Heads of African maritime administration from 34 maritime nations in African have identified the need for member countries to adopt simple trade documentation procedures at the seaports to fast track cargo clearance and enhance timely delivery of cargo to importers’ warehouse.
This resolution was on the backdrop of worries expressed by delegates at the third Association of African Maritime Administrations (AAMA) annual conference in Abuja last week, that a good number of African countries do not pay attention to adopting procedures that facilitate trade in their seaports.
For Africa to achieve inclusive participation in global trade, countries must have the political will to facilitate trade in all their cargo entry and exit points, said the AAMA communiqué, which has the record of decisions, recommendations and resolutions at the conference.
“Apart from the adoption of transparency in port operations, countries need to also introduce simple trade documentation procedures; eliminate or reduce red-tapes including bureaucratic bottleneck that hinders fast clearing and delivery of cargo to the importers warehouse,” the communiqué further stated.
The communiqué also highlighted the need for inspection agencies at the port to see to the adequate implementation of applicable laws guiding international trade.
BusinessDay search reveals that red-tapes and bureaucratic bottleneck have been the major problem facing Nigerian seaports, and as a result, both create delays that in turn, create extra cost in form of demurrage and storage charges for importers and exporters using Nigerian ports and border stations.
“Customs is not facilitating trade as it should. When an officer carries out examination, Abuja will mandate a second and third eye to go through same examination before granting approval for the release, and such creates delay that can keep the cargo for another three days or more.
“Also, when an officer or area controller is not on seat, the deputy cannot act on his or her behalf and this hinders trade facilitation,” Dennis Amaeshi, a retired officer of the Nigeria Customs Service (NCS), who now runs a clearing and forwarding company, said.
Soren Skou, CEO of Maersk Group, who said many developing countries of the world were yet to take the advantages of the trade opportunities that come from globalisation, observed that high cost of importing, exporting cargo and supply-side constraints may be one explanation as to why countries in Africa were not able to take advantage of trading opportunities.
“One measure to address these constraints is to invest in physical infrastructure that is essential to carry out production and trade, so as to allow traders easier access to international markets,” suggested Skou, who was represented by David Skov, head of APM Terminals in Africa, Middle East
and India, at the conference.
William Azuh, representative of the International Maritime Organisation (IMO), pointed out that shipping and ports could play significant role in helping to create increased employment, prosperity, stability and socio-economic development of both the maritime nations and their neighbouring landlocked countries. He added that the port sectors were also wealth creators with untapped potential.
Nigeria is beginning to show keen interest in reducing the plight of Nigerian shippers by setting up a
committee called the Presidential Enabling Business Environment Council (PEBEC), which has promised to introduce a new cargo clearing procedure at the seaports.
The new procedure, if introduced and implemented, would reduce the documentation process for export cargo from 10 to seven documents, while imports documentation, would also reduce from 14 to eight.
According to the committee, this new procedure will improve the ease of doing business and reduce the cumbersome process experienced by shippers at the port during cargo clearance.
