The decision of the Nigerian Ports Authority to divert vessels from Lagos to the Eastern Ports is a major step that is expected to positively impact on the two main ports in Lagos, as well as tame the bedlam that has enveloped the whole of Apapa and its environs as a result of port activities. It is a strategic move that will not only breathe life into the abandoned ports outside Lagos and reaffirm Nigeria’s preeminent position as the shipping hub of the western coast of Africa, but will also boost the country’s wobbly economy.
For too long, the facilities at the Lagos ports of Apapa and Tin Can Island have been overstretched and neglected, resulting in their inability to cope with the volume of cargoes that have had to pass through them, while the ports of Calabar, Rivers, Delta and Onne, collectively referred to as the Eastern Ports, have remained practically idle. This has unfortunately led to ships having to divert to the neighbouring Benin Republic and Togo which, with recent investments in their ports, now boast better operational efficiency.
So, while the largest chunk of the cargoes in West Africa are bound for Nigeria, ships prefer to dock in the neighbouring Cotonou and Lome ports, which are less chaotic and better run. From there, the goods will then find their way into the country through the land borders. Needless to say, Nigeria has been losing a lot of revenues as a result of this. Some of the goods even manage to enter the country as smuggled goods, meaning that their importers evade paying the requisite customs duties.
Worse still, the country has lost control over ships carrying cargoes meant for the landlocked neighbours such as Niger and Chad, which hitherto used to pass through Nigeria. Ships spend weeks in the sea, waiting for opportunity to dock at either the Apapa port or the Tin Can port. At the same time, goods bound for export are stuck in endless gridlock caused by trailers that have now replaced the rail system as the dominant means of moving goods from the ports into the hinterland.
The disordered situation is compounded by the poor state of roads and the continued closure of Nigeria’s borders, which has forced ships that would have discharged some of the Nigerian-bound goods in Benin and Togo, to invariably come to Lagos. Its status as the commercial nerve centre of the country, where most of the industries are located, has also positioned Lagos as the preferred choice for importers.
But given the critical role of the seaports in the country’s policy of economic diversification from oil-dependency to one bolstered by non-oil exports, it is easy to see why the bid to divert ships to the Eastern Ports is a no-brainer. It will not only be a relief to the Lagos ports but will also give a new lease of life to the hitherto neglected ports.
In the first instance, it does not make sense for businessmen in Onitsha, for example, to route their imports through Lagos when they could easily have passed through either Calabar or Port Harcourt. So, diverting goods to ports other than those of Lagos will certainly bring down costs of transport, which will ultimately affect the overall price of goods. Since the Eastern Ports are not as congested as the ones in Lagos, it is also likely that the turnaround time will improve drastically. This will also enhance Nigeria’s ease of doing business rating.
With the unemployment rate in the country currently at over 23.1 per cent, this is a good step that will likely boost employment. Immediately the hitherto moribund ports start doing a roaring trade, more hands would be engaged, which will have a positive impact on the unemployment figures.
There is no doubt that Hadiza Bala Usman, the Managing Director of the NPA, has a passion for reforming the Nigerian ports. One of such reforms was the recent signing of a Memorandum of Understanding with the Port of Antwerp, to improve the operational efficiency of the ports. It is obvious that the decision on the diversion of vessels to the Eastern ports can also be viewed along this line. But she can only make the desired impact if those factors that discouraged ships from patronising the Eastern Ports in the first place are addressed.
In Calabar, for instance, the major hindrance has been the lukewarm attitude towards the dredging of the channel to enable the port to take bigger ships. So far, only flat-bottom vessels can successfully manoeuvre their way into the port. The introduction of 10 per cent discount on harbour dues for some class of vessels is a good incentive but it will not be enough until the port channels are well dredged to make way for optimal performance of the ports. The same goes for the other ports outside Lagos.
Generally, an area that should be of immense concern to the NPA should be the turnaround time of the ports – the difference between date of departure and the date of arrival of ships. For Nigerian ports to be competitive and more efficient, the turnaround time has to be reduced. According to the World Bank, dwell time is an important instrument used to attract cargo and generate revenues. A shorter time is indicative of port efficiency.
If, as it is obvious, the government does not have the requisite investment to bring the ports up to competitive level with their peers elsewhere, there is nothing wrong in seeking a takeover by private investors. In what is dubbed the Maritime Silk Road, China has been buying up and developing a chain of ports in Asia, Africa, Europe, South America and in the Middle East. If this is done in Nigeria, the country will not only make money, the ports will become more competitive and impact positively on the Nigerian economy.
In Singapore, maritime trade contributes seven per cent to the GDP and employs 170,000 people, according to Civil Service College, Singapore. Similarly, Nigeria could benefit immensely from a privately managed port system
