Nigerian port authorities learned a thing or two from the mistakes of their US counterparts when they declared their initiatives in decongesting vital chokepoints in the country’s supply chain.
A steep rise in the country’s abandoned cargo volumes, sharply related to causing congestion in numerous Nigerian ports has prompted authorities to act quickly as they want to avoid a Long Beach- Los Angeles-like situation in the country.
Mohammed Bello-Koko, the Acting Managing Director of Nigerian Port Authority (NPA) has asked the country’s ports to auction these unclaimed containers as authorities look for ways to check congestion in vital ports.
Usually, these ‘unclaimed’ containers are termed as ‘overtime’ if the owners of these cargoes leave them in a seaport for over 90 days after unloading. Custom authorities can go forth and seize these.
As per Bello-Koko, Nigerian ports have over 5,000 overtime boxes, while some containers have been abandoned in terminals for over a year.
“Currently, there are over 5,000 containers across the ports that are overtime cargo. Some of these containers are more than a year old, and when you leave these containers, they are occupying space that would have been used for containers imported into the country,” he stated.
Bello-Koko urged that these containers be auctioned off so that the country can avoid port congestion, knowing well that these overtime containers are ticking time bombs, adding that “The place is filled up; Nigeria Customs has not auctioned containers to the best of our knowledge in recent times. So there is even no space for more containers.”
Congestion at ports increases the cost incurred in the overall supply chain, leading to a slow down of businesses, loss of trade, disruptions, and transport agreements. Cargo redistribution is a known way of mitigating future port congestion, and this step by Nigeria is a progressive effort aimed at the same.
Ankur Kundu
Correspondent
