3rd Quarter Rating: Shippers’ Council, FAAN, NIWA Below 50%

By Kenneth Jukpor

MMS Plus presents the scorecard of more transport sector agencies based on their performance in the third quarter of 2018 with regards to their core functions. In this week’s appraisal, we x-ray , Federal Airports Authority of Nigeria (FAAN), National Inland Waterways Authority (NIWA), Council for the Regulations of Freight Forwarders of Nigeria (CRFFN),  and the Nigerian Shippers Council (NSC).

For the grading system: A =90-100%, B+ = 80-89%, B =70-79%, C+ =60-69%, C =50-59%, D =40-49% and E = 30-39%, F = 0-30%. Enjoy it:

 Nigerian Shippers Council (NSC)

For the purpose of this report, only the functions of the Nigerian Shippers’ Council as Port Economic Regulator would be analyzed. There are ten (10) functions and each carries 10points;

•         Provide guidelines on tariff setting in order to guide against arbitrariness

The Council did several networking with shipping lines on the need to curb arbitrary charges among other fiscal issues at the ports. Following the recent disclosure that shipping companies were set to introduce new charges due to the bottlenecks at the nation’s port the Council also moved to negotiate with the shipping companies last week, although the outcome of these meetings haven’t been revealed. Score = 7/10

•         Monitor and enforce standards of service delivery to ensure availability, accessibility, affordability, stability, predictability and adequacy of services

Shippers’ Council may not have been able to negotiate or standardize freight rates for trucking, trains or carriage of goods via the waterways. Score =3/10

•         Encourage competition and guard against the abuse of monopoly and dominant market positions; This role has received more attention by the Council; with the Council striving to ensure a level playing field for all stakeholders Score = 5/10

•         Perform mediatory role among stakeholders;

The Council was able to perform the role of an intermediary and an unbiased umpire amongst the industry stakeholders Score = 6/10

•         Establish accessible and modern dispute resolution mechanism

The Port Service Support Portal (PSSP) and Standards Operating Procedures (SOPs) initiated by the Council in 2016 were tipped to ease dispute resolution and provide seamless accessibility for all port stakeholders but these benefits are yet to materialize. Score = 3/10

•         Regulate market entry and exit

Nothing to report on this aspect Score = 0/10

•         Promote efficiency in the provision of port services

The Council has been able to engage several service providers like freight forwarders, truckers, Customs, terminal operators, etc on the need to promote efficiency but few improvements were recorded because inefficiency earns some stakeholders like terminal operators, shipping lines and dubious Customs officers more money. Score = 5/10

•         Minimize high cost of doing business and prevent its inflationary effect on the Nigerian economy

 This role has received a massive push by the Council with NSC engaging several service providers on the need to minimize cost. NSC has begun moves to stop the era of collecting container deposits by shipping companies. However, the ripple effect of these actions by Shippers’ Council is yet to be felt in terms of reduction in cost of doing business at the ports.   Score = 4/10

•         Encourage private sector investment in the port sector

The Council was seen to play this role actively in soliciting sponsors and facilitators for the Inland Container Depots and Truck Transit Parks so far this year, with the Kaduna Dry Port the most recording the most significant development. Score = 6/10

•         Monitor and ensure compliance by all parties with the provisions of the Port Concession Agreements

There is nothing significant to report in this area at the moment. Score = 2/10

Conclusion:

Several efforts have been made to engage stakeholders ranging from port service providers, security agents, Inland Dry Port operators, Truck Transit Park facilitators, among others. The Council has also begun clamping down on erring companies and dishing instructions for the economic good of the nation as well as investors. The Council should thrive to build on this modest success.

Grade = D (41%)

Federal Airport Authority of Nigeria (FAAN)

FAAN is a service organization statutorily charged to manage all Commercial Airports in Nigeria and provide service to both passenger and airlines. For the purpose of this rating, FAAN’s core functions are categorized into five with each carrying 20 points.

• To develop, maintain and provide necessary airport services and facilities for safe, orderly, expeditious and economic operation of air transport.

In the third quarter of 2018, FAAN installed new scanners at the E and D Wings of the international terminal of the Murtala Muhammed International Airport, Lagos to enhance the security screening of passengers which now takes shorter time. The agency has also ordered for modern scanners to boost security at airports in the country. Score = 10/20

•  To provide adequate conditions under which passengers and goods may be carried by air and under which aircraft may be used for other gainful purposes and prohibiting the carriage by air goods of such classes as may be prescribed.

