By Gift Olivia Samuel, The Sight News
ABUJA:Following the disturbing cost of goods transportation through the ports in the West and Central Africa sub-region, due to high freight rates and arbitrarily imposed surcharges, the Federal Government of Nigeria, has urged sub-regions to adopt a common position to reduce such incidences.
Nigeria’s Vice President, Prof. Yemi Osinbajo made this call on Monday at the one-day Sub-Regional Summit on Unfair Shipping Surcharges and High Local Shipping charges at the Ports of West and Central Africa Sub-Region, with the theme, “Impact of Unfair Shipping Surcharges and High Local Shipping Charges on National Economies and West African States”.
The Vice President who was represented by the Minister of Transportation, Hon. Chibuike Amaechi, said that the unilateral and arbitrary imposition of such surcharges on West and Central African bound cargo, contradicts the norms and ethics of maritime transport.
According to him, “These surcharges amount to huge sums of illegal capital flight from the countries of the Sub-Region, depleting their limited foreign exchange/reserves.
“The West and Central African States are currently facing harsh socio-economic conditions that have impacted negatively on trade. The overarching objective of this Summit, therefore, is for the Sub-Region to adopt a common position on how to reduce the incidences of unfair surcharges and related issues,” he said.
The VP noted with dismay that trade among countries in Africa is presently abysmally low, due to poor connectivity and lack of adequate transport infrastructure, adding that one of the negative impact of poor connectivity is the low intra regional trade in Africa which is below 13%.
While stressing that for Africa to successfully implement the African Continental Free Trade Agreement (AfCFTA), he noted that member states of the African Union must as a matter of priority, focus on the development of transportation infrastructure.
“We strongly believe that modern transport infrastructure will not only link Africa but also substantially reduce transport cost,” he said. “There is a need for the West and Central African countries to come together and adopt common political, diplomatic and operational strategies that will positively impact on the economy of the sub-region.”
Osinbajo while praising the Union of African Shippers’ Councils [UASC] and Global Shippers’ Forum for beaming its searchlight on the issues of surcharges in Africa, stressed that Nigeria will not hesitate to take appropriate measures including legislation to check these unfair trade practices.
For his part, the Minister of Transportation, Hon. Chibuike Amaechi, noted that these surcharges affects the purchasing power and living standards of citizenry, thereby preventing member countries from achieving the 2030 Sustainable Development Goals(SDGs).
He stressed on the need to constitute a Standing Group of Experts that will represent the sub-region in continuous consultation and negotiation directly with the ship-owners, rather than third parties.
Earlier in his welcome address, the Executive Secretary/CEO Nigerian Shippers’ Council, Barr. Hassan Bello called on UASC member states to collaborate to remove unfriendly policies or circumstances that provide opportunities for arbitrary increases of surcharges and local shipping charges.
He noted with dismay that some of these surcharges which were supposed to be temporary measures have assumed permanence without justification or basis of negotiation.
While stating that increase in charges would not benefit operations or general procedures in the countries, he added that transport should be scientifically, fairly and appropriately priced with the aim of providing balance and equilibrium.
