Importers Lose Billions As Nigeria Ports Records Highest Dwell Time

Importers Lose Billions As Nigeria Ports Records Highest Dwell Time

The cargo dwell time in Nigeria Seaports have remained high despite government intervention through the Presidential Enabling Business Environment Council (PEBEC).

Cargo dwell time is the time cargo spends within the port or its extension awaiting clearance for transportation to owners warehouse.

And after three days cargo is discharged at the port from the vessels, terminal operators introduces storage charges for the cargoes.

Study has shown that Nigeria’s seaports have the highest Cargo dwell in West Africa thereby contributing to high cost of doing business and also contributed to delays in the movement of goods in the country.

It was gathered over the weekend that seaports in Lagos namely the Lagos Port Complex (LPC) and the Tin Can Island Port Complex (TCIPC) both in Apapa that importers and clearing agents take up to 21 days before taking their containers out of the port.

But, while cargo dwells in Nigeria is between 19-25 days, it is 12-14 in Cotonou and in Durban port, South Africa, four days, while in Mombassa port, Kenya, cargo stays a maximum of 5-7 days.

However, due to this encumbrances, the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACIMMA) also raised the alarm over high cargo dwell time the ports and effects on cost of Doing Business at the nation’s ports.

Speaking at a summit organised by Shipping Correspondents Association of Nigeria (SCAN) in Lagos, the President of NACCIMA, Chief Mrs Alaba Lawson said the port has a low level of modern functional technology.

Chief Lawson who was represented by Mrs Flora Takim Ndifor said, “The lingering delay to clear a container at Nigerian ports still persist despite PEBEC’s intervention which is far cry from what is accessible at other African ports such as Ghana and Benin Republic.”

“The ports have a low level of modern functional technology for automation, valuation database, integrated process system and many more.”

NACCIMA, the apex business
association however urged the Federal Government to improve the overall efficiency if the ports and reduced the cost of doing business.
“Our association urges government and other relevant port agencies to put in place more effective strategies to improve the overall efficiency of the Port and reduce the cost of doing business at the ports which will enhance the ease of doing business business in the country and make the Nigerian Ports the hub for international freight and trade in West Africa.”

Also speaking, a former president, National Association of Government Approved Freight Forwarders (NAGAFF), Eugene Nweke said shipping line agencies in.a meeting recently confirmed that it takes 20 days to.nclear cargoes or of the nation’s seaports.

His words, “The dwell time of cargoes when it has been discharged from the port and when it will go out takes about 20 days on the average and to them, that is a very bad business rotation for them.

“The factors responsible is because if international best practices is adhered to, it is expected that shipping line will do advance manifest transmission to Customs and when they do that they have no issue of rotation numbers issued by customs. They raised other issues.”

“Speaking as a forwarder, the 20 days mentioned are caused by operational delays that is caused by human barrier element so we are looking at what is the capacity of a particular port before receiving additional cargoes.

“Capacity in terms of how many cargo handling equipment are operational, capacity in terms of ICT compliance what is the level of tracking your cargoes in the port because track will give you the leeway to prepare toward achieving cargo deliverance whereby you cannot track cargo.
Nweke also identified proliferation of government agencies at the seaports as another bottleneck adding to the dwell time at the port.

“Many agencies having overlapping power, for instance you see minister giving directive that agencies in the port should be reduced and they will leave and retirn in two weeks so, at what time is the government firm to issue clear cut directive on cargo evacuation?”

“Also, for ease of doing business to be successful in Nigeria, the first thing is to put up a template and frame work upon which a clear cut corrupt practices will be reduced and for that to happen, we have to adhere to Nigerian Shippers Council Standard Operating Procedures (SOP) and the procedures should be simplified.

Also speaking, the Abidjan-Lagos Corridor Organisation, revealed that between 2011 and 2017, port dwell time in Lagos ports rose from 20 to 22 daycare.

Giving a comparative analysis of neighbouring countries in the ECOWAS region, the borderless body explained that Cotonou port, as at 2017, had a total of 14 days for cargo dwell time.

According to a representative of the organisation, Mr. David Nounagnon, Ghana’s Tema Port currently has 15 days dwell time, while Lome has the lowest port dwell time with nine days.

He said, “between 2011 and 2017, cargo dwell time in Lagos ports rose from 20 to 22 days and longer days of cargo dwell time at the ports  further contributed to delays in the movement of goods in the region,” he warned

Share This Post

Post Comment