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COST REDUCTION: Shippers Council threatens action against companies, operators, over arbitrary charges

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Ship's turnaround time can be further reduced- Shippers Council

…To collaborate with NAICOM on insurance cover, risk management, cost reduction***

Nigerian Shippers’ Council (NSC) on Tuesday threatened to take action against shipping companies, agencies, seaport terminal operators and off-dock terminals over arbitrary charges.

The NSC Executive Secretary, Mr Hassan Bello highlighted this in a statement issued by Mrs Rakiya Zubairu, the Council’s Head of Public Relations, warning that the Council may be forced to ‘bite’, following unending stakeholders complaints, against shipping companies/agencies, seaport terminal operators and off-dock terminals, especially over the arbitrary levy of container demurrage, storage and transfer charges on innocent consignees.

The Council’s management was particularly stirred by the fact that the charges were often, for transportation of cargoes to off-dock terminals, unilaterally initiated by terminals, without the consignees’ consent.

“It should be noted that based on international standard and recognised practice, freight paid at origin covers the movement of cargo to the final port of delivery at destination.

“It follows, therefore, that cargoes earmarked for transfer to off-dock terminals at the request of the shipping company, seaport terminal operator or off-dock terminal, without the consent of the consignees or their authorized representatives, should not attract charge(s) against the consignees,” Bello pointed out, stressing that NSC has resolved henceforth, that all service providers must be guided that import cargo should be delivered to the nominated port of destination as stated in the Bill of Lading.

Apapa port

 

And, where the operational convenience of the seaport terminals or some other prevailing circumstances necessitate the transfer of cargoes from the seaport terminals to off-dock terminals, the concerned consignees or their authorized agents must be notified in good time.

Accordingly, therefore, they must not be charged the cost associated with such transfer, including barging costs.

“Storage and demurrage charges on cargoes earmarked for transfer from seaport terminals to off-dock terminals, without the consent of the consignee, should take effect only after arriving at the designated off-dock terminals.

“NSC considers this act as unethical and unwholesome.

“Consequently, all transfer charges collected from consignees of cargoes transferred from seaport terminals to off-dock terminals, from June 1 to date, must be refunded to the consignees immediately.

“Those changes were at the instance of the shipping companies/agencies, seaport terminal operators or off-dock terminal operators, and without the consignees requesting for such transfer.

“Failure to refund such charges will lead to the council invoking its regulatory powers to enforce compliance,” she said.

Consequently, and in furtherance of the same objective, the Council, according to Hassan Bello, would also fully collaborate with the National Insurance Commission (NAICOM) for the same purposes of achieving a significant reduction, in the cost of doing business at the ports, particularly through the introduction of insurance cover on containers regime.

speaking in Abuja also on Tuesday when he led the Council’s delegation to visit the management of NAICOM, Bello emphasized that the two agencies would equally look into risk management at the various Ports to ease business.

He said that insurance should be looked at in the area of policies involving goods on transit, accidents, loss, damages in order to move away from religious sentiments that everything happened for a reason.

Also read:  NIMASA promises tougher action against untrained, uncertified boat skippers

He said that the container deposit at the ports is about N150,000 to N200,000 on each container which runs into billions of Naira thereby making supply costly.

He said this was because most of the containers could not be returned within the expected date due to the nature of the roads.

 

“As our functions as ports regulator, we have our eyes on the cost of doing business in Nigeria, so in the ease of doing business and the cost of doing business, we want to make our ports competitive, we have to moderate the cost.

“One of the costs is Insurance deposits that shippers pay for taking the containers out of the port.

“The containers are the assets of the shipping companies, they must be returned in perfect condition and so they don’t get that because as at the time the containers are not returned, the deposit is not refunded.

“When you return the containers in good time, you collect your deposit back.

“However, that is not as simple as that, access to the port may be difficult and if a container is not returned within a certain time limit, they could be a problem, one loses his deposit or part of the deposit and so the shippers has to forgo the deposit.

“Sometimes the shipping company, even when the containers are returned they don’t pay the deposit in good time and that is money lost.

“So what we are saying is, there are lot of issues like that, that we could have the insurance company come to take care of,” Bello said.

He said that the insurance company could come in to make sure the containers are covered at a lesser cost, to reduce some of the challenges faced by the shippers.

Bello said: “We want a policy on the participation of insurance in container regime, there is a policy on goods in transit of course, we want the policies to cover most of the risk that shippers, freight forwarders incurred including demurrage and rent.

“If this could be covered, that will make shipping extremely cheaper and also Door-to-Door delivery of cargoes, which will be covered by insurance.”

Bello, however, said that in spite of the pandemic the council was working with all other maritime agencies to look into digitalisation of ports to limit the access of physical contact.

