Apapa gridlock: Fed Govt may revoke port concession agreement

As stakeholders blame shipping companies, others for bedlam

 

The federal government might revoke the seaports concession agreement it entered with terminal operators during the administration of President Olusegun Obasanjo.

Minster for Transportation, Rotimi Amaechi said this on Thursday during the stakeholder meeting on the lingering bedlam occasioned by activities of truck drivers to and fro Apapa seaport.

The meeting which was chaired by Vice President Yemi Osinbajo (SAN), was held at the headquarters, Western Naval Command  (WNC), Apapa.

According to Amaechi, he would submit the issue to the Federal Executive Council  (FEC) for a possible revocation of the concessions because the concessionaires were not sticking to the terms of operation.

He said: “Concessioners not sticking to terms of agreement. We might have to go back to the FEC to ask for a revoke of the concessions. We are currently reviewing the concession agreement.”

Meanwhile, stakeholders at the meeting blamed the shipping companies, tankfarm owners as well as the federal ministry of works for the congestion, noting that while the company and tankfarm operators had refused to operate holding bays for their trucks, the ministry was too slow in repairing bad portions of the roads.

Read Also: Apapa gridlock: Lagos suspends approval for tank farms

They also accused the shipping companies of deliberately fuelling the traffic through its demurrage policy, which makes empty containers flood the roads so that they could beat deadlines and collect their money.

According to the Managing Director, Nigerian Port Authority (NPA), Hajiya Bala Usman, the shipping companies were acting in disregard of the law.

She said: “The attendant disregard by shipping companies to patronize holding bays cannot be tolerated. Shipping companies are not above the law in Nigeria and they must act in accordance with the law.

“We have sanctioned three shipping companies, which are among the largest operating in Nigeria. We withdrew their licenses for 10 days. Upon the review of their 10 days suspension, it was extended to additional five days. Presently, they do not have vantage services within Nigeria.

“We have noted the concerns about empty containers. What we need to do is ensure that the same volume of containers that come into the country go out.

“Shipping companies have over the years, made Nigeria a dumping ground. They have also instituted a fee where by, every importer is rushing into the port to drop their containers or risk losing their money.

“Shipping companies are refusing the operationalisation of holding bays. Ordinary, when you import goods, the empty containers should be returned to the holding bays of the shipping companies. It is their responsibility to move it from the bays to the port.

“The shipping companies are not above the law. We will keep sanctioning them until they comply and operationalize their business. The container repositioning fee they newly introduced is not acceptable. “The Vice President has written to us demanding clarity and we have cleared that nobody should pay for empty container repositioning. We need to define a location and day, possibly Saturdays and Sundays, where empty containers are moved into the port locations in preparation for them to be taken out to the vessels.

“Nigerian government would not continue to absorb the cost of your none operationalisation of holding bays. Sixty percent of the trailers on our roads are empty or hawking. They come out without having any business and hope to secure one. “So, NPA is working on licencing trailer parks. In fact, only trailers from such parks can come into the port. We have received four proposals on that and we are working in collaboration with Lagos State Government. The trailers would be at the parks and only come out when called upon.

“Then, truck owners’ association must ensure compliance of their members. Any truck found idle on the road would be impounded and the association dealt with.”

 

 

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