N14m per truck lost to inefficiency in export cargo handling

The gross inefficiencies at terminals have caused substantial financial strains on truckers, with losses estimated at N14 million per truck. The aggrieved truckers have expressed that these terminal inefficiencies, persisting for over three months have not only jeopardised Nigeria’s position in the international export market but also led to substantial financial losses due to canceled contracts and diminished product value.

The Guardian learned that some vehicles, including those loaded with perishable exports, have been idle for weeks, awaiting entry into the terminal. This delay has precipitated unprecedented traffic gridlocks, effectively transforming the Apapa port access road into a makeshift truck park for export cargo.

Truck owners have reported suffering average daily losses of N150,000 per truck when terminal delivery orders (TDO) are withdrawn by clients due to delays at the Lilypond pre-gate, primarily caused by slow processing at the Apapa port terminal.

The Chairman of the Nexus Association of Maritime Transport Operators (NAMTOP), Lukman Shittu, in a letter to the Managing Director of the Nigeria Ports Authority (NPA), highlighted severe operational setbacks at the Apapa port, which have caused significant economic repercussions and threats of protests by truckers.

Shittu expressed critical concerns over the sluggish operation at APM Terminal in Apapa, which he said not only thwarts the purpose of Bellinton and Diamond Star Export pre-gates, established to enhance exports and generate foreign exchange but also allows the terminal to profit from revalidation fees for expired loading documents amidst the chaos.

This scenario, Shittu argues, undermines national economic interests and the government’s initiatives aimed at facilitating trade and automating cargo evacuations. The chairman’s letter warned of potential protests if the situation does not improve promptly, describing the move as a defense of national economic interests and local livelihoods, thereby underscoring a growing frustration among local operators against perceived exploitation by foreign entities.

Shittu’s correspondence concludes with a stark reminder of Nigeria’s sovereignty and an urgent call for the NPA to address these operational failures to prevent further economic damage and social unrest.

“Our exports no longer arrive at international markets on time without losing their value or having contracts canceled by foreign clients. Nigeria is losing its export position to other countries in West Africa due to poor terminal handling. Our trade facilitation, ease of doing business, seamless evacuation of cargoes, and call-up automation system are becoming ridiculed and undermined by the current poor terminal efficiency.

“Therefore, if the terminal efficiency and traffic situation do not improve in the coming days, we would have no other option than to sing our national anthem against foreigners in defense of national economic interest and our means of livelihood,” he added.

Also speaking, the Administration Secretary of the Association of Maritime Truck Owners of Nigeria (AMATO), Mohammed Sani, highlighted the severe repercussions faced by truck operators stemming from these terminal inefficiencies.

He explained that if a truck is delayed and cannot meet the scheduled transfer from the pre-gate to the terminal, the cargo owner may withdraw their business, forcing the truck owner to absorb the costs of average daily losses of N150,000.

Also, Sani outlined the penalties involved if trucks are either batched out and do not leave the pre-gate or if they leave without securing a job. He said in such cases, truck owners face demurrage charges or potentially hefty fines to recover towed vehicles, with costs ranging from N150,000 to N200,000.

“We invest in diesel, pay our drivers, manage electronic call-up fees, and even settle at various checkpoints only to be stalled at the pre-gate,” Sani explained.

He further stated that the financial toll is compounded by a daily demurrage fee of N5,000 imposed on trucks that do not vacate the Lillypond after being batched out, creating a no-win situation for truckers who are stuck in the pre-gate through no fault of their own.

These issues have persisted for over three months, according to Sani, who asserts that this situation not only affects the livelihood of truck owners but also has broader implications for Nigeria’s economy, particularly in the logistics and export sectors.

He said the continued financial impact on truck owners highlights the need for a coordinated response from the NPA and other relevant agencies to address these systemic issues and prevent further economic fallout.