He also said that the Kano state government had voted about N2 billion for the structures around Zawachiki Inland Dry Port which had been a concession to Dala Dry Port Nigeria Ltd.

Responding, Mr Olorundare Thomas, Commissioner for Insurance (NAICOM), expressed willingness to collaborate with NSC to make insurance significant in the maritime sector.

Thomas commended the NSC for bringing up creative ideas that would deepen the market of the commission in the maritime industry.

“As far as I can remember this will mark one of the few times that any of our stakeholders will come with developmental ideas that will enhance the thought of the commission on how to deepen the market and make insurance relevant to our daily living.

“When it comes to trading, marine is in the frontline and insurance itself move with trading, insurance started with marine insurance largely before the fire, but marine is quite critical in the history of insurance development.

“With what we have gone through in the country and globally, we need to take insurance more seriously than ever, than what we have done in the past.

“I have listened to you and I have taken note, these are things we must collaborate and work together as agencies of government.

“It is important for us, what we are getting from marine business is not consistent with transaction in the marine sector in terms of contribution to insurance penetration.

“It is almost insignificant but as an economy, we know that is not the true reflection of what is happening in the Marine Sector and I am happy for your creative ideas,” he said.

Thomas, however, said that the commission would look into establishing a committee with both agencies to factor out the modalities on how insurance can be factored in at the Ports to reduce cost of business.

 

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NAMTOP: LASTMA Urges Maritime Truck Drivers To Tackle Breakdowns

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More Trouble for Sanwo-Olu: Election Tribunal orders substituted service over Petition

The Lagos State Traffic Management Authority (LASTMA) has urged the Nexus Association of Maritime Truck Operators (NAMTOP) to acquire private tow trucks to tackle breakdowns swiftly.

The General Manager, LASTMA, Mr Olalekan Bakare-Oki, said this when NAMTOP officials paid the agency’s management a courtesy visit on Tuesday in Lagos.

Bakare-Oki said the aim was to foster synergy and cooperation between the two agencies.

The LASTMA GM, represented by the Director of Logistics and Engineering, Mr Jubril Oshodi, assured the association of a harmonious relationship.

“This will enable the association to liaise with all zonal heads to ensure swift evacuation of trucks whenever breakdowns occur,” he said.

The LASTMA boss said his tenure would centre on repositioning and reorganising the agency for professional service delivery to the motoring public with empathy.

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Oyetola Inaugurates 4.8km Road, Mooring Boats At Onne

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…Says the road symbolizes the Ministry’s commitment to make the port more viable

The Minister of Marine and Blue Economy, Adegboyega Oyetola on Tuesday, inaugurated a 4.8km road “D” project and six mooring boats at the Onne Port Complex, Port Harcourt, stressing that the road, constructed by the Nigerian Ports Authority (NPA), was a demonstration of the ministry’s commitment to make the port more viable.

He said that the project was in line with President Bola Tinubu’s directive to maximize opportunities within the maritime sector.

”This is part of the measures we are taking to enhance the ease of doing business in Onne Port

”The ministry is committed to leverage Nigeria’s maritime resources under the directives of the president,” he said.

The minister said that the mooring boats would enhance boat safety and general security within the maritime space.

Oyetola said that the Federal Government was committed towards deepening the efficiencies and full capacity utilisation of the ports in the eastern axis.

‘We are now poised more than ever to give the NPA all the support to address factors responsible for the under-utilisation of these national assets,” he said.

The minister stated that by providing port infrastructure, investor confidence would be deepened for more patronage of the eastern ports.

”I was delighted to learn that the Onne and Calabar Port complexes have met the requirements of the International Organisation for Standardisation and are now certified.

Bello-Koko Lauds MWUN for Ensuring NPA Staff's Salary Increase

The NPA Managing Director, Muhammed Bello-Koko

”This shows they we are doing something right but we cannot rest on this determination until all other ports are certified.

”I have been briefed on the growth in numbers especially for exports emanating from Onne Port Complex, and I am impressed.

”I am poised to provide the facilitation and advocacy required to grow the vessel traffic to this important nucleus of growth,” he said.

Oyetola stated that more economic growth would be achieved if more investments were done in port infrastructure.

The minister commended the management of NPA for being prudent with the application of resources that financed the project.

Oyetola reiterated his commitment to grant prompt approvals to initiatives that would enable continuous improvement in the performance of the ports.

In his speech, the Managing Director, NPA, Mohammed BelIo-Koko, thanked the minister for his support to the authority.

He said that the road and mooring-boat projects could only be completed because of the support from the ministry.

