Barr. Hassan Bello

In what appeared a valedictory session, Executive Secretary/CEO of the Nigerian Shippers Council, Hassan Bello in this exclusive interview says the NSC has in the last eight years established cardinal principles of competition, efficiency and automation for the seaports.

The Federal Government selected the Nigerian Shippers Council as lead agency to implement the Nigeria Port Process Manual NPPM. How far with this huge task?

We’re working to ensure appreciable compliance because we are backed by enforcement authorities like the Directorate of State Security Service DSS, the ICPC are working with other maritime agencies including the Nigerian Ports Authority. The team has been set up and we have been going round the port locations ensuring that people comply with their standard operating procedure.

You said in a recent interview that 21-day cargo dwell time is unacceptable. What are you doing to change this narrative?

Yes, 21-day dwell time for cargo is unacceptable. We have already started changing the narratives. For instance, delays associated with the boarding of vessels could be attributable to that even though substantial part of the long dwell time is due to the traffic situation, also physical examination of cargo, if we had scanners, the truck would drive through the scanners and that would solve a lot of problems. Then digitalisation of the cargo clearing process itself will also help. The cargo clearing process should be automated, if we do all these, we would cut the dwell time, we’re aiming to achieve seven-day dwell time before the end of 2021. Seven days is the original average; some are doing four days. The Port of Singapore has zero dwell time, we need automation to make us fast and cut delays and check corruption. If we address the distortions from the transport systems; fix our roads and the rails, these would cut the dwell time substantially, so seven days is feasible.

How can you achieve this without scanners?

The Nigeria Customs Service has assured that it would install scanners at the seaports and we have no reason to doubt that and so it would soon be a reality.

On percentage basis, how would you rate port regulation now?

I would not say it has been accepted. When we came, what we first had was resistance to regulation in court cases, some of which are at the Supreme Court. But by and large, there has been general acceptance of Shippers Council, in fact respect and admiration, we are not having a popularity contest since we want to change the order of things, indeed we have introduced a new framework of regulation. We are not doing business as we used to do, we have increased tonnage coming to Nigeria, some we pulled from our competitors, we have established cardinal principles of competition, efficiency and automation, for now, we are attaining 70 per cent automation of our ports and this is very primal to us. Secondly, we have introduced multimodal evacuation and delivery of cargo instead of relying on one mode of transport, which is road, you now have rail taking cargo in and out of the ports, we also have the barges, we are helping in overall regulation of the barges. We are also at the centre of 24-hour port operation, we did that when there was the lockdown, the Nigeria Customs Service worked with us and we were able to get cargo out of the ports on Saturdays and Sundays and this we want to sustain. These are the three cardinal things the Shippers Council has achieved; first automation, digitalisation of port operations so that we have efficiency, transparency and block revenue leakages, we do away with corruption, secondly multimodal approach to cargo evacuation and delivery so that we do not rely on one mode, thirdly is 24-hour port operation. On the scale of digitalisation, it must be seven over 10, cargo delivery must be six over 10 and the other one is 24- hour port operation. Recently we had a meeting with NIMASA and we are coming to include more people because it is more than transport; it needs Customs, it needs security, freight forwarders and the rest. You know Shippers Council is good at networking so that you can also give us six over 10, so when you look at that you see more contribution of the transport sector to the Gross Domestic Product GDP in terms of infrastructure. When you go to Kaduna, you see the dry port, you will notice that something has happened there, the economy is the better for it. Banks are coming there, the cost of land has gone up and you see activities, many people bring in their goods even if it is by trucks. We are looking at the whole chain, emboldening people, inclusiveness. Everything is about the economy, nothing else. We are the first agency to romanticism about the maritime industry and focused on the economy and we said come to the economy, it is the economy or nothing otherwise people will work in some agencies for working sake without link to the economy. Shipper Council is the first to awaken not only the agencies of the Federal Government to say, there is an economy here, widen it and make it grow.

Any update on International Cargo Tracking Note ICTN?

President Muhammadu Buhari has approved the resumption of the ICTN because it has always been there, we’re not starting it anew. It was suspended because of some problems. We had to go through some procurement processes because the Federal Ministry of Transport is a transparent ministry, so it is doing everything possible to see that all the necessary requirements are met, so we will soon start running with the ICTN.

