Boost for Exports
Eromosele Abiodun writes that the flag-off of the first export of manganese from the Ikorodu Lighter Terminal by the Nigerian Ports Authority, will be the catalyst for exports to thrive
Some of the very important roles export plays in an economy are: increased productivity, employment provision, improved trade balance and general expansion in the growth of a nation’s economy.
Diversification of the economy from oil to non-oil export is a sure way of getting the economy out of this present quagmire. This is currently the focus of the federal government. The government wants the development of non-oil export process that is expected to play significant role in revamping the ailing economy. But to make exports a mainstay of the Nigerian economy, the ports will play a vital role.
The sea is the medium through which goods originating from and destined for different parts of the world are transported. Seaports in relation to trade are major gateways to the economy of Nigeria hence, play an important role in the development of the country. Freight types are mainly containerised cargoes, general cargoes, roll-on-roll-off cargoes and petroleum products. General cargo was handled mostly by Tin Can island port, dry cargo by Apapa port and liquid cargo by Okrika port. Apapa port accounts for 30 per cent of cargo throughput in the Nigerian seaports. This form of port specialisation has implications for the provision of facilities at the ports.
Between 1990 and 2005, there was an increase in the cargo throughput, container traffic, net registered and gross registered tonnage of vessels at the ports and crude oil terminals. However, major problems affecting freight traffic include inadequate cargo handling plants and equipment, long turnaround time, cargo pilferage and excessive charges.
Another very important factor is transportation. Transportation is a precondition for spatial interaction and a central dimension of the national and global production systems that are reshaping the world. Transport industries through nodal development provide for the movement of people and goods and provision of services. Global economic integration relies upon efficient maritime transport due to its unparallel physical capacity and ability to carry freight over long distances and at low costs.
Overtime, the maritime industry has substantially changed from an industry that was always international in its character to a truly global entity with routes that span across hemispheres, transporting raw materials, parts and finished goods. Maritime transportation plays a major role in the national and international trade and economic growth. The seaborne trade represents 90 per cent of the international trade in the world. A seaport is defined as a terminal and an area within which ships are loaded and/or unloaded with cargo and includes the usual places where ships wait for their turn or are ordered or obliged to wait for their turn no matter the distance from that area.
Seaports in relation to trade are major gateways to the economy of a country. They represent a complex structure in a country’s transportation system providing ship harbour interface services such as pilotage, dredging, provision of berths, maintenance of navigational channels, ship-port interface in terms of loading and unloading cargoes and port-land interface in delivering cargo to and from the hinterland. In general, seaports have five principal roles. They include: cargoes and passengers handling, providing services for ships such as bunkering and repair, shelter for ships in case of heavy sea and storm conditions, bases for industrial development and terminals forming part of a transport chain. Seaports, expert believe, are complex dynamic systems consisting of numerous interacting elements, influenced by random factors.
Obstacles to Export
However, export process from Nigerian ports is plagued with factors in cross border trade, which greatly affects Nigeria’s product competiveness that result to rejects in the international trading environment
In a letter to the Nigerian Export Promotion Council (NEPC), recently the National President of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Lucky Amiwero cited factors such as: lengthy and cumbersome documentation process on export, multiplicity of regulatory/security agencies, high and duplicated Terminal/ shipping company charges and process and lack of export infrastructures as the bane of export.
The inspection of containers, he stated, is conducted by the following agencies on product quality: The appointed pre-shipment inspection of export agents, the Federal Department of Forestry, the Federal Produces Inspection Service and the Plant Quarantine Service.
According to him, “The Pre-shipment of Export Company, which issues Clean Certificate of Inspection (CCI), is expected to carry out in pursuant to Pre-Shipment Inspection of Export Act of 1996 section 4-(c), which clearly states that the inspection agents is provided with necessary facilities to enable the inspection agents to carry out quality and quantity inspections, price comparison and other process as may be required in the circumstance.
“The pre-shipment inspection of export agents appointed by the federal government is responsible for three major functions: rice comparison (value), quantity and quality (product standard). The contract covers the international requirements with regards to the quality of the product, which is the standard of the product that should have eliminated other agency involved in terms of process and cost, so as to reduce the level of international product reject that is rampant, and in effect enhance our export capacity.”
