By Aaior K. Comfort

Maritime operators have attributed the stalled progress of four out of seven approved inland dry ports in Nigeria to the ongoing foreign exchange crisis and other challenges. Mr. Rotimi Hassan, the immediate past Managing Director of the Kaduna Inland Dry Port, discussed these issues in an interview with The PUNCH.

In March 2006, the Federal Executive Council approved the establishment of seven inland dry ports, designed to enhance Nigeria’s cargo handling capacity by accommodating up to 165,000 twenty-foot equivalent units (TEUs). However, a report from the Nigerian Shippers Council indicated that only three of these ports have been fully completed, leaving the others struggling to meet operational requirements.

The completed ports include the Kaduna IDP, with a capacity of 5,000 TEUs, Dala IDP in Kano State with 20,000 TEUs, and the Zanfarawa IDP in Funtua, Katsina State with 10,000 TEUs. The unfinished projects are as follows:

Erunmu Inland Dry Port in Ibadan, Oyo State (10% complete, capacity: 50,000 TEUs)
Isiala Ngwa facility in Abia State (5% complete, capacity: 50,000 TEUs)
Heipang Port in Jos, Plateau State (53.4% complete, capacity: 20,000 TEUs)
Jauri IDP in Maiduguri (5% complete, capacity: 10,000 TEUs)
Hassan explained that the initial expectations for the dry ports were that the government would develop them and then hand them over to operators. He noted that establishing a dry port is capital-intensive, with current costs reaching about ₦10 billion. The foreign exchange crisis has significantly impacted these investments, as the exchange rate has skyrocketed from ₦175/$ at the time of approval to over ₦1,600/$ today.

“The dry ports project is a very good initiative, but it is fraught with risks and requires substantial investment. The situation has deterred many operators from proceeding,” Hassan remarked.

Conversely, Dr. Ahmed Rabiu, Managing Director of Dala Inland Dry Ports, stated that the delay is not solely due to the exchange rate. He suggested that the novelty of the inland dry ports concept was a barrier to swift implementation, with many stakeholders still adapting to the new model.

Frank Obiekezie, National Secretary of the Association of Registered Freight Forwarders of Nigeria, acknowledged the potential of inland dry ports to enhance economic activities in Nigeria’s interior regions. However, he raised concerns about the logistical challenges that have historically hindered such projects. He urged the Nigerian Shippers Council to address these issues to ensure the successful operation of the remaining dry ports.

In a recent development, the Nigerian Shippers Council signed a Memorandum of Understanding with the Nigerian Railway Corporation aimed at facilitating the movement of goods and addressing the challenges affecting rail transportation from seaports to the inland dry ports. This collaboration may help alleviate some of the operational bottlenecks currently faced.