SEREC Raises Concerns Over Increased Local Charges By CMA CGM Nigeria

SEREC Raises Concerns Over Increased Local Charges By CMA CGM Nigeria

Fwdr Dr.Eugene Nweke,Head Research,SERC

By Frank Odinukaeze

The Sea Empowerment Research Center (SEREC) has voiced strong concerns over CMA CGM Nigeria’s announcement of increased local charges, an adjustment linked to the Nigeria Port Authority’s (NPA) recent hike in Port and Marine Fees.

Dr.Eugene Nweke ,Head,research of the Center argued in a position paper that the state of Nigerian ports remains worrisome, especially with the $700 million rehabilitation budget facing delays in implementation. According to the SEREC research head,, critical challenges such as congestion, poor berth productivity, and inadequate ship turnaround times have only worsened.
The organization called for urgent reforms, demanding transparency and accountability in managing the rehabilitation project.

In response to the increased charges, SEREC has outlined recommendations:
-immediate Action :Expedite the implementation of the $700 million budget to alleviate pressing operational issues.
– Transparent Project Management: Develop a transparent system, complete with monitoring teams, progress updates, and clear communication with stakeholders.
– Infrastructure Prioritization Focus on rehabilitating essential infrastructure, including quay walls, cranes, and handling equipment.
– Stakeholder Engagement Collaborate with industry players to address key concerns and ensure inclusivity in decision-making.
– Tackling Underlying Issues: Address systemic issues like corruption, poor maintenance, and inefficient operations that plague Nigerian ports.

SEREC noted that the NPA’s decision to raise charges by 15% has drawn sharp criticism, especially as it lacked regulatory approval from the Nigerian Shippers Council (NSC).
The research organisation highlighted the NPA’s history of poor financial management, which contributed to the concession of ports back in 2006. The group is advocating for the NPA to consider outsourcing terminal developments to reputable third-party operators and to publish the efficiency status of concessioned ports to maintain public trust.
SEREC warns that the increased charges could have severe implications, including:
– Escalating Costs: Importers and exporters may face higher operational costs, reducing Nigeria’s competitiveness in global trade.
– Trade Disruption: The potential for disruptions may prompt businesses to explore alternative shipping routes or lines.
– Regulatory Challenges: SEREC further noted that the NPA’s actions risk further disputes with regulatory bodies and stakeholders.
SEREC urges the Ministry of Transportation, NSC, and NPA to foster collaboration, prioritize transparency, and put stakeholders’ interests first. The center underscores the importance of building a more efficient, competitive, and sustainable maritime sector in Nigeria.