Deep Seaport Emergence: Square Up for Competition or Serve as Mere Feeder Ports, Freight Forwarders Tell Brown Ports Operators
LAGOS PORT
By Francis Ugwoke
Concerned freight forwarders have pointed out that except brown ports managed by private operators prepare for competition, they may have tough time with the emergence of the first deep seaport when fully commissioned for operations.
The experts said what the private operators need to do was to square up for competition to avoid serving as a mere feeder ports.
This was the position of the freight forwarders after a Strategic Consultative Meeting led by the FIATA Nigeria Designate Representative / Former Chairman, Governing Board of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) – Aare Hakeem Olarenwaju.
Among those who attended the meeting were the former National President of the Association of Nigerian Licensed Customs Agents (ANLCA), Prince Shittu Olayiwola; and also former President, National Association of Government Approved Freight Forwaqrders (NAGAFF) the Dr Eugene Nweke.
The freight forwarders advised that moving forward the operators of brown ports must take advantage of the ongoing negotiations for port concession renewals to “consider such critical industry components ranging from the right definitions of operational activities and phrases and operational rebates and lax tax regime”.
The experts pointed out that the consultative meeting was prompted by noticeable professional absence in the emerging trends and ongoing global discourse by the comity of global freight forwarding nations.
The meeting also noted the evolution of the smart borders concept which is in support of the Sustainable Development Goal ( SDG) of the United Nations ( UN) Agenda 2030. which makes room for Customs to ensure timely delivery or raw materials to industries and reduce unfair business competition, among others.
In this regard, the meeting resolved to “carry out a robust review on the level of compliance to the SGD from the Nigeria freight forwarders perspective, and document same for a global representation”.
“Equally, the meeting took a holistic review of the present clearance process and procedures within the Customs Ports, with deep reservation even though, commending its efforts at reinstalling mobile scanner machines at some ports. It therefore, resolve to further its professional consult and engagement”.
The professionals resolved to further its consultation with the concerned agencies with the aim to genuinely brainstorm on the following:
“i). ON WHY PORT MUST BEEN SEEN AS AN EFFICIENCT ORGANIZATION AT ALL TIME:
ii). TO APPRECIATE THE ESSENCE OF THE GLOBAL INTEGRATION OF PERFORMANCE INDICATORS FOR PORT EFFICIENCY IN OUR PORTS SYSTEM.
iii). TO CONSIDER OTHER VIABLE REQUIREMENTS FOR AN EFFICIENCT PORT:
iv). TO SET AN ACHIEVABLE GOALS TOWARDS ACHIEVING PORT EFFICIENCY PERFORMANCE INDICATORS AND TO BOOST PORT COMPETITIVENESS:
■ The meeting purposely, choose not to review nor dwell on the happenings with the CRFFN administrator, trusting that, since the new honorable Minister of Transport has resolve to wade into the crisis in the CRFFN and by extension listen to the myriads of operational challenges that has bedeviled the practitioners as posited by the various Freight forwarding interests groups via summits/conferences communiques
■ It concluded that, going forward, the strategic consultative meeting is without doubt, premised on addressing and bringing professional concerns to the front burner, especially in the face of global cum national representations and defined industry involvements. As such, it will extend its consultative engagements to well meaning professional colleagues and other industry stakeholders”.
Part of the press statement signed by Dr. Nweke after the meeting reads:
“Afterwards, the consultative meeting narrow its reflection for the day on the following global concerns :
a). Today Freight Forwarding practices revolves around a Growing E-Commerce Logistics Solution – where information communication technology drives the international trade security and value adding supply chain.
Notably, both the World Trade Organization and World Customs Organization now focuses attention on “Exploring the Integrated E-commerce Logistics Solutions “.
“b). Revisit the current annual growth rate in the thriving: Business to Customer ( B2C), Business to Business (B2B) and the Producer to Consumer (P2C). It noted the grappling challenges inherent in this increasingly demanding innovative logistics solutions. Wherefore, it posited that, there will be need to chant a course towards the growing need to choose the right kind of Customs procedures that will open new potential for improvement and advancement of the evolving new markets concepts.
“c). Reconsider the update and possibly outcome of the WTO treatise consideration to E-commerce, especially as it relates to the ‘plurilaterals’ discussion following the proposals submitted by the ‘plurilaterals’ members, among the developing countries, including Nigeria, expressing their discomfort with the US model of digital trade rules centered around “Free Data Flows”.
