The Nigerian Shippers’ Council (NSC) and Nigerian Railway Corporation (NRC) have signed a Memorandum of Understanding (MoU) for railway operations to improve port operations and transshipment of cargoes across the nation.
Both organisations signed the agreement at the opening ceremony of a one-day stakeholders summit on “Limitations to Rail Transportation of Cargo in Nigeria” organized in Lagos, on Thursday.
Speaking at the event, the Executive Secretary of NSC, Barr. Pius Akutah MON, said the government is concerned about improving transport infrastructure in order to decongest the seaports.
His words: “We are working with the NRC to encourage railway utilization for cargo evacuation and conveyance of goods from hinterlands to the ports. Railway has been found to be the best mode for transporting cargoes in terms of safety and it is also cost-efficient. This MoU with NRC is to develop policies and infrastructure to enhance the use of railway for cargo transshipment.”
“Nigeria is looking at improving its exports under the present government. This is also important to make Nigerians benefit from the African Continental Free Trade Agreement (AfCFTA) trade. If Nigerians are going to favourably compete in the regional trade, then the cost of transportation for moving cargoes to seaports must be reduced.”
Akutah also revealed that the Ministry of Marine and Blue Economy is working on a policy to address infrastructure deficits at Nigerian ports, adding that the solution has to include private sector investments because the government can’t do it alone.
The Managing Director, NRC, Engr. Fidet Okhiria, posited that the MoU provides the guide for both agencies to encourage seamless rail cargo movements into the seaport terminals and also better engage the shippers.
He, however, expressed concerns about the availability of cargoes to be conveyed by railway. “The last time we moved about 17 containers to Kano, it took us a very long time to gather these containers. We also try to encourage the Manufacturers to come together so that we can move their goods in bulk,” Okhiria said.
Meanwhile, he encouraged terminals who have railway access to provide an enabling environment for both importers and exporters to patronize railways.
Noting the poor patronage of rail haulage, the Managing Director of Le Look Bags, Mrs. Chinwe Ezenwa, advised the NRC to do more publicity and sensitization on its railway cargo routes and services.
“We are glad to have witnessed this MoU between NRC and Shippers’ Council because we are in the business of exports. But witnessing the MoU is one thing and having it effectively executed is a completely different matter.”
“Surely an optimized railway system will bring done the cost of manufacturing. There are some raffia we need for manufacturing that are found in Cross River and it is so expensive to move by road. Moving by railway makes it cheaper and enables us save cost,” she remarked.
While explaining the role of Nigeria Customs Service (NCS) in evacuation of cargoes from seaports, the Area Controller, Tin Can Island Port Command, Comptroller Dera Nnadi mni, observed that the Service inspects and documents cargoes before they exit the seaports.
Nnadi encouraged shippers and their freight agents to gainfully utilize the Pre-Arrival Assessment Report (PAAR) to have an estimate of the cost of Customs duty and expedite cargo clearance.
He equally emphasized the need for the nation to pay more attention to exports and described the MoU between Shippers’ Council and NRC as a commendable step and a win for the nation.
Speaking earlier, the Chairman, Apapa Local Government, Hon. Idowu Sebanjo, lamented that local government and its residents aren’t benefitting from hosting the nation’s biggest seaports in Apapa and Tin Can Island.
“There are no proper roads to service the train stations at Apapa. The Flour Mills access road isn’t sufficient and we hope that something will be done about this amid plans to refurbish the railway. Apapa isn’t benefitting from having the nation’s biggest seaports,” Sebanjo said.
