Inland dry ports: Tracking NSC’s mission of taking shipping services closer to hinterland

Convinced that Nigeria stands to gain a lot from the establishment of Inland Dry Ports (IDPs) at strategic locations across the country, the Nigeria Shippers’ Council (NSC) is pressing on with the implementation of the idea with utmost commitment.

At the recent Kaduna International Trade Fair, the NSC educated stakeholders about its functions as the ports economic regulator, including how it provides platforms that can enable the establishment of IDPs.

At the Fair, the Deputy Director of the Kaduna Port Office, Buba Danjuma, disclosed that so far the agency has facilitated the establishment of IDPs in Kaduna, Kano, Katsina and other states, disclosing that some of the projects were in the process of completion. Danjuma explained that the idea of the IDPs projects by the NSC was to ensure that shipping activities are brought closer to the hinterland.

According to the agency, this will make logistics easier for those doing business far away from the seaports. Apart from this, it will check congestion at seaports as well as improve ease of doing business. Danjuma said that this will help freight forwarders, adding that with IDPs in different regions of the country, they will no longer have to travel as far as Lagos from the North to Lagos to take delivery of their goods.

Recall that about two months ago, the Minister of Marine and Blue Economy, Adegboyega Oyetola, had also explained some of the benefits of establishing IDPs in the country.

Oyetola told members of the Joint Committee of the Senate on Marine Transport and House of Representatives Committees on Ports and Harbour, Maritime Safety, Education and Administration, Inland Waterways and Shipping Services that the IDPs are targeted at fast-tracking delivery in the ports. He also explained that the IDPs will decongest the Western Port System.

The minister said: “Pursuant to its mandate and the charge given by Mr. President, the ministry is developing dry ports at Ijebu-Ode and Moniya in Ogun State and Oyo State respectively. These IDPs are targeted for fast tracked delivery to decongest the Western Port System. Design consultancies for the project are on-going.” He equally explained that when completed, the dry ports will generate jobs for the teaming youths of Ogun, Oyo States and other states.

In October last year, Oyetola performed the ground-breaking ceremony of the Gateway Inland Dry Port at Kajola, Ewekoro Council of Ogun State. He disclosed that the dry port would be built according to international standards with the latest digital systems for tracking, clearance and cargo movement.

This, according to him, will be to ensure efficiency, transparency and global competitiveness. Among the reasons for the project was also to provide direct jobs, he said.

“This project is not merely about building infrastructure but about laying the foundation for a key logistics hub that will facilitate the movement of goods across Nigeria, creating over 5,000 direct jobs, 15,000 indirect jobs, and stimulating local businesses. Moreover, it will attract investments that will spur regional development, benefiting Ogun State and beyond.

“No doubt, this project aligns seamlessly with the Renewed Hope Agenda of President Bola Ahmed Tinubu, as we are committed to creating an enabling environment that fosters innovation, economic growth, and infrastructural development.

“This initiative will undoubtedly help Ogun State become a more attractive destination for businesses and investors, reinforcing our collective aspiration for a prosperous Nigeria.

“During a recent visit to a logistics hub in Lagos, I observed firsthand the challenges businesses face due to congestion at our traditional seaports, which result in longer transport times and increased costs. This experience highlights the urgent need for developing inland ports like the Gateway Inland Dry Port. Inland Dry Ports provide faster and more efficient alternatives for moving goods, ultimately benefiting our economy and reducing the burden on our coastal seaports,” Oyetola said.

The minister disclosed that the NSC would work closely with the Ogun State government and the concessionaire to “build a maritime ecosystem that is not only competitive but also a leader in innovation and technological advancement.”

Noting that sustainability must be at the core of all infrastructure projects, Oyetola added: “This inland dry port is expected to significantly contribute to achieving that goal by enhancing the efficiency of our logistics network, reducing greenhouse gas emissions associated with road transportation, and promoting environmentally sustainable practices in line with global standards.”

According to him, development of inland dry ports remains a critical component of the broader strategy to position Nigeria as a leading player in the Blue Economy.

With the seaports located in Lagos State; Port Harcourt and Onne in Rivers State and Warri in Delta State, shippers from other areas of the country often face challenges, especially with regard to goods arriving at the seaports from overseas or exports from different geo-political zones to the seaports. Thus, the idea of establishing IDPs in the six geo-political zones of the country was conceived by the NSC to address this challenge as far back as 2003.

The council, then under the leadership of Chief Adebayo Sarumi as the Managing Director, made recommendations to the Federal Government identifying Ibadan for the South West, Aba for the South East, Kano for the North West, Jos, Katsina and Maiduguri as areas for the projects. However, the proposal attracted criticisms with some stakeholders alleging that the recommendation was skewed in favour of the North. This was denied by the Council, which said that it was because Nigerian ports were having issues of expansion. This happened some years before the ports reform exercise started. And that was the beginning of the IDPs.

So, while the port reform has progressed, the IDPs concept has equally progressed. The IDPs that are fully operational in the country include the Dala IDP in Kano, Kaduna IDP, and Zanfarawa IDP in Funtua. These dry ports started operations after a lot of efforts by the NSC to put the concessionaires to action. Other IDPs projects which are ongoing include those of Isiala Ngwa, Aba in Abia State, Heipang, Jos in Plateau State; Jauri, Maiduguri in Borno State, ICNL, Kaduna State; Zawachiki in Kano State and Erunmu, Ibadan in Oyo State. It was learnt that the IDP projects are capital intensive, hence the inability of some of the concessionaires to complete their projects.

But the NSC is optimistic that the inland dry port projects would be completed in good time, affirming its commitment to the dry ports projects. The Council has been meeting with the concessionaires.

Last year, the NSC Executive Secretary, Dr. Pius Akutah, held a meeting with stakeholders on the Erunmu Inland Dry Port (EIDP) project, during which he commended the stakeholders for their dedication. He equally acknowledged the challenges some of the concessionaires have faced over the years.

Akutah said: “We have engaged the investors and concessionaires, and all that remains is to restructure the concession agreement so that both parties can work effectively together. Your role as an advisory body to your community and as a supervising committee is crucial. Don’t lose hope; let this spur you to remain steadfast.”

He expressed optimism that the project, which has seen two decades of delay, would progress to the construction stage for the benefit of the region. Chairman of the Erunmu Dry Port Host Communities Consultative Council, Elder Theophilus A. Yadeka, said the community was grateful for having the opportunity to engage with the NSC management. Represented by Mr. Tunji Adio, he said the council was the link between the affected communities and various stakeholders.

He gave assurances that the community would support the project notwithstanding the challenges. After the meeting, the NSC and the host community expressed hope about the completion of the project.

The NSC management led by Akutah has been involved in reaching out to all the concessionaires to ginger them to start work. The Council, at a stage, was also involved in sourcing investors and funding for some host communities and giving them necessary encouragement. The Council believes that the benefits of IDPs include job creation and the fact that shippers can easily carry out international trade, whether imports or exports, without having to travel to seaports located far away from them.