Uncertainty in securing long-term concession agreement with the Nigerian Ports Authority (NPA) by stakeholders some terminal operators have halted further capital and equipment investment.

Others have also shifted attention to emerging greenfield port terminals within the Nigerian port system.

Recall that following the need to rehabilitate failing port sections within the Nigerian port environment, the Federal Government has continued to grant terminal operators of expired port concessions six-month renewal, allowing the operators to continue running the ports, despite the need for a total overhaul of infrastructure.

Speaking with the Nigerian Tribune, a senior staff of one of the operators, who would not want his name in print, explained that the inability to secure long-term concession agreement with the NPA has forced many to review their investment pattern at Nigerian ports.

According to the port worker, “Although our own concession agreement has not expired until July of 2026, we are already planning ahead, due to what has happened to other terminal operators whose concession agreement has expired.

“What government has been offering terminal operators has been six-month concession agreement. Getting long term concession agreement has been difficult. So, many have been forced to review their investment plans.

At our own terminal, we have cut down on our expenditure as a company, due to uncertainty, and have done some restructuring by implementing lean and agile models.

“Like other terminal operators, whose contracts have expired, we have also stopped further investment in capital and equipment infrastructure at the ports.

For now, we will not be investing in new equipment and projects within our port terminal. We are making efforts to shift attention elsewhere, most likely a greenfield port development project.

“If you look at Mediterranean Shipping Company (MSC), operators of the Tincan Island Container Terminal (TICT), they are already investing in the Snake Island Container Terminal (SICT). That’s in the advent that they fail to secure a long-term concession agreement for the TICT terminal. So, it’s a business continuity plan for them.”

Asked about what will happen to port workers if the NPA fails to grant the terminal operators long-term concession renewal agreement, he explained that, “In terms of our workers, what was done was to cap all terminal benefits of the staff and pay it into an account. So, in the advent that anything happens, there will be no issues about payment of staff benefits.

“As we speak, no staff has any terminal benefit or entitlement in the waiting. Their money has been paid into a trust just to make sure any uncertainty is taken care of. That’s why there are no issues with the workers.” (Nigerian Tribune)

*PLS USE PORTS ENTRANCE