Port Concession Agreements: SIFAX blames FG for delayed renewal 3 years after expiration

Maureen Aguta

Foremost private concessionaire in the Nigerian port industry, SIFAX Group, operators of Ports and Cargo Terminals in the Tin Can Island Port has decried the delays by the Federal Government in renewing the expired  Port Terminal Operators Agreements, lamenting that this delay  is hindering port development and further investment in the ports by operators.

Recalled that since the concessioning of the ports by the Federal Government to private operators in 2006, the Federal Government has years after the concession agreements had expired, ignored calls for renewal or appointment of new concessionaires.

The port concessioning of 2006 saw the Federal government issuing agreements ranging from 10 to 25 years to private terminal operators. Some of the ports concession agreements like Port and Cargo, ENL Consortium which their agreements were initially 10- 15 years have since expired, but the Federal government is yet to fashion out a new agreement for the affected port terminal operators, a  development experts say is inimical to the much need rapid development of the Nigerian port industry.

Consequent upon this delay, the Managing Director of Ports & Cargo Handling Services Limited, a subsidiary of SIFAX Group, John Jenkins has raised concerns over the delay of port concession renewal in the country. Port & Cargo Terminal is one of the port operators waiting on the government for the renewal of their port concession which expired a few years ago.

According to him, the delay has destabilised Ports and Cargo’s operations, caused uncertainty among customers, and hindered potential new business opportunities. Jenkins said this during a courtesy visit by Head, Complaints Unit, Nigerian Shippers’ Council, Bashir Ambi Muhammed to the company in Lagos on Wednesday.

He lamented that the renewal process of the concession has been stalled since the contract expired in 2021, despite meeting all the necessary terms for a new contract renewal.

His words: “Ports & Cargo remains one of the leading terminal operators in Nigeria with our record of exceptional service delivery, trade facilitation, many jobs created, and diverse social responsibility footprints across the country. This delay in our concession renewal has tremendously affected our terminal, as our customers are worried about the future of their operations here. Without a new concession in place, they are hesitant to enter into long-term agreements, which are not good for our business.”

Speaking, Mohammed said the objective of the visit was to familiarise with the operators in the sector and explore ways of cooperation. He lauded the terminal for its impact and contributions to the growth of the industry in particular and the nation at large.

He emphasized that one of the key objectives of the Council was to ensure that service providers, consumers, and other stakeholders in the shipping sector experience prompt and fair resolution of complaints.

“We are committed to adding value to the nation’s economy through effective regulation and collaboration with service providers,” he said. He noted the complaint about the concession renewal, adding that the Nigerian Shippers’ Council, as the industry economic regulator, will use its influence to expedite the approval process.