NPA Warns ICD,Bonded Terminal Operators to Adapt or Risk Obsolescence

NPA Warns ICD,Bonded Terminal Operators to Adapt or Risk Obsolescence

 

 

The Nigerian Ports Authority (NPA) is prioritizing resolving structural issues in existing port concession agreements before renewing them with current terminal operators. NPA Managing Director, Dr. Abubakar Dantsoho, stated that the government is focused on strengthening investor confidence by addressing potential dispute sources.

 

Dantsoho emphasized that investors prioritize clarity and a strong legal framework over speedy agreements. “What we should be concerned about is the quality of the agreement, not the speed in churning it out,” he said. The NPA is working on putting adequate legal and structural frameworks in place to attract investors and prevent future disagreements.

 

The NPA has also advised Inland Container Depot (ICD) and bonded terminal operators to adapt to changing industry dynamics, warning that declining port congestion may render their current business models obsolete. “They played a great role during the port congestion era, but business is dynamic, so they must adapt to the new scheme of things or face the sad option of being phased out,” Dantsoho said.

 

The NPA acknowledges concerns from terminal operators over uncertainties and unmet obligations but insists on resolving these issues before renewing agreements. Both NPA and terminal operators have raised concerns over unmet obligations, which must be addressed before any renewal. The review process may attract new investors if existing operators choose not to continue.

 

Dantsoho stressed that the goal is to create a solid concession agreement that meets global standards and stands the test of time. The NPA’s stance aims to ensure sustainable growth and development in the maritime sector.

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Investor Confidence key to Port Concession Agreements,Says NPA By our Correspondent The Nigerian Ports Authority (NPA) has defended its decision to delay renewing port concession agreements, citing the need for a thorough review to strengthen investor confidence and avoid future disputes. NPA Managing Director, Dr. Abubakar Dantsoho, stated that the government is focused on correcting structural issues in existing agreements before approving renewals. Dantsoho acknowledged concerns from terminal operators over uncertainty but emphasized that a flawed agreement would do more harm than a delayed one. “The end justifies the means. It is better to get it right than to rush into agreements that will be challenged later,” he said. He noted that both NPA and concessionaires had raised concerns over unmet obligations, which must be resolved before any extension. The NPA is prioritizing clarity and legal certainty in the agreements, as investors are more interested in a stable and secure environment than speedy approvals. “No investor will put money where the legal framework is weak. What matters is the quality of the agreement, not how fast it is signed,” Dantsoho added. The review process may lead to new investors taking over if existing operators choose not to continue. Dantsoho also warned operators of inland container depots and bonded terminals to adapt to changing realities, stating that declining congestion may render their current business models obsolete. “They played their role during congestion. But business is dynamic. They must restrategise,” he said. The NPA’s stance aims to ensure sustainable growth and development in the maritime sector.

Investor Confidence key to Port Concession Agreements,Says NPA     By our ...