Post by Trade facilitator on Jun 23, 2018 18:33:10 GMT 1
The type of congestion witnessed in the pre-port concession era may return at the two major seaports in Lagos.
Major container terminals at the Lagos Port Complex and the Tin-Can Island Port Complex, both in Apapa, were almost filled to the brim, even as a good number of containers may now be transfer to bonded terminals.
Experts have warned that, if the trend continues, the both dedicated terminals will also be bursting at it seams in the next few weeks with overflow from the ports and after that, congestion affecting vessel operations becomes a major risk.
Shortly before ports concession, vessels had to queue up for up to 45 days to find berthing space, leading to the imposition of congestion surcharges on Nigerian ports by major shipping lines under the aegis of the Europe West Africa Trade Agreement.
The surcharge amounted to over $100m per annum, but the Nigerian economy was saved the huge cost by private terminal operators who promptly instituted measures that eliminated the vessel queues.
The Presidential Committee on Port Reforms once ordered stoppage of day time transfer of empty containers into the two major seaports in Lagos. This order, meant to decongest the port access road, has inadvertently led to build up of containers inside the ports leading to an unprecedented level of congestion never seen at the ports.
"This is somewhat of a slow-burning issue, but I am sure that, unless something changes, all the terminals in Lagos will eventually be experiencing gridlock, right now the issue is to some extent covered up while import volumes are increasing and many empty containers had been exported prior to directive," an operator at the TCIPC told The Thy Communications under anonymity.
Our investigations reveal that when this happens, importers, exporters and clearing agents will be affected the most as they will not be able to take delivery of their containers on time.
As a direct consequence of this development, there are too many trucks carrying empty containers into the terminals.
Many of the trucks do not get served and are turned away in the morning by security officials of the Nigerian Port Authority.
The trucks so affected have to wait till the following night to try their luck again.
"This impasse will put undue pressure on terminal operators' equipment and increase import container dwell time at the ports. Next, the shipping lines will be affected by delayed vessel operations due to congestion in the main storage yard," the operator said
"The simple solution to this artificial problem is to allow trucks bring empties into the terminal during the day so long as they do not queue on the access road. Not allowing them come into the port with empties will mean their staying away from the port completely until late at night when they can bring in empties and take out a laden container because it is not profitable for any operator to do only one transaction per trip," he said.
Meanwhile, section 3 of the Lagos State bill for a law to repeal and re-enact the road traffic law and to make provisions for road traffic and vehicle inspection in Lagos State seeks to control the movement of trailers within the metropolis.
"Save as may be prescribed by the government by regulation, no trailers other than petrol tankers and long vehicles used in conveying passenger shall enter into or travel within the metropolis of Lagos between the hours of 6.00am and 7.00pm," Section 3(1) reads.
Section 3(2) imposes a fine of N50,000 or six months imprisonment or both on any driver found contravening Section 3(1), in addition to having his vehicle impounded.
But Chairman, Tin-Can Island Port Chapter of the Association of Nigerian Llicensed Customs Agents, said that the restriction will create congestion at the ports and also hinder effective operations at these facilities.
Major container terminals at the Lagos Port Complex and the Tin-Can Island Port Complex, both in Apapa, were almost filled to the brim, even as a good number of containers may now be transfer to bonded terminals.
Experts have warned that, if the trend continues, the both dedicated terminals will also be bursting at it seams in the next few weeks with overflow from the ports and after that, congestion affecting vessel operations becomes a major risk.
Shortly before ports concession, vessels had to queue up for up to 45 days to find berthing space, leading to the imposition of congestion surcharges on Nigerian ports by major shipping lines under the aegis of the Europe West Africa Trade Agreement.
The surcharge amounted to over $100m per annum, but the Nigerian economy was saved the huge cost by private terminal operators who promptly instituted measures that eliminated the vessel queues.
The Presidential Committee on Port Reforms once ordered stoppage of day time transfer of empty containers into the two major seaports in Lagos. This order, meant to decongest the port access road, has inadvertently led to build up of containers inside the ports leading to an unprecedented level of congestion never seen at the ports.
"This is somewhat of a slow-burning issue, but I am sure that, unless something changes, all the terminals in Lagos will eventually be experiencing gridlock, right now the issue is to some extent covered up while import volumes are increasing and many empty containers had been exported prior to directive," an operator at the TCIPC told The Thy Communications under anonymity.
Our investigations reveal that when this happens, importers, exporters and clearing agents will be affected the most as they will not be able to take delivery of their containers on time.
As a direct consequence of this development, there are too many trucks carrying empty containers into the terminals.
Many of the trucks do not get served and are turned away in the morning by security officials of the Nigerian Port Authority.
The trucks so affected have to wait till the following night to try their luck again.
"This impasse will put undue pressure on terminal operators' equipment and increase import container dwell time at the ports. Next, the shipping lines will be affected by delayed vessel operations due to congestion in the main storage yard," the operator said
"The simple solution to this artificial problem is to allow trucks bring empties into the terminal during the day so long as they do not queue on the access road. Not allowing them come into the port with empties will mean their staying away from the port completely until late at night when they can bring in empties and take out a laden container because it is not profitable for any operator to do only one transaction per trip," he said.
Meanwhile, section 3 of the Lagos State bill for a law to repeal and re-enact the road traffic law and to make provisions for road traffic and vehicle inspection in Lagos State seeks to control the movement of trailers within the metropolis.
"Save as may be prescribed by the government by regulation, no trailers other than petrol tankers and long vehicles used in conveying passenger shall enter into or travel within the metropolis of Lagos between the hours of 6.00am and 7.00pm," Section 3(1) reads.
Section 3(2) imposes a fine of N50,000 or six months imprisonment or both on any driver found contravening Section 3(1), in addition to having his vehicle impounded.
But Chairman, Tin-Can Island Port Chapter of the Association of Nigerian Llicensed Customs Agents, said that the restriction will create congestion at the ports and also hinder effective operations at these facilities.
