How to Make Cold Logistics Thrive in Nigeria
By Eugene Nweke.
( A Case study of West Africa Container Terminal – WACT).
a). Our Findings confirm that WACT topples any other South/Eastern Ports in Container throughputs, just like major Ports in Lagos topples other ports in the Western Zone in Container throughputs.
b). Findings also confirm that most of the Container Vessels that call to WACT and other major Ports across the geopolitical zones sail back to origin ports majorly with empty containers, less exports contents.
c) Findings affirm that WACT and few other port operators have enough terminal space to advance and undertake a measurable cold logistics operations, but are not core basis contemplating in this regards, reasons as noted below.
d). It statistically clear that, due to absent of an effective cold logistics operations within the zones, perishable produces ( deciduous fruits, vegetables, other farm produce) of sustainable export quantities per annum, suffer wastages ( produce wastes, related services with capacity to creating even employment opportunities lost, financial losses, etc).
e). With the availability of perishable produces on account of steady farming activities in all the geopolitical zones ( presently benefiting from the Federal government policy thrusts on agricultural revolution), many business interests and investment want to go into cold logistics exports businesses in collaboration with Freight Forwarders, but are limited, reasons as stated below.
f). Taking a cue from the South Africa Cold Chain Logistics revolution of 2008, WACT and few other port operators across the zones are better placed to unlock this aspect of cold logistics provisions with its wide range of job creation and opportunities Inherent in the supply value chain.
g). Findings also confirm that, presently WACT is willing and ready to handle as much volumes of Perishable produces available, provided they ascertain a realistic forecast from shipping lines so as to effectively manage planning capacity.
h). Findings further also affirm that WACT has enough standby energy generating sets and reefers plugs in use. Basically, if exports forecast increases, then the need for capacity boosting may consider.
I). Besides the needs for a realistic forecast and business contracts with exporters, there is also need to engage a dedicated cold shipping lines to promote steadily available ocean going Vessels, as the port terminal is not meant to be a storage area but a transit area.
j). Findings reveal that, the Country with its untapped Cold Logistics Exports Business needs a dedicated and specialized Cold Logistics Exports Business Ports to harnessed its Exports potentials and to maximize its exports shares among the comity of Cold Logistics Exporting Nations.
So, our queries have been , why is it that most port concessionaires investment policy vision do not point to the full sector maximization of this aspect as a key investment opportunities in the maritime industry, which serves as stimulator tool for an overall industry development.
As a professional Forwarder, I do know that, WACT and other Port Operators can actually open a new horizon for international trade and security supply chain in the Country. Evolving this through the specialized cold port logistics operations, that has remain under utilized for centuries, is evenly essential. Furthermore, it is important to point out that, this options, indeed has the capacity to gradually discentralized imports and exports activities across the geopolitical zones..
Findings also show that, With willingness and proper consultations with all the states chambers of commerce within the zones, and collaborations with critical stakeholders , it won’t be an unachievable task..
Findings equally show that with the abundance exportable farm produce and deciduous fruits exports in the Country, giving the background to our rich fertile farm lands and available human capacity across the zones, it is envisaged that, with peculiar dedication of administrative resources and the channeling of right administrative policies, cold logistics operations and its related supply value chain has the capacity to sustainably creating over a million Job per annum, thus, Maritime in the right perspective should supposedly a bigger employer of labour annually.
Findings also confirm , that, the present canvas for Women inclusiveness in the maritime industry, can make much difference and impactful if the Cold Logistics Exports Business is revolutionized. From experiences, women have distinct skills in handling Perishable produces / deciduous fruits more than men, from farm harvesting, to processing and packaging, to transporting, essential services and subsectors inherent in the supply value chain, etc.
For example, Findings show that, throughout the country, those presently engaged in the Inter-state business of moving farm Perishable products and deciduous fruits across the states are 75% women( mostly mother’s who later transfer same business to their daughters as an Inheritance).
It suffice, for us to engage Women Inclusiveness advocacy with a profound sense of national concerns, effective plans and objectivity, devoid of industry propaganda that are mere self seeking or political patronage.
