Dry Ports: Shippers Council Moves to Attract Investors, Funds for Concessionaires
By Francis Ugwoke
*Holds meeting with Commonwealth Enterprise Investment Council
Worried about the slow pace of work on most of the Inland Dry Ports (IDPs) also known as Inland Container Depots (ICDs) in the six geo-political zones of the country as a result of paucity of funds, the Nigerian Shippers Council (NSC) is currently working on assisting the concessionaires to attract investors and necessary funding.
The Council, it was gathered, is concerned that apart from the Kaduna IDP which has taken off since January last year, the rest IDP projects are yet to be completed by the concessionaires due to lack of finance.
To ensure that the concessionaires complete their projects as soon as possible, the Council has approached the Commonwealth Enterprise Investment Council (CWEIC) to be involved in the search for interested investors for the IDP projects.
It was gathered that the Executive Secretary, NSC, Mr Hassan Bello has already visited the London office of the body which was established in 2014 with mandate from Commonwealth Heads of Government to promote intra-commonwealth trade and investments across the 53 member countries.
CWEIC is responsible for organising the Commonwealth Business Forum alongside the biennial Commonwealth Heads of Government Meeting and Commonwealth Trade Ministers Meeting on alternative years.
Bello also led the management team of the Council to attend the Advisory Council Meeting of CWEIC held recently in Lagos during which a lot of business opportunities across and beyond Nigerian were laid bare.
Specifically, the Council wants to attract investors from Commonwealth countries to show interest in the IDPs so that the remaining projects being handled by concessionaires can be completed as soon as possible.
Apart from IDP projects, the Council is also interested in getting investors for other transport sector infrastructure projects, such as Truck Transit Parks (TTP) and Border Information Centres.
Both IDP and TTP projects are considered as having multiplier effects on the national economy with thousands of jobs to be created when completed.
The Council sees the dry port project as imperative to trade facilitation as it will enable shippers in the hinterland to import and export without having to travel to Lagos seaports or other seaports for the process.
For instance, with the Kaduna IDP, importers in any part of the world who wish to use that dry port can do so by indicating it as Port of Destination for their goods instead of using Lagos seaport.
Similarly, businessmen from that zone who have goods to export can use the dry port without having to go through Lagos seaport.
The current scenario is that apart from the Kaduna IDP, other dry ports projects located in Kano, Jos Plateau State, Isiala Ngwa, Abia State, Borno, Maiduguri, Kaduna and Ibadan have been delayed due to funding issues.
The concessionaires include Duncan Maritime Ltd – Jos; Eastgate Inland Container Terminal Ltd – Isiala Ngwa – Abia; Dala Inland Dry Port – Kano; Migfor Nigeria Ltd – Maiduguri; CatamaranLogistics Ltd – Ibadan; Equitorial Marine Ltd – Funtua. There are also another IDPs at Olorisa Oko, Ibadan and Benin, Edo state.
It would be recalled that the Council had over two years ago expressed concerns about the delay on construction works and ordered the concessionaires to quicken work on the sites or lose their licences.
Bello had warned, “If for any reason, we see some unwillingness to execute this project the government will not hesitate to terminate this concession.
“The government has an obligation to bring out consistence policies that will encourage private sectors to perform. The concessionaires too have an obligation. Government is an enabler and will do everything possible to ensure that these projects come on stream but we also need to see some level of work to show some seriousness on the side of the concessionaires.
“The private sector must show some responsibility because now we have in that agreement new time lines and we have to act according to the time lines. Anywhere you want us to intervene for you to grow don’t hesitate to tell us but I am telling you now that we also want to see action and if we don’t see action according to the agreement, we will not hesitate at all to cancel any concession,”
However, a source disclosed that though the Council had taken hard position to ensure that the concessionaires complete their projects, it is committed to lending a helping hand in whatever capacity to accelerate investments in the IDPs and TTPS for the concessionaires to succeed.
The source said the ultimate goal of the Council is to see that the projects come to fruition as soon as possible, considering the benefits to the national economy and states where they are sited.
As a member of the CWEIC, the source said the Council wants to use its contacts to link the concessionaires to possible investors in either the IDPs or TTPs projects.
Bello had late last year assured concessionaires about rail connection to the dry ports and seaports to ensure smooth trade facilitation.
Bello had said that the Federal Government through the Transport Ministry was working hard to ensure rail connection to the dry ports, adding that lack of adequate rail infrastructure will affect the dry ports negatively.
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