BUA PORTS TERMINALS LIMITED

STANDARD OPERATING PROCEDURE (SOP)

INTRODUCTION:

The Ports play a significant role in the economic development of any nation.

Their efficiency is critical to the national supply chain, industrial capacity utilization, market stabilization, employment and fiscal policies. However, despite their importance, high costs, obsolete equipment, underfunding and high centralization characterized the Nigerian ports before 2006.

These and other factors informed the deregulation of the port sector , with the intention of breaking the monopoly of cargo handling operations by the Nigerian Ports authority (NPA) after the adoption of studies commissioned by the Federal Government.

The studies were carried out by the Royal Haskoning which recommended the privatization through concessional agreement and the emergence of new port structure under landlord arrangement.

In pursuant of the deregulation agenda and reform initiatives, the governmentdelineated the existing ports into 26 terminals andhanded over to private operators in 2006, afteran international competitive bidding process.

BUA Ports and Terminals Limited, a subsidiary of BUA Group was incorporated on 28 March 2006. The Company is the concessionaire of the Rivers Port Complex Terminal ‘B’ of the Nigeria Ports Authority, NPA. This was after a highly competitive bidding process under the Public Enterprise (Privatization and Commercialization) Act No. 28 of 1999.

As terminal operators, BUA Ports & Terminals Ltd have the mandate to profitably and efficiently manage the four (4) berths in the terminal, Berths 5-8 which it has creditably done thus far.

The essence of the concession was to improve port logistics efficiency in terms of berthing of vessels, cargo discharge, storage and delivery.

2.FUNCTIONS OF THE TERMINAL OPERATOR:

The functions of the Terminal Operator as conferred on it by the Public Enterprise (Privatization and Commercialization) Act No. 28 of 1999 include:

  1. Break the monopoly of operations to improve efficiency.
  2. Improve the turnaround time of vessel operations.
  3. Reduce the cost of doing business in the port through efficiency.
  4. Promote local and foreign investment in port infrastructure thereby reducing the annual budgetary allocation to the port subsector.
  5. Provide storage/cargo handling equipment and stevedoring services.
  6. Provide quality tailored customer services.

3.THE PURPOSE AND OBJECTIVES OF THIS DOCUMENT:

This document BUA Ports StandardOperating Procedure (SOP) 2015 provides all stakeholders adequate knowledge concerning our port operations. These operations are categorized into five headings namely:-

  1. Documentation/Billing
  2. Payment/Collection of work materials
  3. Cargo operations
  4. Stevedoring duties
  5. Voyage reconciliation/Exit note/Final bill

The SOP will serve to guide allstaff of the organization in the discharge of their duties.

It will also assist other stakeholders in the port industry to follow laid down guidelines and procedures to achieve best practices.

4.DUTIES OF THE TERMINAL OPERATOR AT THE PORT

  1. Working with all stakeholders to accelerate discharge operations for quick turnaround time. e.g. Nigeria Customs Service, Shipping Agencies, Department of Petroleum Resourcesetc
  2. Liaising with Nigeria Port authority in carrying out security and safety measures.
  3. Maintaining orderly conduct of labour during discharge operations.
  4. Prevention of infiltration of wharf rats and loitering around the quays.
  5. Prevention of pilfering and stealing of cargo.
  6. Safety and protection of lives and property at the quays.

5.THE STANDARD OPERATING PROCEDURE (SOP)

