- 5 lease contracts expired in 2021, undergoing renewal
- Brawal, GDNL concession review deadlocked
The Nigerian Ports Authority (NPA) has provided updates on the ongoing seaport concession agreement review process, even as it confirmed that five lease agreements expired in 2021.
NPA’s Managing Director, Mr. Mohammed Bello-Koko revealed this while addressing the Minister of Transportation, Engr. Mu’azu Jaji Sambo when the Minister visited NPA headquarters on Friday.
The expired leases are concessions for Apapa Terminals C and D operated by ENL Consortium which expired on April 20th, 2021; Ports and Cargo Handling Services which expired on August 8th, 2021; Josepdam Port Services expired on August 8th, 2021; and the Associated Maritime Services that expired on November 22nd, 2021.
According to the NPA boss, the renewal process have been concluded and will be submitted to the Federal Ministry of Transportation before the close of work tomorrow, Tuesday, October 4th, 2022 for final approval.
He explained that the renewal process began with the application for renewal business case by affected terminals, followed by the setting up of Inter-Ministerial inter-agency committee; inspection of affected leases; evaluation of the submissions from concessionaires; appointment of Transaction Advisers; Evaluation of Transaction Advisers’ reports; Ministerial approval for NPA’s direct negotiation with terminal operators on matters of development plan.
Speaking on the concession agreement review, the NPA Managing Director stated that an Inter-Agency Committee has held negotiations with 15 companies with the Five Star Logistics Services reviewed document approved having seen supplemental agreement executed by both parties.
However, he noted that discussions with Brawal Oil Services Limited and Greenview Development Limited (GDNL) reached a stalemate, while some terminal operators are yet to give necessary feedback to the Authority and others await approvals from the Transport Ministry.
Bello-Koko condemned the 100 percent physical examination of cargoes at the nation’s seaports by Nigeria Customs Service (NCS), stressing that manual cargo examination is cumbersome and inefficient.
He, however, stated that terminal operators have expressed desire to purchase, maintain scanners at the Nigerian seaports while Customs officials will be responsible for the operations.
“Manual examination of cargoes at our ports due to absence of scanners is inefficient, not sustainable, cumbersome and can’t make our ports competitive. Terminal operators have expressed readiness to purchase and maintain the scanners,” he said.
Bello-Koko also stressed that the nation’s seaports should explore alternative sources for power generation, even as he called for the reconstruction of collapsed quay aprons at the Tin-Can Island port and collapsed jetty at Continental Shipyard.
In his response, the Minister of Transportation, Engr. Mu’azu Jaji Sambo, stated that he holds NPA dear to his heart as he started his work career at the Authority in the 1980s.
Sambo also buttressed the need for the Authority to ensure barge operations thrives as it would enhance cargo evacuation from seaports without clogging the port access roads.
He, however, suggested that Public-Private Partnerships (PPP) may be explored to fix collapsed port quay areas and fix perimeter fencing at Tin Can Island Port.