Bello-Koko said that the completion of the Road “D” project which linked Berths 9, 10, 11 and 12 at Federal Ocean Terminal would help to grow new business opportunities and increase revenue for the nation.

”This road stretches over a total of 4.8km, covering two container terminals. It will cater for no fewer than 1,000 trucks daily.

”This is a testimony that as an authority, we are repositioning for growth, competitiveness and, future-readiness.

”The road has a 250mm thickness concrete reinforcement provided for a median and side drain with high mast tower Lighting of dual carriageway.

”We are aware that a good road infrastructure requires sound marine craft and equipment, so we added six modern mooring boats to enhance habour operations efficiency,” he said.

Bello-Koko solicited the ministry’s support for concrete fencing of the stretch of land in the port to guard against any unauthorised access.

”This will also enhance the security of the investments that will spring up with the opening of this road.

The managing director commended the concessionaires for their huge investments, describing it as indicative of their confidence in the system.

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Environmental Stewardship: Maritime Experts Appraise Industry, Deep Blue Project

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…As OAF Boss, Olaitan Williams harps on the need to further protect the Planet 

She has a vision: refocusing the youths, particularly the Nigerian girl into the nation’s maritime industry. Her modus operandi is simple: encouraging, motivating and redirecting every pupil and student’s interest towards productive pursuits in marine terrain.

She is probably today, Nigeria’s most consistent and committed promoter of youths’ education in the marine and blue economy.

The Chief Executive Officer of Ocean Ambassadors Foundation OAF, Mrs. Violet Olaitan Williams does not need much introduction in terms of her relevance and mindset for creating the desired conditions for mental and attitudinal development of the Nigerian child, particularly in Lagos State.

Lieutenant Commodore A.A Makinwa

Several times, she has ‘dragged’ students of several secondary schools in Lagos, for a day-out at Sea. 

OAF, redirecting students’ interest into the maritime terrain, at an early age…

During such periods, the lucky beneficiaries were sufficiently exposed, to jobs in the marine and blue economy sector; as well as the vital courses to pursue, in order to realise such dreams.

Only recently, she selflessly embarked on a costly documentary to meaningfully draw attention to EHINGBETI, the nucleus of the Lagos relevance as Nigeria’s most celebrated litoral state, stressing the need to regenerate Nigeria, from the symbolic lessons of its origin.

Though finally depleted and sapped at the end of the costly project, Olaitan Williams remained undaunted in her commitment to the promotion of a cause she truly believed in.

It is like, having lived her childhood days beside the shores of Lagos, she had prudently identified areas she is convinced, early and right exposures of the youths, could transform many of them, tomorrow, into job creators.

Only last week, the OAF Boss again assembled some experts to a ‘Blue Talents Career Talk’ in Lagos, to educate, impact and, enlighten students of several secondary schools, on the importance of the Ocean, the Marine and the Blue economy; the current Government’s efforts at harnessing it’s economic endowment, as well as the need to more properly, protect it.

Students learn better, by seeing it as it is…

Speaking at the occasion, a top naval officer, Lieutenant Commodore A.A Makinwa stressed the need for maritime industry Stakeholders to commend the Federal Government for initiating the Integrated National Security and Waterways Infrastructure, otherwise known as ‘the Deep Blue Project’. 

Lieutenant Commodore A.A Makinwa of the Nigerian Navy who made the call at the Blue Talents Career Talk in Lagos said the Deep Blue Project is such that accommodates almost every maritime security architecture such as NIMASA, NPA, DSS and, even the Marine Police. 

The Ocean Ambassadors Foundation CEO, Violet Olaitan Williams

According to him, “it is whole of the nation’s business and not just limited to the Nigeria Army, Navy or Airforce alone”. 

He mentioned different security agencies, identified their relevance in the security and safety web; and lauded them for the safety of the communities.

In his remark, the Guest Speaker, Engr. Jamiu Badmos while admonishing maritime security personnel not to rest on their oars also said: “You play a lot of roles in the saving of lives of the people and that is why security and safety have links.

“In security, you protect the vessel from any external aggression and the people inside the vessel but in safety, you look more on the people inside the vessel and how to protect them” Badmos stressed. 

Earlier in her speech, Violet Olaitan Williams while welcoming participants at the well-attended event, stated that “by embracing a culture of Safety, Responsibility and Environmental stewardship, you can also ensure a brighter future for the planet and all who call it home!”. 

ALSO READ: BLUE Economy: Synergise With FME, Create Future for Girl Child, Informed Delegates urge Oyetola

The topic for this year’s Blue Talents Career Talk organized by Ocean Ambassadors Foundation was “An Overview of Safety and Security in the Maritime and Blue Economy” with a special focus on goals 3, 8, 14; and 16 of the Sustainable Development Goals.

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