Moves to Reposition Shippers Council as Economic Regulator Begin

As the passage of the Ports and Harbour Bill by the National Assembly is awaited, one issue that has continued to haunt the shipping sector is the absence of a commercial regulator in the industry. This may probably explain why at almost every stakeholders’ forum, one of the issues that always comes up is the  fact that  the sector has remained all these years without an economic regulator.
The concern of stakeholders is that government failed to consider the necessity of establishing a regulatory agency side-by-side with the reform exercise at the nation’s ports in 2006 when terminal handling operations were handed over to the concessionaires. Since then, the terminal operators and shipping companies have been operating without any agency checking them.
The shipping companies have links with the terminal operators to the extent that most terminal operators have shipping companies attached to them, like partners in crime. The Nigerian Ports Authority (NPA), which is a technical regulator is considered as lacking the political will to carry out  regulatory functions, since it is also an  operator in the system.
Last week, stakeholders who gathered at an interactive dinner in Lagos, organised by the Nigerian Shippers Council (NSC) discussed the negative effect of the absence of regulatory agency at the ports. Those who spoke said it was time the Federal Government takes urgent action to  give  the  shipping industry  what can bring about efficiency and fair trade practices in the  sector. The stakeholders pointed out that the growth in the telecoms industry would not have been possible without an effective regulator. The President of Maritime Reports Association of Nigeria (MARAN), Mr Bolaji Akinola  who was apparently concerned about the situation called on the  new Board and management of the NSC to  position the Council the fill the gap created by the absence of the regulatory agency. Bolaji specifically called on the board headed by Lt General Salihu Ibrhaim (rtd) to  work on transforming the Council as a regulatory agency.
Why Ports Need Commercial Regulator
Before the deregulation of the telecoms industry in the ‘90s, there was the  Nigerian Communications Commission (NCC) overseeing operations in the industry. The NCC was able to mediate between the then giant Nigerian Telecommunications Limited (NITEL) and the private telecommunications operators (PTOs). NCC was able to ensure that trade practices, including inter-connect agreements between operators and the giant telecoms operators worked. It resolved the discrimination against weak service providers by  stronger firms in the area of interconnection. The agency continued this way even after the licensing of the GSM operators.  On many occasions, the NCC was able to sanction the operators to achieve a more efficient service.  Subscribers who felt cheated by the GSM operators have had to take the case to the NCC who intervened and addressed the issue.
Stakeholders in the ports industry said that a commercial regulator established like NCC will be in a position to check all trade malpractices in the ports sector. Such malpractices include over-billing and arbitrary charges by terminal operators and shipping companies.  Importers have been suffering undue trade practices in the shipping industry for a long time. The terminal operators have been accused of introducing even charges that are not applicable in the system because of the absence of a regulator where the importers or their freight forwarders can  take the matter to. Even when it is not the fault of the importer that his goods are in the terminal,  he is forced to pay demurrage. For instance,  in cases where lack of enough cargo handling equipment causes delay in positioning some containers for examination, the importer will still be forced to pay demurrage.
Similarly, the importers and their freight forwarders are not left out as they  have remained in the habit of under-valuation of their imports in order to evade payment of appropriate duties. Other times, it could be under-declaration or concealment. Government loses billions of Naira revenue as a result. Some customs officers who should be in a position to check such practices in most cases connive with the importers and their agents to defraud the government. This is by raising lower Debit Notes (DNs) to collect the balance  after  being settled by the affected importers. The belief in the industry is that an effective regulator will be in a position to overhaul the system and reduce  the fraud being committed through which so much revenue is lost on daily basis. It is estimated that the amount lost to trade malpractices  could be more than N100billion every year.  This is apart from the injustice that many importers and freight forwarders suffer in the hands of some operators in the system.
Task for the National Assembly, Transport Ministry
For industry operators, the task of giving the ports industry a regulator lies on the Transport Ministry and the National Assembly. While the two have been involved in championing the course, it has been so effective. And that is why seven years after the ports were concessioned, the Ports and Harbour Bill under which a regulator for the industry will be established is still in the Second Reading. Even with that,   the Transport Ministry and the House Committee on Maritime are yet to reconcile their differences on the Bill. The Transport Ministry  months ago said it was planning to send a Bill to the House of Representatives at a time  the Bill  initiated by  the House Committee had done the Second Reading. It is not known if this has been resolved. Sources said that some powerful forces do not want the passage of the Bill which seeks to establish a regulatory body. But stakeholders  believe that this is a task for the Ministry of Transport and the House Committee on Marine Transport to address considering the importance of the sector to the national economy.
Promise by NSC Board Chairman
At the stakeholders interactive dinner, the Chairman of the Board of NSC, Lt Gen. Salihu Ibrahim promised that his Council will pursue the issue of regulation in the  industry. Ibrahim excited the audience when he said he is committed to position the council for greater height. Identifying the Inland Container Depots (ICDs), Truck Park projects as targeted at addressing needs of shippers, he said that there were moves to refocus the Council for greater service delivery and contribute positively to the nation’s economy. Ibrahim assured that both his board and management were singularly working very hard to reposition the Council for effective economic regulation of the shipping industry which is currently lacking in the sector.
He said that this will redress the various ills caused by the existing economic regulation vacuum in the sector. Stakeholders who attended the event expressed optimism that the board and management, considering their personalities and achievements will take the council to greater height as far as areas of its mandate are concerned.  With the line up of the board and the management, the stakeholders opined that the time to transform the Council as a regulator  has come for the benefit of the ports industry and the national economy.
Source: This Day Live