Eyewitness reporter
The Nigerian Ports Authority (NPA) is tinkering with the proposal to give a whooping 30 percent tariff rebate to the terminal operators at the Rivers ports to boost the dwindling traffic.
The move was part of the multi-pronged approach of the agency to attract vessel and cargo traffic to the Eastern ports.
The latest move was after a similar concession of a 10 percent rebate granted by the agency to the operators in the area failed to yield the desired result as vessels continued to shun the ports.
Making the revelation in Port Harcourt Thursday was the Managing Director of the NPA, Mohammed Bello-Koko, while on the tour of the Eastern ports.
Bello- Koko, while talking to journalists on the sideline of the tour, said the authority was already considering the proposal for a 30 percent tariff rebate being sought by the terminal operators operating at the Port.
He however warned that such relief would not be automatic but conditional.
The NPA MD said that such a request will be based on the commensurate impact it will have on cargo and vessel traffic.
He declared that a similar tariff rebate has been granted in the past without much impact on the traffic to the ports.
“Some years ago, we have given them tariff relief, a kind of rebate but that didn’t bring the expected impact on traffic into the port.
“We are reviewing their request for a 30 percent rebate but we need to understand that we don’t just give a rebate without some conditions.
“We seat down with them, those discussions have started, we give them the conditions based on the tariff relief.
“It might be lower or higher than 30 percent.
“It depends and we also give a timeline. For instance, we might say this relief is for a year and let’s see the impact.
“We wouldn’t want to give a tariff relief to a terminal operator who, for instance, brings in four vessels in a month and even with the rebate, he is still bringing in four or fewer vessels. That is not what we want.
“We want to see increased activities at the ports and we want to encourage that as much as possible.
“Some of the terminals have started getting involved in the processing of exports, that is a very key and important thing for us as an authority and it is also necessary for Nigeria to export say agric. products and this is one of the things that we encourage the amount of tariff relief we give to the terminal operators” the NPA MD said.
He also said that he was in the Rivers Ports to see how the dilapidated structures could be rehabilitated, saying that two of the terminal operators, Ports and Terminal Operators Limited (PTOL) and BUA Terminal Limited, both operating at the Port Harcourt ports, have shown commitment towards rehabilitating the superstructure at their terminals.
”One of the operators, which is PTOL, has a development plan which involves bringing down some of the sheds, removing stacking areas, thereby creating more space to handle more cargo.
“We came to look at that and to discuss further with them.
” They have some collapsed berths and we are discussing how to rehabilitate that so that we have more vessels to berth at this port”
He however expressed dissatisfaction with BUA for its slow pace of work on the rehabilitation project, having been granted approval by the NPA to commence work on the collapsed quays in their terminal.
“We also looked at the BUA part of the berth and I think we have berths 5-8 that have collapsed.
“Some of these berths were built in the 1920s and they have really decayed and we should have decommissioned some of them.
“The agreement is for BUA to reconstruct some of those berths.
” We have given them approval for the final design which the company has submitted and we expect construction should resume very soon.
“The company knows how dissatisfied we are with the speed at which they are carrying on these repairs.
“We have expected that the reconstruction should have started a few months ago, but it hadn’t.
“We understand the need to plan properly and that planning is over and we expect they should resume reconstruction on those berths.
“We also came to look at the dockyard.
The dockyard is necessary and an important part of the port where you dock and service vessels, but you can see it is dilapidated.
“We are thinking on what to do either to find private investors to invest in the dockyard or the NPA to take up that responsibility, to repair the finger jetty and get the berth to work.
“So we have come to the Eastern ports because we are very serious about the need to increase vessel and cargo traffic.
“That way, we would be able to decongest the ports in Lagos.
“On the need to attract importers to the Eastern ports, we have said this so many times, the decision where the cargo will be delivered and evacuated is that of the consignee.
” The consignee decides the port of discharge for his cargo.
“We are doing all we can to encourage them to bring in their cargo to the Eastern ports.
“We are working on probably to review the tariffs, properly to give them tariff relief that will trickle down to the importers that will encourage them to bring in their cargo to the Eastern ports.
“Most of the ports in the East, their problem is the draught of the channel and that is what we are looking at.
“It is not just to reconstruct the quays, we also need to dredge deeper so that bigger vessels can come in and the economy of scale will set in and then you will be able to bring in those vessels to berth.
“We are beginning to see increased activities in Onne and we are happy to see what is going on in Onne.
” I can’t give you figures on the cost implications of these reconstruction works to NPA.
” We have interim surveys that are being carried out. We know the channels are very long so we need to determine what draught of the channel we need to achieve.
“The entrance is about 9.5 meters, there are places that are over 12, 14 meters and in some locations, they are about 9.5 meters.
“We are going to look at the survey plans of the channels and then determine what is the achievable draught and start working on the dredging”
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