World Bank misclassifies Lagos ports amid collapse and cargo diversion
The The World Bank has ranked Lagos Ports 358th out of 370 ports assessed globally, according to the latest Container Port Performance Index 2021 report.
The assessment focused on ports with a minimum of 20 valid calls during the 12-month study period.
Based on the assessment, the two highest ranked container ports in the 2021 CPPI are King Abdullah Port (Saudi Arabia) and Salalah Port (Oman).
In the foreword to the report, the Washington-based bank highlighted some of the consequences of underperforming ports, including scarcity, inflation, slower growth, unemployment and high international trade costs.
The foreword to the report reads in part as follows: “Maritime transport carries more than 80% of the world’s trade in goods by volume, and any obstacle or friction at the port will have tangible repercussions on their hinterlands and their populations. respective.
“In the short term, this will likely take the form of shortages of essential goods and higher prices, as we saw at the start of the pandemic. But in the medium to long term, an inefficient port will lead to slower economic growth, fewer jobs and higher costs for importers and exporters.
The report further states that underperforming ports are often due to spatial and operational efficiency limitations, sea and land access limitations, inadequate surveillance and poor coordination among relevant government agencies, which results in a lack of predictability and reliability.
the punch reported on Thursday that there were indications that the country could soon begin to experience more cargo diversions to neighboring West African ports as well as an increase in freight rates due to the collapse of quay areas in Tin Can and Apapa.
A quay is part of the port where cargo is lifted or ships are loaded and unloaded.
In separate conversations with our correspondent in Lagos, experts said that shipping companies would now be afraid to dock at affected ports, leading to the diversion of cargo to West African ports or a possible increase transportation costs.
The chief executive of the Nigerian Ports Authority, Muhammad Bello-Koko, had sounded the alarm over the collapse of Tin Can Island port, saying more attention needed to be paid to the rehabilitation of the port’s quay walls .
Manufacturers Association of Nigeria Export Promotion Group Secretary Benedict Obhiosa identified some of the challenges, including traffic congestion at Apapa, port congestion, high shipping costs and logistics costs.
He said: “The export problems are obvious. For example, the blocking of Apapa is a problem for exporters. Port congestion is another problem. The high cost of the fleet by shipping agencies is another problem. It even quadrupled from what it was. Then the domestic logistics costs from your factory to Apapa is another huge challenge for manufacturers.
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