Movement of cargoes by barges from the Lagos Ports of Apapa and Tin-Can have witnessed a drop in recent time as many cargo owners have opted for road haulage of their consignments. In this report, TOLA ADENUBI examines why many barges are lying idle at jetties.
MOVEMENT of cargoes via barges gained prominence at Nigeria’s busiest ports of Apapa and Tin-Can in recent years majorly due to the chaotic traffic gridlock that characterised many access roads leading to the ports in Lagos.
The barging business, over the years, benefited from the unnecessary traffic gridlock that rendered road haulage almost impossible due to the unregulated movement of trucks and petroleum tankers towards the nation’s port city of Apapa and Tin-Can.
Lamenting on the slump in business recently in a chat with newsmen, the General Manager of one of the barge operators, Joatelim Logistics Limited, Mr Haruna Omolajomo, said that most of the operators who rented barges have since returned them even as some of the barges are idle at jetties for lack of activities.
Omolajomo, who doubles as Chairman, Membership Committee of Barge Operators Association of Nigeria (BOAN), said, “Barge operators are crying inwardly and some of those who rented barges and tugboats have returned them. You will find most of the barges at the jetties instead of working. So, it is not a good time for barge operators.”
Checks by the Nigerian Tribune however, revealed that the slump in cargo evacuation by barges at Nigeria’s busiest ports of Apapa and Tin-Can can be attributed to the huge cost of barging services and the sudden improvement of the state of the major port access roads.
Expensive cost
Speaking on why many cargo owners are opting for road haulage of their cargoes instead of barge haulage, President of the Save Nigeria Freight Forwarders Importers and Exporters Coalition (SNFFIEC), Chief Osita Chukwu, revealed that a major factor why many cargoes are now leaving the port by road is due to the high cost of barge evacuation of cargoes.
According to the SNFFIEC president, “Barge is far more expensive than truck haulage of cargoes. To move a container via barge, an importer will have to cough out between N300,000 to N500,000 depending on the distance that the container is going.
“To move the same container via truck, the highest that you will be paying is N200,000. For the same distance that a container will pay N400,000 for barge haulage, the same container will pay N200,000 for truck haulage.
“So, you see many importers are trying to cut down the cost of haulage of their cargoes. The economy is down and there are fewer jobs in the ports. The volume of cargo coming into the country has reduced, so, whoever is importing now is doing so with the mindset of trying to save cost.
“That is why many cargo owners are opting for road haulage of cargoes in these past few days rather than barge haulage. The difference in cost is too wide.
“Maybe when Lekki Port begins full operations as expected in this second quarter, the services of barges will be more needed. However, that will be subject to the state of the access roads that will feed Lekki Port because barging services thrive when roads linking ports are either blocked due to traffic or not good for navigation.
“The high cost of barge services makes it a last resort when the roads feeding the ports are not there. Many importers always go for truck haulage because of the cost implication associated with barge services.”
Improved access road
Another reason more cargoes are leaving the ports via road haulage is because the access roads leading to the ports have been rehabilitated and are very free of impediments that cause traffic.
Also speaking with the Nigerian Tribune, spokesperson of the Tin-Can chapter of the Association of Nigerian Licensed Customs Agents (ANLCA), Joy Onome Monije, explained that the Apapa-Oshodi express way from Tin-Can to Mile 2 is free and that is the major reason many cargoes are leaving the port via trucks.
Monije said, “From Tin-Can to Mile 2 is very free. Don’t forget that the road has just been reconstructed by a Dangote Group-led consortium.
“The road has been very free in the past few months and that has crashed the cost of moving cargo from Tin-Can. Before, when the road had traffic issues due to ongoing construction efforts, the cost of road haulage of cargoes was almost at par with that of barge haulage because trucks spent days stuck in traffic when leaving or trying to access the port.
“At a point, due to chaotic traffic issues, trucks were charging N300,000 to N400,000 to move containers depending on the distance. But since that road has been completed and the traffic impediment gone, the price for road haulage has crashed.
“Due to the crash in the price of truck haulage, many people have abandoned barges. The only few people still using barges are people who move large numbers of containers at a go.
“For those moving just one or two containers at a go, it doesn’t make any economic sense to move containers via barges anymore because of the high expenses. Moving cargoes with trucks is cheaper nowadays compared to moving the same cargo via barges. While barges will charge N300,000 or even more to move a container to a bonded terminal, truckers are charging far less than that amount because the roads are now free and smooth.
“And don’t forget that a barge can only take your cargo nearer to your destination. You will still need a truck to pick the container from the point where the barge will drop it to the final destination. The barge cannot take it to your final destination except the place is connected by water. But a truck will pick the cargo and take it straight to where you want it at a lesser cost.
“So the complete rehabilitation of the Mile 2 to Tin-Can section of the Apapa-Oshodi expressway, which crashed road haulage rates, is a major reason many cargoes are now leaving the ports via truck haulage instead of barge haulage.”
