APMDC Denies Arbitrary Charges Allegation by Ports Economic Regulator
The Associated Port Marine Development Company (APMDC), has denied being involved in arbitrary charges or insisting that its charges be paid in foreign currency as alleged by the Nigerian Shippers’ Council (NSC).
It would be recalled that the ports economic regulator recently sealed the company’s premises over allegations of failure to comply with regulatory directives and for imposing other arbitrary charges on shippers.
The NSC had alleged that the APMDC had been issued several notices to address infractions against it, including charging shippers in foreign exchange and non-compliance with approved nomenclature of charges.
Part of the allegation include failure to address issues on transport adjustment charges, non-vessel-operating carriers, outright disregard to terms of mediation reached at NSC and unresolved complaints for some months now.
But in a statement, the APMDC Group Head, Human Resources and Public Affairs, Mr Olise-Emeka Nwachukwu said the company’s charges were not arbitrary.
Nwachukwu claimed the company operates one of the most competitive tariffs in the industry.
He explained that the company’s charges are determined by high cost of delivering groupage containers from the seaports or off docks terminals to bonded terminal/warehouses.
He added that the Transport Adjustment Factor-TAF being a bill back-costs, remains one example of excessive costs of delivering groupage containers to her bonded warehouse/terminal.
Part of the statement reads, “APMDC charges structure is determined by high cost of delivering groupage containers from discharge ports or off docks to its Bonded Terminal/Warehouse. Transport Adjustment Factor-TAF being a bill back costs, is one example of excessive costs of delivering our groupage containers to our bonded warehouse/terminal.
“APMDC is an experienced Nigerian-Global Shipping/Logistics player with over 16years of extensive trading knowledge in the Nigerian Maritime.”
Nwachukwu said the company’s record of integrity is impeccable, stating that it has contributed a lot to the Nigerian economy.
“Apart from providing employment to Nigerians, the taxes our industry players pay to both Local, State and Federal Governments, our businesses units are also revenue channels for the Nigerian Economic through Billions to Trillions of Naira that are generated yearly via Customs import duties/taxes and levies hence we are major economic contributors, therefore, we should be applauded instead of being maligned. APMDC makes bold to say that, we are contributors to the over One Trillion-naira revenue generated declared recently by Customs for the first half of the year and cannot be tagged as economic saboteurs, “he said.
He argued that the ports economic regulator’s action was subjudice since the matter is currently pending at an appellate court.
He said, “It is important to note that NSC shutting down the activities of APMDC, acted in flagrant disregard of the pending case at the Court of Appeal where these contending issues are before the honourable court.“
On the allegation of charging in foreign currency, APMDC boss said the Central Bank of Nigeria (CBN), in 2015 grouped their operation among one of the services that can charge in foreign currency.
According to him, the charges collected in foreign currency were not for local services.
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The statement added, “Regarding ‘Transhipment Port Dues’, other charges collection in FOREX, and NSC’s allegations of APMDC committing financial infractions, there has never been any infraction, as the said charges collected were not for local services rendered. Transhipment operations and its associated costs do not occur at a “Destination Port of Lagos but at a “Mid Transit Port” in the course of the container journey between load and discharge ports.
“Transhipment port dues as its titled, simply defines and makes clear the nature of transaction for those who understand the international shipping business dynamics. Besides, CBN as the official financial/economic regulator of the country has exempted operators in the maritime and aviation sector where APMDC plays, to make payments/receive payments in foreign currencies. The same circular has been reaffirmed recently as still extant by CBN, hence APMDC has not committed any infractions as alleged, ”
The Deputy Manager, Shipping of APMDC, Rachael Monye in the statement also said the Shippers Council’s was uninterested about the the plight of operators and challenges being faced that drive charges to shippers.
She alleged that the council fixes prices without considering the high costs of delivering the services.
According to her, “we must put out there clearly that the major bane of contention to all operators, is that NSC tries to fix prices which negate healthy competitiveness amongst players, indeed an action that is noncompliant in itself and also against standard international commercial/business norms.
“To the fact that, NSC imposes tariffs, fixes amounts to charge to customers, on operators without recourse to obvious industry challenges that drive our costs and charge structure leaves very bitter taste in the mouth of industry players and our concern is that this action will discourage investors and will also run businesses to a grind“ .
Monye argued that the business of shipping, especially the NVOCC , was a multiparty and multilateral business which involves multiple stakeholders, adding that this fair and balance in their regulatory functions.
She said, “These businesses worth hundreds of millions to billions of naira investment are in existence to ameliorate financial burdens for importers and create ease of doing business whilst offering midrange cost effective supply chain solutions to the SMEs but at the same time, the need for returns on investments, sustainability and profitability of these platforms cannot be undermined or played down on a platter of regulations.
“The solutions we are offering is critical and beneficial to both private and public sector businesses especially the Small and Medium Scale Enterprises-SMEs which is the fulcrums of growth in our country’s economy. We believe that the roles we players are pivotal to the emergence, growth and sustainability of the SMEs hence we should be commended and encouraged as we bridge the gap between airfreight and full container imports option of the average businesses entities avoiding high airfreight, full Ocean freight rates.”
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