Nigeria, in recent times, has not been doing well on the World Bank’s Ease of Doing Business ranking due to delays suffered by businesses, particularly shippers while receiving services rendered in critical economic gateways such as seaports.
Given the difficulties and delays experienced in doing business at the nation’s seaports, shippers have been paying dearly as demurrage and storage charges to shipping companies and terminal operators for late delivery of their consignments.
BusinessDay investigation shows that in addition to poor infrastructure, lack of equipment and other facilities needed to seamlessly discharge vessels, handle and evacuate cargoes from the ports, are reasons for the high cost and delays.
To deal with these issues, some responsible terminal operators and other service providers in Nigerian port terminals have been investing billions of dollars into the acquisition of equipment to deliver quality services to port users.
The new equipment, which include five new harbour cranes, nine Reach Stackers, 10 terminal tractors, and five units of Nissan Pick-Up, were acquired to not only support SIFAX Group’s business growth plan and vision, but to also enhance discharging of vessels calling at the terminal.
Speaking at the commissioning of the newly acquired equipment in Lagos on Monday, Adekunle Oyinloye, Group managing director of SIFAX, said the investment was huge and also very significant.
“We are excited because in the last two years, shipping liners have started to bring bigger vessels with longer rows of consignment. So, most of our older equipment, are finding it difficult to be able to deal with those vessels. But with this additional equipment, we will be able to deal with any size and shape of vessels,” he said.
Increasingly, according to him, ease of doing business, turnaround time of vessels and cargo dwell time would improve. This, he said, was why SIFAX was not only buying cranes, but also cargo handling equipment like reach stackers and terminal tractors.
“For us in Ports and Cargo, we want to be ahead and we are excited that we made the statement today. So far, we have committed over €20 million and we are not stopping at that because there are more to come as it was just the first set that were commissioned today,” he stated.
Projecting that the amount invested in the acquisition of equipment used in the terminal would likely doubled by March next year, Oyinloye pointed out that the important thing was that SIFAX would not leave any stone unturned to ensure that the terminal’s leadership position and customers experience, remained high.
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“With our new internal restructuring project code named Quantum Leap, SIFAX Group is re-positioning itself to become the first choice terminal not just in Nigeria but in West Africa. We have also set a target that will increase our revenue with over 300 percent in five years. One of the ways we can achieve our set targets is to first begin with investment in equipment which will complement our excellent personnel asset. These new equipment are the best and latest in town, they will catapult us into the next level growth we are working towards,” he said.
Explaining that the equipment would enhance vessel turnaround, he noted that the poor state of the access road to the port and persistent traffic gridlock have constituted a serious setback in their operations.
“We are hoping that access into the port would improve because efficiency and turnaround can only improve if government helps by improving the state of the roads in and out of the port,” he said.
He commended the government for the ongoing road construction but called for more sustainable solution of linking the ports with a functional rail system to complement the road infrastructure.
John Jenkins, managing director, PCHSL, said the acquisition of the new equipment would not only aid the terminal to deliver quality services to its clients, but also position the terminal for future growth.
According to him, PCHSL has invested over €20 million in the acquisition of the new equipment, adding that there was need to acquire the latest equipment in order to meet the architecture requirements of modern ships that are calling the terminal.
He further disclosed that PCHS was already engaging several shipping lines in order to boost the company’s clientele base from its present standpoint.
Norman Herzberg, sales manager, Liebherr Mobile Harbour Cranes, who expressed gratitude for the privilege to attend the handover ceremony of three Liebherr Mobile Harbour Cranes to Ports and Cargo, said the event marks a milestone in cooperation and partnership between Liebherr and PCHSL.
Herzberg said that the first and very important step in the partnership between both companies was the delivery of the first Liebherr crane in 2007, adding that PCHSL has gradually expanded its fleet to meet the company’s ever growing needs.
“The objective of this new investment and the expectation from the three Liebherr Mobile Harbour Cranes is to increase capacity and productivity of the handling operation of PCHS. It will also enable the terminal to respond to the growing demand of its clients,” he said.
The remarkable growth of PCHS and its operations during the last years, he said, was a success of itself, which management of Liebherr feels proud to be associated with.
“In order to match with extended market expectations, PCHS made strategic decision by choosing Liebherr as the supplier for the cranes. Generally, Liebherr is a key asset for handling all types of cargoes from containers to bulk commodities, general cargo and even heavy lift,” Herzberg said.
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PCHS, according to him, is Liebherr biggest customer in West Africa as the seven existing Liebherr cranes have proven to be the drivers of productivity and growth.
“By adding another three to the fleet, PCHS is prepared to continue its successful development in the future. We trust that your new cranes will achieve its maximum capabilities with the highest possible performance to enhance your overall operation and bring long business prosperity to you organisation,” he said.
Industry stakeholders, who described efforts of PCHS as laudable investment in furthering port business, believed that it would enhance Ease of doing business and efficient port operations.
Hadiza Bala Usman, managing director of the Nigerian Ports Authority (NPA), who assured PCHS of the authority’s continuous support, said investment in plants and equipment, adds value to port operation.
Usman, represented by Aisha Ali-Ibrahim, general manager, urged the terminal operator to continue in this manner by not only investing in the acquisition of equipment but also putting them into good use.
Andrew Lynch, managing director, Mediterranean Shipping Company (MSC), Nigeria, one of the PCHS biggest customers, said the shipping liner has had long time partnership with the terminal operator.
He said the new investment had gone a long way to reinforcing MSC confidence in Ports and Cargo, adding that the company was looking forward to a long-term relationship in the future.
“Ports & Cargo and MSC have both forged an alliance which has been one of the best partnerships in the maritime sector. We are excited that these new equipment will enhance the discharge of more cargo volumes at the terminal,” he added.
Adewale Adeyanju, president-general, Maritime Workers Union of Nigeria (MWUN), who described PCHS’s investment as a new dawn in the life of the workers, management team of the terminal and the NPA, said the union would continue to support responsible terminals that are delivering efficient services in the port.
He however, called on the Federal Government, through the NPA, to renew the lease agreement of efficient terminals like Ports and Cargo for the next 30 years.
The acquisition of the new equipment was part of SIFAX Group’s strategic investment to delivering quality service to its clientele and to further attract more patronage.