Many of the Dry Ports are still struggling to come on stream

So many are still struggling because they are private sector, what we need to do is to prompt them to promote and support the dry ports. There has been resurgence now, and so there are new investors, technical partners, realising the importance and profitability; and the feasibility of these projects are now up. Kano State Government for example, with the new concessions, technical partners, so Kano is coming up very fast, Ibadan will start construction this year and for Jos Dry Port, there is a new investor, just the transition period. Funtua is 65 per cent completed. The issue now is rail connection to the Funtua Port, once that is done and the problem of warehouse is sorted, we give them port of origin and destination. It also elicited proposals from Benin, Kebbi and many others who wanted to do this dry port thing, they are significant. But they should be designated by the Federal Government as centre for export, whereby the classification and standardisation would be done so that you would have additional infrastructure, first to add value to agricultural produce, so that we don’t send them abroad raw, they will have to split into units. There would be consolidation and deconsolidation centres, you need big warehouses, there would be packaging companies, refrigerated warehouses and many other infrastructure. On this, we are talking with NEXIM and AFREXIM Banks so that these centres could really come up. If we do these, you will see that we will be bringing shipping to the door steps of the people and that will help grow the economy. Why would one bring ginger to Lagos to export when you can do that at your backyard in Kaduna as long as that is processed? So we would have lowered the transport cost, sharpen the logistic chain and we have employment export-diversification, because the more we export, the more our economy strengthens because we will be earning the foreign exchange everybody is craving for.

Many of them have complained of high interest rates on bank facilities

I am not aware anyone of them is complaining about high interest rate, you must get your facts right. What I know is outline business case, which is sophisticated feasibility study, which would include their financial capacity and capability, technical competence, which deals with their experience, which is assessed or rated by the Infrastructure Concession Regulatory Commission ICRC. Do not forget it is not only the Nigerian Shippers Council; ICRC is also there because we work together to know whether the project is feasible or not and some of them might be shut down if we discover they may not be feasible.

What can you say about port cost, such as duty levies and charges that have no service function?

Many of such port charges are attributable to corruption, 35per cent of port charges are under the table deals. Shipping companies, terminal operators have not increased their charges in the last five years because they cannot do that without coming to the Nigerian Shippers Council. Of course, some have attempted to do that but we always discourage that because it is illegal. The courts have given us those decisive powers that no one can modify charges without coming to the Council and this heed has been taken. But what you have is corruption. Once you board the vessel for inspection and you ask the Ship Master to give you money, that would be translated as part of cost of shipping the goods and you and I would pay the price. We are targeting reduction of corrupt practices or opportunities for corruption with the port system. Technology would aid that dramatically and we reduce corruption, another thing is the War Risk Clause on Nigerian cargo would make the port expenses shoot up. But what we are saying is that the Deep Blue Project by NIMASA is going on now, they have got the surveillance helicopters and other assets, the moment that is done, we will tell Lloyds that there no more need for the war risk clause, that we now have security, before now the attacks were weekly but now in six months there is none, so why would they retain war risk clause on Nigeria-bound cargo because such charges are meant to address specific situations temporarily but some they linger on even when the situations that necessitated their introduction have been addressed. I think there are prospects for shipping in Nigeria, there is hope and as soon as we get it right, Nigeria will be the hub for West and Central African sub-region because we have done well with Lekki Deep Seaport, you have dry ports in Ibadan and Kano. When we complete the deep seaports in Akwa Ibom and Lekki, people would shiver, after all, we have the market here, more than 200 million people. I doubt if there is any corresponding sector that could have as bright future as the maritime, it is an option, and alternative, we will ourselves from the oil economy.

Where is the supporting infrastructure for Lekki Deep Seaport?

There will be multimodal transport system for the port comprising rail, road and inland waterways and probably pipelines method of transport.

What is the update on Nigeria’s Fleet Expansion Project?

What we are trying to establish is sustainable fleet, we could have acquired some ships and christen them Nigerian Flag and two days later, they are gone. Now to have a fleet, it has to be a serious business because things that sustain it must also be there. The private sector is going to lead in the ownership and operations of the vessels but there are policies that are harsh to private sector participation, there are laws that are against it, there are policies that are against it, besides we must have very important industry and processes including ship building and ship repair. If you are to have a national fleet and you tow your ship to Namibia or Ghana for example, all the profit you make will be wasted there, so we must have ship building and ship repair yards here, so this is a very important institution. Secondly, our cadets must have sea time because what we want is indigenous operation at least for a certain time. Thirdly, it is important that we have the banks and insurance companies supporting this national fleet. It is also important that they are declared National Carrier by the Federal Government through NIMASA so that they would have priority over Nigerian cargo. For instance, the committee has been able to have a change of policy by the Nigerian National Petroleum Corporation NNPC whereby Nigerians are now allowed under certain rules to lift crude oil, which implies the alteration of some aspects of the Free On Board FOB –Cost Insurance and Freight CIF policy. This is a major breakthrough; the CIF could happen behind. We are also looking at other incentives such as tax holiday, pioneer status etc. We are working very hard with the Nigerian Investment Promotion Council NIPC so that we would pass these things and they are recognised. It is a good project and we want it to be sustainable.

How do we eliminating government charges not linked to service functions?

That is the next Memorandum of Understanding MoU we are going to sign, all charges must be linked to services provided even the ICTN is the service delivered to the shippers because he would get his cargo in no time, so all charges must be tied to services. We are not a price fixing agency, but when there is justification, charges could go up and sometimes, they come down, those are the vagaries of the economy thing we were talking about.