FG Seeks Out Of Court Settlement With Terminal Operators, Shipping Companies
By Roland Ekama
Fresh indications have emerged that the federal government is considering an out of court settlement with port concessionaires and shipping companies over issues bothering on arbitrary charges.
According to the Federal Government through the Ministry of Transportation, talks are afoot with the terminal operators to end the legal tussle which is currently at the Court of Appeals after a Federal High Court sitting in Lagos, had ruled in favour of the Nigerian Shippers Council with directive for the terminal operators to return to status quo in the stipulated pricing.
Speaking at a workshop on Friday in Lagos, Minister of Transportation, Mu’Azu Sambo reiterated the Council’s role as the economic port regulator, noting that the Federal Government in 2015 declared the council as the port economic regulator.
Aside the council role as the ombudsman of the ports,he affirmed that the Nigerian Ports Authority (NPA) remains the technical regulator of the ports.
Sambo who was represented by the Permanent Secretary, Federal Ministry of Transportation, Dr Magdalene Ajani made the pronouncement at the sensitisation seminar with the theme: “Promoting Competitiveness in the Maritime Industry: The Mandate of Nigerian Shippers’ Council,” in Lagos.
The Minister said that as the port economic regulator, NSC was saddled with the responsibility to institute effective regulation at ports, working with other government agencies, even as he enjoined all stakeholders in the maritime industry to give the council the needed cooperation and support.
Sambo stressed that “I want us to note that while the shippers council is the port economic regulator, the Nigerian Ports Authority remains the technical and operational regulator. This is very key so that we understand the distinct role between the two agencies.
“Having realised that these two agencies are working within the mandate of the law of Nigeria, we, therefore, urge all those in court to have a rethink.
“This is for us to enable a good progression in the marine ecosystem and deliver the Nigerian economy of our dream,” he said.
He said that the council port economic regulatory mandate and rules should be reflected in the port concession agreement under review and other subsequent agreements.
“Relying on the sub-existing order on the port economic regulation as issued by the president of the Federal Republic of Nigeria, I hereby reaffirm that the Nigerian Shippers’Council remains the interim port economic regulator in our nation’s port.
“This is pending the establishment and operationalisation of the national transport commission as an independent regulatory authority in the transport sector,” she said.
He recalled that the nation’s port prior to 2006 port concession agreement had the lowest level of efficiency with anomalies such as the imposition of different tariffs and shortage of modern cargo handling equipment, among others.
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Sambo noted that the NSC was appointed as an interim port economic regulator in 2014 to fill the vacuum and address the challenges bedevilling the port system.
The Minister said that the major objective of the government in appointing the NSC as an interim port economic regulator was to create an effective regulatory regime at the port.
“The port economic regulator organ as gazetted has provided for various functions and roles of the council in line with the provisions of section 3c, f and j of the Nigerian Shippers’ Council Act cap 133 Law of the Federation 2004,” she said.
Similarly, Director Legal Services , Federal Ministry of Transportation, Mr. Pius Ode said “We know all the constraints the council is faced with and secondly , I want to comment that the regulator must be seen from a responsible point of view with the terminal operators.
And some of these constraints are been looked into, for instance the legal cases with the shipping companies are been addressed, consultation, dialogue are ongoing with some of major shipping companies.
“We hope that the legal encumbrances will be addressed soon.”
Earlier, Mr Emmanuel Jime, the Executive Secretary, NSC, noted that the port as a critical infrastructure needed to be competitive and should not be for free entry and exit.
According to Jime, this is in order for its users to enjoy the benefit of lower prices and efficient service delivery usually associated with competition.
“It is against this backdrop that the Federal Government of Nigeria, pursuant to the Nigerian Shippers Council Act Cap N133 LFN 2004, appointed NSC as the Ports Economic Regulator.
“The aim is to create an effective regulatory regime at the Nigerian ports for control of tariffs, rates, charges and other related economic services, make the transportation sector efficient and contribute positively to the development of the nation’s economy,” he said.
Jime noted that the council could only achieve its mandate with the support and collaboration of all players in the industry.
Other dignitaries present at the event are Dr George Moghalu of the National Inland Waterways Authority, Mrs Margaret Orakwusi, Chairperson of Nigerian Ship-owners Forum, Mr Kunle Folarin, Chairman, Port Consultative Forum and Managing Director, Grimaldi Agency Nigeria Limited, Mr Ascanio Russo, among others.
Recall that the Council through presidential fiat was pronounced the port economic Regulator in 2014 by the then president, Goodluck Ebele Jonathan to oversee and supervise operational costs and charges in the port.
Prior to its appointment, the operators had no agency monitoring increase or otherwise of charges and fees in the sector which had.led to many unilateral upgrade of charges without recourse to the government.
As a result, the federal government in 2015 appointed the Council to play the role of mediating on charges and costs of doing business in the sector but not without hitches as the Council faced a lot of hurdles and resistance.
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