PortNews Summit 2024 : Stakeholders Seek Government Intervention To Prioritize Port Reforms

 

Stakeholders from the nation’s maritime industry have called for the government to prioritize reforms that will dismantle monopolies, foster inclusivity, and unlock the full potentials of the blue economy.

This call was made at the PortNews Summit 2024 held at the Rockview Hotel, Apapa, Lagos, on Wednesday

The maritime players also raised concerns over the growing monopoly of terminal operators against Inland Dry Ports (IDPs) and bonded terminals, thus crippling indigenous participation in cargo management and movement.

Speaking at the summit, Aare Haruna Omolajomo, General Secretary of the Association of Bonded Terminal Operators, lamented port terminal operators are bent on winners take it all syndrome.

He revealed that bonded terminals, which once served as key hubs for cargo decongestion, have been rendered almost obsolete by the monopolistic tendencies of foreign-dominated terminal operators who now control port operations following the 2006 port concessions.

He said:“The monopolization of cargo handling by terminal operators has made bonded terminals redundant. Indigenous operators are sidelined, and their contributions to the logistics chain have been diminished,”

While expressing frustration on the development, the scribe accused terminal operators of exploiting their positions to monopolize cargo allocation and failing to integrate bonded terminals into the cargo handling system, a move that has adversely affected local businesses and jobs.

He said bonded terminals which were once instrumental in managing overflow cargo and reducing congestion at seaports, in recent time struggle to attract cargo due to restrictive practices by port terminal operators.

Omolajomo argued that this has not only hurt the financial viability of bonded terminals but also weakened Nigeria’s logistics capacity.

“Many bonded terminals are shutting down because terminal operators refuse to share cargo handling responsibilities. This monopolistic grip is sabotaging local capacity and the overall competitiveness of our maritime sector.” he said

Speakers at the summit criticized the government for its failure to enforce local content laws and adequately regulate terminal operators. Capt. Emmanuel Iheneacho, a maritime expert, noted that while port concessions were introduced to enhance efficiency, they inadvertently created monopolies that now undermine competition and stifle indigenous businesses.

“Port concessioning without strong regulatory oversight has led to unintended consequences. Terminal operators have consolidated their power at the expense of smaller players like bonded terminals,” he said.

Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), called for an urgent review of the concession agreements, emphasizing that monopolistic practices are counterproductive to economic growth and local content development.

National President of Association of Nigerian Licensed Customs Agents (ANLCA) Emenike Nwokeoji urged the Federal Government to carryout a review of the performance of the port concessions and not just renew the lease agreements with concessionaires.

“The Federal Government should review what they have done so far, not just to go ahead and renew their contracts without reviewing what is happening.

“So many of them, the investments and employment they promised was not implemented, rather they bringing their own people as local workers and engineers to come and work in Nigeria.

“You would not blame them for arbitrary charges because the system is porous, there are government agencies whose responsibility it is to regulate tariff, are they doing it?

“We have an agency that is supposed to protect the Nigerian Shippers in terms of negotiating freight, have they ever done anything? The freight charge, you can wake up one morning and realise it has been increased and yet nobody says anything.” Emenike lamented.