This is my open letter response to the article on the business section of Punch Newspaper of Sunday (16-09-2018), titled: “Apapa Gridlock: Stakeholders seek cancellation of container deposit”
The url: Apapa gridlock: Stakeholders seek cancellation of container deposits https://punchng.com/apapa-gridlock-stakeholders-seek-cancellation-of-container-deposits/
I believe that there is a difference between advocating for reduction of gridlock and cancellation of container deposit.
I will deal with the former first.
The on-going construction along the Apapa/Wharf road axis have led to a great deal of traffic along that route with delay in clearing of imports, returning of empty containers and also transporting of export. The road construction has been ongoing for a while but beyond the road construction there is the need to expand the road and the port due to increase in import and increase in trucks plying that axis to clear the containers from the port.
There is also the drainage issue. During the rainy season there is a hike in traffic congestion caused by the drainage problems, bad roads and fall of containers, which has become a yearly nightmare. During the eight years reign of Mr Fashola as Lagos State governor (2007 – 2015), he tried to fix the Apapa/Wharf road puzzle but he could not. The Sitting governor, Mr Ambode is also working tirelessly to fix the puzzle.
The second issue raised was the issue of container deposit. To elaborate, I will use the example that most people are aware of including the millennial. Before the general usage of plastic and can for drinks in Nigeria, we use bottle. The seller always charge a deposit fee for taking the bottle home in case you lose it, broke it or never returned the bottle. The deposit is always refunded when the bottle is returned within agreed time.
The container deposit works exactly in the same way. The shipping line always asks for container deposit before allowing agent/customer to take the container to their warehouse to offload their shipment and return. The container deposit is returned if container is returned in good condition and within stipulated time. There is a charge for late returning of container, which is also deducted from the container deposit and refund returned if any. Where the agents did not return the container the container deposit is utilized by the shipping line to procure another one.
I believe the container deposit is a good business strategy by the shipping company. It helps to ameliorate their business risk. This strategy forces the clearing agent to return the empty container or risk losing the container deposit. Also, some of the terminal have gone ahead to partner and provide bonded terminal that receive empty containers if you want to stay out of the traffic-ridden queue though sometimes at a cost.
MY SUGGESTED SOLUTIONS
We should think, plan and act on the use of the rail system. We need the rail to by-pass the road congestion.
We need to fix the road and have in mind the weight of the heavy-duty trucks that will ply the road.
We might look at the possibility of using barge to transload goods from the port to small water areas that are very close to the recipient warehouse.
Cancellation of container deposit is not good for the general shipping business.