Concerns as bonded terminals lose over N300b to stoppage of containers allocation

Bonded terminals in Lagos have lamented the loss of over N300 billion to port terminals stoppage of stemmed import containers from Apapa port in four weeks.

Some terminal operators had issued an embargo stopping import cargoes in Apapa port from being stemmed to bonded terminals and Inland Container Depot (ICD) from December 2022.
According to the bonded terminal operators, this embargo has caused a loss of jobs and revenue to the Federal Government as each bonded terminal remits about N10 billion as revenue to government.

The General Secretary of the Association of Bonded Terminal Operators of Nigeria, Haruna Omolajomo, who spoke to The Guardian on the situation, said over N300 billion have been lost since import cargoes discharged in Apapa port have been stopped from getting to the bonded terminals.

He said many bonded terminals are gradually going out of business due to this embargo, as over 85 per cent of import containers berth in Apapa port, noting that the over 40 bonded terminals have to compete and rely on the other ports for containers, which are not sufficient.
“APMT is not allowing containers to leave the bonded and off-dock terminal. It issued a circular that because of low patronage, they are not going to allow anybody to come and take containers from the terminal again until further notice. They said all cargoes that come into Nigeria through Apapa port would be handled by them.
“Since early December 2022, each bonded terminal has lost more than N300 billion and even revenue that would have gone to the Federal Government, which is more than N10 billion per terminal due to this draconian law.
“There is no job for bonded terminals unless we go through another command like Tin Can, PTML. In Lagos over 85 per cent of containers pass through Apapa port and not allowing containers to go to bonded terminals is having a serious negative impact,” he said.

He said there has also been a loss of direct and indirect jobs, adding that if the situation is not addressed most bonded terminals will fold up.

“For our bonded terminal, we just come to the office and then close when it is 5:00pm because we have been idle without work to do at the office. Let this concessionaire reverse their decision to allow all bonded terminals and off-dock operators to engage in the maritime business. They must not do anything to jeopardise the interest of these people including the barge operators,” he said.

The President General of the Senior Staff Association of Shipping, Clearing and Forwarding Agencies (SSASCFA), Harrison Asonye, raised an alarm that massive job loss looms in the maritime sector if the anomaly is not corrected, adding that the ICDs have done well in ensuring there is no congestion at the Lagos ports,

“Till today, some terminal operators have decided not to allow allocation of containers to some of these ICD’s. Most of these ICD have created employment. If they don’t get container allocation from shipping companies they cannot remain in business and how would they sustain employment?

“The terminal operators are saying they are the main concessionaire and cannot allow a container to leave from the main port of discharge,” he said.

Already, some bonded terminals have issued a memo to all their staff informing them of a shake-up if things do not improve.

A memo by one of the bonded terminals sighted by The Guardian states: “We pray things to improve in 2023, otherwise, the Management shall be forced to review its terminal activities. All Managers are to duly inform staff under them please.”