— says increase meant to upgrade old, dilapidated Port facilities
Funso OLOJO
The Nigerian Ports Authority (NPA) has announced a 15 percent increase on all its tariffs and fees across board.
The increment, the Authority says, is coming after 32 years of such increase.
The increase is expected to lead to high cost of Port services while the Port users will pass the cost to the final consumers of their products.
The terminal operators are the major users of NPA services and expected to bear the chunk of the tariff increase.
At a meeting with stakeholders in Lagos to sensitize them on the new development, the Managing Director of the Authority, Dr Abubakar Dantsoho, disclosed that the agency was compelled to take this painful but inevitable decision in order fund massive upgrade of old and dilapidated Port infrastructure.
Represented by Mr Olalekan Badmus, Executive Director Marine and Operation, of the agency, Dantsoho said the tariff review has received necessary approval from government.
The NPA management justified the tariff increase on the urgent need to address the undesirable reality of aged and weak Infrastructure, obsolete equipment and slow Port capacity expansion which has continued to diminish the performance and indeed competitiveness of Nigerian Ports.
Stakeholders at the event seems to aligned with the reasons which the NPA adduced for the tariff increase.
Joshua Asanga , a stakeholder , agreed with the increase, adding that the value of NPA’s present tariff has since been suppressed by Inflation which is at about 35% .
Asanga listed port management liabilities like wages, fuel and other areas of expenditure as having adjusted upwards without a commensurate rise in NPA charges for over thirty years
He added that NPA needs funds for improved port infrastructure, robust ICT for Port Community System, procurement of tug boats and other operational platforms to achieve efficiency
Another stakeholder, Demian Ukagu, talked on the need to apply more NPA funding to outer port facilities and jetties like the Kirikiri Lighter Terminal and development of other critical port facilities across the country.
He added that NPA rates should be able to cover these cost that would guarantee minimum return on investment and promote sustainable trade.
The meeting agreed that existing tariffs were set devoid of capital cost, labour cost, consumables and overhead expenditures needed to run the ports
They feared that keeping the ports on the old tariff would promote consequences like poor service, inadequate infrastructure,poor remuneration ,obsolete critical port facilities, equipment and infrastructure.
Globally, Port Authorities depend on revenue from operations to stay alive to their responsibilities which includes construction and maintenance of Port infrastructure, dredging of channels, provision of aids for safe navigation, provision of modern marine crafts for efficient harbour services, automation and digitization of port transactions, port security, energy efficiency and training and retraining of its employees.
The global index of Port rating and competitiveness which the international trade community relies on for its choice of countries to do business with, derives its data from how well the aforementioned responsibilities are addressed.
Coming at this period of global economic upheaval and scramble for markets, this belated Tariff review borne out of necessity constitutes a critical success factor in Nigeria’s quest to win back cargo handling business and it’s accompanying benefits including job opportunities it had lost to it’s maritime neighbors.
Contrary to the popular but erroneous notion that attributes high Port costs to NPA relative to its peers, verifiable data shows NPA Tariffs are amongst the lowest in the region.
The high incidence of unreceipted costs due to unduly high human interface, bureaucratic bottlenecks, functional overlaps resulting from absence of a Port Community System (PCS) and its corollary the National Single Window (NSW) are responsible for this contrived falsehood.
Industry commentators believed that the tariff review is long overdue and necessary at this time if the Nigerian ports want to be competitive within the West and Central African sub- region.
“Although long overdue, a quick win benefits of the NPA Tariff review for stakeholders, is the immediate boost it gives to the Authority to fast track the commencement of actual works on its concluded Port reconstruction and modernization plans.
“Secondly, the Tariff review provides the necessary guarantees to fund the acquisition and urgent deployment of the Information Communications Technology (ICT) backbone of the PCS which is the precursor to the implementation of the NSW” an industry operator declared.
Furthermore, the increased revenue generation arising from the review buoys the Authority’s capacity for critical maintenance works to open up the Eastern Ports for increased vessel and cargo traffic such as the reconstruction of collapsed Escravos Breakwaters and challenged aspects of Rivers, Onne and Calabar Ports respectively.
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