Operators allege paralysis of N3tr bonded terminals as part of port reforms | The Guardian Nigeria News

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* Over 90% operate at less than 15% of their capacity

Operators blamed the federal government’s port reforms for under-spending more than 3 trillion naira in investments in the country’s bonded terminals.

The Guardian has learned that since 2006, when the government handed over modern ports to concessionaires, more than 90 percent of the country’s bonded terminals are now operating at less than 15 percent of capacity.

Some of these concessionaires are APM Terminal, ENL Consortium, Ports and Cargo Handling Services Limited, Ports and Terminal Multipurpose Limited (PTML) and Eko Support Services Limited (ESS), among others.

Nigeria Bonded Terminal Operators Association General Secretary Haruna Omolajomo noted that most of the concessionaires are foreigners who are in Nigeria to make huge profits, thus ignoring local content.

He said the concessionaires had moved in and opted to keep the containers at the ports as they preferred to deal directly with importers and agents, which caused bonded terminal operators to suffer.

He said this has been happening since the government conceded the ports without any published conditionalities or identifying the government organization with a regulatory or oversight role.

Omolajomo noted that Bonded Terminal Operators are licensed by the Nigeria Customs Service under the Customs and Excise Management Act (CEMA) Cap 84 LFN 2004 as Warehouse Operators / customs terminal and are also globally recognized by the World Trade Organization (WTO), the United Nations Conference on Trade and Development (UNCTAD), World Customs Organization (WCO) as they are an integral part of port operations.

He said the first port is supposed to be a transit area, as stipulated by the International Maritime Organization (lMO) which states that goods must leave the port within 24-48 hours to disembark or to bonded terminals before final customs clearance by owners all over the world.

He said there are more than 40 bonded terminals in Lagos, whose operations consist of upgrading and providing disembarkation facilities with the aim of eliminating congestion in ports and serving as storage bays for them. containers in a secure and bonded environment that guarantees increased revenues for all stakeholders.

Omolajomo added that bonded terminals can handle everything but not limited to exports, imports, storage bays, warehousing, cargoes or containers landed on a ship, whether by barge, road or train, among others.

He said that despite all these bonded terminal operations with international and local support, the ports are used as large storage facilities with containers stacked up to six compared to international best practices, thus affecting the use of the capacity of bonded terminals.

“Due to the federal government’s port reforms, which led to the handing over of port terminals to concessionaires, more than 3 trillion naira of investment in bonded terminals remains underutilized. As we speak, more than 90% of bonded terminals today cannot boast of having a capacity of use of 15%, as most bonded terminals are denied cargoes by concessionaires even at the height of congestion.

“Could you imagine a bonded terminal that can accommodate 600 containers at full capacity, but currently can accommodate 67 containers? This is not normal given the huge amount of money invested in the terminal facilities. For these concessionaires, they are not required to use customs terminals, ”he said.

He said the bonded terminals have had a positive impact on the availability and use of space, as they complement the Nigerian Ports Authority’s efforts to decongest ports.

Omolajomo added that during the National Economic Empowerment and Development Strategies (NEEDS), where individuals were encouraged by the federal government to invest and participate economically in maritime businesses, bonded terminal operators borrowed no less than 3 500 billion naira to finance the acquisition and improvement of facilities.

They have also engaged other third party service providers such as transportation service providers, security service providers, and IT service providers, among others.

He said that despite all these investments, the bonded terminals are not functioning at full capacity as expected in their area of ​​operations because they are not frequented.

Omolajomo also refuted claims that the bonded terminals lack equipment and personnel to support the activity.

Omolajomo said that although the CEMA law is in the process of being amended, it should recognize and clearly state that a conscious policy of patronage of the cargoes of inbound vessels should be included at bonded terminals / unloading terminals as per the policy. the federal government for local content.

He said customs, through the CEMA law, should recognize a one-stop-shop for handling containers on foot at bonded terminals, adding that processing should be electronically controlled by sending CALs to all persons affected by the electronic security provided by customs terminals. .

He also added that customs should ensure that vessels’ stay on waterways does not exceed seven days, noting that all vessels should be assigned to native bonded terminals to avoid delays.

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