Eastern Ports: From Underutilised Gateways To Engines Of Regional Growth

…LOME conference demands end to Lagos cargo concentration

BY FUNMI ALUKO

The growing concentration of Nigeria’s seaborne cargo in Lagos is increasingly being viewed not merely as a port-sector problem but as a national economic challenge, with stakeholders warning that the underutilisation of Eastern ports is depriving large parts of the country of jobs, investment, industrial growth and lower logistics costs.

This was one of the major outcomes of the Annual General Meeting and Conference of the League of Maritime Editors (LOME), held in Lagos recently.

The conference, with the theme “Lagos/Eastern Ports: How to Reverse Existing Imbalance in Disproportionate Cargo Vessel Calls,” brought together the Federal Ministry of Marine and Blue Economy, its agencies, port operators and other maritime stakeholders to examine the persistent disparity in vessel calls and cargo throughput between the Western and Eastern ports.

The Minister of Marine and Blue Economy, Dr. Adegboyega Oyetola CON, said the concentration of cargo in Lagos had consequences far beyond the ports themselves.

According to him, the imbalance contributes to higher logistics costs, congestion, longer cargo dwell and vessel turnaround times, increased demurrage, pressure on road infrastructure and inefficiencies across the supply chain.

He argued that the Eastern ports possess a natural geographical advantage because of their proximity to industrial, agricultural, energy and commercial activities in the South-East, South-South and parts of the North-Central region.

Ports such as Onne, Port Harcourt, Warri and Calabar, he said, could serve as strategic gateways for regional industries, exports and agro-allied value chains.

But stakeholders at the conference noted that geographical proximity alone had not translated into cargo patronage.

Captain Iheanacho Ebubeogu, chairman of the conference, explained that a port’s economic success was closely tied to the volume of cargo it attracts, distinguishing between captive cargo and contestable cargo.

According to him, while captive cargo is largely tied to the port’s immediate geographical market, contestable cargo can move to competing ports depending on cost and quality of service.

He identified contestable cargo as the major area where Eastern ports have lost ground. For such cargo, he said, ports must demonstrate operational efficiency, deepwater access, competitive tariffs, reliable road and rail connections, fast Customs clearance, safety, security and regulatory compliance.

The economic implications of the current imbalance were also highlighted by LOME President, Mrs. Remi Itie.

She said the Western ports enjoyed comparative advantages that had helped increase national economic earnings, but questioned whether those benefits could be spread more widely by developing the Eastern maritime corridor.

Itie argued that spreading cargoes to Eastern ports would not only reduce pressure on Lagos but could stimulate the economies of coastal states and unlock wider marine and blue economy opportunities.

She cited the tourism and agro-fishery potentials of coastal areas in the Niger Delta and called for greater attention to the development of coastal infrastructure.

The regulatory position presented at the conference reinforced the economic argument. The paper on the role of the port economic regulator argued that ports should be viewed as economic ecosystems rather than simply locations where vessels berth and cargo is discharged.

According to the paper, greater utilisation of Eastern ports could stimulate employment, logistics businesses, warehousing, manufacturing, transportation and investment across the South-East, South-South and neighbouring regions.

It also warned that when cargo is concentrated in one geographical area, the economic multiplier effects generated by port activity are similarly concentrated.

Consequently, cargo moving through the Eastern ports could help reduce unnecessary long-distance transportation through Lagos while allowing industries closer to the Eastern corridor to access more efficient gateways.

But the conference also recognised that this transformation cannot be achieved by political appeals alone, and emphasized that the Eastern ports must be made commercially attractive.

To this end, stakeholders identified navigational accessibility, adequate channel depth, modern cargo-handling equipment, reliable Customs and regulatory processes, efficient terminal operations, good road and rail connections, security, competitive charges, regular shipping services and efficient connections to inland markets as essential ingredients.

The Minister represented by the Director of Press, Mrs. Ananstasia Ogbonna said government was already pursuing this direction through the modernisation and rehabilitation of Eastern ports, improved navigability, channel management, navigational safety, security and encouragement of private-sector investment.

He said government’s ultimate objective is to create a multi-port system in which Lagos, the Eastern ports, Lekki and other viable gateways complement one another. Significantly, Oyetola maintained that the current focus on modernising Lagos ports should not be interpreted as preferential treatment.

He said Lagos was being addressed because it currently handles the largest concentration of cargo and therefore its inefficiencies have immediate national economic consequences.

At the same time, he said, the Eastern ports were being developed to provide additional capacity and alternative gateways that would progressively diversify national cargo flows.

The Minister’s position was that both strategies were complementary. According to him, a modernised Lagos would reduce pressure on the national system, while stronger Eastern ports would provide alternative gateways and create greater resilience.

The conference also identified connectivity as one of the missing links in the Eastern ports’ development. The regulatory paper argued that cargo distribution should be conceived as a port-to-hinterland logistics system, rather than stopping at the seaport.

It called for stronger integration of seaports with railways, highways, inland waterways, dry ports, Customs systems and digital documentation.

Digitalisation was similarly identified as a means of reducing the historical advantage enjoyed by established ports by making clearance and logistics processes faster and more predictable.

The proposed National Port Competitiveness Index would, among other things, enable stakeholders to compare ports on measurable indicators and determine where cargo could be handled at the lowest total logistics cost.

The conference therefore arrived at a significant distinction: The issue is not simply how to take cargo away from Lagos, but how to create enough viable alternatives for cargo owners and shipping lines to choose other ports on commercial grounds.

If successfully implemented, stakeholders said, the outcome could be much bigger than correcting an imbalance in vessel calls. It could mean lower national logistics costs, reduced pressure on Lagos infrastructure, stronger regional economies, new industrial clusters, more jobs, greater private investment and a more resilient national supply chain.

In effect, the Eastern ports are being challenged to move from being underutilised maritime assets to engines of regional economic transformation.

And the Federal Government, regulators, terminal operators, shipping lines, Customs, state governments and cargo interests are being challenged to make that transformation commercially, not politically but on sustainable basis.