Moving containers to IKLT ‘ll compounds woes of maritime sector – NIIA

By Odunewu Segun

The Nigerian Importers Integrity Association, NIIA, has kicked against the clamours by some clearing agents at Ikorodu for the Nigerian Ports Authority, NPA, to transfer long-standing containers to off-dock facilities, especially the Ikorodu Lighter Terminal (IKLT) in Lagos.

Speaking at the weekend with National Daily, President of NIIA, Godwin Onyekazi, said that the nation’s seaports, especially container terminals, are operating well below capacity, and that such transfer is unnecessary since there is “ample space in the main ports”.

He said the move would only compound the woes of the already suffering maritime sector, and would not bring additional business or progress whatsoever.

“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.”

“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% yard occupancy for most terminal operators; effectively undermining the reason to transfer overtime cargo to Ikorodu,” he said.

He said moving overtime containers can also be seen as a means to boycott terminal operational procedures as owners of the containers will look to avoid paying their accrued charges but rather intercept or obtain their cargo at reduced or no cost at all; thereby encouraging importers to abandon their cargo at the port with the aim of facilitating movement to Ikorodu in order to avoid charges.

This, he argues, “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 on such containers.”

He said the bid to transfer overtime cargo to Ikorodu Light Terminal will only result in huge additional cost burden to government given that the logistics cost of moving the containers from various terminals to Ikorodu will be borne by the Nigerian Ports Authority (NPA).

Onyekazi added that the Nigeria Customs Service (NCS) is more certain of collecting appropriate import duties on the containers at the main ports.