Maritime
Exporters Seek Withdrawal Of New Terminal Charges
The Head of Logistics,
Rubber Estates Nigeria Ltd., Mr Stephen Usih, has urged terminal operators to withdraw new Terminal Handling Charges (THCs) on container -laden exportable goods which took effect June 1.
Usih, who said he had the mandate of other exporters to speak, made the plea in an interview with newsmen in Lagos.
A breakdown of the new THCs shows: N40,000 on 20 ft. container and N60,000 on 40 ft. container.
He suggested that the THCs should be suspended to allow a stakeholders’ meeting of terminal operators, shipping lines, exporters and Nigerian Shippers’ Council.
“Everyone involved has to discuss on the issue to have realistic figures as terminal handling charges.
THCs are charges collected by terminal authorities at each port against handling equipment and maintenance.
Usih said that the shippers (exporters) were also paying the N4,123 as delivery charges which had to do with the loading of empty containers and off-loading of full containers.
According to him, N4,123 was charged at the exchange rate of N165 to a dollar, an equivalent of 25 dollars per container.
“If now, the current exchange rate is N350, at 25 dollars per container, exporters are still ready to pay N8,750 as delivery charges.
“Even if increased to 50 dollars per container, the exporters will still pay N17,500,’’ he said.
According to him, exporters will accept a reasonable increase in delivery charges based on the excuse given by the terminal operators about the prevailing exchange rate of the naira to the dollar.
“Considering the nature of services rendered by the terminal operators, which is to load empty containers and offload full containers, N40,000 additional charge on a 20 ft container is not justifiable,’’ Usih said.
He also requested that the payments “have to be made directly to the shipping lines as being done over the years, where payment is done at the time of collection of the Bill of Lading after departure of containers’’.
“Globally, the charges are paid after the departure of the vessel but now exporters have to pay 48 hours before the arrival of the vessels, thereby making the documentation processes more cumbersome,’’ Usih said.
He told our sources that exporters were not ignorant of the situation of the country “but are saying that things should be done appropriately’’.
Usih said that it was the noble idea of the Federal Government to diversify the economy into non-oil exports with agricultural commodities accounting for 90 per cent of the non-oil exports.
“With the government’s quest to diversify the economy, the key thing is to make export business profitable in order to convince people to venture into it.
“With the new terminal handling charges, the objectives will not be achieved.
“It will scare away new entrants into exports. With government’s pronouncement, people have started exporting at least one container load on monthly basis.
“ An exporter who is exporting a container load of a commodity valued at N4 million per container, the maximum profit he could make is N100,000,’’ Usih said.
According to him, with the additional N40,000, the terminal operators have already removed 40 per cent of the gross profit and this will not make the export business lucrative any more.
He said that Rubber Estate Nigeria Ltd. (RENL) shipped 1,000 containers of processed rubber annually, “and you can imagine the effect the terminal handling charges would have on our company’’.
“With the new charges, this will translate to N40,000 multiplied by 1,000 containers which will make a total of N40 million to be paid by our company as terminal handling charges,’’ Usih said.
He told The Tide that the company might reduce its staff strength with the present situation.
In a reaction, a source close to the Seaports Terminal Operators Association of Nigeria (STOAN), confirmed the introduction of the new container handling charges for exports.
The source told The Tide that since the last 10 years of port concession, terminal operators were handling containers of exportable goods free of charge.
According to the source, the free charge cannot go on forever considering the situation in the country.
He said that the newly-introduced charges on containers to be exported were still lower than what importers were paying.
Maritime
Illegal Migration: NIS, NIWA Move To Strengthen Partnership
Following the spate of illegal migration into the country by migrants, the Nigeria Immigration Service (NIS) and the National Inland Waterways Authority (NIWA) have concluded plans to strengthen their partnership to curb illegal migration through the Lagos State waterways.
The plan to deepen partnership was discussed when the new Comptroller of Immigration Service in charge of Lagos Seaports and Marine Command, CIS Joseph Dada, visited the NIWA, Lagos Area Manager, Mrs Sarat Braimah in Lagos.
