The National President, National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Mr. Lucky Amiwero has called on President Muhammadu Buhari to take measures towards reviewing the port concession of 2006 with a view to ascertain whether or not the purpose of the concession had been realized.
Amiwero who made this call in a letter he addressed to the President with the title, “The Negative impact of The Gridlock on Port Access Roads and The Unwholesome Practice of Terminal and Shipping Company Operations to The Economy”, pointed out that the Nigerian port system was expected to serve the economy and meet the needs of port users in a manner which was economically and environmentally sustainable through the establishment of an appropriate operational process, efficient port procedure and an effective legislative framework.
He recalled that when the Bureau of Public Enterprise (BPE) advertised for the concession of the ports in 2003, four critical issues among which are; to achieve reduction in cost of cargo clearance, to improve efficiency of operation and management of the port, to facilitate further development of the nation’s transport infrastructure as well as to eliminate congestion and facilitate the emergence of Nigeria as a hub for the West and Central Africa, were canvassed by the Bureau to justify the need for the concession of the ports.
The NCMDLCA boss however regretted that ten years after, the Nigerian ports were still associated with cumbersome, lengthy and unwholesome practice which ranked the ports as the most expensive within the West African sub-region.
“After ten years into the concession of the ports, there is the need to ascertain if the purpose of the concession of Nigerian ports has been realized in line with the objective of the Bureau of Public Enterprise (BPE) and the provisions of section 7(c) of the Port Act 38 of 1999.
“The provision of the Port Act clearly states, ensure the efficient management of port operation, optimal allocation and use of resources, diversification of sources of revenue and guaranteeing returns on its investment in order to contribute effectively to the well being of the Nigerian society”, he said.
Amiwero who is also the Managing Director of Eyis Resources noted that the port concession of 2006 excluded two critical components which according to him included proper legal framework to midwife the concession of the ports and port economic regulator to monitor the operation, terms of the concession and the unwholesome practice by the terminal operators and shipping companies.
“The exclusion of the two components (legislative framework and Commercial/Port regulator) from the port reform process at the inception of the concession in 2005, gave the concessionaires advantage to manipulate the port process that lead to high cost of clearance and massive diversion of cargoes to our neighbouring West African ports.
“The effect of the unwholesome practice by terminal operators and shipping companies instigates the relocation of the core on employment generation freight component to our West African neighbouring ports due to associated delays and high cost of goods clearance”, Amiwero observed.
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