Business Implications And Challenges:
Many factors continue to hamper the effective evolution, commencement, exploration and sustenance of these national fortunes. Key amongst them are:
a). Products Quality And Services Certification Questions: The Standard Organization of Nigeria, has a duty to explore, renegotiate its international quality standards acceptance abroad, having lay down a simplified processes and procedures for products Quality Assessments and conformity schemes in relation to the application of relevant fertilizer to produce, certified packaging and handling processes , etc. The non aggressive involvement and projection of Nigeria products to the world in this regards gives credence to the common rejection of farm Perishable export items abroad.
b). Cold Logistics Exports Business Is Capital Intensive:
Port Operators are not willing to invest in to a business aspect it can not steadily project or forecast on, thereby it breeds an industry reliability questions.
c). Cold Logistics Exports Business Requires Cheap Energy Source:
Presently all the ports in Nigeria are powered by diesel engine generator sets on 24/7 @ 365 days a year, which is the basic reason why cost of cargo handling in the Nigeria ports are high.
Going by the concession agreement, the Nigeria Ports Authority is solely responsible for the provisions of lighting and powering of the port 24/7 @ 365 days a year, but has continuously reneged in this contractual obligation, leaving the terminal operators to source for their independent energy source to run their ports and keep business afloat.
There is nowhere in the world, where Cold Logistics Exports Business is run 24/7 with private energy such as generator sets. Cold Logistics Exports Business operations is guaranteed by the provisions and availability of natural and general energy sources. Only on the basis of sound regulated public electric power sources can a Cold Logistics Exports Business thrives.
Often, we make bold to state that, no matter how thoughtful the ease of doing business quest of the government appears to mean, it is indeed meaningless if the canvassed easiness can not bring down cost of Container handling in the ports.
d). Emphasis On The Role Of Shipping Lines:
Shipping Lines are the owners of all Exports equipments, ( Refrigerated Vessel and Containers – “Reefers Vessels/Containers), without their key participation, the terminal operators can do nothing. Shipping Lines are the ones who enter into Business ( Carriage) Contracts with the Exporters. They are the ones who galvanize and sustain a shipping routes. They are a determinant factor to transport and handling costs. They are the one who provide a realistic forecast on cargo, vessel and routes plans. Terminal Operators merely provide value added services in the form of storage and loading operations.
Unfortunately, most of the Shipping Lines appear to be reluctant at investing into this aspects of international shipping/trade activities, owning to the capital intensity nature required for investment into the Cold Logistics Exports Business.
Findings from some of them, indicate that they are quite skeptical of governments policy inconsistency, and non 100% respecter of agreement. Also insisting that, Government should show commitment as an initial key investors into the Cold Logistics Exports Business, firstly.
Suggestion/Conclusion:
Government has a duty to go back to its National planning table through Transport Ministry, with the aim putting and exploring every avenues available and necessary to revolutionize the Cold Logistics Exports Business in Nigeria.
The present efforts of the government to revamp and resuscitate our national fleets is commendable, but should not be limited. It has to shop for specialized and dedicated shipping lines operators, and enter into Business memorandum of understanding with them.
Government must take into cognizance the benefits inherent in the Cold Logistics Exports Business with regards to Skill developments, exchange of expertise, technological advancements, above all Job Creation in the face of ever increasing population and high unemployment rate, National foreign exchange earnings and performances, then capacity building, revenue generation across board ( local, state and federal government), etc.
Therefore, Cold Logistics Exports Business should be embraces with national development consciousness and with deserving political and economic wills. The retorts of the Shipping Lines should rather challenge the government positively, while appreciating their roles as a critical stakeholders in the Cold Logistics Exports Business. We have dwelt long enough treating this aspects of economic growth with ignominy and lips service.
Time to reposition the Nigeria Maritime Industry is now, by so doing, we shall take our rightful centre stage in the African Integrated Maritime Strategy( AIMS Strategy), championing the “Blue Economy” evolution.
To this extend, the Incoming Minister Of Transport and His Counterparts in Energy and Agriculture, should jointly convocate a National Revamp Committee On Cold Logistics Exports Business.
The Minister Of Transport should in consultation with its relevant agencies, review the on going Green Field Port Expansion and Development with a due sense and a diversification mindset tilting towards the establishment of specialized ports system.
Women Inclusiveness in the maritime industry is apt, and highly important for an overall utilization and effectiveness purposes, wherefore a home tailored and a milestone actualisation plan should be put in place, on the basis of Industry facets and stratas consideration, and not just a show off.
There are aspects of Maritime Business women do have comparative advantages over men. Such aspects needed to be identified and maximized accordingly.
As for the appointment of more women into the maritime agencies and parastatals it is also a welcome idea. All that our women requires is creating an enabling environment to aide even participation in all the maritime gamut of operations.
Fwdr. Dr. Eugene Nweke.
For: SEA EMPOWERMENT RESEARCH CENTRE – GLT.
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