The Managing Director of Shipbait Nigeria Limited, Festus Nwiue, has pointed out significant inefficiencies in the port operations of the country. He has called on terminal operators, the Nigerian Ports Authority (NPA), and the Nigerian Shippers’ Council (NSC) to tackle the issues impacting cargo handling, vessel turnaround times, and the overall state of port infrastructure.

During a forum for maritime stakeholders, Nwiue expressed his concerns regarding the delays faced by terminal operators in unloading cargo. He highlighted that vessels, which usually take between six to eight days to discharge in other nations, can remain at Nigerian ports for as long as 30 days.

He identified several contributing factors, including inadequate equipment, terminal congestion, and delays attributed to the Nigerian Customs Service (NCS).

“Shipowners are focused on efficiency because faster vessel operations mean more revenue. Some shipowners spend as much as $10,000 daily on bumper costs alone. Yet, in some terminals in Lagos, cargo often sits for 24 hours or more on the vessel due to a lack of equipment to discharge and transport them to the terminal. The congestion is staggering,” he explained.

Nwiue urged the NPA and Shippers’ Council to implement more rigorous oversight of terminal operators and to promote investments in advanced cargo-handling technology.

He raised concerns about the efficacy of long-standing agreements with terminal operators, advocating for regular assessments to improve operational efficiency and cargo transit.

The Shipbait leader called on the government and regulatory bodies to focus on reforming port operations, investing in infrastructure, and enforcing policies that boost efficiency, competitiveness, and accountability within Nigeria’s maritime industry. “To fully leverage its trade potential, Nigeria’s ports must align with global standards,” he stated.

In response, Adebowale Ibrahim, the Port Manager of Lagos Port Complex, acknowledged that while terminal operators may lack sufficient or state-of-the-art cargo handling equipment, initiatives are in progress to address these deficiencies.

He noted that some essential equipment for optimal operations can be quite costly, with prices reaching around $4 million, representing a substantial investment for many operators.

Ibrahim also pointed out the difficulties terminal operators face in obtaining the necessary equipment, particularly due to the current exchange rate, which has escalated the costs associated with purchasing such equipment.

“What used to cost N100 million now costs N400 million due to the exchange rate. We need to be fair to them. They are trying their best, but these investments are not cheap,” Ibrahim explained.

Ibrahim addressed concerns regarding the performance of specific terminal operators by highlighting the existence of contractual agreements. He noted that these agreements grant operators certain rights, such as "forced refusal," which prohibits the immediate termination of contracts.

“You cannot just say an operator is not performing well and then remove them. Some legal processes and agreements must be followed. We have to ensure that the operator is truly not performing to a reasonable level before considering such actions,” he explained.