The United Nations Conference on Trade and Development (UNCTAD) has identified the role of ports as central to economic growth. Furthermore, including under the Incoterms (International Commercial Terms) 2020 revision, the International Chamber of Commerce recognised the increasing migration to intermodal, door to door, logistics models. This clearly suggests that, in order to remain competitive and attractive, ports must perform as streamlined and efficient in-bound, out-bound and transit facilities with robust connectivity to national and cross-border hinterland regions.
As components of trade costs, port tariffs and other associated fees are important features of overall competitiveness. They are significant variables in the growth and competitiveness of the Nigerian Ports. In a bid to diversify the economy, the Nigerian government is taking strides to ensure Nigeria’s ports are ready to play their part by ensuring that entry and exit of goods are not constrained and that Nigerian ports are competitive and potentially preferred for goods entering/exiting and transiting the West African region. This would be partially achieved by ensuring that tariffs and associated costs of port services are viable and competitive.
Ports analysts have noted that competition between ports is undeniably increasing and has resulted in the adoption of strategies to improve port efficiency and capacity. Carriers, shippers and supply chain managers all seek efficiency and cost-effectiveness in the transportation of cargo. As a result, port-related services that can help them save time and money have become increasingly important to them. It is recognised that, for many value chains, predictability is a more important imperative than cost. Thus, not only must port fees be competitive but port activities and processes must be streamlined and efficient.
The study, therefore, is aimed at analysing key data and to present a Comparative Assessment of Tariffs/Costs at Ports along the West African Coast.
Read the full study report here.