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•1,000 man-hour wasted daily
By Steve Agbota, [email protected]
Nigeria is yet to implement and operate a Port Community System (PCS) as practised in other maritime nation’s across the world.
The absence of a functional Port Community System (PCS) is said to be causing huge man-hour and a revenue estimated at over N50 billion annually as an average of 1,000 man-hours is lost daily due to delays and inefficiencies in the clearance process.
A Port Community System is an electronic platform, which connects the multiple systems operated by a variety of organisations that make up a seaport, airport or inland port community. It is shared in the sense that it is set up, organised and used by firms in the same sector –However, the PCS was designed to be a unified platform for stakeholders, has remained a mirage in the nation’s maritime sector due to inter-agency rivalry. This leaves importers and clearing agents grappling with clearance challenges that result in delays in terms of cargo clearance and virtually results in huge demurrage.
These agencies include the Nigeria Customs Service, Nigerian Ports Authority, Nigerian Maritime Administration and Safety Agency (NI- MASA), Standard Organization Of Nigeria (SON) among others.
Mired in bureaucracy and inter-agency rivalries that have led to the failure to establish an efficient PCS, government appears.
Daily Sun learnt that PCS has been in existence and is not new. The system has been successfully implemented and
operated in some other maritime hubs across the globe.
The system is popularly known as a one-stop-shop digital platform where all government agencies involved in the maritime sector can enter into partnership seamlessly to expedite port-related processes and resolve issues swiftly.
Stakeholders bemoaned that one of the repercussions of the absence of a functional Port Community System is the exorbitant demurrage incurred by importers. This dummerage, which serves as penalty levied on cargo may run into the billions of Naira.
Information gathered showed that in the last five years, the total demurrage costs borne by importers and clearing agents in Nigeria stood at a whopping N50 billion (approximately $120 million).
The massive financial drain could have been largely avoided with the implementation of a robust PCS, which would streamline clearance processes, reduce paperwork, and enhance communication among government agencies, according to stakeholders..
Speaking with Daily Sun, National Council of Managing Director of Licensed Customs Agents (NCMDLCA), said port community system is just talking about single window, adding that some people don’t understand the concept of port community system in the nation’s maritime system.
He added that Nigeria and some other African countries even Ghana do not have single window, saying that single window is not being practiced the way Nigeria is practicing it because it there are multiple windows in Nigeria.
“You will be losing a lot of if don’t harmonise, synchronise, minismise and facilitate your
data so that your data will be one transaction, one delivery and one process. What we have today is multiple delivery and process.
“All agencies are operating their own windows. That is costly and I don’t want to talk about that has not done. It is expensive because Nigeria actually doesn’t have single window. Single window is not something Customs is running. Like I said single win- dow is a community based port linked up with all the processes and transaction in one top-shop,” he explained.
He said that Customs, SON, NAFDAC running their own systems but Nigeria port must harmonise its data, harmonise its data and minismise the quantity of the data so that data will be at one-top-shop to process transaction, process and delivery.
“What we is that we spend more time on various agencies trying to through the system. Their have not syncronised their documentations on that single window platform so that everything will become one and that is what we called single window. In some other parliance, they call it port community system.
“Nigeria is yet to have single window. Customs will not be the one that because Customs is under a ministry. It must be done by the Government itself. Other ministry has their own interests but it is the government that will harmonise the interests. Customs may the leading agency but the lead authority might be Ministry of Finance because in finance we must have a minister who will be in charge.
“Customs, NAFDAC, SON and other agencies are on the same rank when it comes to interpretation in terms of car- go and their have their own interests. So there must be must be somebody who’s superior, which is called house authority of the single window and it must be finance not Customs.
He said single window normally it is something that actually operated from the presidency or minister of finance, saying that Nigeria is yet to get to that Level because what is has now is multiple single windows.
A foremost fright forwarder, and head of, Sea Empowerment Research Centre,Dr. Eugene Nweke sheds light on the potential of a well-implemented PCS, drawing inspiration from the Singapore Portnet.
However, he described Portnet as a shining example of a nation’s Business to Business (B2B) Port Community Solution, saying the Portnet, which has been setting the pace since 2010 in Singapore, serves as a unifying platform that empowers the entire shipping community to manage the complexities inherent in cargo operations and the broader shipping process.
He emphasised that the PCS empowers the shipping community to manage cargo operations seamlessly, stream- lining documentation and improving efficiency.
He added that the Singaporean Portnets processed over 300 million annual transactions in real-time, adding that it showcases the transformative power of a functional PCS. He said Singapore’s Port Authority, renowned as the world’s largest transhipment hub, has seamlessly integrated Portnet to handle all electronic vessel and container data processing through its ports and terminals, adding that the integration is not merely about digitalization but about the intelligent consolidation and automation of systems.
