Transportation cost in developing countries 25% high, says Peterside

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Director General of Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Dakuku

Peterside, has said that the cost of transportation in the developing countries which hovers around 15 per cent and 25 per cent contribute to the high cost of imported goods.

This, he said, was con- trary to the low cost of trans- portation in developed na- tions which is between 2 per cent and 5 per cent.

Speaking at the Crans Montana Forum Club of Ports in Brussels Belgium, Peterside charged port

managements in other developing nations to invest in effective intermodal connectivity to enhance their port operations, adding that an efficient land transport system will ensure vessels idle time in the port is highly minimised thereby reducing the turnaround time of vessels as well as increasing the

berth occupancy ratio of the port to make it more competitive and more profitable, noting that the quality of the rail and road transport connection to a port has an impact on the cargo throughout

of the port.

According to him, the ef￾ficiency of a port is measured by the average quantity of import and export cargoes it is able to handle in a single day.

A port with bad road and rail facilities will have low cargo throughput, all other factors remaining equal. While ships start and end their journey in a port, the cargoes in most cases originate and

end up far from the ports.

This, in effect, implies that without the connection of other modes of transport to a seaport, especially rail and road transport, the port becomes crippled and the sea transport becomes inef￾ficient.

While noting that some port managements, particularly in developing countries do not still understand the level of impact an effective intermodal connectivity has on the efficiency of their ports, the NIMASA DG pointed out to the international audience that Nigeria under the current leadership of President Muhammadu Buhari through the Federal Ministry of Transportation is investing heavily on linking all major sea ports and airports to the cities through rail and good access roads to

further boost the economy.

“The Nigerian government under the leadership of President Muhammadu Buhari, is investing heavily

in using rail to link both the seaports and the airports to all major cities in the country. Our quest to enhance the quality of the rail and road transport connection to all ports in Nigeria is to ensure

seamless transportation of goods and services through the ports” he said.

In a statement, Head, Corporate Communications, NIMASA, Mr Isichei Osamgbi, said that the turn around time in most African ports is too high because of the inefficiency and lack of necessary port infrastructure which leads to longer dwell time for vessels and cargoes in the ports.

Peterside further noted that the resultant effect is high demurrage, which is eventually passed over to the consumer.

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