The Nigerian Shippers’ Council has defended the proposed tariff increment by the West Africa Container Terminal (WACT), a subsidiary of APM Terminal.
The Onne Port-based terminal operator has given its customers a notice to increase its Terminal Handling Charges (THC) and Storage Charges effective from April 1, 2025.
The proposed increase in tariff has sparked outrage among some service users who have chosen to give misleading narratives to stir up public emotions against the terminal operator and the Nigerian Shippers’ Council.
However, in an official statement by the management of the Port Economic Regulatory Agency, the proposed tariff increment by WACT was duly approved, legitimate, and within the industry benchmark.
Describing the emotions of some disgruntled service users at Onne Port as misleading, the Council said the proposed tariff hike was approved in two tranches in 2021 and 2023.
“As the economic regulator of the port sector, the Council considers it necessary to set the record straight and provide clarifications to avoid any misinformation. The Council’s approval is within the industry benchmark, and the tariff increment implemented by WACT was duly reviewed and approved by the NSC.
“The review was conducted following rigorous assessment processes to ensure that the rates remain within the acceptable industry benchmark and align with prevailing economic realities. It is pertinent to note that the NSC, in its regulatory capacity, ensures that all approved tariff adjustments are fair, justifiable, and sustainable for both service providers and port users,” the statement reads.
The Council also debunked the insinuation that the terminal operator did not consult its service users, especially the registered clearing agents, to sensitize them about the pending increment.
“According to WACT, before the implementation of the new tariff structure, WACT engaged extensively with the leadership of registered clearing agents in Onne, including the Association of Nigerian Licensed Customs Agents (ANLCA), the National Association of Government Approved Freight Forwarders (NAGAFF), the Association of Registered Freight Forwarders of Nigeria (ARFFN), and the National Council of Managing Directors of Licensed Customs Agents (CMD).
“The discussions led to a mutual agreement that the implementation would be phased to ease the impact on port users. In adherence to this agreement, WACT initially implemented the first phase of the tariff increment, which was accepted by the service users,” the Council said.
According to the Council, following due consultations and considerations, the final phase of the agreed increment was scheduled for implementation after a one-month and two-week notice period given to stakeholders, ensuring transparency and adequate preparation.
The NSC further dismissed the claim of non-participation by APFFLON in the sensitization program as misleading.
“According to WACT, APFFLON has, for two years, failed to obtain an introductory letter from the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), which is a prerequisite for recognition as an agent.
“As such, their inability to participate in the stakeholder engagement process was due to their non-compliance with regulatory requirements and not an act of exclusion by WACT.
“The Nigerian Shippers’ Council remains committed to its mandate of ensuring fair and competitive practices in the port sector while balancing the interests of terminal operators and port users. We urge stakeholders to engage constructively and in accordance with regulatory frameworks to enhance efficiency in our port operations,” the Council said.