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Wednesday, 28 August 2024

DAMAGED EXPORT: Shippers Council Slams 70% Liability Cost on ICNL’s Terminal for Alleged Delay of Multimillion Naira Export Containers



The Nigerian Shippers’ Council, NSC, and other stakeholders have identified a multiplicity of charges and cumbersome procedures as factors discouraging exports from Nigeria. They stated this at a one-day stakeholders’ enlightenment meeting with the theme, “Proper Packaging System: An Essential Tool For Agro Export” organized by the NSC in Makurdi.

The meeting which was hosted by the NSC Executive Secretary, Mr. Pius Akutah in a communique recommended proper packaging, and labelling of non-oil products to international standards to enhance the fortunes of the export sector and ensure Nigeria’s economic growth.

The meeting which had in attendance exporters, personnel from the military, paramilitary, traditional institutions, business owners, and the media among others pointed out that “cumbersome procedures and multiplicity of charges and agencies involved in the export logistics chain give rise to prohibitive cost which discourage exporters and make Nigerian exportable products uncompetitive at the international market.”

According to them “Nigeria’s mono-sector economy is being seriously threatened and it has therefore become very pertinent to diversify the economy through export of agricultural farm produce resources available in Benue State.”

They noted “the abundance of exportable perishable agricultural products in Benue State and indeed all over Nigeria that are in high demand at the international market but are not being fully harnessed for export to the detriment of the nation’s economic growth and development and its impacts on the GDP.”

They urged that “the NSC, Nigerian Export Promotion Council, Central Bank Of Nigeria, NEXIM, Organized Private Sector and other critical stakeholders should sustain the advocacy for value addition on an agricultural product meant for export to ensure accessibility of export financing and break the jinx of constant rejection of Nigerian export commodity in the international market to make them competitive at the global market.”

The stakeholders also stressed among others the need for the establishment of a Benue warehouse where agro produce such as orange, sesame seeds, soya beans and mangoes originating from the state could be stored for export even as they noted that farmers’ insecurity occasioned by banditry and herders-farmers clashes were causing huge losses to farmers of cash crops in local and foreign revenue.

at the international market but are not being fully harnessed for export to the detriment of the nation’s economic growth and development and its impacts on the GDP.”

They urged that “the NSC, Nigerian Export Promotion Council, Central Bank Of Nigeria, NEXIM, Organized Private Sector and other critical stakeholders should sustain the advocacy for value addition on an agricultural product meant for export to ensure accessibility of export financing and break the jinx of constant rejection of Nigerian export commodity in the international market to make them competitive at the global market.”

The stakeholders also stressed among others the need for the establishment of a Benue warehouse where agro produce such as orange, sesame seeds, soya beans and mangoes originating from the state could be stored for export even as they noted that farmers’ insecurity occasioned by banditry and herders-farmers clashes were causing huge losses to farmers of cash crops in local and foreign revenue.

“Also the Makurdi River Port should be developed by the government and private sector for coastal shipping and inland waterways transportation to enhance movement of cargoes to the hinterland all year round.

“The government should create business enabling environment to encourage private sector participation in the development and investment of transport support infrastructure facilities of the economy such as Inland Depot Project, IDP, Truck Transit Park, TTP, also known as Truck Transit park, TTP, in Benue State.

“The Government at all levels should promote the processing of Raw materials and value addition to increase their value for export and create job opportunities for our unemployed youths.

“Agriculture Credit facilities and financial, institutions such as BOA, BOI, NIRSAL, Commercial and microfinance Banks should be strengthened and simplified to make is easier for exporters to navigate the too cumbersome access to credit facilities”, the communique further read.

The Executive Secretary of the NSC, Mr. Pius Akutah, represented by the Director, Consumer Affairs Department of the Council, Mr. Glory Onyejado charged participants to bear their minds on issues hindering the export of goods from the state and country and state what should be done to address the situation.

The Nigerian Shippers’ Council held tripartite meetings at the Kaduna Port Office where all relevant parties; USBAB MULTI CHOICE LTD
( Complainant) , Kaduna Inland Dry Port/ ICNL ( Forwarder) ,Federal Produce Inspection service ( FPIS), Anglia International services Ltd ( Pre- shipment Agent) and Shippers’ Council’s Complaints Team from the head office were in attendance to amicably resolved the lingering complaint.

The chairman of the meeting and Deputy Director, Kaduna Port Office, Mr. Paul Garnva welcomed all parties to the meeting and informed that Kaduna Port Office regulates the Dry Port and protects shippers in terms of cost, effective and efficient service delivery.

He noted that since the commencement of operations, over sixteen (16,000 TEU’s) import containers have been cleared, while over fifty ( 50 TEU’s) export containers were handled. He added that the essence of the meeting was to dialogue with a view to arriving at fair and amicable resolution.

