Customs Area Controller, KLT Command, Comptroller Timi Bomodi

As part of measures to boost its cargo throughput, the Kirikiri Lighter Terminal KLT command of the Nigeria Customs Service has urged importers and exporters (shippers) and their agents to take advantage of the unique location and other features of the command, which include good and smooth road networks and easy access and exit to stem their consignments to the terminal.

Customs Area Controller of the command, Comptroller Timi Bomodi, who spoke in a telephone interview, noted that in addition to the unique location of the terminal, the Nigerian Ports Authority has upgraded all the road networks linking the terminal, which makes for easy access into and exit for cleared consignments directly into the Apapa Oshodi Expressway out of the gridlocks that characterise operations in Apapa area.

According to him, the speed associated with easy entry and exit from the terminal would eliminate so much bottlenecks and delays that lead to accruing of demurrage and other avoidable charges that increase cost of operation. He also disclosed that the command has introduced a zero tolerance on the delay of import/ export documentations, which facilitates the processing of documents in record time to avoid delays and avoidable cost.

He further disclosed that the command is currently operating at below 10 per cent of its installed capacity, but that it is working on increasing its cargo volumes by 30-40 per cent in order to enable it meet its revenue target, adding that the only way this can be achieved is by facilitating a higher level of efficiency as well the consignments accessing and exiting the port at record time.

It was gathered that this low level of cargo volumes has over the years affected the revenue generation the terminal.

“The Customs clearing procedure is same at the Apapa and Tin Can Island Commands but the unique location of the KLT Command, which facilitates easy access and exit gives us a measure of advantage, especially given the gridlocks that keep container laden trucks waiting on queues for hours and days.

“But the unique location of the KLT terminal, which makes for easy access for cargo into and exit out of the terminal is an added advantage to cargo owners, especially in terms of reducing delays and additional costs associated with such delays.

“No container spends more than 48 hours before being released from the KLT because of the good road network in the area. The Nigerian Ports Authority NPA has worked on all the roads, and there is no traffic that could delay the movement of any container in and out of the port and this is not applicable to other ports and terminals in Lagos.

“I have also said it since I assumed duty here a few months ago that this terminal is operating on less than 10 per cent of its installed capacity in terms of cargo volumes but we are working towards increasing it to between 30-40per cent and we hope to achieve this by encouraging cargo owners to take advantage of our unique location and also ensuring that no consignment is delayed for even one second as we treat all documents with dispatch”, Comptroller Bomodi said emphatically.

Investigations showed that over the years, port concessionaires in both Apapa and Tin Can Island Ports have not been stemming containers to the terminal, as importers and clearing agents have not been allowed free choice as to where their consignments are taken to.

An industry source further disclosed that the selfish decision of the concessionaires, also called terminal operators to other terminal even in the midst of worsening congestion as part of efforts to boost their own revenue was responsible for the low traffic to KLT and other related facilities, which is not good for the country and the industry because of the delays and increased cost on cargo owners, which fuel inflationary trends.

A freight forwarder, who pleaded anonymity, noted that most of the time, importers and agents are agents are not given free hand to choose where their consignments land, as the shipping lines connive with the terminal operators to take such cargoes to their facilities against the wishes of the importer and his agent.

He said: A few times I have cleared consignments from the KLT and goods being cleared from there do not spend time, so our consignments at KLT do not attract any demurrage and the terminal operators do not like this. They prefer such goods to be cleared in Apapa where the importers and their customs agents spend weeks to clear one container because of the traffic issue and other logistics problems at the ports.

“In other words, the big terminal operators make more revenue when goods spend more time in their terminals as the importers have to pay more on demurrage and other rent charges even on the empty containers. It is an unholy arrangement between the terminal operators and shipping lines.”

Recall that the command collected a total revenue of N10.6billion at the first quarter of this year out of an annual revenue target of N55billion for the 2023 fiscal year, which represents 76.9per cent revenue for the first quarter.