By Godfrey Bivbere

THE International Freight Forwarders Association, IFFA, has called on the Federal Government to reassess the port concession exercise to check capital flight and improve port efficiency for maximum economic benefit for the country. IFFA position was made known in Lagos by its President, Sam C. Onyemelukwe, at its quarterly press conference to address issues affecting the maritime industry.

Onyemelukwe explained that the scheme has not met the desired targets as the concessionaires allow delays and congestion at the terminals. According to him, “To reduce capital flight, improve efficiency and ensure that maritime and shipping contributes maximally to national economy, the Federal Government should reassess the port concession regime, as the scheme has not met the desired targets.

“The concessionaires allow delays and congestion in the terminals even as many dry docks, bonded terminal, are empty. These bottlenecks in the system appear to be deliberate, aimed at making cargoes attract huge rent charges. “This development has increased rather than reduce cargo dwell time, hence leading to higher clearing costs for goods from Nigeria’s ports.”

Similarly, IFFA accused shipping companies of encouragement of human contacts to compound the problems of the industry, as this causes avoidable delays and encourages corruption. The Association charged shipping companies and the Nigeria Customs Service, NCS, to make ship manifest available in advance electronically so that consignees can generate documentation for cargo examination before ship arrival date.

In his words, “The continued encouragement of human contacts by shipping companies have compounded the problems of the industry, as this causes avoidable delays and encourages corruption. “Firstly, shipping companies in conjunction with the Nigeria Customs Service, NCS, should make ship manifest available in advance electronically so that consignees can generate documentation for cargo examination before ship arrival date.

“Also, shipping companies should interface with freight forwarders in such a manner that their debit and release notes will be accessible online for freight forwarders to process these independently”.

“This way, huge losses to the economy from avoidable demurrage charges will be circumvented. Another issue that continues to adversely affect operations and the economy has to do with container deposit. On this note, IFFA commends the Nigerian Shippers’ Council (NSC) for fighting to protect shippers from huge losses arising from shady container deposits racket.

“Let us state clearly that IFFA shall go to any legitimate length to ensure that only the charge regime for container deposit recommended by the NSC will be obtainable in Nigeria.

Furthermore, our position is that the refund on the deposits must be effected within the same no of ‘free demurrage days’ or lay period allowed by shipping companies, otherwise the deposits will attract interests on the shipping companies paid at same rate charged on container demurrage as they are not banks that hold funds,” the IFFA president concluded.