Kirikiri Lighter Terminal: Customs Controller Embarks on Marketing Strategy to Boost Traffic, Revenue
TIMI BOMODI
By Francis Ugwoke
The Kirikiri Lighter Terminal in Lagos is suffering poor cargo traffic, a development that has compelled the Area Controller, Comptroller Timi Bomodi to embark on intense marketing strategy for a possible turnaround.
It was gathered that terminal operators in Apapa and Tin Can Island Port have not been forthcoming in stemming containers to the terminal.
Sources said importers and clearing agents have not been indicating the terminal as their preferred choice of port of destination, one of the reasons that has led to the issue of poor traffic.
Sources said this trend has over the years affected the cargo traffic and revenue generation in the terminal.
As at the first quarter of this year, the Command collected a total of NIO,572,518,271.
This amount represents 76.87% of its expected revenue for the quarter, according to the Customs Command.
The Command was this year given an anticipated revenue target of N55bn.
A source told SHIPPING DAY that the problem of the terminal has been with some terminal operators who because of the general lull in cargo traffic and negative effect on revenue have not been stemming containers to the area for profiteering reasons.
For instance, a customs agent said stemming goods to the terminal takes a toll on the revenue of the terminal operators as they are cleared as fast as possible giving no room for demurrage collection which favours them.
The agent who spoke under anonymity said, “ goods being cleared at KLT do not spend time to attract any demurrage and the terminal operators do not like this. They prefer such goods to be cleared in Apapa where the importers and their customs agents spend weeks to clear one container because of the traffic issue and other logistics problems at the ports.”
In other words, terminal operators make more revenue when goods spend more time in their terminals as the importers have to pay more on demurrage.
However, worried about the poor traffic situation at the terminal, the Controller, Bomodi who was posted recently to the terminal told SHIPPING DAY that the Command has embarked on marketing to attract importers and customs agents to the port.
Bomodi said that no container spends more than 48 hours before being cleared at the terminal because of the good road network in the area. He disclosed that the Nigerian Ports Authority (NPA) has worked on the road, adding that there is no traffic issue holding any container movement as could be the case elsewhere.
He told Shipping Day, “we are reaching out to the importers and customs agents. This place used to be very busy. It is left for us to see what to do. We are having interactions with importers and freight forwarders on how to bring them back.
Bomodi said that while the terminal has capacity to handle as much as 6000 containers every week, it is currently doing less than 300 containers.
He expressed dismay that this has also had negative impact on revenue generation.
According to him, no importer can spend more than 48 hours before his container can be cleared from the terminal, adding that empty containers also leave fast.
Bomodi however disclosed that the export terminal is doing well, saying that a lot of people have been using the terminal because of its efficiency.
He assured that the Command expects to see serious improvement with moves being made in that regard.
He added that a lot of things make the terminal good, stating that apart from good space, there is availability of modern cargo handling equipment that are barely utilized.
He described the terminal operators as competent.
Bomodi had at a recent press statement said that “while we acknowledge the impact of monetary policy changes and the effect of exchange rates on business, the overall effect has been a downturn in import volume, hence the Command’s performance”.
He said that the Command has taken steps to invigorate its revenue drive by encouraging shipping companies and other critical stakeholders who had up to this period overlooked the command as a strategic destination of choice for incoming and outgoing cargoes.
He added, “However, all hands are on deck to safeguard and protect all revenue accruable from import and export trade, to this effect Demand Notices to the tune of N68.5m has been raised to shore up the shortfall in revenue.
On export, he said, “prior to this period, KLTC was used as a transit hub for exports. However, since the establishment of an export processing terminal, all export procedures have since commenced in the Command with an anticipated uptick in export volume”.
On the advantage of the terminal, he said, “Kirikiri Lighter Terminal Command has a strategic advantage over other ports in Lagos, its unique location allows for immediate entry and exit, unlike other ports where there is an average waiting time of seven days. Its major impediment is the draft which restricts the direct berth of sea-going vessels. This challenge has recently been overcome with the introduction of ocean-going lighter barges with the capacity of moving over 200 TEU’s.
“Given its location the command allows for the easy evacuation of exports and empty containers, a challenge most shipping companies and terminals have difficulties overcoming.
“KLTC has an installed capacity of handling about 6,000 TEIJ I s but presently it is functioning at less than 10% of its installed capacity and there is a lot of room for growth. With the commissioning of a few new terminals and the promise of increased cargo allocation, we are hopeful of a positive turnaround in activities both for imports and exports as we believe that as trade volume increases, so will the revenue profile”.
