INEFFICIENCY AT THE PORTS…1
It’s time to develop other ports in the country
For a country that is heavily import-dependent, having and maintaining efficient and competitive seaports should be a given–a necessity that demands prioritisation in policy formulation and implementation. This is particularly imperative in view of the growing diversion of ships and cargoes to neighbouring countries, notably Cotonou port in Benin Republic. Sadly, inefficient ports continue to be a bane for the country’s declining trade and the authorities have refused to address this vexatious challenge.
It therefore came as no surprise that in its Container Port Performance Index 2021, the World Bank Group has ranked the Lagos port (Apapa) 358th among the 370 ports assessed globally. This is a poor standing for the foremost seaport handling the bulk of maritime trade for Africa’s biggest economy. That the two top-ranked container ports are in the Middle East, namely the King Abdullah Port in Saudi Arabia and the Port of Salalah in Oman, is a shame to our country.
The poor rating of the foremost port in Nigeria comes against the backdrop of troubling reports of inadequate access, the fallout of abysmal management and corruption, and the consequence being the diversion of vessels to other ports. Undoubtedly, Apapa and Tin Can Island ports have for sometimes become a nightmare for end users. Major huddles for importers and exporters include traffic gridlock, port congestion, exorbitant charges, and cost of the fleet by shipping agencies, corruption, and inadequate manpower.
The World Bank report made a global assessment of ports with a minimum of 20 valid port calls within the 12-month period of the study. Maritime transport, according to the report, “carries over 80 per cent of global merchandise trade by volume, and any impediment or friction at the port will have tangible repercussions for their respective hinterlands and populations.” In the short term, the report concludes: “This is likely to take the form of shortages of essential goods and higher prices, as we saw early in the pandemic. But over the medium to longer term, an inefficient port will result in slower economic growth, less employment, and higher costs for importers and exporters.”
The challenges at Nigerian ports are enormous. Port users have expressed concern about the possible collapse of both Tin Can and Apapa quay aprons due to inadequate maintenance. The Nigerian Ports Authority (NPA) and other regulators in the maritime space have a duty to live up to the expectations of their mandates. In doing this, they have engaged other stakeholders to ensure development of workable templates to develop the sector. The NPA Managing Director, Mohammed Bello-Koko has, for instance, made public his vision for the industry, which is anchored on staff welfare, automation, and dedication.
Rehabilitation of the Lagos ports will be a welcome development. Nonetheless, an often-understated factor for their less-than-satisfactory performance is the failure to develop other ports across the country. Virtually all shipping activities are concentrated at the Lagos ports due to the policy shortsightedness which ignored other ports in the country. Time has come for their development backed by appropriate regulation that would encourage their patronage.
The projected completion of the Lekki port next year will undoubtedly condense the load and pressure on the Apapa and Tin Can Island ports; but without putting in place the appropriate measures and processes based on lessons learned from the existing ports, it may as well remain business as usual. Without proper planning, Ikoyi, Victoria Island and the Lekki axis could simply become congested by trucks and other vehicles seeking entry into the port. While that must never be allowed to happen, the enduring solution is to develop other ports in the country, starting with the Calabar Port, which has proximity to the 16 northern states and the Southeast markets.
NOTE: To be concluded tomorrow
