Comptroller Nnadi identifies inadequate port infrastructure, stringent procedures as causes of port congestion
Comptroller Nnadi identifies inadequate port infrastructure, stringent procedures as causes of port congestion
Segun Oladipupo
The Nigeria Customs Service (NCS) has said that inadequate infrastructure, inefficient port operations, regulatory and Customs delays, among other factors are responsible.for congestions at Nigerian ports
The Service gave the details at a One-Day Summit on Limitations To Rail Transportation Of Cargo in Nigeria organised by the Nigeria Shippers’ Council in collaboration with Nigeria Railway Corporation NRC on Thursday.
Speaking in the topic: The Roles of Nigeria Customs Service in the Evacuation of Cargoes from Seaport to the Hinterland, Comptroller Dera Nnadi, Customs Area Controller (CAC), Tincan Island Port Command maintained that many ports suffer from outdated and insufficient infrastructure leading to inability to handle the increasing volume of cargo efficiently.
According to him, it includes limited berthing spaces, inadequate cargo handling equipment, and insufficient storage facilities
He added that poor management practices, lack of automation, and inefficient handling processes contribute to longer turnaround times for ships and cargo.
“This inefficiency can be due to bureaucratic delays, lack of coordination among port operators, and insufficient workforce training
“Delays: Stringent and often cumbersome Customs procedures can significantly delay the clearance of cargo. Lack of harmonization in regulations and corruption can exacerbate these delays, leading to prolonged cargo dwell times.
“Limited Hinterland Connectivity: Poor transportation networks connecting ports to the hinterland, including roads, railways, and inland waterways, can cause significant delays in the evacuation of cargo. This issue is often compounded by inadequate logistics infrastructure and services.
“High Volume of Traffic: Surges in cargo volumes, especially during peak seasons, can overwhelm port facilities and lead to congestion.
” This is particularly challenging for ports that have not planned for capacity expansions to accommodate growing trade volumes.
“Security Issues: Ports with inadequate security measures face risks of theft, vandalism, and other security breaches, which can delay operations and reduce overall efficiency.
Speaking further, he stated that port congestion could lead to increased operational costs for shipping companies due to longer waiting times and higher demurrage charges.
The costs according to the Controller, are often passed on to consumers, leading to higher prices for goods.
In his paper, he quipped that port congestion could engender reduced trade competitiveness.
His words, ” Ports that are known for congestion can deter international trade partners and investors. This loss of competitiveness can impact the broader economy by reducing trade volumes and foreign exchange earnings
“Supply Chain Disruptions: Congestion causes delays in the delivery of goods, disrupting supply chains. This can result in inventory shortages, production delays, and increased costs for businesses relying on timely shipments.
“Environmental Impact: Ships idling at congested ports produce
higher emissions, contributing to environmental pollution. Additionally, increased truck traffic and congestion within port cities exacerbate air quality issues.
“Loss of Perishable Goods: Delays in port operations can lead to spoilage of perishable goods, resulting in financial losses for exporters and importers and potential food shortages.
“Strained Infrastructure: Overloaded port infrastructure can deteriorate faster, requiring more frequent repairs and maintenance, which can further disrupt port operations and increase operational costs.
Preferring solutions, he called for Infrastructure Investment saying Investing in modern and expanding port infrastructure is crucial. This includes increasing berthing spaces, upgrading cargo handling equipment, and expanding storage facilities to accommodate larger volumes of cargo efficiently.
“Operational Efficiency Improvements: Implementing best practices in port management, such as adopting automated systems for cargo handling and clearance, can significantly reduce turnaround times. Training the workforce in efficient handling practices is also essential.
“Streamlining Customs Procedures: Simplifying and harmonizing customs procedures, leveraging technology for electronic documentation and tracking, and reducing bureaucratic red tape can expedite cargo clearance and reduce dwell times.
“Enhancing Hinterland Connectivity: Improving transportation networks that connect ports to the hinterland, including upgrading road, rail, and inland waterway infrastructure, is vital for the efficient evacuation of cargo from ports.
“Capacity Planning and Management: Ports should engage in proactive capacity planning to anticipate future cargo volumes and invest in necessary expansions. Implementing advanced analytics for better demand forecasting can aid in managing peak traffic periods.
“Public-Private Partnerships: Encouraging collaborations between the public and private sectors can bring in much-needed investment and expertise. Private sector participation can lead to more efficient port operations and management practices.
“Improving Security Measures: Enhancing security infrastructure and protocols can prevent theft and vandalism, ensuring smooth and secure port operations. This includes installing surveillance systems, improving access controls, and conducting regular security audits.
“Environmental Initiatives: Implementing green port initiatives, such as shore power for ships and using cleaner technologies can reduce the environmental impact of port operations. Promoting the use of eco-friendly transport options for cargo evacuation can also contribute to sustainability,” he submitted.
