WITH SO MANY UNUTILIZED PORTS IN DELTA STATE, NIGERIA NEED NOT TO BE EXPERIENCING CONGESTION, OVERTIME CARGOES, ETC. IN LAGOS PORTS

With several reports that imported Cargoes now loiter at the Lagos Ports for months and years, and at the moment, over 10, 000 cargoes are currently lying at Tin Can and Apapa seaports in Lagos, a development that has not only led to congestion, but has also forced a shipping firm to stir the hornets’ nest with a controversial congestion surcharge on all Nigeria-bound cargoes, we could not help but wonder what exactly is wrong with our political leaders and relevant government authorities and stakeholders in the nation’s maritime/shipping sector? Why should a country that is blessed with more than Seven Ports still be having problems of congestion, overtime cargoes, logistics problems, road infrastructure overuse, etc., only in the Ports in Lagos? Why do we like giving ourselves unnecessary headaches and untold hardship to the general masses with the way we do things in this country? it simply does not make sense!

We have reiterated severally that Ports infrastructure are by far one of the most important support of economic activities of the economy of any society, especially those in the hinterland since they act as a crucial connection between sea and land transport. As a supplier of jobs, Ports do not only serve an economic but also a social function. In terms of load carried, seaway transportation is the cheapest and most effective transportation system compared to other systems. Industries require a safe and cheap means of “exporting finished goods and importing raw materials.” Hence the majority of industries in the world are located in the ‘coastal belts’, in the vicinity of major Ports. These industries in turn, influence the lives of the employees and indirect benefactors of that economy, as well as the entire citizenry of that society. 

With this at the back of our mind, we would then realize the urgent need for other Ports in the country, particularly the one in the city of Warri and other ‘coastal areas’ of Delta State, to have their Ports functional again and operating at optimal level/usage, as an important revenue-yielding avenue for the development and growth of the Nigerian economy. Under normal circumstances, according to a recent report, cargoes are meant to last about 30 days or a few weeks at Ports before they are ferried away by their importers to their final destinations. But that theory appears to be Utopian as far as Lagos seaports are concerned. Cargoes are classified as overtime when they have stayed in the ports for between 28-30 days without clearing and delivery. Many cargoes at the Lagos ports are said to have stayed for between 30 days and seven years and still counting. Consequent upon this ugly development, French shipping company, CMACGM, was reported to have recently served notice of plans to introduce a $400 surcharge on Lagos-bound cargoes saying its action was necessitated by disruption of its activities due to congestion at the ports. The fine, which was to come into effect on October 15, 2018, would have amounted to extra costs for importers and higher costs for manufacturers. Before the situation got this bad, importers, clearing agents and other stakeholders had been soliciting for the restoration of normalcy in port operations, but without any appreciable change. On a sad note, the worsening congestion has nothing to do with the increased volume of cargo traffic, rather, it is as a combination of “over-patronage of Lagos ports”, poor cargo delivery processes, as well as, the very poor state of access roads to the ports.

With a coastline of over 850 kilometres, Nigeria is said to have recognized Seven port complexes, and Delta State alone has four that are located in Warri, Burutu, Koko and Sapele, each of them built at huge costs and still in relative working conditions. There is also the Okwagbe Wharf, also in Delta State. In effect, industries and business communities in the various regions ought to be enjoying the advantages of multiple choices and closeness to their operational bases as a result of these Ports, but sadly, that has not been the case. The other fully equipped Port complexes are located in Port Harcourt and in Onne (both in Rivers State), and in Calabar, Cross River State. Unfortunately, despite this spread, every business concern “unwittingly feels compelled” to use Lagos Ports for their import and export transactions. This nationwide drift towards Lagos Ports by importers is what has brought about the unprecedented number of overtime cargoes that now litter Apapa and TinCan ports in Lagos. Both ports handle more than 80 per cent of containerized and general cargoes shipped into the country.

We are aware that the Federal Executive Council had approved the award of contract for the dredging of the Escravos bar and navigational tools on April 11, 2018 to allow bigger vessels into the Warri Port and make the Port functional. But it has been reported that shortly after the contract was awarded, the House of Representatives on May 3, 2018, resolved through a motion moved by Hon. Ossai N. Ossai to probe alleged so-called infractions in the award of the contract. The House of Representatives Committee on Ports, Harbours and Waterways and Public Procurement is said to have since started public hearing on the investigation. However, a Niger Delta group had claimed that the public hearing started without the committees inviting stakeholders from the Niger Delta and especially Delta State and the immediate Warri communities who would be the beneficiaries of the project to participate in the public hearing process. The group said rather, some unknown Non-Governmental Organizations were the ones invited and mobilized by the sponsors of the probe to make presentation on behalf of the public and interested parties wherein they called for the cancellation of the dredging project. The group alleged that persons behind the controversial Calabar Port dredging contract currently being investigated by Economic and Financial Crimes Commission were behind the probe into the alleged infractions in the award of the contract of Warri Port dredging project by the House of Representatives because of “vested interest”

While we do not know the exact current situation with the above stated probe, and we would not want to bother ourselves with the above claims and allegations concerning the award of contract for the dredging of the Escravos bar and navigational tools to allow bigger vessels into the Warri Port; however, our major thrust here is that the Federal Government, the Nigerian Ports Authority (NPA) and relevant Stakeholders in the nation’s Maritime and Ports industry, should do whatever that urgently needs to be done for the Warri Port and others in Delta State, which include Sapele, Koko, Burutu Seaports and Okwagbe Wharf, to become functional again at optimal status. We have been on this issue for the past 15 years, but past Governments have ignored our advice in this regard. Let us also reiterate here that the Delta Ports, which comprises of the Warri Ports (which is centrally located for the business importation and exportation), Sapele Port, Koko Port, Burutu Port and Okwagbe Wharf, were used by the British Colonial masters, but today they are no longer functional as they should. That of the Okwagbe Wharf has been totally abandoned after the Colonial era. Let us also reiterate here that the Escravos-Warri area is nearer to the Atlantic Ocean than other Ports in the country, including the Lagos Ports. This makes the city of Warri an attraction for people from all over the world. As such, the quickest way to achieve this is for the city of Warri to have an optimal functional Port.