He added: “The following federal government agencies duplicate the process of quality inspection with that of the appointed federal government Pre-shipment Inspection on Export: The Federal Department of Forestry under the Ministry of Environment is involved in quality of product, with documentation, operational process and cost.
“The Federal Produce Inspection Service is involved in quality of product inspection, with documentation, operation and cost. Plant Quarantine Service is involved in quality product inspection, documentation, operation and cost.”
Other stakeholders have in recent time complained about the traffic gridlock in Apapa as a result of the poor state of the port access roads. This, they said, has frustrated exporters as products bound for export are delayed on the road for days leading to loss of time and money.
NPA’s Effort
Following complaints from exporters and other stakeholders, the management of the Nigerian Ports Authority (NPA) decided to look for alternative ways to remedy the situation.
To this end, the Managing Director of the NPA, Hadiza Bala- Usman last week in Lagos flagged off the first export consignment of manganese, a solid mineral resource from the Ikorodu lighter Terminal.
Speaking at the event, Bala- Usman said the NPA under her management is keen to drive inter modal transport as part of efforts to further decongest the traffic gridlock on Apapa port axis.
She disclosed that the NPA is ready to partner any agency or private investor who will give priority to intermodal transport, “as the continuous reliance on our road is no longer feasible and should be discouraged.”
Bala-Usman added that the flag off event is of huge economic advantage to the country, adding that using barges to ferry containers of solid mineral across the waters to the APM Terminal within Apapa Ports will help to elongate the life of “our roads as this mode of export will be most encouraged.”
Furthermore the NPA boss stated that the occasion is an eye opener and also serves to generate more revenue for the nation and provide employment opportunities.
Calling on stakeholders to key into the window of Public Private Partnership (PPP), she stated that the occasion has further deepened NPA management efforts at complying with the federal government’s directives on the Ease of Doing Business at the nation’s sea ports whilst the rehabilitation of the ports access roads are ongoing at Apapa.
In partnering with and encouraging private initiatives, the NPA MD added that the authority would ensure the deployment of Standard Operational Procedures (SOPs) with a view to complying with international best practices.
The Chief Executive Officer of Connect Rail Services Limited (CRSL), Edeme Kelikume, representing the service provider, appreciated the NPA’s role in the provision of the enabling environment for the take-off of the project.
The NPA had from inception the present management made bold that it would promote the stimulation of export trade through the nation’s sea ports.
World Class Infrastructure
Meanwhile, the NPA is also making effort to ensure adequate infrastructure is provided to ensure cargo evacuation.
Recently, Bala-Usman informed stakeholders and port users of the renewed vigour and determination of the NPA at improving the present state of infrastructure to meeting world class standards towards ensuring the swift evacuation of cargo from the seaports across the country to the hinterlands through the rail lines.
According to her, the authority was fully aware of the state of congestion in the ports caused by the bad roads.
This, she regretted, has led to a reduction in revenue accruable to the organisation as well as the inability of the nation to maximise her potential as a major player in the maritime sector within the Sub-Saharan Africa.
Bala-Usman, represented by the General Manager MD’s Office, Iheanacho Ebubeogu made these remarks while on a facility maintenance inspection of the rail lines in the ports accompanied by the top echelon of the Nigerian Railway Corporation (NRC) led by its Director of Operations Niyi Alli to terminals within the Apapa corridor.
“Management would collaborate and improve on the existing synergy with the NRC at addressing the challenges facing the corporation with a view to increasing the market size of the country in the area of cargo evacuation,” she said.
Fielding questions after the inspection tour, the Director Operations, NRC, Mr. Niyi Alli, who stood in for the MD of the corporation, Mr. Fidet Okhiria, stated that the working visit was to assess the present state of the rail lines in order to further collaborate with the NPA in the area of rehabilitation.
According to Alli, the rail service would be optimally utilised for cargo evacuation in line with the federal government’s policy of Ease of Doing Business in the country.
He stated that plans are being concluded by putting into operation between 15 and 20 locomotive wagons with each evacuating 20 units of 40-footer container at a go from the Terminals to the hinterland.
The Minister of Transportation, Chibuike Amaechi had recently instituted a committee comprising the MDs of NPA and NRC as well as their top echelon to carry out on the spot assessment of the present state of infrastructure of the rail lines in the Terminals.
It is expected that the rehabilitations would further go a long way towards the swift evacuation of cargo from the ports.