Controversies surrounding the Terminal Handling Charges (THC) have persisted as the recent upward review has sent a ripple of fear of increase in cost of doing business in the Port through port users.

   The review came at a time when importers and their agents were earnestly awaiting removal of THC as recommended by a ministerial committee for the review of Port charges.

Port concessionaires, otherwise known as terminal port operators under the aegis of the Seaport Terminal Operators Assocation of Nigeria (STOAN), had announced an upward review of THC and storage charges after its February 19th 2010 meeting.

The increment, which became effective April 1st, became inevitable, according to STOAN, due to rising wages, inflation and other variable costs while THC increased to 25 per cent, progressive storage charge was reviewed from 15 per cent to 20 per  cent. However, the ministerial committee set up by the former Minister of Transport, Ibrahim Isa Bio, had recommended the total cancellation of  THC, which it said, was not provided in the concession agreement between the government and the terminal operators. But the transport ministry has not done anything about the committee’s recommendation.

According to the National President of the National Council of Managing Directors of Nigeria Licensed Customs Agents, Lucky Amiwero, who was also a member of the ministerial committee, THC is duplicated as Terminal Delivery Charges, being collected by shipping companies.

He explained that the duplication of the collection by both terminal operators and shipping companies is in contravention of the committee’s recommendation and global best practices, which outlaw the collection of THC.

Kicking against STOAN’s upward review of THC, presidential candidate of the Association of Nigerian Licencsed Customs Agents (ANLCA), Olayiwola Shittu, said that the timing for the review of charges is wrong and ill-advised, adding that upward reviews would further increase the cost of doing business at the ports to the detriment of Nigerians.

But STOAN Vice Chairman, Captain Emma Omotayo, noted that the concessionaires had not reviewed their charges in over four years even though the Nigeria Ports Authority (NPA) lease fee has been reviewed annually.

According to him, the port concession agreement gives room to the concessionaires and the NPA to review rates and charges on an annual basis.

A source close to the concessionaires said that the concession agreement though remains a secret document, between government through the Bureau of Public Enterprise (BPE) and terminal operators provided that the charges be reviewed yearly.

He faulted the criticism of licensed customs agents of the review, saying that the agents should fight the alleged duplication of THC with the shipping companies as it was the terminal operators that provides the equipment used in handling cargoes.

He wondered why the shipping companies would be charging for equipment, adding that NPA should also reduce what they are collecting from terminal operators as they are not contributing anything to the development of the ports, which have been concessioned.