  1. Documentation/Billing
  • The Shipping Line/Agent shall advice the Terminal Operator of the name of the vessel calling and other information such as the expected date of arrival (EDA) etc.
  • The Shipping Agent shall submit a customs stamped manifest, stowage list and E- SEN three days before expected time of berthing to Marketing department.
  • Marketing dept prepares the ensuing bill and Finance department and General Manager vet and confirm accuracy of all bills (provisional, final and wharfage, miscellaneous) according to tariff.
  1. Payment/Collection of work materials
  • Finance department then issue receipt to the agents after having confirmed payment made to the bank.
  • Marketing department,issue Tally sheets, Authority to Load (ATL)and Vehicle Entry Permit (VEP) to Clearing Agents after sighting receipts from Finance dept.
  • Clearing Agents are also obligated to produce customs release documents showing payment of all cargo duties and any other sundry payments.
  1. Cargo Operations
  • Operations department receive manifests and other related documents from marketing department for discharge operations.
  • Make adequate arrangement to receive vessels e.g. ensure berths are free, gears and stevedore are ready for discharge operations.
  • Make provision for shift operations as requested by the agents.
  • Embark on quay areas and main gate control to check tally and exit of trucks.
  • Check truck entrance, exit and tonnage accuracy of the consignment.
  • Board the vessel to confirm manifested figure on arrival with their masters for liquid and dry bulk cargoes.
  • Supervise the discharge of each vessel and take daily record of discharge.
  • Cargo pass each truck exiting the terminal for proper and effective monitoring, check and balance of cargo tonnage.
  1. Stevedoring duties
  • Receive manifest and stowage plan from the marketing department.
  • Organize labour into 16 man gangs and 3 man operators for discharge of cargo.
  • Post the gangs to the ship based on request by the ship agent and availability of trucks.
  • Maintain and run three-shift system per day for discharge operations.
  • Requisition and disbursement of Personal Protective Equipment (PPE), e.g. safety boots, hard hats, hand gloves and cold room jackets.
  • Requisition and Inventory of gears e.g. slings, nets and shackles etc
  • Supply cargo gears on board for discharge of the vessel.
  • Supervise the discharge operation and take record of discharge
  • Busing in and out of labour.
  1. Voyage reconciliation/Exit note/Final bill
  • After discharge operations are finalized and vessels sailed, Marketing department attends reconciliation meeting with the agents, officers of NPA and other stakeholders to reconcile cargo tonnage. The department then prepares final bills of vessels based on the outcome of the reconciliation.
  • Marketing dept sends a copy of the Final bill to Finance department for posting into the agent’s account.
  • Marketing dept then preparesexit notes after each successful discharge operation from documents submitted by agents.

6.ROLE OF STAKEHOLDERS AND OTHER GOVERNMENT AGENCIES.

i.Shipping Agencies

They shall submit their customs stamped cargo manifest in advance to the Terminal operator three days before arrival of vessel.

They shall make prompt payments of their bills and other statutory payments to customs before their vessels berth.

They shall declare correct cargo tonnage and not allow any dangerous cargo on the vessel.

ii.Customs Licensed Clearing Agents

They shall present correct evidence of payment of bills and collect work materials.

They shall submit customs release document for their cargo.

They shall get necessary clearance from relevant stakeholder to avoid delays at berth.

They shall work within the cargo productivity target and refrain from idling at berth.

They shall make adequate preparation and make available trucks, and storage facilities outside the port for efficient discharge operations.

iiiPort Health

They are the first to board vessels and grant “free pratique” if satisfied that the vessel and cargo are in good condition.

iv.Nigeria Customs Service

They shall ensure less cumbersome documentation procedures, unnecessarily slow inspection/examination of documents during boarding, and break bulk.

They shall ensure all relevant agencies duly signthe joint examination form to avoid delays.

They shall ensure early release of PAAR (Pre-Arrival Assessment Report) to avoid delay.

v.Nigerian Immigration Service

They shall check, upon a vessel’s arrival at berth, the master and crew documents to ensure they comply with all statutory regulations guiding seamen.

  1. Nigerian Ports Authority

They shall promptly raise necessary port charges for the vessel to avoid delays at berth.

They shall ensure safety and security of the port (road/water channels) to guarantee 24hr port operations.

They shall provide tugboats, pilots and pilot cutters for vessel operations.

They shall maintain water channels, common user roads and illuminate common user areas.

7.DEFINITION OF TERMS

The terms used hereinafter shall unless the context otherwise requires mean the following;

  1. ‘’SOP” Means this Standard Operating Procedure between the Terminal Operators and all relevant stakeholders.
  2. “Cargo” Means goods carried by ships owned or operated by ShippingLine/Agent on behalf of customers.
  3. “Cargo Manifest” Means detailed list of cargo carried on board a ship providingamong others, the Bill of Lading, Port of loading, Port ofDischarge, Shipper, Consignee, cargo description, measurementetc, required for declaration to Customs and Port before discharging the cargo from the ship.
  4. “Customs”Means the Nigeria Customs Service (NCS) responsible for regulating the flow of goodsto and from Nigeria,and collect duties levied on imports and exports.
  5. “Customs Release Order” Means a Customs document certifying the completion of Customs formalities and allows the Custodian of the cargo todeliver the cargo to the owner.
  6. “Dangerous Goods”Means hazardous cargo, which requires special handling asprovided by International Maritime Organization.
  7. “Shipping Line/Agent” Means an individual, company, or corporation engaged in the international transportation of goods by sea.
  8. “Terminal”Means the terminal operated by the Terminal Operators in theRivers Port Complex.
  9. “Terminal Operator” Means BUA Ports & Terminals Limited, operators of Terminal “B” berths 5-8, Rivers Port Complex.
  10. “NPA”Means Nigerian Ports Authority, this is the government agency, which governs and operates the ports within Nigeria.

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