Dry Ports: NSC and Mission of Taking Shipping Services Closer to Hinterland

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By Francis Ugwoke

As the ports economic regulator, the Nigerian Shippers’ Council (NSC) has been making every effort to ensure that shippers from all corners of the six geo-political zones of the country enjoy accelerated trade facilitation. With the seaports located in Lagos, Port Harcourt, Onne, Rivers state and Warri, Delta State, many believe that shippers outside these areas are often disadvantaged in terms of logistics involved in the transportation of goods. It could either be for goods arriving the seaports from overseas or exports from different geo-political zones to the seaports. It was in consideration of this that the idea of establishing Inland Container Depots (ICDs), now known as Inland Dry Ports (IDPs) in the six geo-political zones of the country came up. To be precise, the NSC had in 2003 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. The Council under the leadership of Chief Adebayo Sarumi, then as the Managing Director faced allegations that the recommendation for the ICDs was mainly to favour the Northern part of the country. This was denied by the Council which said that it was because Nigerian ports were having issues of expansion. Sarumi explained to newsmen that it was mainly because Nigerian ports were then not expanding. This was the defense of the former NSC MD about 31 years ago, some years before the ports reform exercise started. And that was the beginning of the IDPs.

IDP Journey So Far
The story of this laudable project is that while the port reform has progressed, the IDP has equally progressed after suffering some hitches over the years. Yet, the NSC has been able to establish IDPs in some zones. 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 ginger the concessionaires to action. Other IDPs which projects 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. However, the number of approved locations for dry ports in Nigeria has continued to increase. President Bola Ahmed Tinubu had early this year approved the establishment and development of IDPs in Ijebu-Ode, Ogun state and Moniya, Oyo State.
NSC Commitment to IDPs
The hard economic situation in the country has been identified as among the reasons why the IDP projects in different parts of the country have not been completed. The IDP projects are capital intensive, and this explains why some of the concessionaires have not been able to complete their projects.
But the NSC has been working towards getting them to action. At the recent Kaduna International Trade Fair, the NSC was involved in educating stakeholders about its functions, including how it provides platforms that can enable the establishment of IDPs. At the Fair, the Deputy Director of the Kaduna Port Office disclosed that so far the agency has facilitated the establishment of IDPs in Kaduna, Kano, and Katsina and others which are currently 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 on 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, as this can be possible in the North West,

IDPs as Targets for Trade Facilitation

About two months ago, the Minister of Marine and Blue Economy, Adegboyega Oyetola, had explained some of the benefits of establishing IDPs in the country. In particular, 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 Local Government Area of Ogun State. He disclosed that the dry port will be built according to international standards with latest digital systems for tracking, clearance and cargo movement. This, according to him, would be to ensure efficiency, transparency and global competitiveness. Among the reason for the project was also to provide direct jobs, he said.
Oyetola told stakeholders at the event, “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.”
The Minister disclosed that the Nigerian Shippers’ Council 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”, stating that sustainability must be at the core of all infrastructure projects.
He 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 the Minister, development of inland dry ports remains critical component of the broader strategy to position Nigeria as a leading player in the Blue Economy.
He expressed optimism that the dry port would lead to improvement in efficiency of the logistics network in what will decongest the Apapa and Tin Can Ports and improve the country’s competitiveness on the world stage.
Optimism on completion of other IDPs
On the delay for the completion of other dry ports, the NSC management is optimistic that those projects would be completed with time. The Council has been meeting with the concessionaires. Sources said the major issue has been finance and fear of viability. However, the NSC has continued to affirm commitment to the dryports projects. At a meeting 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.
The NSC boss 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, a member of the Council, he said the Council was the link between the affected communities and various stakeholders. He assured of the cooperation and support of the community for the project, notwithstanding the challenges. After the meeting, the NSC and the host community expressed hope about the completion of the IDP project. The NSC management led by Akutah has been involved in reaching out to all the concessionaires to ginger them to start work. The ports economic regulator believes that the IDP project is imperative as it will enhance trade facilitation and ease of doing business for all shippers engaged in international trade. 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 major benefits of IDPs include job creation and the fact that shippers can easily carry out international trade, whether imports or exports without having to go to the far distance of the seaports to do so.