With the aim of resolving issues of excessive overtime cargoes at Nigerian ports, the Nigerian Ports Authority (NPA) has announced plans to auction off these lingering shipments.
Investors King understands that this new development comes as part of the NPA’s ongoing efforts to streamline port operations, alleviate congestion, and improve overall efficiency.
The NPA’s determination to address the problem of overtime cargoes was underscored during an assessment tour led by Dr. Magdalene Ajani, the Permanent Secretary of the Federal Ministry of Transportation. The inter-agency team, consisting of representatives from the NPA, Nigerian Customs, and the Nigerian Shippers’ Council, conducted an extensive evaluation of the situation at the ports.
According to a statement issued by the NPA, the Lagos and Tincan Island Port complexes, along with their terminals such as the Ikorodu Lighter Terminal, have been burdened with a staggering number of overtime cargoes.
The statement revealed that over 3,200 units of overtime cars and approximately 3,295 units of overtime containers have accumulated in these areas. Additionally, the eastern ports have reported a combined total of 956 overtime containers.
The NPA emphasized the detrimental effects of this situation, stating that it not only hampers the smooth handling of cargo but also contributes to the deterioration of port infrastructure. These ports are designed to function as transit locations, rather than storage facilities for long-standing cargo. The accumulation of age-old overtime cargoes has put immense strain on the terminal spaces required for seamless operations.
The statement read in parts, “Following the inspection tour, which was held on Friday and Saturday, June 23rd and 24th, respectively, an all-stakeholders sensitisation involving shipping lines and associations of freight forwarders and clearing agents was convened on Monday, June 26th, 2023, where it was unanimously agreed that all cargoes and containers that have overstayed their required time at the ports should be auctioned “in-situ” (In their current locations) and removed immediately from the ports.”
To ensure transparency and inclusivity throughout the process, the NPA plans to collaborate with stakeholders to finalize the modalities governing the auction. A similar sensitization meeting will be held with stakeholders from the eastern ports, including Warri, Rivers, Onne, and Calabar, to ensure their active involvement and input.
Mohammed Bello-Koko, the Managing Director of the NPA, has been actively seeking the cooperation of the Nigerian Customs Service (NCS) to expedite the removal of overtime cargoes from the ports and terminal yards. This collaborative effort aims to free up valuable space and preserve the durability of the capital-intensive port infrastructure.
Efficient port operations play a crucial role in supporting trade, attracting investments, and driving economic growth in Nigeria. By taking proactive steps to address the issue of overtime cargoes, the NPA aims to enhance the capacity and effectiveness of Nigerian ports, facilitating smoother cargo handling processes and bolstering overall economic development.
