By Omolade Abdulkareem
Harboursandports.com: Lagos- November 20, 2024: The Nigerian Shippers' Council, NSC has taken steps to resolve long-standing challenges in the nation’s shipping sector, aiming to address issues related to container management, Inland Container Dry Ports, and logistical bottlenecks that have hindered the sector’s growth.
The new initiative designed to improve container deposit refunds and ensure smoother operations across country’s seaports, promises to foster efficiency, reduce operational costs, and ultimately enhance the nation's economic growth.
Executive Secretary/CEO of the Council, Pius Akutah, who disclosed this at the Annual Training For Maritime Journalists in Lagos, said efforts are on to find a lasting solution to the issue container deposit.
The event was organised by the NSC in conjunction with First Mediacom, had the theme "The Nigerian Shippers Council In Transition, Issues, Prospects and Challenges."
The Shippers Council boss who was represented by the Director Special Duties, Mustapha Zubairu,
"While multinational shipping companies, including the Mediterranean Shipping Company MSC own large fleets of containers operating in Nigeria, there has been growing support for the idea that Nigerian businesses should be recognised as the true owners of containers within the country’s borders.
" However, shipping giants have been hesitant to release their containers for use at inland depots, preferring to retain control over the cargo and containers along Nigeria’s coastlines where they maintain operations.
This has created a major logistical bottleneck, with inland dry ports remaining underutilized despite their potential to ease the movement of goods.
"To address these challenges, the NSC has introduced a concept that involves underwriting container deposit refunds through an insurance model. This system will allow consignees to avoid large upfront deposit fees while also ensuring shipping companies receive their containers back within a specified timeframe. The initiative seeks to eliminate the longstanding issue of non-refundable container deposits, which have often discouraged the use of inland dry ports and delayed cargo delivery.
"This insurance-backed container deposit scheme is expected to guarantee that shipping companies will be more confident in releasing their containers for inland use, while consignees will no longer have to worry about significant financial loss due to non-refundable deposits.
"Stakeholders in the maritime sector, including freight forwarders, shippers, and shipping companies, will be engaged in discussions to refine this concept and ensure it is tailored to meet the needs of all parties involved."
In addition to improving container management, the NSC is also working to enhance the infrastructure that supports Nigeria’s inland dry ports. The organisation is focusing on addressing the logistical challenges that have plagued the inland depots, including poor road conditions and insecurity, which have deterred shipping companies from using the dry ports to their full potential.
The NSC helmsman said the Council has proposed the introduction of land rail and road transportation solutions to ease the movement of goods between Nigeria’s coastal ports and inland dry ports.
He added,"These transportation improvements will not only reduce bottlenecks but also help to ensure the smooth flow of cargo throughout the country’s logistics network.
The NSC’s initiatives are part of a broader effort to modernize Nigeria’s shipping sector, streamline operations, and enhance the country’s competitiveness on the global stage. By addressing the structural challenges that have long impeded the efficient movement of goods, the council aims to support Nigeria’s blue economy, an important sector that has the potential to drive national growth and create job opportunities across the country." Alh. Zubairu emphasized.
"Furthermore, the NSC is continuing to work on implementing the International Cargo Tracking ICT system, which is designed to increase the security and monitoring of cargo movement through Nigerian ports. Although the initiative has been delayed, the Federal Executive Council has reportedly approved the ICT system, which would enhance transparency and reduce the risk of illegal cargo activities.
"The system’s rollout has been hindered by bureaucratic delays and regulatory challenges, but the NSC remains committed to its successful implementation," he noted.
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