The Sea Empowerment and Research Centre, SEREC has expressed deep concern over the recent announcement by the management of CMA CGM Nigeria to increase local charges, blaming the planned action on the adjustment in port and Marine fees by the Nigerian Ports Authority, NPA.
SEREC in a statement signed by Dr. Eugene Nweke in Lagos on Monday observed that the recent 15% increase in charges without reconciling economic, commercial, and operational implications was alarming, considering the agency’s history of mismanaging proceeds from cargo handling and treatments, which he recalled the government indicted the agency of, leading to the decision to concession the port in 2006.
According to Nweke, the increased charges may lead to higher costs for importers and exporters, potentially impacting Nigeria’s competitiveness in the global market.
He also pointed out that the hike in charges may lead to trade and commerce disruptions, as importers and exporters may be forced to seek alternative routes or shipping lines even as he further submitted that the development may as well lead to regulatory disputes due to the NPA’s failure to obtain regulatory clearance from the Nigerian Shippers Council, NSC.
“Most importantly, to demonstrate administrative transparency, bearing in mind that the ports are public enterprise, as such the NPA must be bold to publish efficiency status of the concessioned ports post concession, thus demonstrating its good intentions with the 15% port charges increment”, he said.
He, therefore, maintained that in order to mitigate these concerns, the industry economic regulator, the Nigerian Shippers’ Council, NSC and the NPA must engage with stakeholders, provide transparency, and prioritize stakeholders’ interests.
“Collaboration between the Ministry, NSC and NPA is crucial to create a more efficient, competitive, and sustainable maritime industry in Nigeria”, Nweke submitted.
In another development, the Sea Empowerment and Research Centre, SEREC has emphasized the need for a transparent project management system and a definitive rehabilitation project vision.
According to SEREC, the Nigerian ports situation is alarming, with the delayed implementation of the $700 million rehabilitation budget exacerbating concerns.
It, however, recommended the immediate implementation of the approved rehabilitation budget to address pressing concerns such as congestion, poor berth production, and ship turnaround time as well as establish a transparent project management system, including a project monitoring team, regular progress updates, and clear communication with stakeholders.
It further recommended identifying and prioritizing critical infrastructure needing rehabilitation, such as quay walls, cranes, and handling equipment; engagement with stakeholders, including port operators, shipping lines, cargo owners, and industry players to address concerns and needs as well as address underlying issues, including inadequate maintenance, insufficient investment, inefficient port operations, corruption, and bureaucratic inefficiencies.
Photo: Dr. Eugene Nweke, Head of Research, Sea Empowerment and Research Centre, SEREC.
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