The crux of the matter is that there is urgent need for the Warri Port complex to become functional because of its importance to the Nigerian economy. There are actually two ports in the Warri Port Complex, which comprises of the Old Warri Port and the New Warri Port, both located in the same place. The new Warri Port is an extension of the Old Warri Port; hence this makes it a Warri Ports Complex. Delta Ports, as it is fondly called in the industry, is said to possess immense potentials, and is tagged “The Ports of the future” by the Nigerian Ports Authority (NPA). Its uniqueness includes accessibility and proximity to States of Anambra, Imo, Enugu, Delta, Edo, Kogi, Ondo, Benue, Abuja, etc compared with other operational ports in the country. According to NPA, “There is the emergence of new growth drivers in the export of gas by the EGTL [Escravos Gas To Liquid] facilities whose production and capacity is next to non in the country”. The Delta Port Manager, Mr. Okeke Simeon Okeke, is reported to have spoken about the challenges facing the Port which have reduced its activities “to near zero”. The report highlighted government neglect, encroachment by host communities, and the need to dredge the port to attract bigger vessels. Mr. Okeke also stated that the revenue generated between 2007 and 2016 was $607.7m, while revenue collected amounted to $1.2347m. Another thing that discourages shipowners/shipping lines and importers from using the Warri Port is the attitude of the Nigerian Customs who are said to always demand a lot of bribes before clearing goods. Whenever cargo ships arrive in Warri Port, the customs officials usually feast on it to demand all kinds of money from the importers. In other words, the corruption amongst custom officials working in the Warri Port is a serious cause for concern that needs to be addressed by the present Buhari administration. Even if the Escravos river is dredged, importers and shipping lines will still be scared of the Nigerian customs and their corruption tendencies in the Warri Port.  There is need for the Federal Government and relevant authorities to tackle this issue of bribery, allegedly being demanded by Nigerian custom officials from importers in the Warri Ports Complex. We can see the viability and the importance of getting the Warri Ports Complex functional again by all means and as soon as practicable. It will address a whole lot of issues in Delta State from youth restiveness, unemployment, and also drastically transform the State’s economy as well as add to the nation’s growth.

The Apapa Port for instance enjoys a “four-wheel gate of about 8 meters for oversize cargoes”, which, according to NPA, gives it “an edge over others in the handling of oversized cargoes”. While that of the Tin Can Port terminal operators specialize in unique services, including dry and wet bulk cargoes, boxed or containerized cargoes etc. and that of Onne Port, which boasts of one of the biggest habour mobile cranes in Africa is designated a multi-purpose cargo terminal, and its operations cut across all cargoes, including oil and gas. The question now is, why should a country as big as Nigeria that is blessed beyond measure with so many coastal regions, especially in the Niger Delta areas of Delta State, be only known to have these two functional Ports? Whereas, there are many other Ports, like the ones in Delta State, which have been left to decay and not function as they ought to. Why should we have the concentration of Port activities in Apapa, Tincan, and Onne – leaving other Ports like Delta Ports not working as they should? Is not appalling that majority of the goods imported into Nigeria comes only from the Lagos Ports, which leaves a large number of people from other regions in Lagos State alone for various business activities. This lopsided ‘Political Economy of Nigeria’, is definitely not good for the country, as it will not encourage any significant economic growth.

This is the obvious reason why the Lagos State Governor, Mr. Akinwunmi Ambode, some few months ago, tasked the Federal Government to do everything within its powers to revive existing Ports in other States of the federation so as to bring about ‘permanent solution’ to the perennial traffic congestion in Apapa axis of the State. The Governor noted that the recent chaos witnessed in the Apapa area of Lagos was beyond traffic issues, saying that concerted efforts must be made to revamp moribund ports. According to him, beyond getting other Ports up and running, the issue of tankers queuing up to lift petroleum products from Tank Farms in Apapa was also a major issue causing gridlock and damaging road infrastructure in the area, which according to him was inimical to the economic growth of not just the State, but Nigeria in general. In his words: “We don’t need tank farms within Lagos metropolis anymore. There are 68 tank farms in Apapa alone. That is a serious danger waiting to happen. Beyond Apapa, they have approved tank farms in Ijegun axis and that is where we have huge population. We need to redistribute tank farm establishment to outer borders and other parts of the country. This is what we believe should be done at this moment to free Lagos roads.”

Without a doubt, the concentration of Maritime activities and other related Seaport economic activities in Lagos alone, is not helping the economy of Nigeria as a whole. All we have in Lagos State, can be replicated and even more in some of the States in the Niger Delta region, particularly Delta State and oil city of Warri, which is centrally located. There is need for the Federal Government and relevant Stakeholders to make concerted efforts in this regard so as to decongest the maritime and Port activities in Lagos State, and reduce the human-induced problems over there. It is in the light of this that we urging for the need to focus and address the subject matter. 

Zik Gbemre.

National Coordinator

Niger Delta Peace Coalition (NDPC)