NSC explains govt decision to regulate maritime industry

BY GODWIN ORITSE

THE Executive Secretary of the Nigerian Shippers’Council, (NSC) Mr. Hassan Bello has explained government decision to regulate the industry saying that loss of comparative advantage in the cargo clearance chain in the Sub-region  was what informed the decision by government  to regulate the Nigerian maritime industry.

peaking exclusively to Vanguard in Lagos recently, Hassan noted that Nigeria as a maritime nation has lost the comparative advantage in terms of cost and other indices to the port of neighbouring countries in the clearance of goods from the ports.

He opined that through regulation, the lost comparative advantage can be regained if both the regulator and the regulated assist each other in the process.

He disclosed that loss of comparative advantage by Nigeria to other countries in the sub-region was also responsible for the continued patronage of other ports by Nigerian importers.

Speaking at the members’ Evening of the Nigerian Chamber of Shipping (NCS)) Bello also noted that  the absence of an economic regulator has made it difficult for Nigerians to reap the full benefits of  the port reform programme of government.

He said, “after the implementation of Government’s port reform programme which led to the concession of port terminals to private operators, the Government noticed a disturbing vacuum in the sector, which is absence of  an Economic Regulator that will act as a referee in the industry.

“ This vacuum has made it difficult for the nation to enjoy the gains of the program.

He further said that the inefficiency in the procedures and operations of agencies and service providers and even users is adversely affecting and undermining Nigeria’s competitive advantage in international trade”.

The Council’s boss explained that effective regulation requires much more than just competent economic and financial analysis but must also manage often complex interaction with the regulated firms, consumers, politicians, courts, the media, and a range of other interests.

Bello said that much was being expected from the Council, adding that the overall benefit of a regulated port industry will lead improved revenue generation, improved infrastructural development,  creation of efficient market, reduction of cost of doing business and improvement  of the nation’s Global Competitive Index and consequent attraction of Foreign Direct Investment (FDI).

He was also of the opinion that improved delivery of  marine and terminal handling services will in turn lead to reduced Turn Around Time of  vessels and  reduced  cost of vessel operations.

A regulated port industry, according to Bello will also lead to the enthronement of clearer Standard Operating  Procedure (SOP) derived from International Conventions and Practices.

”The global competitiveness of Nigerian Ports has a major role to play in the attraction of Foreign Direct Investment.


- Culled from : http://www.vanguardngr.com