Five Star Storage Fee Hike Strikes TCIP Revenue Optimization
BY FUNMI ALUKO
Industry players have expressed concerns about the sudden hike in storage fee of cargo by operators of the Five Star Logistics Terminal, at a time the New Customs Area Controller of The Tin Can Island Command, Comptroller Dera Nnadi mni just achieved a major repositioning in the command’s hitherto dwindling revenue target.
According to reliable official records the command’s revenue target of over N801 billion which stood at 52 percent, when Nnadi assumed duty on September 14, 2023, with barely 3 months to the end of the year, received a significant rebound as the monthly revenue target shot up by 120percent within eleven working days.
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Speaking on the development, the TCIP Customs Command PRO, Ngozi Okwara said the rebound is indicative of a different approach to administration, also noting that the new vigour is indicative of the prospect of realizing and possibly surpassing the command’s 48percent revenue target differential as at the time of handover, takeover.
While on behalf of her boss wishing stakeholders and the port users Happy Independence Day celebration, she said, “The arrival of Comptroller Dera Nnadi mni as the twentieth Area Controller Tincan Island Port Area Command has proven that norms can be reformed. On his resumption on 14 September 2023, he said the command revenue target of over 801 Billion Naira currently stands at 52 percent, with barely 3 months to the end of the year 2023, meaning we must collect 48 percent of the remaining revenue.
“Precisely 11 working days after his resumption, a commendable milestone was achieved. The Command surpassed its monthly target by 120 percent. Comptroller Dera Nnadi mni has identified strategies to block identified gaps.
“This morning, I noticed the Nigeria Flag flying above the Area Controller on the Google platform. Permit me to say Sirs, that Comptroller Dera Nnadi mni has staged the Command on a global platform where all eyes will be, nevertheless norms are reform-able and the sky can be a starting point for us all.”
She quoted the CAC as telling officers and men of the command as saying, “We have been able to collect our set target of N5.2 Billion naira once proving achievable.”
This is even as stakeholders have expressed displeasure at the timing of the hike in storage charge by the Roll-on Roll-off vehicle terminal, despite citing the biting inflationary trend as reasons.
Examples of the new charge template by Five Star Logistics contained in a notice released by the company shows cost of imported vehicles moving up from N2,000 per day to N10,000, even as the new rates so showed that any container that stays extra 5-days at the terminal will be paying N525,000 as additional charges, compare to N70,000, charged hitherto. Also, containers are currently to pay N105,000 per day.
The upward review in storage charges according to the terminal, will affect all categories of cargoes with effect from 15th October 2023.
The increment is believed to have created an atmosphere of worry and anxiety, with rumours that stakeholders may likely embark on protests; accusing Five Star Logistics of incessant disruption to services through repeated hike in charges and without due consultation.