It has been business as usual for FAAN with this function given little attention to change the abysmal status quo, except the agency’s effort to unveil an application, initiated by the Presidential Enabling Business Environment Council, PEBEC, for service users to give feedback about the quality of services being rendered by government agencies at the nation’s airports. Score = 5/20

• To provide accommodation and other facilities for the effective handling of passengers and freight.

Whilst the nation prepares for the take-off of the new national carrier, ‘Nigeria Air’, FAAN has said it has improved the CCTV coverage in all the international airports with additional infrastructure. Score = 10/20

•  To carry out at the airports (either by itself, its agents or in partnership with any other person) such other commercial activities which are not relevant to air transport.

The areas that have been concessioned at the nation’s ports have raised several conflicts for FAAN and the nation’s government at large. In one of the notable conflicts, FAAN insists that Bi-Courtney Aviation Services Limited (BASL) lied about the inclusion of the General Aviation Terminal (GAT) of the Murtala Muhammed Airport (MMA), Lagos in the concession agreement the Federal Government had with the terminal operator. FAAN also accused Bi-Courtney of breaching the contractual agreement on the abandoned Four Star hotel and a conference centre opposite the terminal, saying that the agency gave the company an ample time to complete the two projects, but that they failed. Score = 5/20

•  To provide adequate facilities and personnel for effective security at all airport.

FAAN’s Managing Director recently admitted that Nigerian airports must have a robust access control system, stating that all airports should be fenced quickly. The agency introduced perimeter patrol; CCTV technology to help in the surveillance at the airports. Score = 12/20

Conclusion

FAAN record some modest achievements but there’s still so much more to achieve. However, commendations continue to pour in after the indefinite postponement of the ‘Nigeria Air’ project.

Total Score= 42/100

Grade: D (42%)

 

National Inland Waterways Authority (NIWA)

The law establishing NIWA gave it the following statutory roles: – Provide regulation for inland water navigation; – Ensure development of infrastructural facilities for a national inland waterways connectivity with economic centers using the River Ports and nodal points for inter-nodal exchanges; –Ensure the development of indigenous technical and managerial skills to meet the challenges of modern inland waterways transportation. For the purpose of this report each of the core function carries 25points while the other functions carry another 25 points.

Provide regulation for inland water navigation:

NIWA is set to assume financial independence following the expected passage of their new bill called “Nigeria Inland Waterways Bill” into Act. Both chambers of the National Assembly have passed the bill while President Mohammadu Buhari is expected to give his assent soon.

Meanwhile the new NIWA boss, Senator Adeleke Olorunnimbe Mamora has assured the maritime community that he intends to develop on the existing regulatory framework for inland water navigation in the country.

Score = 12/25

– Ensure development of infrastructural facilities for national inland waterways connectivity with economic centers using the River Ports and nodal points for inter-nodal exchanges;

Nothing of note was achieved in this area in the first half of 2018, but the agency is expected to make giant strides later this year as it concludes plans to build a modern bonded terminal at Oyingbo Jetty, Lagos  from where containers can be moved from Apapa and Tin can Ports on badges and transported by either rail or road to destinations or move by water ways to Onitsha and Warri at the eastern part of the country.

There are plans to transform the agency’s Lagos office at Marina into an ultra-modern superstructure as a terminal where sea going vessels can berth  and  off-load cargoes.

Score = 10/25

Ensure the development of indigenous technical and managerial skills to meet the challenges of modern inland waterways transportation:

The Authority hasn’t record any significant training in this aspect apart. Score 2/25

Other functions and powers of the Authority include: – undertake capital and maintenance dredging;
– undertake hydrological and hydrographic surveys:– design ferry routes: – survey, remove, and receive derelicts, wrecks and other obstructions from in land waterways; – operate ferry services within the inland waterways system; – undertake installation and maintenance of lights, buoys and all navigational aids along water channels and banks; etc.

NIWA has only been able to attack some of these responsibilities. Score 7/25

Conclusion:

After several years of apparent lassitude by the leadership at NIWA, the agency has unfolded an inland waterways transportation master-plan capable of providing the platform for the much anticipated multi-modal transportation system in Nigeria. Expect notable achievements at NIWA in the last quarter of 2018, especially as the new Managing Director strives to leaves his name in the agency’s sand of time.

Total Score=31/100

Grade: E (31%)