The Customs Area Controller (CAC) of the Tin Can Island Port has enumerated the pivotal roles played by the Nigeria Customs Service (NCS) in ensuring that cargoes are effectively evacuated from the seaport to the hinterland.
He also highlighted the benefits of decongesting seaports, the crucial function of escort Customs officers in ensuring secure transit to bonded terminals, and the collaborative efforts required among terminal operators, stakeholders, and logistics partners to optimise the evacuation of cargo with the aim of decongesting Seaport and improve overall operational efficiency.
Nnadi made these highlights while presenting his paper at the a stakeholders forum on the limitations to Rail Transportation held at the Shippers Council headquarters in Lagos, recently, noting that cargo evacuation from Customs Ports to the hinterland is essential for the smooth operation of international trade.
Pointing out that Nigeria’s trade and logistics sector is part of this chain, he said the NCS plays a critical role in this process, ensuring that cargoes are cleared, secured, and transported efficiently.
While highlighting the functions of the NCS in cargo evacuation from the seaport, he said the NCS officers inspect and verify cargoes to be transferred to the bonded terminals and hinterlands outside the mother port using the IM 8 import module, a process referred to as Customs Clearance.
These cargoes, according to him, are evacuated by road or by barge through the waterways and sometimes by rail, and are escorted by officers who obtain landing certificates. The Escort officers ensure the secure transit of goods from seaports to bonded terminals in the hinterland. They prevent theft and tampering, maintaining the integrity of the supply chain.
He enumerated other incentives introduced by NCS to ease evacuation cargoes to include deployment of Fast Track and the Authorised Economic Operators (Section 108 of NCSA 2023) programme, the introduction of pre-arrival assessment Report (PAAR) and the pre-release regime which has been has been effective in the facilitation of timely release of cargo for qualified traders.
Others, the CAC said are Risk Management through which the NCS employs techniques to identify and manage potential risks associated with cargoes, giving an instance of the recently launched World Customs Organisation Time Release Study aimed at identifying bottlenecks in clearance process as one of them.
By implementing streamlined procedures and expediting the clearance process using Inland Container Depots (ICDs), he said the NCS plays a crucial role in reducing port congestion, which in turn improves the overall efficiency of port operations.
Nnadi highlighted inadequate infrastructure, inefficient port operations, regulatory and Customs delays, limited hinterland connectivity, high volume of traffic, and security issues as challenges affecting Port Decongestion.
He outlined impacts of Port Congestion to include increased operational costs for shipping companies due to longer waiting times and higher demurrage charges, noting that these costs are often passed on to consumers, leading to higher prices for goods.
Ports that are known for congestion can deter international trade partners and investors, Nnadi explaining that this loss of competitiveness can impact the broader economy by reducing trade volumes and foreign exchange earnings.
Congestion also causes delays in the delivery of goods, disrupting supply chains which the CAC noted can result in inventory shortages, production delays, and increased costs for businesses that rely on timely shipments.
According to him, Port Congestion comes with environmental impact because ships idling at congested ports produce higher emissions, contributing to environmental pollution. He added that increased truck traffic and congestion within port cities exacerbate air quality issues.
Continuing, he said congestion of port causes loss of perishable goods, explaining that delays in port operations can lead to spoilage of perishable goods, which results in financial losses for exporters and importers and potential food shortages.
Also part of the impacts of port congestion, according to the Trade Expert is strained infrastructure; overloaded port infrastructure can deteriorate faster, requiring more frequent repairs and maintenance, which can further disrupt port operations and increase operational costs.
Solutions to Mitigate Port Congestion
Nnadi highlighted Infrastructure Investment, Operational Efficiency Improvements, Streamlining Customs Procedures, Enhancing Hinterland Connectivity, Capacity Planning and Management, and Public-Private Partnerships.
xxxx, Improving Security Measures: Enhancing security infrastructure and protocols can prevent theft and vandalism, ensuring smooth and secure port operations.
This includes installing surveillance systems, improving access controls, and conducting regular security audits.
However, Nnadi called for a collective effort and collaboration of the stakeholders on the trade chain to achieve efficiency in evacuation of cargoes from the seaport which invariably would enhance trade efficiency and economic growth.
Efficient seaport evacuation involves the coordinated efforts of various parties, including the Nigeria Customs Service, terminal operators, importers, exporters, shipping companies, freight forwarders, logistics providers, and regulatory bodies.
“Each plays a vital role in ensuring the smooth and secure movement of cargoes from seaports to the hinterland, contributing to the overall efficiency of the logistics sector. By understanding and optimising these roles, Nigeria can enhance its trade efficiency and economic growth,” he proffered.