Manufacturers Association of Nigeria (MAN) in its economic review second half of 2019 executive summary acknowledge Access to National Ports saying the persistent gridlock in accessing port facilities in Lagos remain a huge challenge to trade facilitation in the country.
As shown in fig vii. 82% out of the 400 CEOs of Companies-member interviewed agreed that congestion at the ports significantly affects productivity negatively
The report indicated that this development has often led to delays in clearance of manufacturing inputs and machinery as well as high demurrage which increase cost of production in the sector.
According to the statement, although the situation had earlier improved, but the congestion and hiccup have gradually returned. This therefore demands for support policies to attract private sector investment into trade facilitation infrastructure development to resolve this persistent challenge.
Consequently, there is need for a comprehensive review of all the contributory factors to port congestion to produce a sustainable solution to the difficulty in accessing ports, it added.
MAN therefore charges Poor Port Administration to:
- Improve on the wait time to clear container/cargoes clearance at the ports;
- Install sound trade facilitation equipment at the ports such as scanners, etc.;
- Reduce the various port charges and remove demurrage for delayed clearance; and
- Resuscitate available rail tracks, construct new ones and link them to industrial hubs
Any further increase in cost of shipping charges and Cargo Transport cost in the sector will impacts competitiveness negatively and it can translate to high cost in goods and services etc