High expectations as NPA takes over inland dry port regulation

The Federal Government recently directed the transfer of all Inland Dry Ports from the Nigerian Shippers Council (NSC) to the Nigerian Ports Authority (NPA). In this report, TOLA ADENUBI looks at why the facilities are poised to enjoy better fortunes under the new regulations. 

Inland Dry Ports (IDPs), also known as Inland Container Depots (ICDs), were introduced in Nigeria to reduce congestion at coastal seaports, lower cargo transit costs for the hinterland, and bring shipping services closer to importers and exporters.

In 2006, the Federal Executive Council officially approved the establishment of six Inland Container Depots across the country under a Public-Private Partnership (PPP) model, managed and promoted by the Nigerian Shippers’ Council.

However, happenings over the years have shown that aside the Kaduna Inland Dry Port (KIDP) in Kaduna, and the Dala Inland Dry Port (DIDP) in Kano, most of the other Inland dry ports have struggled to reach completion not to talk of commencing operational activities.

The struggling inland dry ports include Funtua (Katsina State, near completion); Ibadan (Oyo State); Isiala Ngwa (Abia State); Jos (Plateau State); and Maiduguri (Borno State); alongside newer proposals in places like Onitsha, Benin, and Dagbolu.

While only Kaduna Inland Dry Port and Dala Inland Dry Ports have long commenced operations, the issue of cargo unavailability from major seaports has forced the Kaduna Inland Dry Port and the Dala inland dry port to struggle for cargoes, thus operating far below optimal capacity.

ALSO READ: What I did to Tinubu’s supporter who begged for money — Dino Melaye

Checks by the Nigerian Tribune revealed that the scarcity of cargoes at the inland dry ports in stems from poor rail connectivity, heavy reliance on costly road transport, and weak integration with major seaports.

New Sheriff in town

With the Takeover of Inland Dry Ports regulation by the Nigerian Ports Authority (NPA), expectations are high that issues bothering on weak integration with major seaports like Apapa, Tin-Can and Onne ports, will become a thing of the past.

Speaking on this expectation, immediate Past General Manager at Kaduna Inland Dry Port, Mr. Rotimi Raimi, explained that due to a natural understanding between the NPA and the shipping companies and the port terminal operators, the issues surrounding integration with major ports should become history now that NPA is in charge.

According to Mr. Rotimi Raimi, “It’s a welcome development that the Federal Government has handed over the affairs and regulation of the Inland Dry Ports to the NPA. “I remember my time as General Manager of Kaduna Inland Dry Ports, there were times we struggled to get cargoes from the major ports. The Kaduna Inland Dry Port struggled at inception over cargo facilitation from Apapa and Tain-Can ports because the terminal operators there won’t release cargoes do the dry ports in the North. “As we speak, Kaduna and Dala Inland Dry Ports are not operating at optimal capacity because of paucity of cargoes. Only Maersk Line, Mediterranean Shipping Company (MSC), and CMA-CGM maintains offices in these Dry Ports in the North.

“Other shipping companies will tell you they don’t have enough volume of cargoes going up North to maintain offices there. It is that bad. He added: “But with NPA taking over, i expects all this to change. It is not a secret that NPA has an edge over all the shipping companies operating in Nigeria. All the shipping companies that brings cargoes to Nigeria responds to the NPA because it is the NPA that provides the port terminals where these vessels berth when they arrive. “Yes, most of these port terminals are being run and managed by private firms, but the NPA is still the landlord of the ports, and by such, have an edge over these private firms, including the shipping companies. “So, i was excited when the Federal Government announced that NPA is taking over the Inland Dry Ports. It is long overdue. NPA is in a natural position to properly regulate the Inland Dry Ports because of its significance to the shipping companies and the port terminal operators.

“Going forward, i expect the NPA to set up a committee comprising of critical stakeholders like all the Inland Dry Ports operators, the Nigeria Customs Service (NCS), and the Nigerian Railway Corporation (NRC). “Most of the landlocked countries like Niger, Chad and others rely on these Inland Dry Ports to get their cargoes and once NPA gets it right from inception, the fortunes of Nigeria’s inland dry ports will be transformed beyond imaginable heights.”

NPA Logistic issues

Following the Federal Government directive that NPA takes over Dry Ports regulation, the authority has moved to address rail connectivity and logistics challenges affecting inland dry ports as part of efforts to integrate the facilities into the nation’s port system and improve cargo movement across the country. The move followed a meeting between the NPA management, led by its Managing Director, Dr Abubakar Dantsoho, and Executive Director of Dala Inland Dry Port, Mr Ahmad Rabiu, alongside representatives of Funtua Inland Dry Port, at the authority’s corporate headquarters in Marina, Lagos. The discussions focused on strengthening institutional collaboration, addressing infrastructure constraints and improving operational efficiency across Nigeria’s maritime logistics chain.

Speaking during the meeting, Dantsoho stressed the need to upgrade inland dry port infrastructure and technical capacity to complement ongoing modernisation efforts at the nation’s seaports. He said the facilities should be equipped to handle increasing cargo volumes and support the broader transformation of Nigeria’s maritime sector. “For our Inland Dry Ports to function at the same velocity as the ongoing modernisation across our seaports, we must proactively upgrade dry port infrastructure and technical capacity,” Dantsoho said.

He explained that the integration of digital platforms, including the Port Community System (PCS) and the National Single Window, into seaport operations must be matched by corresponding improvements at inland dry ports. “As we integrate digital systems such as the Port Community System (PCS) and the National Single Window in our seaports, the dry ports must deploy modern equipment and advanced technical capabilities to handle larger cargo volumes and bigger vessels coming to our coast,” he added.

The NPA managing director also called for increased private-sector investment in inland dry port infrastructure, noting that stronger investment would be critical to improving cargo handling capacity and operational efficiency. He cited APM Terminals’ establishment of an Export Processing Terminal in Northern Nigeria as an example of private-sector participation in the development of inland logistics infrastructure.

Dantsoho assured stakeholders that efforts to optimise the inland port system were underway and confirmed plans to visit the Dala and Funtua facilities to assess their operational conditions and infrastructure requirements. The discussions highlighted the need for detailed technical assessments, stakeholder coordination and physical inspections to establish infrastructure priorities and guide subsequent project development.