“High Cost of Transportation: Bane of driving shipping activities”- Ukeyima Emphasized as NSC Signs MOU with NRC to enhance trade connectivity

ZAINAB JUNAID

The Executive Secretary of the Nigerian Shippers’ Council, Barrister Akutah Pius Ukeyima has identified high cost of transportation as bane of driving shipping activities, a major set back to trade connectivity in the country, hence the need to strengthen synergy with Nigerian Railway Corporation (NRC).

While fielding questions from journalists at the Stakeholders sensitization summit jointly organized with NRC in Lagos, on Thursday 8 August 2024, the ES stressed that partnership with the Railway Corporation became necessary to bring Shipping facilities closer to the shippers in the hinterland through rail transport; a means to addressing high cost of transporting cargo from Ports to hinterland.

Barr. Ukeyima informed that the essence of the Memorandum of Understanding (MoU) signed with NRC is to facilitate the efficient carriage of cargoes from Seaports to the Inland Dry Ports (IDPs), through a cheaper, cost effective means that is rail transport, and also enhance intermodal connections.

He stated that facilitation of the development of critical transport infrastructure in the hinterland will be more feasible with this collaboration taking into consideration the advantage of rail transportation in area of efficiency, safety especially for long distances and carriage of large volumes of goods.

His words, “The NSC is collaborating with NRC because we believe the best way to go in terms of cargo movement across the nation is to encourage use of rail transport. We have seen that rail transport is the best in terms of safety of cargo, cost efficiency. It can also reduce greenhouse gas emissions and energy consumption when compared with road transportation. We are here today to demonstrate how we can partner to develop policy structure to address infrastructure deficit, create an enabling environment that will promote private participation because government cannot do it alone. Our aim is to bring shipping activities closer to the hinterland”.

Speaking further, “The government of today focused more on export, we are looking at how we can take advantage of the opportunities open to Shippers in the African Continental Free Trade Agreement (AfCFTA) to promote export in the Country, that’s the essence of all these moves,” he stated.

However, earlier in his keynote address on limitations to rail transportation of cargo in Nigeria, the Nigeria Shippers’ Council’s Boss anticipated that the collaboration with NRC will bring an end to the challenges impinging the transportation of cargoes to the hinterland (IDPs) and also encourage all active participants to drive at implementable resolutions that will enhance the delivery of cargoes from the seaports to the hinterland for maximum contribution to our economy.

Also speaking, the Managing Director, NRC, Mr. Fidet Okhiria, affirmed that the synergy with the Council is to encourage more Shippers into using rail transport for cargo movement, adding that all collaboration strategies deployed by the Government is to achieve an enabling environment for the people.

Describing the odd experience encountered in the last rail lift, which saw the movement of 17 containers to Kano, Mr Fidet expressed worries saying it took the corporation a very long time to gather the containers from different locations before transporting them to Kano.

He enjoined the Manufacturers Association of Nigeria(MAN) to embrace togetherness and cooperation so that lifting of the containers can be done in bulk, and properly harnessed.

“We need more containers to move through rail transport. The terminals should patronize us more, he added.

Similarly, the Director Inland Transport Service Department, NSC, Mrs. Ify Okolue in her welcome address assured all stakeholders present at the summit that Nigerian Shippers’ Council and the Ministry of Marine and Blue Economy will continue to create an enabling environment for the actualization of optimal and seamless movement of cargoes by rail from the seaports to the Inland Dry Ports and the hinterland in general.

To her, “The objective of the summit amongst others is to identify the challenges facing the Nigerian Railway Corporation (NRC) infrastructural development; the role of the Nigerian Custom Service towards enabling seamless movement of cargo/reduction of cost of doing business in the port, proffer practicable solutions to the identified problems and open up discussions on the possibility for Public Private Partnership (PPP) in the provision of rail transport services with a view to promoting multimodal approached to cargo evacuation and distribution to the hinterland”.