“d). Expresses serious concerns on the E-commerce Moratorium. Though the WTO’s Customs Duties E-commerce Moratorium has been halted since 2019. However, the increasingly globalization disruption points to the fact that, trading goods electronically may not be easy to abate. As such this Moratorium if continued may mean a continuation of Zero customs duties on goods which are traded via electronic transmissions. Above all there will be tariff revenue losses as well as the loss of policy space for those who may try to support their domestic industries in electronic traded goods.
“In view of this, the meeting resolved to further its strategic consultative goals with the management team of the Nigeria Customs Service, as it stands, without mincing words the Customs can not boast of deploying requisite energy in this aspect of trade model and inherent revenue generation thereof.
“e). The meeting as well contemplated on the options to discuss and kick start a domestication process for the FIATA newly introduced two (2) globally approved and applicable imports clearance documents across the WTO signatory countries.
However, the meeting resolved to stare action for a while, with a convince that the man made crisis in the CRFFN will fizzle out soonest, so as to prompt the essence and effectiveness of the freight forwarders consultative forum obligations.
f). The Consultative meeting reviewed the available statistics on Cargo Transhipment operations within the subregion. The available statistics prompted the meeting to reconsider the ideal workings of an efficient ports, as thus:
■. To facilitate movement in any given port, raft such as boats, ships and barges are required to move both people and goods, but to facilitate trade, the port has to provide the docks, floats, piers, gangway, tugboat, and other conveniences that will make the ships to be properly engaged and utilized, and as well accommodate and maintain seamless flow of watercraft traffic.
■. With the increase in the volume of world trading activities on the sea ( imports and exports), it is considerate to posit that, the size and efficiency of a Port is an indication of how successful the surrounding regions are, as such ports are vital components of shipping business.
■ Unfortunately, with noticeable port congestion and traffic gridlock in and along our port corridor, the economic benefits of port concession of 1996 seems to be an uphill tasks, and the core objective almost a mirage. This situation has thrown up new industry sections like Barge operations, increasingly bonded terminal operational activities, unfortunately regulatory function is not promptly coordinated, leading to the high costs of shipping and port business in Nigeria, unfriendly and uncompetitive.
■ The meeting noted that with the commissioning of the first deep Seaport, even as it sets for full operations, it has become necessary and also advisable that the crop of brown ports managed by private operators has to square up for competition to avoid serving as a mere feeder ports. In this regards, the on going negotiations for port concession renewals, should consider such critical industry components ranging from the right definitions of operational activities and phrases and operational rebates and lax tax regime”.
Concerned freight forwarders have pointed out that except brown ports managed by private operators prepare for competition, they may have tough time with the emergence of the first deep seaport when fully commissioned for operations.
The experts said what the private operators need to do was to square up for competition to avoid serving as a mere feeder ports.
This was the position of the freight forwarders after a Strategic Consultative Meeting led by the FIATA Nigeria Designate Representative / Former Chairman, Governing Board of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) – Aare Hakeem Olarenwaju.
Among those who attended the meeting were the former National President of the Association of Nigerian Licensed Customs Agents (ANLCA), Prince Shittu Olayiwola; and also former President, National Association of Government Approved Freight Forwaqrders (NAGAFF) the Dr Eugene Nweke.
The freight forwarders advised that moving forward the operators of brown ports must take advantage of the ongoing negotiations for port concession renewals to “consider such critical industry components ranging from the right definitions of operational activities and phrases and operational rebates and lax tax regime”.
The experts pointed out that the consultative meeting was prompted by noticeable professional absence in the emerging trends and ongoing global discourse by the comity of global freight forwarding nations.
The meeting also noted the evolution of the smart borders concept which is in support of the Sustainable Development Goal ( SDG) of the United Nations ( UN) Agenda 2030. which makes room for Customs to ensure timely delivery or raw materials to industries and reduce unfair business competition, among others.
In this regard, the meeting resolved to “carry out a robust review on the level of compliance to the SGD from the Nigeria freight forwarders perspective, and document same for a global representation”.
“Equally, the meeting took a holistic review of the present clearance process and procedures within the Customs Ports, with deep reservation even though, commending its efforts at reinstalling mobile scanner machines at some ports. It therefore, resolve to further its professional consult and engagement”.
