Cargo Tracking Note will increase port costs – Varsity Don tells NSC

The Head, Operations Management Department of Lagos Business School (LBS), Pan-Atlantic University, Dr. Frank Ojadi has queried the rationale behind the planned introduction of the once-abolished Cargo Tracking Note (CTN) by the Nigerian Shippers’ Council (NSC).

SHIPS & PORTS DAILY reported in its edition of Monday 27th July 2015 that the Executive Secretary of Nigerian Shippers’ Council (NSC), Hassan Bello said the council had been mandated to implement the electronic cargo tracking to capture international trade arriving and departing from the port of destination and origin.

Bello added that the tracking note would assist Customs in its risk mitigation on imports, enhance and block revenue leakages at the ports.

But Ojadi, who holds a PhD in Transport Economics, University of Johannesburg, described the planned reintroduction of the CTN as one of the “lopsided things happening at the port”.

Dr. Ojadi recalled that CTN was approved in 2009 and introduced in January 2010 Jan by the then Federal Executive Council (FEC).

“CTN was abolished almost immediately due to the high cost it imposed on shippers (importers and exporters) and the strong opposition to it.

“It is very strange to hear the ES of NSC assume the full powers of the FEC to re-introduce the CTN.

“The reasons given by him are not convincing since the Customs have the means and ways of monitoring the risks associated with imports.

“Curiously, he was silent on who bears the cost of this scheme. Economic regulation of port operations does not cover issues of this nature. How would the introduction of CTN improve port efficiency?

“This appears to me to be another taxation which points to increasing the high cost of doing business in Nigeria,” the university don said.

He also queried the composition of a committee set up recently by the Nigeria Customs Service (NCS) and the NSC on operations of Inland Container Depots (ICDs) in the country.

“The committee set up to draft the procedure for ICD has no shipping line or terminal operator serving on it, yet these two operators are crucial in the ICD activities. What is really going on at the ports?” he asked.

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