NPA, NSC urged to address inefficiencies in cargo handling, vessel turnaround

The Managing Director of Shipbait Nigeria Limited, Festus Nwiue, has highlighted critical inefficiencies in the country’s port operations, urging terminal operators, the Nigerian Ports Authority (NPA) and the Nigerian Shippers’ Council (NSC) to address challenges affecting cargo handling, vessel turnaround times, and overall port infrastructure.

Speaking during a maritime stakeholders’ forum, Nwiue criticised terminal operators for delays in discharging cargo, noting that vessels that would typically take six to eight days to unload in other countries, spend up to 30 days at Nigerian ports.

He attributed this to a lack of equipment, congestion at terminals and delays caused by the Nigerian Customs Service (NCS).

“Shipowners are focused on efficiency because faster vessel operations mean more revenue. Some shipowners spend as much as $10,000 daily on bumper costs alone. Yet, in some terminals in Lagos, cargo often sits for 24 hours or more on the vessel due to a lack of equipment to discharge and transport them to the terminal. The congestion is staggering,” he explained.

Nwiue called on the NPA and Shippers’ Council to enforce stricter monitoring of terminal operators and ensure investments in modern cargo-handling equipment.

He also questioned the effectiveness of existing agreements with terminal operators, some of which span decades, emphasising the need for periodic reviews to enhance facility efficiency and cargo movement.

The Shipbait boss urged the government and regulatory agencies to prioritise reforms in port operations, invest in infrastructure, and enforce policies that enhance efficiency, competitiveness and accountability in Nigeria’s maritime sector.
“Our ports must catch up with global standards if Nigeria is to maximise its trade potential,” he said.

Responding, the Port Manager, Lagos Port Complex, Adebowale Ibrahim, acknowledged that while terminal operators may not have enough or the latest modern equipment for cargo handling, efforts were underway to improve the situation.

He said some of the equipment needed for efficient operations can be expensive as some may cost about $4 million, which is a significant investment for some operators.

Ibrahim highlighted the challenges faced by terminal operators in acquiring necessary equipment, particularly in light of the current exchange rate, which has increased the cost of purchasing equipment.

“What used to cost N100 million now costs N400 million due to the exchange rate. We need to be fair to them. They are trying their best, but these investments are not cheap,” Ibrahim explained.

Addressing concerns about the performance of certain terminal operators, Ibrahim pointed out that there are contractual agreements in place, and operators have certain privileges, including “forced refusal,” which prevents immediate termination of contracts.

“You cannot just say an operator is not performing well and then remove them. Some legal processes and agreements must be followed. We have to ensure that the operator is truly not performing to a reasonable level before considering such actions,” he explained.