Friday 29 August 2014

Shippers’ Council Set To Battle NPA Over Alleged Increase In Berth Rent

• Habib Abdulahi: Managing Director, NPA and
Hassan Bello: Executive Secretary, Nigerian Shippers Council
The first test for the Nigerian Shippers Council, (NSC) as the commercial regulator of the ports appears imminent as it battles the Nigerian Ports Authority (NPA) over alleged introduction of collection of increased berth rent from terminal operators without consultation with or the permission of the regulator.
Already, the Executive Secretary of shippers’ council; Barrister Hassan Bello has ordered that the collection should be stopped immediately.
The management of Port and Terminal Operator Limited; a concessionaire at Port Harcourt port in Rivers state who disclosed this told the shippers council team that visited the port on Tuesday confirmed that the collection of the new levy commenced this month.The shippers’ council team, which was led by its executive secretary was told by Abdullahi Ahmed, General Manager of PTOL that the NPA directive was contained in a letter dated 22/7/14 and signed Engr. David Omonibeke, Executive Director in Charge of Marine and Operations on behalf of the Managing Director.
He said a meeting of all terminal operators was called by NPA where the new directive was disclosed to them.
Reacting, Bello expressed surprise that a meeting where such a decision was to be taken was held without the involvement of the port commercial regulator. He however assured that Shippers’Council will work at resolving the differences.
The increase, according to NPA, was to enable the NPA meet its responsibility of berth maintenance.
The collection of the berth rent is feared to further increase the cost of cargo delivery from the nation's ports
Lamenting the increase , Ahmed told the visiting NSC team that his company spent about N3.2 billion to re-enforce berths 1 to 3 which are part of the area concessioned to it.
He said that berth 4 still needs maintenance which the NPA has been foot dragging to do over the years. He said the maintenance would have cost N2.7 billion if it had been done two years ago, noting that it will now cost about N4 billion.
http://shippingposition.com.ng/article/shippers%E2%80%99-council-set-battle-npa-over-alleged-increase-berth-rent

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