Tariff Hike To Open Up Eastern Ports, Aid Repair Of Critical Infrastructure – Stakeholders

Marítime stakeholders have said that increasing ports tariff by 15 per cent will buoy the Authority’s capacity for critical maintenance works that will open up the Eastern Ports for increased vessel and cargo traffic.

It could be recalled that the Nigerian Ports Authority (NPA) had in February proposed an increment in port tariff by 15 per cent for the nation’s seaports to compete favourably with its counterpart in the West and Central Africa region.

However, speaking to LEADERSHIP, a clearing agent operating at the Tin Can Island Port Complex, Apapa, said other projects such as the reconstruction of collapsed Escravos Breakwaters and challenged aspects of Rivers, Onne and Calabar, Ports would also be repaired.

According to him, the tariff review provides the necessary guarantees to fund the acquisition and urgent deployment of the Information Communications Technology (ICT) backbone of the Port Community System (PCS).

“Although long overdue, a quick win benefit of the NPA tariff review for stakeholders is the immediate boost it gives to the Authority to fast track the commencement of actual works on its concluded Port reconstruction and modernization plans.

“Secondly, the Tariff review provides the necessary guarantees to fund the acquisition and urgent deployment of the Information Communications Technology (ICT) backbone of the PCS which is the precursor to the implementation of the NSW.

“Furthermore, the increased revenue generation arising from the review buoys the Authority’s capacity for critical maintenance works to open up the Eastern Ports for increased vessel and cargo traffic such as the reconstruction of collapsed Escravos Breakwaters and challenged aspects of Rivers, Onne and Calabar Ports respectively.”

Also speaking, a stakeholder, Joshua Asange agreed with the increase, adding that the value of NPA’s present tariff has since been suppressed by Inflation, which is at about 35%.

Asanga listed port management liabilities like wages, fuel and other areas of expenditure as having adjusted upwards without a commensurate rise in NPA charges for over thirty years

He added that NPA needs funds for improved port infrastructure, robust ICT for the Port Community System, procurement of tug boats and other operational platforms to achieve efficiency.

Another stakeholder, Demian Ukagu, who spoke at the event, talked about the need to apply more NPA funding to outer port facilities and jetties like the Kirikiri Lighter Terminal and the development of other critical port facilities across the country.

He added that NPA rates should be able to cover these costs, guarantee a minimum return on investment, and promote sustainable trade.

The meeting agreed that existing tariffs were set devoid of capital cost, labour cost, consumables and overhead expenditures needed to run the ports

They expressed fear that keeping the ports on the old tariff would promote consequences like poor service, inadequate infrastructure, poor remuneration, obsolete critical port facilities, equipment and infrastructure.