New Telegraph

COVID-19 stalls maritime growth, earnings

The outbreak of Coronavirus pandemic has affected growth and earnings negatively in the maritime industry mostly in the second quarter of 2020, BAYO AKOMOLAFE reports.

The effect of the Coronavirus (COVID-19) pandemic on the maritime industry has affected both government and stakeholders since the lockdown introduced to curtail the spread of the virus. Mostly affected are the seafarers, customs agents, terminal operators and liners. While ships had to stay at anchorage for 14 days, seafarers were barred from leaving the vessels to join their families. Also, some cargoes ordered by manufacturers and other importers were affected by the restriction imposed by government as they were unable to pick up their goods at the appropriate time. Even though all the ports remained opened, there had been disruptions in supply chain, leading to port congestion and lack of space at the terminals to receive incoming cargoes and containers as well as export cargoes. Presently, more than 800 containers of export could not access the port because of lack of space and gridlock.

Export & import

Since the beginning of the year, deficient infrastructure and bad policies hindered efficient shipping of non- oil export at the various seaports in the country. For instance, in June alone, Nigerian Shippers’ Council (NSC) said that about 400 containers of non-exports were hanging on the road amid fear of getting spoit because of heat.

Freight forwarding

Apart from the challenges posed by the pandemic, corrupt practices assumed a new dimension in the port sector. According to the Vice President of the Association of Nigerian Licensed Customs Agents (ANLCA), Mr. Kayode Farinto, corruption and under table payments account for about 30 per cent of the charges during cargo clearance. He noted that arbitrary charges by government agencies and private operators stood at about 55 per cent. The vice president said: “If you look at the percentage of the under table cuts which is about 30 per cent of the port charges and compare that to the 55 per cent of arbitrary charges being collected by government agencies and private operators, then you can agree with our submission.”

Terminal operators

Also, the Seaport Terminal Operators Association of Nigeria (STOAN) decried that the rate of manual examination of cargoes at the port was hindering efficient delivery of consignment at the port. Its Chairman, Vicky Haastrup, said that manual examination of cargoes had not promoted social distancing since the outbreak of the pandemic. She advised the Federal Government to trim the number of its agencies at the port.

Manufacturers

Similarly, the representative of Manufacturers Association of Nigeria (MAN), Mr. John Aluya, explained that the COVID-19 era had been a very challenging period for manufacturers as well as the entire nation’s seaport system. Also, the Director General, Lagos Chamber of Commerce and Industry (LCCI), Dr. Muda Yusuf, feared that there was no way the country could drive that sector if the right kind of port logistics and related things were not put into consideration.

Shippers’ council

As part of efforts to reposition the nation’s maritime industry, the Nigerian Shippers’ Council (NSC) unveiled some initiatives, which could bring sustainable growth and improve the sector’s contributions to the Gross Domestic Product (GDP). According to the Executive Secretary of the council, Mr Hassan Bello, part of the initiatives was to digitalise the ports operations to enable all operators provide 24 hours services daily.

NIWA

Irked by the decision by the Lagos State House of Assembly, the National Inland Waterways Authority (NIWA) kicked against the state’s decision to ambush its statutory regulations, a development it considered as provocative and a subtle attempt to muzzle its mandate and expose it to national ridicule. In a letter to the state government, the Managing Director of NIWA, Dr George Moghalu, warned that Lagos State House of Assembly’s intention may pose challenges to the ongoing efforts to reach amicable settlement of vexed issues at hand. Further, he stressed that matters within the exclusive list of the constitution of the Federal Republic of Nigeria were outside the legislative competence of the state government as they are within the competence of the National Assembly.

Customs

Despite COVID-19, Nigeria Customs Service (NCS) was able to generate N573.19billion between January and May, 2020. The service was given a target of N1.6trillion but following the outbreak of the pandemic it was reduced to N957 billion. At the Lagos port, the Controller of Apapa Customs Command of the service, Comptroller Mohammed Abba- Kura, who said that 10 of his officers contracted the COVID-19 disease, explained that the command generated about N52.369 billion from export and N227.347 billion revenue between January and June 2020. Nevertheless, the service, importers and clearing agents were frustrated following the collapse of the Nigeria Customs Integration System (NICIS2) server. The collapse crippled business activities several times at the port, leading to high demurrage and storage charges. At the borders, smuggling of rice, vehicles, drugs are still on the increase both on the land and creeks.

NIMASA

The Nigerian Maritime Administration and Safety Agency (NIMASA) took a decision to generate N12 billion yearly from its N50 billion floating dock acquired in 2018. The floating dock was acquired by the agency as part of efforts to reposition the nation’s maritime industry to international standard and boost revenue. The Director-General of the agency, Dr Bashir Jamoh, explained that the high profile equipment would generate N1billion monthly by the time it starts operation. Jamoh said that the agency was partnering with the Nigerian Ports Authority (NPA) to get a permanent place for this huge platform, saying that when becomes fully operational it would amount to a very huge revenue earner for Nigeria because a lot of vessels would be able to dry-dock in the country. In line with the newly endorsed protocols by the International Maritime Organisation (IMO) designed to lift barriers to crew changes, amid the pandemic, the agency designated seafarers and dockworkers as essential workers, who should be exempted from travel restrictions. The exemptions are contained in a new guideline developed and published to support essential services in Nigeria’s shipping sector. The guideline states that the jobs of dockworkers at the country’s seaports, terminals, and jetties are essential to the national economy and, therefore, dockworkers should be granted passage between their places of abode and the seaports/ terminals and jetties to perform their duties. Also, 13 vessels from five countries heavily affected by the Coronavirus pandemic arrived at the country’s waters and were placed under red flag. Four of the vessels came from Spain, one from the United Kingdom, five from the United States, one from Brazil and two from India.

NPA

Also, the Nigerian Ports Authority (NPA) took a decision to launch its electronic call up system to link Lilypond and other trailer parks to Lagos ports. The Managing Director of the authority, NPA, Hadiza Bala-Usman, said in Lagos that NPA had recognised the utilisation of intermodal transport system in cargo evacuation. She explained that contractor was working on linking Apapa and Tin-Can Island Ports with rail connection, which would be completed before the end of this year in order to have efficient and seamless evacuation of cargoes.

Last line

Government should provide incentive to boost the nation’s economy through export. Otherwise, the country would be forced into recession during and after the pandemic.

Read Previous

How Chukwubuike emerged winner of Stimulus Prize for New Writing

Read Next

COVID-19: 1,549,463 candidates to write WASSCE 2020 under strict, unfriendly atmosphere, says WAEC boss

Leave a Reply

Your email address will not be published. Required fields are marked *