Terminal operators blame Customs for high cost of doing business at ports

The Chairman, Seaport Terminal Operators Association of Nigeria (STOAN), Princess Vicky Haastrup, has decried the manual processes adopted by the Nigeria Customs Service (NCS) during cargo clearance, blaming it for the high cost of doing business at the port.  

Haastrup who spoke at a town hall meeting on Achieving Effective Dgitalisation in the Nigerian maritime sector organised by the League of Maritime Editors in Lagos on Thursday said the manual inspection by Customs is also the main reason why importers and agents troop to the port daily thereby breeding corruption through numerous human contacts.

She said despite the tremendous improvements recorded in cargo handling operations and the provision of marine services by the Nigerian Port Authority (NPA), consignees and their agents still face numerous man-made hurdles at the port because cargo clearing processes have remained manual.

“Manual examination of cargoes has assumed the proportion of an endemic sore point in Nigeria’s Customs administration. The Nigeria Customs Service performs 100 per cent physical examination on almost all cargoes passing through the ports. This is not efficient and it constitutes a huge drawback to port efficiency.

“The manual inspection by Customs contributes in no small measure to the high dwell time of cargoes at our ports. It is also the main reason why importers and agents troop to the port daily. This is in addition to breeding corruption through numerous human contacts.

“From the point of 100% physical examination of cargoes, the discretionary powers of Customs officers kick in. Negotiations and underhand dealings inevitably happen due to unbridled human contact. The solution to this major obstacle is to drive the clearing process from end-to-end with digital technology. The human interface and the discretionary powers of officers should be taken out of the mix,” she said.

In her paper titled “Impact of Automation in Cargo Handling Operation’, Haastrup advised the Federal Government to engage the private sector, as was done under the previous Destination Inspection scheme, to acquire high-end scanners for use by the Nigeria Customs Service.

According to her, it is not enough to merely acquire a couple of scanners as the government is doing at present adding that the scanners should also not be left in the hands of government officials as they could be grounded in no time.

“A sufficient number of high-end scanners should be acquired to put a definitive end to manual cargo examination. The effective usage and maintenance of the scanners are also critical. Left in the hands of government officials, the scanners may be grounded in no time – as it happened before – and the system will be reset to the manual era.

“The services of risk assessment/management companies should therefore be engaged and retained for the purposes of providing, effectively utilizing and maintaining the scanners. If we are truly desirous of creating efficiency at our ports, manual examination will have to be reduced to less than 10 per cent of the cargoes handled at the port, in line with international best practices.

“Full automation of the clearing process and the deployment of sufficient number of scanners at the port will invariably cut down the multiple checks of cargoes by Customs and other security agencies,” she said.

She also urged the Government to work with operators to turn the nation’s seaports to smart ports by deploying a Customs-driven, port-wide, cloud-based software that will create new operational flows, which will eliminate human contacts, expunge all forms of manual processes from the system and help the port function better.

She said Customs processes must be simplified and automated to complement the gains recorded through the Federal Government’s port reform.

“The time is ripe to deploy the much talked about National Single Windows and e-Customs to check manual Customs processes and the multiplicity of Customs units deployed all around the ports, the port gates and even on the roads to intercept cargoes already cleared from the port.

“As operators, we know that automation provides smart solutions for the services that we render. Automation helps us to deliver operational efficiency, improve operational processes, and promote a safer working environment and culture. Technology helps our terminals work better, faster and smarter,” she said.

Haastrup lauded the government port concession exercise, which according to her, has resulted in significant improvements in port operations in Nigeria.

“Terminal Operators in collaboration with the Nigerian Ports Authority have improved the state of the ports in terms of security, quay and yard infrastructure, navigation channels, productivity and efficiency.

“The efficiency of our ports has improved multiple folds. Vessel waiting time has since been eliminated resulting in significant savings for importers and exporters. Government now generates revenue in trillions of Naira – through the tax authorities, Customs, NPA and NIMASA – as against the few billions generated before the concession.

“The concession, without a doubt, has increased the competitiveness of our ports and enhanced movement of goods across international borders.

“Terminal operators in the six seaports across Nigeria today have effectively deployed technology to drive their operations. Consignees and their agents do not need to be at the port physically with regards to their transactions with terminal operators,” she said.