Business

Why govt approved hike in terminal charges

THE recent strike embarked upon by dockworkers over the non payment of the enhanced salary packaged may have been responsible for the approval granted to terminal operators by the Minister of Transport Alhaji Suleiman Yusuf to increase terminal charges.

It was gathered that the terminal operators told the Minister at a meeting that it was impossible for them to pay the agreed increment with out increasing terminal charges.

It will be recalled that the Federal Government last month  reviewed upward the tariff charged by the concessionaires.

The new terminal handling charges which include N45,500 per 20ft container and N67,500 per 40ft container took effect since April 15,2011.

However, the shipping lines have been stopped from collecting terminal handling charge in all the nation’s seaports.

It was learnt that only the terminal operators are  now to collect the new rates with effect from the month of April.

The circular which reviewed the charges was signed by the Executive Director, Marine and Operations, Nigerian Ports Authority (NPA), Aina Egharevba on behalf of Managing Director, Engr Omar Suleiman.

Already, the approval has been communicated to the terminal operators.

The circular reads in part: “I am pleased to convey the approval of the minister of transport for the review of your terminal charges. “The circular also directed shipping companies to stop collection of terminal handling charges effective April 15, 2011.

In addition, the circular approved a 20 per cent hike in delivery charges for terminal operators handling general cargoes.

According to the circular, a yearly review is now done for the terminal operators. The letter stated  “henceforth, the rates for these adjustments will be forwarded to you within the first week of each year”, even as it is also confirmed that the new terminal handling charges of N45,500 per 20ft container and N67,500 per 40ft container are  effective as from April 15,2011.

Before now, the terminal operators  under  the umbrella of the Seaport Terminal Operators Association of Nigeria (STOAN) had said that they would not review the wages of dockworkers if their port charges were not reviewed by the government.

They explained that it would be impossible to review salaries under the prevailing economic conditions in the country.

STOAN Spokesman, Mr. Bolaji Akinola, explained that unless the review of terminal handling charges is effected and implemented by the terminal operators, it will be practically impossible to pay any increased wages.

He added: “We understand the position of the maritime workers union but the issue right now is not about us  refusing to pay; rather it is an issue based on the fact that we cannot pay. The money is just not there to pay so even if we enter into any review agreement, it will be extremely difficult to implement because there is just no money to back up any such review.”

Akinola who was reacting to a 14-day ultimatum issued by the Maritime Workers Union of Nigeria (MWUN) however expressed optimism that government will soon approve the necessary adjustments required to bring the operations of the terminal operators back to profitability.