SEREC STATES ITS POSITION ON THE RECENT NOTICE OF HIKE IN LOCAL CHARGES BY CMA CGM
Mcanthony Onuoha
The Sea Empowerment Research Center (SEREC) has expressed deep concern about the recent announcement by CMA CGM Nigeria to increase local charges, which is largely influenced by the Nigeria Ports Authority’s (NPA) adjustments to Port & Marine Fees.
SEBEC in a statement signed by Head of Research (HoR), Chief Dr. Eugene Nweke, and made available to the Media described the Nigerian ports situation as alarming, adding that the delayed implementation of the $700 million rehabilitation budget has exacerbated concerns. SEREC had before now, emphasized the need for a transparent project management system and a definitive rehabilitation project vision.
Meanwhile, the Research Center made some key recommendations which includes:
Commencement of immediate implementation of the approved rehabilitation budget to address pressing concerns such as congestion, poor berth production, and ship turnaround time.
Others are Transparent Project Management, which advised the establishment of a transparent project management system, including a project monitoring team, regular progress updates, and clear communication with stakeholders.
Identifying and prioritizing critical infrastructure that need rehabilitation, such as quay walls, cranes, and handling equipment, engaging with stakeholders, including port operators, shipping lines, cargo owners, and industry players, to address concerns and needs as well as
addressing underlying issues which includes inadequate maintenance, insufficient investment, inefficient port operations, corruption, and bureaucratic inefficiencies.
Other additional concerns were raised and SEREC recommended that the Nigeria Ports Authority must effectively explore outsourcing key port terminal development to a reputable third party saying that the recent 15% increase in charges without reconciling economic, commercial, and operational implications was alarming, considering the agency’s history of mismanaging proceeds from cargo handling and treatments, which the government indicted the agency of, leading to the decision to concession the port since 2006.
SEREC went ahead to mention some far-reaching consequences which
the increased charges may lead to. These consequences include higher costs for importers and exporters, potentially impacting Nigeria’s competitiveness in the global market, trade and commerce disruptions, as importers and exporters seek alternative routes or shipping lines, regulatory disputes due to the NPA’s failure to obtain regulatory clearance from the Nigerian Shippers Council.
Most importantly, to demonstrate administrative transparency, bearing in mind that the ports are public enterprise, as such, the NPA must be bold to publish the efficiency status of the concessioned ports and post port concession status, thus demonstrating its good intentions with the 15% port charges increment.
However, it is the views of SEREC that, “to mitigate these concerns, the industry economic regulator (NSC) and the NPA must engage with stakeholders, provide transparency, and prioritize stakeholders’ interests as collaboration between the Ministry, NSC, and NPA is crucial to create a more efficient, competitive, and sustainable maritime industry in Nigeria,” SEBEC stated.
