FG sets conditions for renewal of Ports concession agreements
The Federal Government says companies seeking renewal of ports concession agreements must show satisfactory evidence of performance, meet key performance indicators and other obligations incumbent on them.
The Minister of Transportation, Mr Mu’azu Sambo said this during an official visit to the Nigerian Shippers Council (NSC) in Lagos, according to a statement by Henshaw Ogubike,
Director, Press and Public Relations of the ministry, on Monday in Abuja.
Sambo said ports reforms were meant to achieve efficiency in ports operations, increase cargo traffic and improve revenue, saying that these would be key considerations in renewing concession agreements.
While placing the responsibility of approving ports concession agreements renewal on the Nigerian Shippers Council, he urged the council to be meticulous in the screening process and to drop any company that could not satisfy the conditions for renewal.
“The renewal of the concessions should be based on the performance of the company that handled it.
“Get the ports concession agreements that were signed in 2006, identify all the key performance indicators (KPIs) for each terminal that is due for renewal.
“Look at their performance in terms of meeting these KPIs including development plans, cargo traffic, revenues and other obligations that were incumbent on them.
On the Nigerian Shippers Council Amendment Bill, the minister urged the ministerial committee set up to review the document to expedite work on the assignment.
He also promised to put in his utmost effort to ensure that the bill was passed into law before the end of his tenure.
He further directed the Nigerian Shippers Council, as the regulators of the ports to establish a ports community system in the country.
“Even other neighbouring countries like the Republic of Benin, have a port community system working for them. The responsibility is on the council to get the ports community system working.
“Get a working model from another country and replicate it here. We must have a ports community system working in Nigeria before the end of this administration,” he said.
The minister, however, recalled the significant achievement so far recorded in the implementation of the dry Ports projects and urged the council to work towards the successful take off of the dry ports in other designated areas of Jos, Aba, and Ibadan.
He said the president had approved that oil cargo tracking should be handled by the Ministry of Transportation, as the traditional role holders of cargo tracking.
He said that this responsibility falls on the Nigerian Shippers Council and advised the council to justify the confidence that the president has placed on the ministry.
On the issue of terminal charges, Sambo said there had been complaints of high terminal charges by terminal operators.
He advised that the approved template for terminal charges should be adhered to and that the NSC should embark on massive enlightenment on the approved charges and should provide a platform through which importers could report terminal operators that charge beyond the approved rates.
The Executive Secretary of NSC, Mr Emmanuel Jime commended the minister for his leadership excellence, saying that the minister had promoted cooperation, collaboration and synergy amongst all the agencies in the ministry.
He appreciated the minister for constituting a ministerial committee to review the NSC Act and the recent inauguration of the Dala Dry Port in Kano State and the declaration of the Funtua Dry Port in Katsina State.
