Shipping Lines to Impose N54bn Congestion Levy as Industrial Action Paralyses Ports

• 6,600 containers trapped Truckers stage protest NPA calls emergency meeting
Eromosele Abiodun
The industrial action embarked upon by truckers to protest extortion by security agencies responsible for managing the endemic traffic has paralysed activities at Lagos ports resulting to over 6,600 containers being trapped at the ports since the action commenced last Friday.

This is just as THISDAY learnt that shipping lines plans to impose an annual $150 million (N54 billion) congestion levy in the event that there is vessel cue arising from the massive congestion at the port.

Terminal operators told THISDAY that at the moment ships cannot discharge their cargoes as a result of the congestion.
This, they said, would lead to cue vessel if the matter is not resolved, adding that the shipping lines would have to impose congestion levy as they did in 2005 before the concessionaires came on board.

When THISDAY paid a visit to Apapa main port, the Tincan Island port and Port Terminal Multi Services Limited (PTML), the ports were deserted and the usual traffic laden Apapa roads were empty.

The Chairman, Importers Association of Lagos, Mr Jonathan Nichol, told THISDAY that importerswould be made to pay N92.400 million demurrage for the over 6600 containers trapped in the ports since the industrial action commenced last Friday.
He called on the government to take urgent step to address the problem to avoid its taking its toll on the economy.
Container terminals at the western port include the APM Terminals Apapa, Tin Can Island Container Terminal (TICT), Port and Cargo Handling Services and Five star logistics.

While an average of 700 containers are removed daily at APM Terminals, 500 containers are moved at TICT, Port and Cargo and Five star, then about 6500 containers of perishable and non-perishable cargoes are presently trapped at the port in the last three days.
Speaking to THISDAY, the National Publicity Secretary of the Association of Nigerian Licensed Customs Agents (ANLCA), the umbrella body of shipping agents in the country, Joe Sanni, confirmed the strike embarked upon by truck drivers..

He said the industrial action had affected their clients as lots of cargo laden containers were trapped at the seaport.
“The strike is affecting us no doubt and lots of cargoes are trapped also the truck drivers want to force the hands of the government to continue staying on the road, “he said

Spokesman of the Seaport Terminal Operators Association of Nigeria (STAON), Mr. Bolaji Akinola, blamed the Nigerian Ports Authority for the problem.
He said the decision by the NPA to stop containers that did not originate from holding bays from going into the port led to the crisis.

“The issues is that we had over 1000 containers that were leaving the port everyday but the NPA introduced a system that got the trucks stocked. Between March and May this year when the Nigerian Navy was managing traffic, they brought sanity to the system. However, NPA last month said they were responsible for managing Apapa traffic and they came up with this system.

“As I speak to you, the port is filled up.  There is massive congestion and terminal operators have lost $10 million since this crisis started. This is exclusive of revenue loss by the federal government and other stakeholders.

“The NPA should discard this system because even without the strike there is congestion at the ports. The problem of the port is bad roads and the lack of truck park. Government knows the problem, they should address it. They NPA should allow the Navy to manage the traffic, “he said.

Meanwhile, there was chaos in Apapa yesterday as truck drivers embarked on a peaceful protest against extortion by security agencies.
The truck drivers accused the security agencies of extortion and deliberately creating chaos on Wharf Road to slow down movement so as to collect money from the truckers.

Some of the truckers, who spoke with THISDAY, said apart from the bad roads, ongoing construction work and lack of truck parks, the activities of security and traffic management officials working in Apapa was a major contributor to the perennial gridlock that had characterized the area.
One of the drivers, Ibrahim Ajala, lamented the incessant extortion by the security agencies, saying he had been in queue for two weeks before the protest because he did not have money to offer as a bribe.

He stated, “I was on a queue for two weeks and it is because I don’t have N50,000 to pay as bribe. The frustration is too much and that is why some truck drivers mobilized themselves today to demand justice and fairness, we are not animals and we need to be treated with equal rights as a citizen, this criminal activities from NPA, security operatives and traffic management officials must stop.”

Another truck driver, Akeem Wasiu, who claimed to ply the Apapa and Tin Can ports regularly, said, “Whether you are going to the port to drop container or you are coming out of the port, you are at the no mercy of the traffic officials and NPA, because they will demand unwarranted amount of money without any record to show for it.”
When contacted, the NPA said it was in charge of the situation adding that it has summoned an emergency meeting of all stakeholder expected to hold today.