NPA might reduce tariffs by 30% for shipments to ports in the east.

As part of a multi-pronged strategy to improve vessel and cargo traffic to the Eastern ports, the Nigerian Ports Authority (NPA) has stated its intention to increase tariff relief by as much as 30% for service providers.

NPA Might Reduce Tariffs By 30%

Mohammed Bello Koko, the managing director of NPA, revealed this while speaking at a stakeholders’ conference while accompanying his management team and other top NPA executives on an inspection visit of facilities at Port Harcourt and Onne Ports.

He explained that the planned action was taken into consideration after it was discovered that a prior Authority concession of a 10% rebate to terminal operators had not produced the expected results because shipping traffic to these ports had not significantly increased.

He claims that the NPA is already taking the terminal operators at these Ports’ request for a 30 percent tariff discount under consideration.

But he cautioned that the approval of such a request would be conditional and not automatic.

Why We Might Decides To Reduce NPA Tariffs By 30%

“A few years ago, we offered tariff breaks—a kind of rebate—but the impact on port traffic was less than anticipated.

We are considering the terminal operators’ request for a 30% discount, but we must be clear that we won’t simply offer a reimbursement without any requirements.

According to him, NPA tariffs discussions have begun; the percentage may be lower or more than 30%; a deadline will also be adopted. For illustration, let’s pretend this alleviation lasts a year, and then we’ll assess its effects.

We wouldn’t want to offer NPA tariffs discount to a terminal operator who, for example, only brings in four vessels per month and who still only brings in four or fewer vessels after the refund.

He emphasized that the NPA tariff relief we would offer will be determined by the proportionate effect it will have on cargo and vessel traffic.

We also examined the BUA portion of the berth, and I believe that berths 5-8 have fallen. We must decommission several of these berths because they were constructed in the 1920s but have severely degraded.

According to the agreement, BUA will rebuild several of these berths. We have given them our approval for the company’s final design, and we anticipate that work will soon resume.

“We are proposing that the terminal operator speed up the rate at which they complete these repairs.

The reconstruction was supposed to begin a few months ago, but it hasn’t. We recognize the need of careful planning, and now that it has been completed, we anticipate they will soon start working on these berths again.

“We came to check out the dockyard as well. Despite being in disrepair, the dockyard remains a crucial and essential component of the port ecology where vessels are berthed for repairs.

We are thinking about either finding private investors to put money into the dockyard or having the NPA take on the duty of fixing up the finger jetty and getting the berth to work, the official said.