The Nigerian Port Authority while overseeing the general seaport operation by private port operators has had to go through challenges that formed a catalyst for new initiatives and creative ways to keep the nation’s ports running, JOHN CHUKWU writes.
The coronavirus pandemic is impacting negatively on the global economy, turning things on their head. While airports were closed down until recently, most countries of the world have left their seaports open for trade to continue, with the United Nations’ trade agencies calling for seamless trade across nations. Developing nations have had to also leave their ports open to be able to receive food and medical imports as they battle COVID-19 with a large chunk of their resources.
The Nigerian Port Authority while overseeing the general seaport operation by private port operators, has had to go through challenges that formed a catalyst for new initiatives and creative ways to keep the ports running.
With the outbreak of COVID-19 in Nigeria, every sector of the country’s economy was put on hold following a national lockdown to contain the spread of the virus. However, the seaports were kept open to allow food, medical aids and other items to come in. For a developing nation that is highly dependent on the Western countries and China for drugs, medical goods and other essential commodities, it was only reasonable that the seaports remain open.
However, keeping the ports open while the virus ravages the world portends grave consequences.
At the ports, many issues arose, most of which were operational, as some port operators and banks also shut down during the lockdown, making it impossible for shippers to clear cargoes, allowing businesses to take delivery of their goods. Consequently, not a few shipping companies and terminal operators have had to contend with higher demurrage and storage charges on goods. This created a crisis at the ports, especially the Lagos ports that received a swift response from the NPA.
To ensure that shippers do not incur unnecessary demurrage during the lockdown, the NPA under the management of Hadiza Bala-Usman, on March 23, 2020, directed terminal operators to suspend demurrage on imported cargoes in the wake of COVID-19 in Nigeria for an initial period of 21 days. This was extended by 14 days.
“This gesture is in recognition of the pressure that the COVID-19 pandemic imposes on businesses, the responsibility imposed on the authority to relieve this burden on its customers as well as attaining the objective of the Federal Government’s Ease of Doing Business Policy at this trying period,” the NPA said in a statement by Jatto Adams, General Manager, Corporate and Strategic Communications.
“The authority recognises the financial implications of these policies on the terminal operators and will consider a shift in our operational charges to ameliorate the situation of stakeholders.”
The statement titled, ‘Relief measures to port users due to outbreak of COVID-19 extension of relief period 1,’ said further, “The Nigerian Ports Authority has directed all terminal operators to extend the suspension of all applicable terminal storage fees on consignments (demurrage) for another 14 days elective April 13, 2020.
“This follows the extension of the lockdown in response to the COVID-19 outbreak by President Muhammadu Buhari on Sunday, April 12, 2020.”
For ready compliance by the port operators, the NPA granted credit notes commensurate to the rental reliefs granted by the terminal operators to importers within the free storage period.
Following this, the Shippers Association Lagos State commended the Hadiza-led NPA for securing demurrage and storage waivers for importers to cover the period of compulsory lockdown. SALS was concerned that the lockdown made it impossible for shippers to pay Customs duties as expected because many banks were shut down.
“Factories and offices were also shut. So, there were gross limitations on shippers to do the needful. Shippers should not be sanctioned for a situation that was no fault of theirs,” said Jonathan Nicol, the president of SALS.
National Secretary of the Association of Nigerian Licensed Customs Agents, Babatunde Mukhaila, confirmed that many members of the association received a refund of demurrage paid during the period that the NPA waived the charges. It was also learnt that members of the National Association of Government Approved Freight Forwarders were reimbursed for demurrage paid during the lockdown.
In addition to the donation of face masks and making port concessionaires do the same for port operators, especially Customs officers, and freight forwarders, the NPA inaugurated an 11-man Emergency Response Team at its corporate headquarters in Lagos.
Bala-Usman also mandated that two teams, Port Emergency Management Team and Port Emergency Response Team, should be constituted at the port levels. Putting heads of department at the hearts of the committees, the NPA boss demanded officers to have a sense of responsibility to duty and ensure effective collaborations.
