Cargo diversion, freight rates rise likely if ships avoid Nigeria
By Jeph Ajobaju, Chief Copy Editor
Experts and stakeholders are warning that collapsing quay aprons at the Apapa and Tin Can Island Ports in Lagos may cause cargo diversion to neighbouring countries and raise freight rates unless the problem is quickly tackled.
A quay is where cargo is lifted or vessels are loaded and unloaded.
Nigerian Ports Authority (NPA) Managing Director Muhammad Bello-Koko, who first raised the alarm, said attention should be focused more on rehabilitating the quay walls.
His views are shared by other stakeholders who said shipping companies would be scared to berth ships at the ports, resulting in the diversion of cargo to other West African ports and increase in freight charges.
Adewale Ishola, a member of the Nigerian Association of Master Mariners (NAMM), warned the condition of the quay aprons is dangerous.
“The quay aprons portray danger to incoming ships. They expose ships coming in to danger, so it means if you are not careful, people will say that our ports are not safe. If our quay aprons are not strong enough to take vessels, it means vessels will reject going to Tin Can Port,” he said.
“Maybe they will now go to other ports and drop our cargoes. And Apapa port is not even safer because it is older. Apapa was becoming filled up as at then; Tin Can was built to take some cargoes off Apapa. Tin Can was built out of necessity.
“That means if ships start to reject coming to these ports because of the collapsing quay aprons, there may be additional premium for them to enter our ports because they know they are taking a risk to come there.
“So, the cost of delivering cargo might become higher if they have to bring their vessels to come and deliver cargoes at a collapsing quay side.”
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Negative economic impact
Oil and gas analyst Zaka Bala added that the impact of derelict quay aprons will hit the economy hard as vessels will avoid coming to Nigeria, according to reporting by The PUNCH.
Said he: “This portends doom for the Nigerian economy. It portends doom for Nigerian economy because a lot of vessels will start moving away from Nigeria. And that will make other countries that are on the coastal waters of the Atlantic Ocean to start developing their ports.
“Once they start developing their ports, all the big ships will start diverting to their ports and once that happens, most of the ships that are supposed to bring goods to Nigeria will start berthing in other countries.
“Before you know it, other countries will take over the position of Nigeria. And once that happens, it means even if we import goods, they will stop in other countries and we will be forced to go to other countries within Africa to bring in our goods. It will spell economic doom for Nigeria.”