Worried by the negative implications of the implementation of the 15% port charges on their businesses and the nation’s economy, the Shipping Agencies, Clearing and Forwarding Employers Association (SSACFEA) has urged the Federal Government to parley with maritime operators on the tariff with a view to making its implementation beneficial to all stakeholders in the industry.
Speaking on the stance of the planned 15% port charges at a media briefing on Monday in Lagos, the President of the association, Boma Alabi, appealed to the government to suspend the new port charges implementation until it has engaged industry operators and other stakeholders on dialogue.
She said: “We were not informed about the charges before the government implemented them. The government should try to make the ports competitive and attractive, which can be achieved through a reduction of port charges.
“If port charges are reduced, cargo throughput will increase, then the government will make more revenue, and there will be enough jobs available for the youth,” Alabi assured
According to her, Nigeria has been losing cargoes to neighbouring countries due to high port charges, stressing that the government could review cargo costs to enable the ports to be attractive and competitive.
The maritime industry expert pointed out that it costs $15,000 for ships to call at other ports, while it cost $150,000 for them to call at Nigerian ports.
The SSACFEA President further clarified: “Before the implementation of the 15 per cent port charges by the government, port charges on 40ft containers additionally cost N100,000, while it cost N55,000 for 20ft containers.
“After the 15 per cent port charges implementation, it costs an additional N290,000 to bring a 40ft container into Nigerian ports, while it costs N145,000 to bring a 20ft container.
“In Singapore, it takes $29,000 for a ship to berth; $60,000 in Abidjan; $35,000 din China; $26,000 in Lome; $27,000 in Cotonou; and $35,000 in Nigeria,” she added.
To optimize the benefits of Nigeria’s ports, Alabi advocated the need for port expansion by the government, noting that ports could not be competitive if the cost of doing business in the ports is high.
