“For us to renew these concession agreements that have expired, we need to have commitment from the affected terminal operators.”
By Uzor Odigbo
The Nigeria Ports Authority (NPA) Managing director Mohammed Bello-Koko gave a breakdown of his activities at agency specifically on port concession, ETO system and rehabilitation of staff recreation center and more.
Addressing newsmen in Lagos at the weekend, the NPA helmsman who had served over 10 months on the saddle explain that five terminal operators are being monitored as to their commitment and obligations under the Port Concession agreement.
He insisted that terminal operators have been given temporary six-month renewal with conditions to meet before they will have their concession agreement renewed permanently.
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Bello-Koko also said that the introduction of the Infrastructure Concession Regulatory Commission (ICRC) Act means that renewal of concession agreement for terminal operators is done rightly.
“Tin-Can Island Port, we all know what is happening there. The port is practically collapsing. We need to focus our budget towards the rehabilitation of those quay walls at the Tin-Can port. We have taken a holistic review of decaying infrastructures at our ports and havedecided that it is very important that we rehabilitate Tin-Can and Apapa port.
“What we have done is to start talking to lending agencies, even though we don’t intend to lend. We are asking the terminal operators, you people have operated these port terminals for about 10years and 15years; how much money are you going to invest in this port terminals? We are asking some of them that their leases have expired, how much will they be investing in the ports?
“For us to renew these concession agreements that have expired, about five of them, we need to have categorical commitment from the affected terminal operators on the development of these port terminals. If the terminal operators cannot give us such commitment, then we either give the terminals to someone else or go and borrow money to rehabilitate those ports.
“However, if we go and borrow money to rehabilitate those ports, then what the terminal operators are paying will have to change. The rates will have to go up. If we don’t do that, these terminal operators will keep managing those places, and the ports will keep collapsing.
“Because of their financial interest, these terminal operators don’t want us to re-construct the affected port terminals because that will mean stopping them from operating.
“We have had interest from the World Bank, IFC, Afri-Exim Bank and others. Surprisingly, it was the World Bank that actually gave money to the NPA to construct part of Apapa port so many years ago. The World Bank has come again to tell us that if we need funding, they will give it to us.”
He noted “At the point of expiration of any concession agreement, the then Legal Agreement says that the terminal operators can apply for renewal and we will renew. It was after the concession agreement that the ICRC Act came onboard. The ICRC Act requires that there should be a new owner, a new bid and so on and so forth. So you can see there is conflict.
“Again, the Minister of transportation also said that the port terminals are in their worst state; that what is the plan of the terminal operators to invest more. Also, the NPA asked the terminal operators about their development plans for the port terminals.
“The affected terminal operators have been given temporary extension of six months. The essence is to ensure that the right thing is done at the ports. The essence is that we have value for money.
If today, we revoke the current concession agreement and bring new people on board, the new bidders will naturally pay the NPA far higher than what the current terminal operators are paying. We know this, but we are not yet saying that. What we are saying is that lets sit on the table and create a concession agreement that is fair. We need an agreement that holds the terminal operators responsible for their actions.
“Before, if I or any of my colleagues wants to go into the port terminals, we have to give the terminal operators two weeks’ notice even when such visits is for inspection purposes. We have to have an agreement that is fair and adds value for money,” Bello-Koko said.
NPA MD shed more light on the Eto call up system as there are plans to introduce another app to serve as a competitor for the current system.
According to him, “One of the major complaints by stakeholders against Eto is extortion. Yes, the Eto app itself once in a while suffers glitches, but the major complaint is extortion. That’s why we are having collaboration with the Lagos State Government and the Police Commands to checkmate the menace of illegal checkpoints.
“I have said that we are likely going to create a second app because we want to establish competition and give people. alternatives aside Eto,
According to him, the ETO app initiative had a few glitches in the past, but the MD insisted that the worse of ETO is still better than the pre-ETO era.
On the Apapa gridlock, Bello-Koko said he recently went to the port with the 2 Assistant Inspectors General (AIG)of Police to have an on the spot assessment where too many checkpoints were discovered.
According to him, the AIG Zone 2 and AIG Maritime assisted in identifying where there should be checkpoints along the port access corridor while identifying checkpoints outside the designated areas as illegal.
The MD added that properly written signs will be used to identify areas approved as checkpoints and specify the type of checks to avoid repetition of checks already conducted thereby delaying movement along the port corridor
He added that efforts are on to open alternative access into Apapa area through the TinCan axis as NPA has reached out to Dangote to get that location between Coconut and Sunrise ready before the rains come heavily.
On berge operatiors, NPA has issued a standard operating procedure which aims at streamlining the operation of barges and ban night movement to avoid collision or impeding navigation of vessels on the channels.
According to him, the move is to enhance safety and remove hindrances to quick access to berthing area for oncoming ships. “We are also encouraging the use of barges. We have come up with a Standard Operating Procedure for barge operations because we have all forms of barges that are not safe.
“Same way we created minimum standards for trucks is what we did for barges, and we have called them for meetings. They have been operating on free tickets for long, and that has to stop and they need to start paying us tariffs.
“We gave them concessions because at least the government generates revenue from it. Most of the barges do not have communication systems and are not identifiable individually, with their sailors often driving with reckless abandon.
“Sometimes you hear vessels blaring their horns; it’s not to signal goodbye but to tell someone to get off the channel. In fact, we have had occasions where ships had to anchor right in the middle of the channel because of a barge on the way.
“That has to stop, or we will start cracking down on them. We are going to be very firm on this. The day a ship sinks in the middle of the channel is the day we are done. We will also insist that they don’t operate at night.
“A few weeks ago, a barge sneaked out to operate at night and almost hit a vessel that was offloading liquid cargo. Imagine if the vessel had gone aflame.
You sometimes see them double-banking or even triple-banking, which is not allowed”
On workers Welfare, Bello-Koko said a lot has been done in ensuring that workers are provided with recreational facilities that would keep them fit. “We must not joke with our workers, we rehabilitated the building and also provided recreational facilities to aide their fitness to enhance productivity”
According to Bello-Koko, retraining NPA workforce for mental development is key as plans are on to hire retired but healthy experienced staff to limpact knowledge on the freshers, which he beliefs reduces cost and enhance productivity.