The professionals resolved to further its consultation with the concerned agencies with the aim to genuinely brainstorm on the following:
“i). ON WHY PORT MUST BEEN SEEN AS AN EFFICIENCT ORGANIZATION AT ALL TIME:
ii). TO APPRECIATE THE ESSENCE OF THE GLOBAL INTEGRATION OF PERFORMANCE INDICATORS FOR PORT EFFICIENCY IN OUR PORTS SYSTEM.
iii). TO CONSIDER OTHER VIABLE REQUIREMENTS FOR AN EFFICIENCT PORT:
iv). TO SET AN ACHIEVABLE GOALS TOWARDS ACHIEVING PORT EFFICIENCY PERFORMANCE INDICATORS AND TO BOOST PORT COMPETITIVENESS:
■ The meeting purposely, choose not to review nor dwell on the happenings with the CRFFN administrator, trusting that, since the new honorable Minister of Transport has resolve to wade into the crisis in the CRFFN and by extension listen to the myriads of operational challenges that has bedeviled the practitioners as posited by the various Freight forwarding interests groups via summits/conferences communiques
■ It concluded that, going forward, the strategic consultative meeting is without doubt, premised on addressing and bringing professional concerns to the front burner, especially in the face of global cum national representations and defined industry involvements. As such, it will extend its consultative engagements to well meaning professional colleagues and other industry stakeholders”.
Part of the press statement signed by Dr. Nweke after the meeting reads:
“Afterwards, the consultative meeting narrow its reflection for the day on the following global concerns :
a). Today Freight Forwarding practices revolves around a Growing E-Commerce Logistics Solution – where information communication technology drives the international trade security and value adding supply chain.
Notably, both the World Trade Organization and World Customs Organization now focuses attention on “Exploring the Integrated E-commerce Logistics Solutions “.
“b). Revisit the current annual growth rate in the thriving: Business to Customer ( B2C), Business to Business (B2B) and the Producer to Consumer (P2C). It noted the grappling challenges inherent in this increasingly demanding innovative logistics solutions. Wherefore, it posited that, there will be need to chant a course towards the growing need to choose the right kind of Customs procedures that will open new potential for improvement and advancement of the evolving new markets concepts.
“c). Reconsider the update and possibly outcome of the WTO treatise consideration to E-commerce, especially as it relates to the ‘plurilaterals’ discussion following the proposals submitted by the ‘plurilaterals’ members, among the developing countries, including Nigeria, expressing their discomfort with the US model of digital trade rules centered around “Free Data Flows”.
“d). Expresses serious concerns on the E-commerce Moratorium. Though the WTO’s Customs Duties E-commerce Moratorium has been halted since 2019. However, the increasingly globalization disruption points to the fact that, trading goods electronically may not be easy to abate. As such this Moratorium if continued may mean a continuation of Zero customs duties on goods which are traded via electronic transmissions. Above all there will be tariff revenue losses as well as the loss of policy space for those who may try to support their domestic industries in electronic traded goods.
“In view of this, the meeting resolved to further its strategic consultative goals with the management team of the Nigeria Customs Service, as it stands, without mincing words the Customs can not boast of deploying requisite energy in this aspect of trade model and inherent revenue generation thereof.
“e). The meeting as well contemplated on the options to discuss and kick start a domestication process for the FIATA newly introduced two (2) globally approved and applicable imports clearance documents across the WTO signatory countries.
However, the meeting resolved to stare action for a while, with a convince that the man made crisis in the CRFFN will fizzle out soonest, so as to prompt the essence and effectiveness of the freight forwarders consultative forum obligations.
f). The Consultative meeting reviewed the available statistics on Cargo Transhipment operations within the subregion. The available statistics prompted the meeting to reconsider the ideal workings of an efficient ports, as thus:
■. To facilitate movement in any given port, raft such as boats, ships and barges are required to move both people and goods, but to facilitate trade, the port has to provide the docks, floats, piers, gangway, tugboat, and other conveniences that will make the ships to be properly engaged and utilized, and as well accommodate and maintain seamless flow of watercraft traffic.
■. With the increase in the volume of world trading activities on the sea ( imports and exports), it is considerate to posit that, the size and efficiency of a Port is an indication of how successful the surrounding regions are, as such ports are vital components of shipping business.
■ Unfortunately, with noticeable port congestion and traffic gridlock in and along our port corridor, the economic benefits of port concession of 1996 seems to be an uphill tasks, and the core objective almost a mirage. This situation has thrown up new industry sections like Barge operations, increasingly bonded terminal operational activities, unfortunately regulatory function is not promptly coordinated, leading to the high costs of shipping and port business in Nigeria, unfriendly and uncompetitive.
■ The meeting noted that with the commissioning of the first deep Seaport, even as it sets for full operations, it has become necessary and also advisable that the crop of brown ports managed by private operators has to square up for competition to avoid serving as a mere feeder ports. In this regards, the on going negotiations for port concession renewals, should consider such critical industry components ranging from the right definitions of operational activities and phrases and operational rebates and lax tax regime”.
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