SEREC urges FG to impose taxes on unreturned container in ports
By Diana Omueza
The Sea Empowerment and Research Centre (SEREC) has urged the Federal Government to impose taxes on empty unreturned containers especially rickety ones to decongest the ports.
Mr Eugene Nweke, Head Researcher at SEREC, made the call at a news conference on Monday in Abuja.
Nweke said that imposition of taxes or fees on empty unreturned containers was in line with global shipping laws and practices to reduce container dumping, enhance safe environment and boost revenue.
“Today shipping companies charge the Nigeria Shippers in the average of ₦10,000 per day for demurrage after the third period.
“Several countries have implemented taxes or fees on unreturned containers after a specified period.
“Germany, France and the UK have implemented container detention fees or demurrage charges for unreturned containers.
“The United States has a similar system with container shipping lines charging detention fees for containers held beyond the allowed free time.
“Imagine if the government places a demurrage tax on percentage basis, to every unreturned empty container in our ports, how much revenue government will generate from that window alone?
Nweke said that based on research, revenues that could be realised from unreturned container taxes could revive the ports, modernise it and ensure proper maintenance.
He said that without the implementation of these shipping laws, Nigeria would continue to entertain containers littering its ports and with huge financial implications.
Nweke noted that the health and environmental hazards unreturned empty containers pose to the environment were much.
According to him, abandoned containers pose environmental and health hazards, particularly if they are rickety or unseaworthy.
“To mitigate these, it is reasonable for Nigeria to consider implementing these taxes and fees for prompt return of empty containers and reduce the financial burden on shipping lines.
“We have proposed the need for the establishment of a strategic container return system, jointly coordinated or administered by the Nigerian Shippers Council (NSC), Nigeria Port Authority (NPA), among others,” he said.
He encouraged Nigerian businesses to boost exports to balance the number of empty containers and reduce the financial burden on shipping lines.
Nweke also advised the government to invest in better port infrastructure and management systems to streamline container handling, reduce congestion and enhance tracking and return logistics.
He recommended the establishment of an effective container return systems to minimise the number of empty containers left in our ports and reduce storage costs. (NAN)(www.nannews.ng)
Edited by Francis Onyeukwu
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