Ports concession arrangement faulty - Adeyemo
Captain Niyi AdeyemoThe immediate past President of the Nigeria Association of Master Mariners, Capt. Niyi O. Adeyemo, in a chat with Maritime Editor, DELE ADERIBIGBE, says there is need to review the ports concession arrangement, among other sundry issues. Excerpts:
Sir, how do you see the on-going Ports Reform and how would you assess its impact on the nation’s economy?
The first question we need to ask ourselves is the motivation of the issue of port reforms. Why did the government consider it necessary? What ends were to be achieved?
I think the government believed that ports reforms was going to bring about rationalization of operations with set goals and objectives in the ports; that it was going to control the movement into and out of ports especially with regards to the ISPS code; with regards to having to curb the movement of undesirable elements entering into the ports, which in the instance reduces the number of vessels that come into our ports and enhance operational efficiency in cargo work and in keeping with modern day trend to have public private partnership that will work to the advantage of the country.
We must understand that NPA as an organization, though rich and buoyant was overloaded with staffers. As a result of its buoyancy, some of the past management in that direction had a lot of money to spend; they were one of the few government agencies that did not depend on the government fund for their operations. They were in position to look after their staff, pay their wages as at when due and other welfare packages. They met their financial obligations without having to go to the government.
But as a result of political angle that NPA had, they were not in the position to get the best in terms of Chief Executives. As a matter of fact, the last thing that came into government’s head was efficiency or competency and therefore there was a lot of fight to be able to take the position.
But forgetting competency or track records of such people was one thing; that almost every one wanted to attempt the post was another. The end result was that the work force was bloated; they now have a situation where 10 people would be doing the work of two persons.
Majority of them have nothing doing; they simply came to work and yet did nothing, since they believed that after retirement age their benefits and gratuity will come because of the buoyant nature of the NPA.
They had a lot of revenue to spend, both locally and abroad they didn’t feel anything about the over bloating nature of the ports. So it is good the ports concession actually started from them.
But of course we all know that the efficiency of the port could not be guaranteed if that had continued, since they would not be meeting the economic standard. They needed to generate sufficient revenue because as you know, they were not going to get anything from the government; no subvention.
Of course NPA was not getting any subvention from the government, except for the one government was expected to give for the construction or rehabilitation of the ports and that was a decision taken in the interest of the country.
Sadly enough too, they realized and worked on the premise that whether the ports were efficient or not, the cargo input will always come. But the end result was that if you had so much congestion for the cargo in port and the turn round of vessels was prolonged; the shipping companies were going to slam a surcharge which you and I have to bear because the shipping companies will simply spread it on freights and on the charges paid before you collect your cargo.
Are you saying that the concession was fair?
The ports concession in practice was good; by and large. Though the end result might not have justified the whole issue of the ports reforms as a result of the political patronage. The issue of using everything for money failed to encourage efficiency and competency.
In Apapa for instance, in some parts of the areas that were newly concesssioned, there has been this indiscriminately pricing of the ports for perhaps, those who were in tune with the leadership of our government.
But in terms of efficiency, most people believe that the AP Moeller enjoys an edge, without any prejudices over many other terminal operators.
That however does not deny that there has been overwhelming improvement in other areas. Let’s take the Flour mill for instance, they too have been operating for long and sunk a lot of money into operating the ports. To ensure a maximization of their investment, especially by those two; they brought in experts and professionals to manage their investments in the ports. My only anger is that they ought to be able to submit fully, to whatever charges the NPA asked of them.
The ports concession would have been perfect, but for political patronage, especially in respect to what ports concessioning should promote.
So, today we have a situation were these experts now programme their vessels back to back as professionals. It is a good thing. And it has impacted on operation, but may be, with added cost. But then, everything that brings efficiency also adds cost in the short run. But, on the long run after they may have been used to all these, cost should go down; except that in Nigeria, cost don’t go down!
My suggestion is that the NPA should revive the whole operations after two or three years. Without government taking action to find out how they are working, what the gains are in terms of time, what they are doing in terms of cost, especially in respect of what we are paying before as compared to what we are paying now; how is it affecting clearing agents all of which, will get to the final consumers.
The authorities should call on the stakeholders to let them brainstorm periodically. A lot of clearing agents must have some complaints, some may be genuine, some may not, and some may be out rightly frivolous.
I am talking in terms of what the country will benefit, not what the individuals would benefits. We must begin to ask questions. Has the ports concession made their places of work more conducive? Have the ports users got the benefits of cooperation with the concessionaires; have they put any obstacles in the way of the customs or have our customs benefited from the expected high turn over in the ports? And have all these translated into any higher revenue for government?
Whatever any one may say in favour of the ports concession, the average resident in Apapa now also believes it has equally brought a menace in its stride. Are you aware of this?
The menace you are talking about is the traffic. What can we do in order to re duce the traffic congestion? But is it impossible for them to create another route or axis now?
I heard of what the Ogun State government is planning to put in place of recent. The Federal Government ought to have come into that, when they were planning towards the concessioning of the ports; but nobody told the Federal Government. The only agency that ought to do this was the Federal Ministry of transport. Everybody was thinking on how they will get their people into the concessioned area.
