SIFAX Group, one of the private terminal operators in the Nigerian ports with the name Ports and Cargo, operating at the Tin Can Island Port has accused the Federal government of delaying the renewal of expired port Terminal Operators agreements, lamenting that this delay is hindering port development.
It could be recalled that since the concessioning of the ports by the Federal government to private operators in 2006, the Federal government through the Nigerian Ports Authority (NPA) has ignored calls for renewal of expired agreements.
The Port concessioning of 2006 saw the Federal government issuing agreements ranging from 10 to 25 years to private terminal operators. Some of the ports concession agreements like Port and Cargo, ENL Consortium which their agreements were initially 10- 15 years have since expired, but the Federal government through the NPA are yet to fashion out a new agreement for the affected port terminal operators.
Based on this delay, the Managing Director of Ports & Cargo Handling Services Limited, a subsidiary of SIFAX Group, John Jenkins has raised concerns over the delay of port concession renewal in Nigeria. Port & Cargo terminal is one of the port operators waiting on the government for the renewal of their port concession which expired a few years ago.
According to him, the delay has destabilised Ports and Cargo’s operations, caused uncertainty among customers, and hindered potential new business opportunities. Jenkins said this during a courtesy visit by Head, Complaints Unit, Nigerian Shippers’ Council, Bashir Ambi Muhammed to the company in Lagos on Wednesday.
He lamented that the renewal process of the concession has been stalled since the contract expired in 2021, despite meeting all the necessary terms for a new contract renewal.
He said: “Ports & Cargo remains one of the leading terminal operators in Nigeria with our record of exceptional service delivery, trade facilitation, many jobs created, and diverse social responsibility footprints across the country. This delay in our concession renewal has tremendously affected our terminal, as our customers are worried about the future of their operations here. Without a new concession in place, they are hesitant to enter into long-term agreements, which is not good for our business.”
Speaking, Mohammed said the objective of the visit was to familiarise with the operators in the sector and explore ways of cooperation. He lauded the terminal for its impact and contributions to the growth of the industry in particular and the nation at large.
He emphasized that one of the key objectives of the Council was to ensure that service providers, consumers, and other stakeholders in the shipping sector experience prompt and fair resolution of complaints.
“We are committed to adding value to the nation’s economy through effective regulation and collaboration with service providers,” he said. He noted the complaint about the concession renewal, adding that the Nigerian Shippers’ Council, as the industry economic regulator, will use its influence to expedite the approval process.
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