaport Terminal Operators Association of Nigeria (STOAN) and shipping line agencies under the umbrella of the Association of Shipping Line Agencies (ASLA), secured an interim injunction of the Federal High Court, Ikoyi, Lagos stopping the NSC and/or its agents from implementing the directive.
Ruling on an ex-parte motion brought before him by STOAN, Justice Ibrahim Buba granted an injunction restraining the NSC and/or its agents from implementing the reversal order pending determination of the substantive suit. He adjourned the matter till Monday November 10, 2014, for further hearing.
ASLA also secured a similar court injunction restraining the Nigerian Shippers’ Council (NSC) from acting upon the notice it published slashing the shipping lines’ agency charges, among others pending the determination of the suit.
When the case came up on Monday, the 10th day of November, 2014 for hearing, the Presiding Judge, Justice Ibrahim Buba struck out the suit brought STOAN against the Nigerian Shippers’ Council (NSC) for non-compliance with the rules of court
Justice said that the parties which came by way of originating summons did not tell the court the issues (questions) for determination.
According to him, “since the court cannot proceed without knowing the right and interest of the parties which are inextricably tied to the question for determination, the court cannot proceed on that”.
However, the case brought by the shipping line agencies, under the aegis of the Association of Shipping Line Agencies (ASLA) against the NSC was adjourned to the 17th day of November, 2014 for further hearing.
Justice Buba said that the matter would be granted accelerated hearing because of its economic importance.
Speaking on the development, Counsel to NSC, Mr. Emeka Akabogu said, “rather than deal in any preliminary matters, we want to go straight into the heart of the matter and accelerate the hearing which is what we have briefed the court and the court has adjourned the matter for definite hearing on 17th of November. The NSC is challenging that position and is very confident that the court is able to fully take care of the matter once and for all”.
On her part, Counsel to STOAN, Mrs. Funke Agbor described the development as a temporary setback as she said the issues raised by the Judge would be addressed while the case would be re-listed.
Making good her promise, the STOAN lawyers went to work and before the close of business on Monday, got the case re-listed.
A definite date is yet to be fixed in respect to when the case will come up for hearing as at the time of filing in this report.
Meanwhile, the legal tussle between the terminal operators under the aegis of STOAN, the shipping companies under the aegis of ASLA and the Nigeria Shippers’ Council took another dimension as the freight forwarders operating in Apapa withdrew their services over the past 10 days as at the time of filing this report.
The action according to them was to protest the high handedness of the Management of AP Moller Terminal (APMT) and that of the ENL.
Although many saw the action as being in sympathy with the Nigerian Shippers’ Council which many believed the terminal operators and the shipping line agencies were trying to arm-twist in order to render the council inefficient so as to enable them continue in their act of ripping Nigerians off.
But the freight forwarders themselves had since denied the insinuation as untrue as according to the former Chairman of the Association of Nigerian Licensed customs Agents (ANLCA) Tincan Island Chapter, Dr. Kayode Farinto is another issue on its own.
Reacting to the blockades by the freight forwarders STOAN described the blockade of the APM terminal at the nation’s premiere port as “a reckless act capable of hurting the economy”.
The association also stated that it stands by all its members in the face of unrelenting efforts by some clearing agents to paralyze port operations across the country.
The association called on the Nigerian Ports Authority (NPA), the Police and other concerned authorities to clear the blockade at affected terminals to allow those who wish to clear their cargo gain access into the port.
Also speaking on the matter, a maritime lawyer and Chief Executive Officer of Admiralty Resource Services, Mr. Emeka Akabogu, advised stakeholders in the industry against flouting the court order.
“The Shipper’s Council will do well to obey the order and I don’t think stakeholders need to worry about that order to any large extent at this time because the orders are ex-parte orders which only restrain Shipper’s Council from enforcing that notice pending the outcome of a substantive suit.
“But at this point, I don’t think this is the time to protest. I think what they need now is advocacy on the issues for the purpose of articulating the position which will be advocated for before the court and give them a better understanding of what the issues are,” Akabogu stated.