These committees respond to, among other things, emergencies at workplaces, covering fire, explosions, medical emergencies, public safety threats, armed robbery, terrorism, marine vessel collision, accidental release of hazardous substances, and natural disasters like floods or storms.
To check the spread of the Covid-19 pandemic in the ports, the NPA management had earlier released and enforced guidelines for port users while transacting business in the port. They include drastic reduction of human movement within the port facilities; only those who have jobs such as clearing of consignments are allowed access to the port; port users must maintain at least 1metre or 3ft distance from each other as a physical distancing measure and all persons using the port are seen to ensure strict personal hygiene. NPA security are also working to ensure that all service providers at the port have handwashing and hand sanitising facilities at their entrances.
As part of plans to enhance the operational efficiency at the nation’s seaports, during this pandemic, the port authority had also acquired two new tugboats namely, MT Musawa and MT Ikoro-Ekiti.
Speaking in Lagos at the inauguration, the Minister of Transport, Rotimi Amaechi, said the purchase of the boats underscored President Muhammadu Buhari administration’s seriousness in positioning the maritime sector to add greater value to the national economy.
“If anyone was in doubt as to the importance of the maritime sector to Nigerian and global economy, the event of the past three months where ports across the world have remained open in spite of the comprehensive lockdown of virtually other sectors should instruct on why priority attention has to be given to the sector,” the minister said.
Stating that the present government understands the pivotal role of the maritime sector in the actualisation of fundamental objectives of the Economic Recovery and Growth Plan, Amaechi said not less than 85 percent of the nation’s external trade passes through the seaports.
The NPA boss, while commenting on the administration’s commitment, stated, “For the effective execution of its functions, the authority is committed to the continuous upgrade of facilities and equipment that will enhance service delivery. This commitment is to ensure that all the six functioning seaports are prepared for optimal performance especially during this pandemic and at all times.
“This determination accounts for the purchase of these tugboats, MT Musawa and MT Ikoro-Ekiti joining our other fleet of four namely MT Daura, MT Ubima, MT Uromi, and MT Majiya, which were inaugurated in 2017.”
With only the top cadre of its workforce reporting for duty as the coronavirus pandemic persists, the NPA strengthened its digital platforms for issue of vessels, other requisite trade, and vessel movement documents.
Similarly, the NPA ensured that the concessionaires adhere to regulations, including improving equipment capacity as illustrated at ports as major container terminals, such as APMT and Sifax’s Ports & Cargo made historic acquisition of cargo handling equipment.
According to Dr. Kayode Farinto, Vice President of ANLCA, the current management of NPA has shown to be different, and taking port management not business as usual.
“Every day, everyone in Nigeria, even during this COVID-19 pandemic, is using products and companies are also working in meaningful capacities with raw materials that enter the country through our seaports. This will not be possible if not for the consistent efforts of the NPA and collaboration with terminal operators and other maritime agencies.
“In the beginning, it was not so good, but that was because of the fear that the pandemic emitted. But as the authority and other sister agencies insisted on keeping the seaports running, positive developments were recorded very quickly,” he said.
Farinto added, “It is based on the usefulness of seaports that we have various industrial companies, such as chemicals, refineries, metal, and raw materials processing that are paying tax to the government. A seaport is a place where the ships are sheltered; it is also the place where good pass, or even where they are transformed and stored for a short while. Therefore, anybody that has managed it successfully the way Hadiza has done in the last four years deserves our support.”
He, however, noted that Nigerian ports need to be repositioned as relatively cheap and easy places where international trade can be done in order to attract more importers into the country.
The ANLCA boss stated further, “The main competition the port seaports face comes from other neighbouring seaports. this means our seaports have to be attractive in terms of loading and unloading and ease of clearing the cargoes and vessel turnaround time.”
