Monday 30 September 2013

Transport Minister Rules On Port Congestion

•    Orders Terminal Operators To Position Containers Within 36 Hours

In a move to probably starve-off rinsing agitation among freight forwarders over lapses in port operations and port congestion, the Minister of Transport, Senator Idris Umar last weekend ruled that henceforth all terminal operators in Lagos ports must position containers for examination within 36 hours of the booking by the consignees of their freight forwarder.
Umar stated this in Apapa Lagos last Friday at the end of a weeklong meeting of the ministerial committee which he  set up to address the challenges of port congestion at the Tin Can Island Container Terminal and the APM Terminals, both in Lagos.

The Minister also stated that once a container has been booked for examination, any of the parties to the examination who is found responsible for delay in the clearance process would henceforth bear the cost of rent and demurrage.


He also promised to request the Minister of Finance, Dr. Ngozi Okonjo Iweala to direct the Comptroller General of Customs, Alhaji Dikko Nde Abdullahi to resume the rerouting of containers from scanning to physical examination in order to ease port congestion.

Reading the committee's resolutions, Umar stated that; "once a terminal has a backlog and it is more than it can handle, the next vessel on the queue should be stemmed to the terminal next to it, in the event the next terminal cannot handle the vessel, it should be stemmed to an off-dock terminal".

"The working hours for examinations will henceforth be between the hours of 9am and 3pm; including Sundays and public holidays", he directed.

The minister also stated that: "Freight forwarding associations should stop the collection of fees from their members inside the port premises to avoid delay of cargoes".

He however stressed that the resolutions take immediate effect, even as he assured that he would be on ground personally every week to monitor the implementation of the resolutions.

However, speaking after the meeting, leader of the freight forwarders delegation to the meeting and chairman of Tin Can Island port chapter of Association of Nigerian Licensed Customs Agents; Prince Kayode Oyinlola expressed fears about the implementation of the resolutions.

Oyinlola pointed out that since the committee recommended the stemming of containers to off-dock terminals, the terminal management has increased their charges arbitrarily.

"It has always been like that, you arrive at a resolution, but implementation will now be the problem, even while we are seated here, some of these agencies have been making arrangements to thwart the efforts of the committee", he alleged.

"To arrive at a resolution is not the issue, to implement it has always been the problem, we know what usually comes out of these kind of meetings, but since the minister has said that he will be coming over every week to monitor implementation, let's wait and see" he said.
Shipping Position Daily had scooped last week that there was sharp division among those who have been attending the meeting.
Our correspondent had confirmed that the committee's meeting which ended on Thursday was almost marred by intense disagreements, leading to a near fight.
Our source who pleaded anonymity had confirmed that the hot arguments which characterized the meeting almost led to stakeholders exchanging blows.
The major task of the committee which is headed by the executive director, marine and operations at the Nigerian Ports Authourity, Engr. David Omonibeke was to  “come up with a blue print for a lasting solution to the lingering problem of port congestion".
Some of the other terms of reference of the committee which was obtained by our correspondent include: to verify issues militating against speedy examination and scanning of containers, to identify the factors responsible for the cause of delay in the clearance of cargoes in the port.
Others are: to come up with modalities for stemming of vessels to off-dock terminals with a view to reducing terminal congestion, to harmonize off dock terminal charges with a view to reducing the cost of delivering a container.
http://shippingposition.com.ng/article/transport-minister-rules-port-congestion

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