Group kicks against transfer of containers to Ikorodu Terminal

The President, Nigerian Importers Integrity Association (NIIA), Mr Godwin Onyekazi, has kicked against the planned transfer of long-standing (overtime) containers to off-dock facilities, especially the Ikorodu Lighter Terminal (IKLT) in Lagos.

Onyekazi spoke on Monday against the backdrop of clamour by some clearing agents at Ikorodu for the Nigerian Ports Authority (NPA) to transfer overtime containers from the main port to the terminal

He said that the nation’s seaports were operating well below capacity and government should not transfer overtime containers to Ikorodu.

The importer said such transfer was unnecessary due to the “ample space in the main ports’’.

“Congestion in the terminals has always been cited as the reason for transfer of containers but the present economic downturn has resulted in less than 40 per cent yard occupancy for most terminal operators.

“Effectively undermining the reason to transfer overtime cargo to Ikorodu,” Newsverge quotes him as saying.

Onyekazi said the maritime sector suffered a “huge blow’’ in 2016 with ever increasing foreign exchange rates and a sharp decline in cargo volume.

According to him, businesses, banks and social institutions surrounding the ports have closed down as an extension of the reduction in business faced by the ports.

“A recent statement by the Senate in November 2016 highlighted the fact that the containers already transferred to the Ikorodu Lighter Terminal have been abandoned with goods worth billions of naira rotting away daily.

“Alluding to the fact that inadequate maintenance measures exist for the containers there.

“Therefore, moving even more containers will result in a sharper decline in the condition of the containers and cargo and lead to wastage,’’ Newsverge quotes the importer as saying.

Onyekazi said that moving overtime containers could also be seen as a means of boycotting terminal operational procedures as owners of the containers would avoid paying their accrued charges.

He said the owners of the containers would rather intercept or obtain their cargo at reduced rate or at no cost at all.

According to him, this is one way of encouraging importers to abandon their cargo at the ports with the aim of facilitating movement to Ikorodu in order to avoid charges.

“This undermines the integrity of terminal operators’ authority and processes, leading to complete loss of revenue to terminal operators despite handling costs incurred and fulfilled financial obligations to the government over the years,’’ Onyekazi said.

He said the bid to transfer overtime cargo to Ikorodu Lighter Terminal would only result in huge additional cost burden to government.

“Given that the cost of logistics of moving the containers from various terminals to Ikorodu will be borne by the Nigerian Ports Authority.’’.

“This move will result in additional handling of containers which comes with increased cost of doing business for terminal operators; as well as likely claims from damages from handling during such a transfer.

“There exists also the risk of loss of cargo to the importer due to allegation of diversion of cargo in transit from previous transfers and pilfering due to insecurity at Ikorodu terminal.

“The extra cost to be incurred to carry out the transfer can be avoided, especially in times like these when all sectors should be focused on saving and not wasting public funds.

“Combined with the recession, this move will only serve to compound the woes of the already suffering maritime sector; it will not bring additional business or progress whatsoever,” Newsverge quotes him as saying.

Onyekazi said that the Nigeria Customs Service (NCS) was more certain of collecting appropriate import duties on the containers