USD700m Ports Rehabilitation Budget: SEREC Frowns At Implementation Delay

BY EGUONO ODJEGBA

The Sea Empowerment Research Center (SEREC) has expressed strong support for the proposed ports rehabilitation budget package put together by the federal government, designed to hasten the reconstruction and repairs of dilapidated critical ports infrastructure.

The Centre disclosed that whereas the package was announced early in  2024, it claimed that nothing has so far been done about it. While expressing dissatisfaction with delay in its implementation, SEREC urged the federal government to expedite the process and honour its commitment to recalibrate the nation’s ports service delivery system aimed at achieving overall ports trade cost efficiencies.

The Centre Head of Research, Fwdr Eugene Nweke Rff in a presentation made available to Pinnacle Time lamented that continuous delay in the implementation of the proposed port rehabilitation does not speak well of government, and canvassed the timely implementation of the ports rehabilitation plan.

This is even as the Centre called on the Nigerian Shippers’ Council (NSC), the Nigerian Ports Authority (NPA) to be on standby to do a thorough job flowing from the implementation and reconnect the ports on the path of efficiency.

The paper titled “RE: DELAYED IMPLEMENTATION OF THE USD700M PORTS REHABILITATION BUDGETS – Matters Of Concerns” reads:

The situation at Nigerian ports is indeed concerning, and the lack of implementation of the approved rehabilitation budget is exacerbating the issues.

The Sea Empowerment Research Center – SEREC hereby wishes to express its deep concerns on the continuous delay in the implementation of the port rehabilitation, as budgeted by the federal government. Equally, the Centre wishes to respectfully draw the attention of government on the need to put in place a milestone implementation processes/plans and a definitive rehabilitation project vision to drive the implementation.

To this extend, the Center hereby deposit the following advice and recommendations to the government which it believes will help to address pressing concerns at the Nigerian ports, improve efficiency, increase revenue generation, and make the ports more attractive to shipping lines and cargo, these being the essence and driving vision of the Nigerian ports rehabilitation goals:

Government is hereby advised to consider the following:

1. The government should immediately commence the implementation of the approved USD700m rehabilitation budget. This will help address pressing concerns at the ports, such as congestion, poor berth production, and ship turnaround time.
2. Establish a transparent project management system to ensure that the rehabilitation works are carried out efficiently and effectively. This includes setting up a project monitoring team, regular progress updates, and a clear communication channel with stakeholders.
3. Identify and prioritize the most critical infrastructure that needs rehabilitation, such as the quay walls, cranes, and cargo handling equipment. This will ensure that the most pressing issues are addressed first, and the ports can start to operate more efficiently.

4.Engage with all stakeholders, including port operators, shipping lines, cargo owners, and other industry players, to ensure that their concerns and needs are taken into account during the rehabilitation process.

5. The government should also address the underlying issues that have led to the current state of the ports, such as:

– Inadequate maintenance and repair of existing infrastructure

– Insufficient investment in new infrastructure and technology

– Inefficient port operations and management

– Corruption and bureaucratic inefficiencies

6. Invest in modern technology, such as port management systems, to improve efficiency, reduce costs, and enhance the overall port experience.
7. Encourage diversification of port operations, such as the development of new terminals, warehouses, and logistics facilities, to increase cargo throughput and revenue generation.
8. Consider private sector participation in the rehabilitation and operation of the ports, through public private partnerships (PPPs) or concessions, to bring in much-needed investment, expertise, and efficiency.
9. Review and update the regulatory framework governing port operations, to ensure that it is conducive to efficient and effective port management, and encourages investment and growth.
10. Establish a monitoring and evaluation system to track progress, identify areas for improvement, and make adjustments as necessary, to ensure that the rehabilitation efforts are successful and sustainable.

Here again, the Centre wishes to note that, in the face of the current low cargo throughput, ships calls to the port, occasional port congestion, revenue generation, poor berth production, ship turnaround time, and general port efficiency concerns, the government should:

1. Conduct a thorough analysis of the current situation, to identify the root causes of the problems and develop effective solutions.
2. Develop a short-term plan to address the immediate concerns, such as congestion and poor berth production, while the rehabilitation works are ongoing.
3. Engage with shipping lines and cargo owners to understand their concerns and needs, and work with them to develop solutions that can improve the efficiency and attractiveness of the ports.
4. Invest in marketing and promotion efforts to attract new cargo and shipping lines to the ports, and to improve the overall image and reputation of the ports.

Finally, in the course of the rehabilitation implementation process, government should mandate and encourage the Nigeria Port Authority to ensure that the private terminal operators are investing on the right and prioritized cargo handling equipments so as to add impetus to efficiency and port costs.

Expectedly, the economic industry regulator and the port authority should equally be mandated to seriously drive the desirous option of “evolving and integrating port efficiency and competition” In the reason of attaining and be reckoned as globally ranked competitive ports.