By Moses Ebosele, ebosele@hotmail.com —
As the number of COVID-19 cases continue to climb both in Nigeria and across the globe, individuals, corporate organizations and strategic agencies such as the Nigerian Ports Authority (NPA) are taking steps to navigate the challenges.
From China to the United States of America, Europe, Africa and Middle East, among others, its a tale of uncertainties and grastic drop in capacity utilisation.
According to the International Chamber of Shipping (ICS), the impact of the outbreak is estimated to be costing the shipping industry over $350 million a week in lost revenue.
Indeed, like other sectors of the global economy, the virus outbreak is having a significant impact on shipping.
For example, the Port of Los Angeles, the U.S. busiest port, has reported 22.9 percent decrease in handled containers for the month of February compared with the same month in 2019.
According to available information, the industry is working closely with the World Health Organization (WHO) to ensure that guidelines for industry and governments help limit the spread of the virus, whilst maintaining international trade.
Already, ICS estimates that more than 350,000 boxes have been removed from global trade as a result of the outbreak.
Meanwhile, issues remain around the quarantining of ships at Seaports, crew changes, and ensuring the health of seafarers and passengers.
In Nigeria, NPA, the Nigerian Shippers Council (NSC) and other relevant Government Agencies say adequate measures are in place to tackle possible challenges associated with the virus outbreak.
Under the arrangement, the management of NPA moved in swifly and unveiled series of incentives designed to carry all stakeholders along in the larger interest of Nigerian economy.
Prominent among the steps from NPA was a directive to all terminal operators to suspend all applicable terminal storage fees on consignments (demurrage) for an initial period of 21 days effective March 23, 2020.
NPA, in a statement by the General Manager, Corporate and Strategic Communications, Jatto Adams, explained that the gesture was in recognition of the pressure that COVID-19 pandemic imposed on businesses and the responsibility imposed on the Authority to relieve this burden on its customers as well as attaining the objective of the Federal Government’s ease of doing business policy at this trying period.
He noted that the Authority recognised the financial implications of these policies on the terminal operators and would consider a shift in its operational charges to ameliorate the situation of stakeholders.
Adams also disclosed that NPA, as majority shareholders alongside other shareholders of the Agura Hotels, Abuja, have agreed to donate the 130-bed fully furnished hotel as isolation centre for COVID-19.
He explained that the donation was part of their social responsibility initiative aimed at supporting efforts of the Federal Government to contain the spread of the virus.
Going a step further, NPA in a memo revealed how it intends to pay back port operators after the later must have granted 21 days waiver of storage charges to importers.
In a letter dated April 8, 2020, titled; “Re: Relief Measures To Port Users Due To Outbreak of Covid-19” NPA said it would grant credit notes commensurate to the rental reliefs granted by the terminal operators to importers within the 21-day free storage period.
In the letter signed by Ugo Madubuike, General Manager, Monitoring and Regulatory Services, for the Managing Director, NPA clarified that “the compensation will only cover cargoes situated in your terminal within the period under reference.
“The terminal must produce evidence of delivery records indicating waiver of rent for the period in reference. The compensation shall only cover storable cargoes within respective terminals. The compensation shall only cover charges approved by the Authority and published by the terminal. Any charge outside these will not be accommodated,” the port authority stated, among others.
NPA boss, Hadiza Bala Usman, also disclosed that the Agency is collating the challenges confronting Terminal Operators due to the virus outbreak.
Bala Usman, who visited Terminals to get first hand information on the impact of the lockdown on Port operations, pledged to forward findings to the appropriate agencies for proper actions.
Speaking at the Ports & Cargo Handling Services Limited, the flagship company of SIFAX Group, she explained that the government was committed to having smooth operations at the port during this period in other to keep the economy running.
She said: “I want to assure you that we will continue to support the operations of SIFAX Group and other port operators around the country. Any assistance required from the agency should be put into writing and forwarded to my office, this is because I read all letters addressed to me and I will make sure that proper action is taken on the requests.”
While welcoming the NPA boss, Adekunle Oyinloye, Group Managing Director, SIFAX Group, noted that the operations at the terminal has been faced with daunting challenges since the lockdown.
He said: “We have encountered a lot of challenges including the harassment and detention of our staff by security agencies despite presenting their ID cards and the cover letter from NPA and bank closure at the ports, among others. We will need your assistance to address these obstacles to our operations.
“Also, in order to avoid congestion at the ports, we have stemmed some of our containers to our off dock facilities.”
As the virus spread its tentacles beyond borders, the International Association of Ports and Harbors (IAPH) has canceled the IAPH 2020 World Ports Conference, which was due to be held from March 17 to 19 in Antwerp, Belgium.
The event cancellation was prompted by coronavirus concerns.
“Given the spread of COVID-19, it has been necessary to cancel in the interests of the health & safety of speakers, sponsors and attendees.
In addition, the recent increase in the number of speakers and participants impacted by immediate travel restrictions by their organizations influenced this decision,” IAPH said in a statement.
