BOAN President Calls for Water Transport Policy to Tackle Port Congestion, Reduce Cargo Costs

The President of the Barge Operators Association of Nigeria, BOAN, Hon. Olubunmi Olumekun, has called on the Federal Government to introduce policies that will prioritise water transportation for cargo evacuation, warning that continued dependence on roads is worsening port congestion, increasing logistics costs and undermining job creation.

Olumekun said Nigeria could not achieve an efficient and modern transportation system by concentrating largely on road haulage while neglecting the waterways, which he described as a cheaper and more efficient option for moving large volumes of cargo.

Speaking in an interview with Primetime Reporters in Lagos on Wednesday, the BOAN president urged the government to return to the drawing board and develop a multimodal transportation system that would integrate road, rail and water transport, with barges playing a more prominent role in cargo evacuation from the nation’s seaports.

According to him, a single barge can transport more than 30 containers at a time, offering considerable advantages over trucks in moving cargo and reducing pressure on roads around the ports.

He lamented that barge operations, which previously supported significant economic activities and employment, were gradually losing their relevance because of unfavourable policies and high operating costs.

Olumekun said the sector had the potential to support thousands of direct and indirect jobs, including employment for boat operators, dockworkers, traders and other service providers whose livelihoods depend on water transportation.

He, however, regretted that many operators had abandoned the business or sold their barges because of the lack of profitability, leaving surviving operators struggling to remain in business.

The BOAN President accused some stakeholders of turning to barge operators only when port congestion becomes critical, before returning to conventional road transportation once the immediate pressure eases.

He said the situation reflected a lack of commitment to developing water transportation as a sustainable component of Nigeria’s logistics system.

Olumekun identified multiple handling charges imposed on barge operators as one of the major factors driving up cargo evacuation costs, arguing that the practice amounts to double charging for services already covered under existing cargo-related payments.

He explained that importers using trucks to evacuate containers from the ports generally pay applicable handling and storage charges, whereas barge operators are also required to pay additional barge-handling charges to load containers.

According to him, the additional charges undermine the cost advantage of water transportation and make it difficult for barge operators to compete effectively with road haulage.

“Why is this so? We are paying double,” he said, questioning the rationale behind treating barge handling as an entirely separate service when both trucks and barges are used to move cargo.

He argued that the mode of loading should not be the sole basis for imposing additional charges, noting that whether cargo is handled with a crane or a forklift, the fundamental objective remains the movement of containers.

Olumekun cited the cost of moving a container by barge from the port area to Ikorodu as an example of the financial pressure on operators, putting the charge at about N600,000 per container.

He said terminal charges alone could amount to approximately N280,000 for loading a single container onto a barge.

The BOAN President maintained that the additional costs were eroding the economic benefits of water transportation, despite its capacity to move more containers per trip.

He disclosed that the association had repeatedly engaged relevant authorities and presented receipts and other evidence of the charges paid by its members, but said the discussions had yet to produce the desired relief.

Olumekun urged the government to introduce a clear policy that would encourage cargo owners and terminal operators to move more containers, particularly empty containers, through the waterways.

He proposed that empty containers should be evacuated by barges wherever practicable, instead of allowing them to compete with loaded containers and other road users for limited space on the highways.

According to him, such a policy would help reduce traffic congestion, improve the utilisation of barges, lower logistics costs and create employment opportunities.

He stressed that the government needed to demonstrate the political will to protect and revive the sector rather than allow commercial interests to undermine its development.

“We need to regulate the system. We need government policy that will regulate and give life to the barge industry,” he said.

The BOAN President added that the association would continue engaging relevant authorities and presenting its proposals, expressing optimism that ongoing discussions with the government would eventually yield positive results.

He also acknowledged the efforts of the Minister of Marine and Blue Economy, Dr. Adegboyega Oyetola, saying discussions were ongoing with relevant government agencies and that the association remained hopeful of a favourable outcome.

Olumekun warned that the decline in barge operations was not only an economic concern but also a threat to employment and security in coastal communities.

He explained that water transportation had previously provided legitimate livelihoods for many people who might otherwise be vulnerable to criminal activities.

He alleged that some individuals who had benefited from employment in the sector had returned to criminal activities following the loss of opportunities.

The BOAN president further expressed concern over attacks on barges, including incidents in which suspected pirates allegedly robbed operators and carted away cargo, sometimes in broad daylight.

He said the situation had increased the security challenges confronting the few operators still active in the business.

Olumekun called on the government and relevant security agencies to address the challenges, insisting that reviving the sector would help restore legitimate employment and strengthen security along the waterways.

The BOAN President also warned that congestion at the Lekki Deep Sea Port could become more severe than the challenges experienced at Apapa and Tin Can Island ports if adequate arrangements were not made for water-based cargo evacuation.

He said barge transportation was envisaged as a major component of cargo movement at Lekki Port, with about 60 per cent of cargo expected to be evacuated through barges.

Olumekun cautioned that relying predominantly on road transportation, despite the introduction of truck call-up arrangements, would not provide a lasting solution to port congestion.

He argued that the reduction in congestion previously experienced at Apapa and Tin Can Island ports was largely attributable to a decline in cargo volumes rather than the effectiveness of the call-up system alone.

According to him, the resurgence of cargo traffic has already contributed to renewed congestion, demonstrating the need for a more sustainable approach to port logistics.

He warned that failure to implement an effective barge evacuation policy at Lekki Port could result in congestion on a scale exceeding that experienced at the older Lagos ports.

“Unless they do the right thing, unless we go back to the drawing board and see how we can utilize 60 per cent of those evacuations by barge in that place, they will fail,” he said.

Olumekun maintained that the government must deliberately integrate water transportation into port development and operations if Nigeria is to achieve efficient cargo movement, lower logistics costs and sustainable maritime growth.

He urged policymakers to take decisive action to revive barge operations, stressing that a functional water transportation system would benefit port users, operators, businesses and the wider economy.

Photo Caption: Hon. Olubunmi Olumekun, President, BOAN.

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