The head of complaints Unit, Mr. Daniel Orume, a Deputy Director, accompanied by an Assistant Director, (complaints), Mr. Danjuma Buba and Mr. Hassan Aminu ( a principal Operations Officer), however stated that this intervention is crucial, being the first to be held at Kaduna Port Office.

He said in line with NSC ‘s Port Economic Regulation Order, 2015, the complaints Unit is saddled with the responsibility to find solutions to issues relating to disputes between providers and consumers of shipping services in the industry. He stressed that, for the council to carry our investigation and reach necessary resolutions, it relied on documents presented by all parties.

He pointed put that from the Nigeria Drugs Law Enforcement Agency ( NDLEA), the containers were put on hold for almost one month.

On ICNL’s counter submission that they were informed late by MAERSK Nigeria, the council sought empirical evidence to authenticate when both MAERSK and NDLEA informed the Terminal as well as when they engaged NDLEA for the release of the containers.

The council further sought clarification from FPIS, statutorily responsible for issuance of certificate of Quality, Fumigation, Good Packaging Materials and Weight, and explanation on which of the agencies in the export clearance chain is in charge of moisture owing to the fact that the space for moisture content of commodity on the certificate was blank.

The Council also raised issues such as; delay in trying to correct the Bill of Lading of the damaged cargo; sought to know from the pre-shipment Agent, the type of container most suitable for export of agricultural produce; and who is to advise on Packaging of all export cargoes?

Responding, the representatives of Anglia International Services Ltd, the pre- shipment Agent,Messrs. Bodam Sammy and Hyacinth Louis C. informed the meeting ‘ ‘they received the beans and inspected in line with their mandate.

They listed some of their responsibilities to include; ensuring that documentation and goods declared by the exporter has no disparity, ensure that Nigeria Export Supervision Scheme ( NESS) fee is in conformity with the goods declared, proper documentation and submission of report of inspection to their head office for issuance of Clean Certificate of Inspection ( CCI) .

Packaging or the choice of the type of bag is based on the specification of the buyer, the exporter must ensure strict adherence to that. Where there is discrepancy CCI would not be issued and where there is observation by any of the agencies in the export clearance chain,we are supposed to be informed. That, in this case, no agency informed us of any observation. ”

The pre-shipment agent further explained that in this instance, everything was properly done as thorough check was carried out on the bags and the type of beans. In line with the physical examination, ‘there was nothing wrong with the beans as at the time of inspection “. The Agency stated that they carried out their inspection and issued CCI when all the agencies have completed their processes and their role terminates at that point.

Responding, FPIS represented at the meeting by Mr. Usman Suleiman, stated ” he inspected the beans and found it to be well dried without stone, and certified it to be of exportable quality. ”

He said that he fumigated the two (2) containers and further pointed out that the only thing he observed was that during stuffing, ‘the containers were not properly dressed. ‘

He raised an observation, but the response of ICNL was” the containers would not stay long ”

He added that if the dressing was to be done, it would not have been possible to move the containers that day to Lagos as desired by the Exporters. While on the type of container most suitable for export of Agricultural produce,the representative said any type of container could be used provided it is “clean and free of insects.”

ICNL ( Terminal operator/ forwarder) Kaduna represented by Messrs. Rotimi O. and Salami O. Rasaq informed the meeting ” the damage to the beans was unfortunate “. They added that they received the cargo at Kaduna Inland Dry Port and transported it to Apapa Port, Lagos within 15 days.

They also stated that the exporter commended processing of documents such as For. NXP, NESS, etc. After the beans had arrived at KIDP

ICNL also explained that during stuffing, the FPIS officials drew their attention to the ”need to dress the containers with dry papers and bags, but the representative of the Exporter (Ahmed) insisted the stuffing should continue.” They added that the trucks conveying the goods left Kaduna for Lagos, but on arrival, it could not access the port immediately due to MAERSK policy which only allows truck access in to the port on Mondays, Wednesdays and Fridays, which hindered timely gate- in to the terminal “.

They further mentioned how NDLEA ”put on hold” to a great extent, contributed to the delay because neither MAERSK nor NDLEA informed them on time. This according to them accounts for the reason why they missed two vessels that the cargo previously scheduled.

After careful assessment of all the documents submitted during the previous tripartite meetings, the legal advice received from the Council’s Directorate of Legal services as well as review of the role both parties played in the transaction, the Council resolved that Liability sharing formula should be 70% for Kaduna Inland Dry Port ( ICNL ) being the appointed terminal operator and forwarder with the responsibility to ensure that the cargo is transported and delivered in safe and good condition, while 30% is for the Exporter (USBAB MULTI CHOICE LTD) for failure to heed experts advice on how to properly preserve the beans and prevent it from damage.

The parties were however grateful for the council intervention, but ICNL requested the Council to review the liability sharing formula.

 

 


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