Speaking at the visit, Dada said the service would fare better in achieving its mandate with a strategic partnership with the waterways regulator.
“We have some challenges on the waterways, even though we do patrols. Collaborating with NIWA will guarantee stronger waterway operations.
“We are not saying people shouldn’t migrate or ‘japa’ from Nigeria. Migration is part of life and people have a right to seek greener pastures.
“However, they must do it the right way. They have to get their passports, visas and travel through the appropriate channels”, he said.
Dada lamented that several Nigerian ladies are victims of human trafficking for prostitution usually disguised as job offers for care workers abroad.
Also Speaking, Managing Director, NIWA, Mrs Sarat Braimah, welcomed the idea of strategic collaboration with the NIS, stressing that both agencies are working for the common good of Nigeria and its citizens.
“We expect this collaboration to prohibit illegal migration. Migration is part of life and as you observed earlier, it fosters tourism, culture and development.
“Nonetheless, we will assist the NIS in achieving their objective, which is that people shouldn’t migrate illegally.
“A lot of passengers board ferries from Marina jetty to Badagry and Port Novo. We don’t know their final destination or verify their identity; but we’re open to NIS partnership to carry out migration checks”, she said.
She noted that NIWA could train immigration officials on how to go onboard vessels safely, and also provide boats, lifejackets, among other equipment, when the Immigration make such requests.
Maritime
NPA To Generate N629bn Revenue In 2024 -MD
The Nigerian Ports Authority (NPA) says the authority will generate N629.89 billion in 2024.
NPA is also seeking for N200 billion loan from Afrexim Bank for ports development.
Managing Director, NPA, Mr Mohammed Bello-Koko, stated this while defending the 2024 budget before the House of Representatives Committee on Ports and Harbours in Abuja.
He said the United Kingdom Export Finance (UKEF) was also listed as one of the financial institutions from which to source the loan.
Koko said the total projected expenditure was N464.32 billion, while the operating expenses were projected at N212.03 billion and the capital expenditure stood at N252.29 billion.
“Part of the main trust of the 2024 budget is the urgent need to rehabilitate, reconstruct and moderate the dilapidated port infrastructure facilities”, he stated.
The Managing Director said defects in the facilities were hampering efficiency and productivity in the ports, saying that the defects include the quay walls and the replacement of old gravity walls.
According to him, another is need for rehabilitation of Escravos breakwaters.
“This is aimed at improving port efficiency and increasing cargo traffic through investment funding from the financiers, UKEF and Afrexim”, he said.
Earlier, Chairman of the committee, Nnolin Nnaji, said the agency is very dear to the country, hence the need for the committee to visit some of the facilities outside Lagos.
“We need to see those things you are telling us. The House of Representatives is very serious about budget defence, while they do screening on the other side, budget defence is here”, he said.
He commended the Managing Director for the budget presentation, saying that he believed in the subsequent budget
“We accept this budget, and we will move further with it”, he assured.
The lawmaker also said the drainage channels were full of wreckages and expressed concern over lack of information on wreckage removal.
Nnaji noted that as long as the NPA avoided the wreckage, it will keep occurring because of the abandoned ships facilities.
Maritime
COWA Distributes Food Items To Members In Abuja
In a bid to cushion the hardship and hunger faced by ordinary Nigerians, the Customs Officer’s’ Wives Association (COWA) has distributed food items to its members in Karu Customs Barracks, Abuja.
National President, COWA, Mrs. Kikelomo Adeniyi, who flagged off the exercise, said the distribution of the food items was part of COWA’s plans to ease life for its members.
“This is not the first time COWA is conducting this initiative of distributing food items to the members and non-members of the association, and we decided to distribute these items considering the season of Ramadan.
“Everything we are doing now is for you. Please register so we can make provision for all of you. This will help us keep proper data of everyone and we will continue doing this subsequently to alleviate the situation”, Adeniyi said.
She further said food items were also being distributed to COWA members across all Customs formations in the country.
Some of the food items distributed include rice, spaghetti, noodles and cooking oil.
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