Shipping: How stalled dry port projects hobble decentralisation plan

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Shipping: How stalled dry port projects hobble decentralisation plan
NscOmotayo DadaShipping
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About six years ago, the Nigerian Shippers Council (NSC) facilitated the development of inland dry ports (IDPs) to decentralise shipping

About six years ago, the Nigerian Shippers Council facilitated the development of inland dry ports to decentralise shipping activities from congested seaports, enhance transborder tradeWhile the creation of inland dry ports represents a significant step toward decentralising Nigeria’s trade infrastructure and enhancing the country’s position in regional and global trade, realising their full potential depends on overcoming the myriad challenges that currently impede their progress, ADAKU...

However, the establishment of dry ports in cities like Kano, Kaduna, Katsina, Ibadan, Isiala Ngwa, Borno and Jos, which aimed to decentralise trade, enhance accessibility, ensure efficient participation in international trade without logistical hurdles, and reduce the strain on overburdened seaports like Lagos, has encountered significant obstacles.

The Shippers’ Council also facilitated proposals for the development of additional solicited and unsolicited IDPs in Dagbolu, Osun State; Onitsha, Anambra State; Lolo, Kebbi State; Ogwashi-Uku, Delta State and Benin, Edo State, which are currently at various stages of completion. Others, like the Erunmu IDP with a capacity of 50,000 TEUs, is at 10 per cent completion, while the Isiala Ngwa facility with a capacity of 50,000 TEUs is at five per cent, the Jos IDP with a capacity of 20,000 TEUs is at 48.4 per cent, and the Maiduguri facility with a capacity of 10,000 TEUs is at five per cent.

The primary concerns, he noted, include issues related to rail infrastructure and documentation processes. These challenges, as highlighted by the Kaduna State Shippers Association , not only hinder the efficient operation of the dry ports but also inflate the cost of trade for businesses relying on this crucial infrastructure.

Yusuf argued that investment in rail should even precede the development of these dry ports for them to be effective, underscoring the need for a holistic approach to infrastructure development. He said without this rail network, the entire concept of inland dry ports would be undermined, as road transport alone cannot efficiently handle the volume of cargo required to make these ports viable.Beyond the physical infrastructure, there are also legislative and logistical challenges.

On export drive and regional trade, Amiwero said the incomplete dry ports hinder Nigeria’s ability to fully leverage the African Continental Free Trade Agreement , which aims to boost trade across African nations. “Establishing the inland dry port in Maiduguri will bring a lot of opportunities to the government and people of Borno State, particularly in terms of employment and boosting the economy through increased trade with neighbouring countries,” Zulum noted.

This is business, and the initiative is not for the government to drive the day-to-day running of this inland dry port. It is a public-private dimension and therefore, private sector-driven,” he explained.Before flagging, please keep in mind that Disqus does not moderate communities. Your username will be shown to the moderator, so you should only flag this comment for one of the reasons listed above.

The Federal Airport Authority of Nigeria has called for strategic partnerships and incentives to boost airport revenue generation.The FAAN stated this at the Airport Business Summit and Expo 2024 Africa

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