R. A. N. FOUDA
296
structure and equipment. The agreed reform included:
Creation of two Autonomous Port and Harbor Authori-
ties Creation of a National Transport Regulatory Com-
mission; limiting the role of the Government, while Pri-
vate operators perform operations, reforms as: Legal and
regulatory reform and Labor reform. In 2006 the initial
concessions became operational. Within a few months of
private operation of the Lagos container terminals, pro-
ductivity went up. Chronic delays for berthing space had
nearly vanished, leading to the reduction of congestion
(surcharge from Euro 525 in March 2006 just before
concessioning to Euro 75 in January 2007). Therefore
reduction in congestion earned Nigerian economy about
$200 million annually. As part of a broader program of
port reform in early 2006, the Nigerian Ports Authority
awarded a concession to APM Terminals to manage,
operate, and develop the Apapa container terminal, in-
creasing capacity from 220,000 TEUs/year to 1.6 mil-
lion TEUs. Within months, shipping lines reduced their
congestion, saving their economy $200 million a year.
By early 2009, new gantry cranes had been acquired.
However, although the port’s equip ment is able to handle
more than 500 containers per day for customs examina-
tions, the majority are returned to stacking by the end of
each day. By January 2009, the port was clogged by un-
collected containers, and at the end of February, the Ports
Authority announced a temporary suspension of ship
entry, lasting until mid-April, to clear “alarming” back-
logs. The controller of Customs Service for Apapa
blamed the low clearance volume on the need to physi-
cally examine every container because of high false dec-
laration by importers. However, even cleared containers
were not collected. By January, end, out of 9741 con-
tainers, only 851 had been cleared by customs, with all
charges paid with documentation by agents. Ports Au-
thority consequently proposed demurrage charges of $4
per TEU in a bid to force owners to move their contai-
ners. In their turn, the containers’ agents blamed a lack of
trucks, arguing that many had been booked.
(Source: Press reports assembled by C. Bert Kruk,
World Bank, ILO) [12].
5. Strategic Analysis
The Nigerian ports as well as WCA ports have not been
able to integrate into global trends. Yet, their current
challenges may be an opportunity in future development.
Due to their new reforms, the Apapa port has witness a
lot of progress, which has increased capacity from
220,000 TEU per year as well as the economy to $200
million. Congestion has gradually reduced. This let me
evaluate, that the port operation by the public (president
or minister) is costly and worthless, while the private
operators have made it possible that larger ship can be
served, infrastructure consideration, productivity to mini-
mize turnaround time and country’s economic stability.
Government operators can only appraise administratively,
whereas, businessmen see into a future expansion of the
port terminals. Though all these notions, more improve-
ments are needed.
6. Recommendation and Conclusions
In recommendation, eventually in conclusion, the re-
cently observed development of larger vessels calling
WCA as well as prospect for even larger vessels being
used, offers an opportunity for reduction in shipping
costs, provided that necessary maritime transport, land
transport and port reforms are undertaken. The main ob-
jectives of upcoming reforms for Governments should be
aimed at: *facilitating procedures and controls in ports,
such as procedures affecting turnaround time, dwell time
and handling costs [13]: *facilitating trade and land trans-
port outside the port on the main trade corridors: *
im-
proving port access in view to develop multimodal trans-
port. Areas around ports are usually cong ested and inves-
ting in road infrastructure to improve port access: *fos-
tering private sector participation both to provide invest-
ment for new installations and equipment: *increasing
competition among shipping lines in countries where
informal barriers to market entry still prevail: develop ing
knowledge sharing between ports and countries on cur-
rent port reforms in the region: *carrying out cost-benefit
analysis of current port management and efficiency in
countries facing very high port charges and high mari-
time transport rates.
Moreover, there is need to reduce dwell times and
handling costs, countries need as well to invest in infor-
mation systems, communications technology, and modern
customs practices. Customs procedures, in particular, act
as a bottleneck to port efficiency when they are out-
dated or open to corruption. Also, Striving for efficient
ports must be complemented by associated measures to
increase transparency and reduce corruption in customs
administration [14]. The African ports, like all world
ports, must create port community systems not only to
improve productivity and efficiency but also to respond
to the growing importance of and future obligation in
supply chain security. I personally th ink that, if all WCA
port follows most of these recommendations (even 50%
of it); there will be a drastic charge in their respective
ports, which will shoot them at a top world record.
REFERENCES
[1] B. Slack, C. Comtois and R. McCalla, “Strategic Alli-
ances in the Container Shipping Industry: A Global Per-
spective,” Maritime Policy and Management, Vol. 29, No.
1, 2002, pp. 65-76.
[2] A. K. C. Beresford, B. M. Gardner and S. J. Pettit, “The
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