Concerns Over Delay In $700 Million Rehabilitation Project At Seaports
. SEREC Faults NPA’s 15% Increase In Charges
By Sulaimon Salau
There have been rising concerns among stakeholders at the seaports as the implementation of the $700 million ports rehabilitation project drags.
Already, the Sea Empowerment Research Center (SEREC), said, “the Nigerian ports situation is alarming, with the delayed implementation of the $700 million rehabilitation budget exacerbating concerns.
SEREC, in a statement signed by Eugene Nweke, it is deeply concerned about the recent announcement by CMA CGM Nigeria to increase local charges, which is largely influenced by the Nigeria Port Authority’s (NPA) adjustments to Port & Marine Fees.
He therefore emphasized the need for a transparent project management system and a definitive rehabilitation project vision.
The group urged Nigerian Ports Authority (NPA) to immediately commence the implementation of the approved rehabilitation budget to address pressing concerns such as congestion, poor berth production, and ship turnaround time.
The NPA is also enjoined to establish a transparent project management system, including a project monitoring team, regular progress updates, and clear communication with stakeholders.
Stressing the need to prioritize critical infrastructure, Nweke said NPA should identify and prioritize critical infrastructure needing rehabilitation, such as quay walls, cranes, and handling equipment.
He further called for engagement with stakeholders, including port operators, shipping lines, cargo owners, and industry players, to address concerns and needs.
According to him, the authority must also address underlying issues, including inadequate maintenance, insufficient investment, inefficient port operations, corruption, and bureaucratic inefficiencies.
“The NPA must effectively explore outsourcing key port terminal development to a reputable third party. The recent 15% increase in charges without reconciling economic, commercial, and operational implications is alarming, considering the agency’s history of mismanaging proceeds from cargo handling and treatments, which the government indicted the agency of, leading to the decision to concession the port since 2006,” he stated
He said the increment will have far-reaching consequences, such as: higher costs for importers and exporters, potentially impacting Nigeria’s competitiveness in the global market.
Also, it may lead to trade and commerce disruptions, as importers and exporters seek alternative routes or shipping lines.
Nweke said the increment might also lead to regulatory disputes due to the NPA’s failure to obtain regulatory clearance from the Nigerian Shippers Council.
“Most importantly, to demonstrate administrative transparency, bearing in mind that the ports are public enterprise, as such the NPA must be bold to publish the efficiency status of the concessioned ports post port concession, thus demonstrating its good intentions with the 15% port charges increment.
“Wherefore, it is the view of SEREC that, to mitigate these concerns, the 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” he stated.
