Nigeria Controls 70 % Of Cargo Traffic Of W/Central Africa - Ports’ Council

The Chairman, Nigerian Ports Consultative Council (NPCC), Chief Kunle Folarin, has said Nigeria controls 70 per cent of cargo traffic of West and Central Africa.

He made this known in Lagos during the 3rd Annual Maritime Conference tagged ”Port Costs and Ports Charges: A Recurring Decimal under Port Reform Regime”, held in honour of Dr Taiwo Afolabi, the Chief Executive and Vice Chairman, Sifax Group.

Folarin emphasized that the percentage is far from the formal trade alone and will certainly be bigger if we consider the informal trade aspects of cargo movements, reiterating that the traffic into Nigeria by latest data was over 5,307 ships per annum.

“The potential is certainly bigger when we consider the capacity of cargo traffic to Nigeria’s landlocked neighbours such as Niger Republic and Chad.

“In real terms, over 85 per cent of all the goods and services that entered Nigeria came through the seaports.

“The current aggregate value exceeds $15 billion dollars a year through normal imports.

“Nigeria also imports over two million tonnes of non-oil cargo yearly.

“It is therefore, no doubt that the maritime sector’s performance is indeed a major contributor to the economy and must be given attention when discussing port costs and port charges.

“In 1970, following the end of civil war in Nigeria, government adopted a policy that focused on the need to reconstruct the infrastructure and superstructure of areas that were crucial to the commercial and industrial sectors of the country.

“In order to give effect to the implementation of the policy, importation of building materials was done by about 600 vessels, most of which arrived at the same time and created port congestion,” He said.

The Maritime economist established that the available port infrastructure at that time could not handle more than 12 vessels at a time in Apapa Port Complex, which resulted to long queue of ships waiting to berth.

Folarin said that consequently, ship owners incurred huge running costs and this led to demurage as a result of penalties put in place by the chartered parties.

He said that the port cost and charges reform policy of the Federal Government started in 1993 by the Federal Ministry of Finance apparently to address the issue of rising costs in the delivery of port services and several others.The Chairman, Nigerian Ports Consultative Council (NPCC), Chief Kunle Folarin, has said Nigeria controls 70 per cent of cargo traffic of West and Central Africa.

He made this known in Lagos during the 3rd Annual Maritime Conference tagged ”Port Costs and Ports Charges: A Recurring Decimal under Port Reform Regime”, held in honour of Dr Taiwo Afolabi, the Chief Executive and Vice Chairman, Sifax Group.

Folarin emphasized that the percentage is far from the formal trade alone and will certainly be bigger if we consider the informal trade aspects of cargo movements, reiterating that the traffic into Nigeria by latest data was over 5,307 ships per annum.

“The potential is certainly bigger when we consider the capacity of cargo traffic to Nigeria’s landlocked neighbours such as Niger Republic and Chad.

“In real terms, over 85 per cent of all the goods and services that entered Nigeria came through the seaports.

“The current aggregate value exceeds $15 billion dollars a year through normal imports.

“Nigeria also imports over two million tonnes of non-oil cargo yearly.

“It is therefore, no doubt that the maritime sector’s performance is indeed a major contributor to the economy and must be given attention when discussing port costs and port charges.

“In 1970, following the end of civil war in Nigeria, government adopted a policy that focused on the need to reconstruct the infrastructure and superstructure of areas that were crucial to the commercial and industrial sectors of the country.

“In order to give effect to the implementation of the policy, importation of building materials was done by about 600 vessels, most of which arrived at the same time and created port congestion,” He said.

The Maritime economist established that the available port infrastructure at that time could not handle more than 12 vessels at a time in Apapa Port Complex, which resulted to long queue of ships waiting to berth.

Folarin said that consequently, ship owners incurred huge running costs and this led to demurage as a result of penalties put in place by the chartered parties.

He said that the port cost and charges reform policy of the Federal Government started in 1993 by the Federal Ministry of Finance apparently to address the issue of rising costs in the delivery of port services and several others.






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