The Kirikiri Lighter Terminal in Lagos is suffering poor cargo traffic, a development that has compelled the Area Controller, Comptroller Timi Bomodi to embark on intense marketing strategy for a possible turnaround.
It was gathered that terminal operators in Apapa and Tin Can Island Port have not been forthcoming in stemming containers to the terminal.
Sources said importers and clearing agents have not been indicating the terminal as their preferred choice of port of destination, one of the reasons that has led to the issue of poor traffic.
Sources said this trend has over the years affected the cargo traffic and revenue generation in the terminal.
As at the first quarter of this year, the Command collected a total of NIO,572,518,271.
This amount represents 76.87% of its expected revenue for the quarter, according to the Customs Command.
The Command was this year given an anticipated revenue target of N55bn.
A source told SHIPPING DAY that the problem of the terminal has been with some terminal operators who because of the general lull in cargo traffic and negative effect on revenue have not been stemming containers to the area for profiteering reasons.
For instance, a customs agent said stemming goods to the terminal takes a toll on the revenue of the terminal operators as they are cleared as fast as possible giving no room for demurrage collection which favours them.
The agent who spoke under anonymity said, “ goods being cleared at KLT do not spend time to attract any demurrage and the terminal operators do not like this. They prefer such goods to be cleared in Apapa where the importers and their customs agents spend weeks to clear one container because of the traffic issue and other logistics problems at the ports.”
In other words, terminal operators make more revenue when goods spend more time in their terminals as the importers have to pay more on demurrage.
However, worried about the poor traffic situation at the terminal, the Controller, Bomodi who was posted recently to the terminal told SHIPPING DAY that the Command has embarked on marketing to attract importers and customs agents to the port.
Bomodi said that no container spends more than 48 hours before being cleared at the terminal because of the good road network in the area. He disclosed that the Nigerian Ports Authority (NPA) has worked on the road, adding that there is no traffic issue holding any container movement as could be the case elsewhere.
He told Shipping Day, “we are reaching out to the importers and customs agents. This place used to be very busy. It is left for us to see what to do. We are having interactions with importers and freight forwarders on how to bring them back.
Bomodi said that while the terminal has capacity to handle as much as 6000 containers every week, it is currently doing less than 300 containers.
He expressed dismay that this has also had negative impact on revenue generation.
According to him, no importer can spend more than 48 hours before his container can be cleared from the terminal, adding that empty containers also leave fast.
Bomodi however disclosed that the export terminal is doing well, saying that a lot of people have been using the terminal because of its efficiency.
He assured that the Command expects to see serious improvement with moves being made in that regard.
He added that a lot of things make the terminal good, stating that apart from good space, there is availability of modern cargo handling equipment that are barely utilized.
He described the terminal operators as competent.
Bomodi had at a recent press statement said that “while we acknowledge the impact of monetary policy changes and the effect of exchange rates on business, the overall effect has been a downturn in import volume, hence the Command’s performance”.
He said that the Command has taken steps to invigorate its revenue drive by encouraging shipping companies and other critical stakeholders who had up to this period overlooked the command as a strategic destination of choice for incoming and outgoing cargoes.
He added, “However, all hands are on deck to safeguard and protect all revenue accruable from import and export trade, to this effect Demand Notices to the tune of N68.5m has been raised to shore up the shortfall in revenue.
On export, he said, “prior to this period, KLTC was used as a transit hub for exports. However, since the establishment of an export processing terminal, all export procedures have since commenced in the Command with an anticipated uptick in export volume”.
On the advantage of the terminal, he said, “Kirikiri Lighter Terminal Command has a strategic advantage over other ports in Lagos, its unique location allows for immediate entry and exit, unlike other ports where there is an average waiting time of seven days. Its major impediment is the draft which restricts the direct berth of sea-going vessels. This challenge has recently been overcome with the introduction of ocean-going lighter barges with the capacity of moving over 200 TEU’s.
“Given its location the command allows for the easy evacuation of exports and empty containers, a challenge most shipping companies and terminals have difficulties overcoming.
“KLTC has an installed capacity of handling about 6,000 TEIJ I s but presently it is functioning at less than 10% of its installed capacity and there is a lot of room for growth. With the commissioning of a few new terminals and the promise of increased cargo allocation, we are hopeful of a positive turnaround in activities both for imports and exports as we believe that as trade volume increases, so will the revenue profile”.
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