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 Daily
Independent Online.
* Wednesday, June 30, 2004.
Sarumi lists conditions for
successful port concessioning
Stories by Muyiwa Dare
Maritime Reporter, Lagos
Managing Director of the Nigerian Ports Authority
(NPA), Chief Adebayo Sarumi, has said that if the proposed port
concessioning in the country must be successful, the customs’ processes
and freight- forwarding practices will need tremendous re-organisation to
achieve the expected ideals of concessioning.
Sarumi, who stated this in
Lagos recently, added that if the re-organisation of the two
sub-sectors is not done with concessioning, the gain of the programme may
not be achieved.
His words: “The point remains that no matter what we want to
achieve by concessioning, which is port efficiency, we must still go into
ensuring that customs processes also undergo tremendous re-organisation,
the same thing with the issue of freight-forwarding practice. If the two
don’t accompany concessioning, the gain of concessioning will never come
and I want to let the country know that in most areas of the world, where
they have achieved the desired results in respect to concession, they
were able to do so because they re-organised three other areas: customs’
procedure, cargo clearance procedure and then how the cargoes are
evacuated from and brought into the port”. The NPA boss explained further
those private operators, who have shown interest in port concessioning, may run the ports
at reduced overheard and recurrent costs, adding that this may bring
drastic reduction in port tariffs. He stressed that concessioning will
bring about collective bargaining among operators while tariffs would be
determined by competitive forces.
“It is possible that the terminal operators may charge less than
that of the NPA for the following reasons: One, they are likely not to
employ as many people as we are doing, their equipment are not likely to
cost the same as NPA’s will cost because it is possible the contractors,
selling to us are selling three times the actual market price. But the
terminal operators will go straight with their money to buy whatever they
want, wherever they find it.
“Whereas, when we are running the ports and buying equipment,
some times the equipment are foisted on us. When the terminal operators
come, no one will foist anything on them. They will buy the equipment at
the correct price direct from the manufacturers. So, the sum total of the
cost of running the ports at the end of the day is lower than it is when
it is public sector-driven”.
Speaking further, Sarumi explained that apart from the above
points, users will be able to negotiate with the provider of the services
to ensure some cost and tariffs are reduced or eradicated.
“If they negotiate among themselves, certain unauthorised costs
are likely to be reduced. Expected charges reduction would be possible if
other ports elements are made to undergo reforms”, he said.
Sarumi said the NPA
would still continue to be relevant in the entire port system,
concessioning not withstanding.
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