“I am opposing this action by the organized freight forwarding associations because it is affecting not only us but other businesses as well. I am requesting the Federal Government to intervene and clear this blockade immediately,” a truck owner, Musa Adebayo, said.
It is important at this juncture to note that within the last ten days of this action by the freight forwarders, it is believed that the Nigerian economy lost at least N35 billion in the first seven days as clearing agents blockaded the Lagos Port Complex (LPC) Apapa.
While the Apapa Area Command of the Nigeria Customs Service (NCS) is losing an average of N1.4 billion daily as a result of the agents’ action; shipping lines, manufacturing companies, haulage/trucking firms, terminal operators, Nigerian Ports Authority, importers, clearing agents and other agencies of government are collectively losing about N3.6 billion daily amounting to an average daily loss of N5 billion.
The Area Project Manager (APM), Apapa Area Command of the NCS, Deputy Comptroller Yusuf Malanta Ibrahim explained that even while some documents could be processed online, containers could not exit the port because they could not examined by Customs officers.
While confirming the huge revenue loss by the Command as a result of the agents’ action, Malanta said the strike could also induce port congestion.
But in a move that seemed to be a response to the plea by STOAN and Musa Adebayo, the management of Lagos Port Complex (LPC) of the Nigerian Ports Authority (NPA) on Tuesday cleared the blockade mounted by clearing agents and re-opened the nation’s major seaport for business.
According to the Lagos Port Manager, Mr. Nasir Annas Mohammed, “the port is now open and people are free to come in and transact their business”.
He said the Nigeria Police Force (NPF) and other security operatives have been put on alert to provide adequate security to anyone willing to transact business at the port.
“We have informed the agents that while they have the right to protest, they do not have the right to blockade the port or disturb others who have legitimate transactions to carry out at the port. So we have informed them and they have also seen reason with us. We assure all port users that their security is guaranteed”.
“The Police and relevant security operatives have been duly informed and they have assured that adequate security will be provided to all port users. Trucks are free to come into the port, load and exit without entertaining any fear”.
“We are also mediating in the matter between the agents and APM Terminals with a view to reaching an amicable solution but port operations will continue as the talks hold,” Mohammed said.
However, addressing newsmen at a Press Briefing at Apapa on Wednesday, the Chairman of ANLCA Apapa Chapter, Mr. Olumide Fakanlu who spoke on behalf of other Chairmen present at the briefing said that there was never a time freight forwarders blockaded the Port challenging the journalists to carry out independent investigations.
Olumide stated that the freight forwarders only withdrew their services from the terminal demanding that it meet their demands which were nothing other than improved services.
He disclosed that while they had withdrawn their services from APMT since the 3rd of November, 2014 and it appeared the terminal’s management was not yielding to their demands, they might have to suspend their action so as to enable their national leaderships to take over the matter from where they stopped.
He said, “We call on the relevant government agencies at Federal and State level, the Nigerian Labour Congress, Trade Union Congress and others to rise and rescue Nigeria from the hands of these colonial merchants”.
“We have withdrawn our services from APM Terminals since 3rd of November, 2014 but APM Terminals Ltd. Remained adamant making us believe the company is above Nigeria and the Nigerian National interest. Therefore, we may suspend our actions at the moment for our national leaders to take over from thereof”.
As at the time of filing this report, the National Executive Committee meeting (NECOM) of ANLCA was meeting at the ANLCA National Secretariat, Dikko Inde House, Amuwo-Odofin Lagos while that of NAGAFF was scheduled to take place on Friday this week at NAGAFF village, Apapa Lagos.
While we wait for the outcome of the meetings and that of the court, the question herein now is, where is all these actions taking Nigeria and her economy even as it schemes to become the economic hub of the West and Central Africa? How far can these get the country in its bid to regain her place in the comity of nation? The earlier government intervenes and put a stop to all these muscle flexing, the better for Nigeria and its citizens. The time to save the second largest revenue earner in the country is now!
