The Chartered Institute of Logistics and Transport (CILT) Nigeria has faulted the move by the Nigerian Ports Authority (NPA) to divert vessels from Lagos Pilotage District to the eastern port for immediate berthing in the event of congestion saying that the action will amount to taking away the shippers’ right of choice of port of final destination.
The National Executive Director, CILT, Mr. Paul Ndibe who made this observation in an interview with our correspondent in Lagos on Wednesday pointed out that if for purposes of alleviating the difficulties around Lagos that it became necessary to divert vessels to the eastern ports, it is left for the NPA to decide which of the ports, whether they have the capacity to take that vessel being sent to them.
He said, “I understand that it is the shipper that indicates where he wants his cargo, so, if government for some reasons is diverting cargo to other ports, who takes responsibility for that? Is it the shipper or the government? So, if it is the shipper, how do you compensate him? So, you have now taken up his right of choice of port of final destination. That is an issue that needed to be looked into. Are you alienating the shipper from choosing where he wants his cargo to go?
“If for purposes of alleviating the difficulties around Lagos that it becomes necessary to divert cargo to the eastern ports, it is left for the NPA to decide which of the ports, whether they have the capacity to take that cargo being sent to them. Have they looked at the road access for unloading and taking off cargo from the eastern ports? So, if they have not done that, then there is a problem. I understand at a point that some concessions in terms of fees were given for such cargo in order to accommodate the shock they may have in going to the eastern ports to take delivery as opposed to taking them in Lagos. One would have expected that government would have integrated cushioning effect to that policy.”
While appreciating the fact that the development would enable other ports to also be active, he however wondered who the NPA was enabling by that decision adding that “It is like you are robbing Peter to pay Paul, you are reducing the traffic volume for terminal operators in Lagos to boost the traffic volume of the terminal operators in the east because if it is just the NPA, it means government is not losing, you trade off this to gain that but how do you explain a situation where you now reduce the traffic that would have come to me because there is traffic in Lagos and diverted it to some other terminals?”
When reminded that charges would be accruing for any day a vessel lose at berth in Lagos waiting to discharge its content, he replied, “That is a fact but the critical thing is that the choice of the port of delivery is still that of the shipper and that would have alienated the shipper from taking that decision even at a cost to the shipper. What NPA would have done was to get into closer discussion with the terminal operators to improve their facilities at those ports to enable them taken in these cargoes. If those things have been done and they are ready to take these cargoes, the appeal should go first to the shippers and then the shipping companies.
“So, the point I am making is that this discussion would have first gone to the shipping companies to persuade them to say that they are going to certain ports. If they say they are going to certain ports and with the terminal operators doing what is required to install the necessary capacity for discharging and handling the cargo, it becomes easier for the shipper to elect to go to those ports.
“But if you divert, what compensation do you pay to shipping companies to go to ports that they did not originally intended to go? Are there costs attributable to that? If costs are attributable to that, how do you weigh which one weighs more on the shipper? Is it diverting the ship or compelling the shipper to go and pick from where ordinarily wasn’t his preference? So, that needs to be evaluated.”
Asked if a vessel destined to a particular terminal in Lagos port can be diverted to another terminal within the Lagos port on account of congestion in the initial terminal, Ndibe stated, “I don’t think it is allowed because terminals are seen like dedicated ports. That is why they need to fence off their area of operation. That fencing off makes them appears like a quasi-port. So, it will be inappropriate to move such cargo from one terminal to the other even if they are in the same port. So, each terminal is seen as a semi port on its own otherwise tracing of cargo and other things connected to it will be a problem and that is why in the IMO regulation, it is expected that they should fence off and have their own area of operation.
“What I think government would have done more is while they were contemplating this which already I felt should be applauded is to talk to the principal actors; the shipping companies, the shippers and also the terminal operators in addition to government doing something more inwards like looking at the road ways to make them passable and be able to accommodate the traffic.”
Recall that the General Manager, Corporate and Strategic Communications, NPA, Mr. Adams Jatto earlier in a statement in Lagos said, “As from January 27, vessels which have waited to berth at any terminal within the Lagos Pilotage District will be diverted to other terminals with capacity to berth vessels within the district.
“In the event that all terminals in Lagos cannot discharge any vessel within four days, such vessel will be diverted to the eastern ports (other pilotage districts) for immediate berthing.”
This statement however had generated a heated debate among practitioners in the industry.
Photo: National Executive Director, CILT Nigeria, Mr. Paul Ndibe.
Send your news, press releases/articles to augustinenwadinamuo@yahoo.com. Also, follow us on Twitter @ptreporters and on Facebook on facebook.com/primetimereporters or call the editor on 07030661526, 08053908817.
