Cargo palletization will cost Nigeria N18.6bn annually, aid cargo diversion

 

Cargo palletization will cost Nigeria N18.6bn annually, aid cargo diversion (2)
R-L: Dr. Frank Ojadi of Lagos Business School; National President of the Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu; Executive Secretary/CEO of Nigerian Shippers’ Council (NSC), Mr. Hassan Bello; General Manager, Shipping of SIFAX Group, Mr. Henry Ajoh and Deputy Comptroller Ngozi H. representing the Nigeria Customs Service at the Ships & Ports Town Hall Meeting on Cargo Palletization held in Apapa, Lagos on Tuesday.

At a Town Hall Meeting organised by leading maritime media consulting firm, Ships & Ports in Lagos on Tuesday, maritime sector stakeholders expressed concerns over the Federal Government’s policy on cargo palletization, noting that it will cost Nigerian importers about $60 million (N18.6 billion) annually. 

The stakeholders were also unanimous in their resolution that the controversial policy will increase the diversion of Nigerian-bound cargoes to the ports of neighbouring countries where the policy is not implemented. 

According to the communiqué issued at the end of the Town Hall Meeting, the maritime stakeholders also raised issues on the importation of strange organisms into the country through wooden pallets and the management of the pallet waste after use. 

Speaking at the meeting, National President of the Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu said the palletization policy holds no benefit for the country and “will also further breed corruption” at the port. 

“The policy will be difficult for shippers because we are an import dependent nation. Palletization will enhance corruption in the ports, as a good chunk of the internally generated revenue in the port go into private pockets. Palletization should not be our priority, rather let us look at how we can improve services at the ports,” he said.

Cargo palletization will cost Nigeria N18.6bn annually, aid cargo diversion (1)
L-R: Executive Secretary/CEO of Nigerian Shippers’ Council (NSC), Mr. Hassan Bello and National President of the Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu at the Ships & Ports Town Hall Meeting on Cargo Palletization held in Apapa, Lagos on Tuesday.

 

General Manager Shipping of SIFAX Group, Mr. Henry Ajoh who represented the Executive Vice Chairman of SIFAX Group, Dr. Taiwo Afolabi, expressed fears over the implementation of the new policy stating that “it cannot work in Nigeria”.

According to Ajoh, what the ports need urgently is enhanced cargo examination system to facilitate ease of doing business. 

He said, “We need scanners. Government needs to deploy technology at the port for Customs examination and release processes. That is the way to go. Palletization takes us backward and cannot work in Nigeria.” 

The Managing Director of CMA CGM – a leading container carrier operating in Nigeria, Mr. Todd Rives said that the policy will lead to the loss of over $60 million annually, warning that the policy must be thoroughly thought through by government.
In his remarks, Executive Secretary of Nigerian Shippers’ Council (NSC), Mr. Hassan Bello said that palletization of cargo is international best practice. 

He said the introduction of the policy in Nigeria was to enhance physical examination of cargo by the Nigeria Customs Service (NCS).
Bello also noted that there are cargoes that cannot be palletized noting that as a Council, it had to listen to stakeholders and take their concerns to the relevant government authorities. 

The Town Hall Meeting, which had the theme “Whither the Palletization Policy”, was attended by an array of maritime industry stakeholders including the representatives of the Nigerian Shippers’ Council, Nigeria Customs Service, Nigerian Maritime Administration and Safety Agency (NIMASA), SIfax Grouo, Standards Organization of Nigeria (SON), Maersk Line, Manufacturers Association of Nigeria, Lagos Chamber of Commerce and IndustryI), Association of Nigeria Licensed Customs Agents (ANLCA), Association of Maritime Truck Owners (AMATO), Ports Consultative Council, shipping companies and terminal operators, among others. 

Copyright 2017 Ships & Ports Ltd. Permission to use quotations from this article is granted subject to appropriate credit given to www.shipsandports.com.ng as the source.