The Federal Government, through the Nigerian Ports Authority has extended contract periods for two major concessionaires within the Tin Can Island Port Complex by five years each even as the initial contractual terms are yet to expire. The two terminals are Ports and Cargo Terminals extended from 10 to 15 years and Tin Can Island Container Terminal (TICT) extended from 15 to 20 years.
Port manager of Tin Can Island Port Complex, Mr. Ephraim Efioita, who disclosed this on Thursday in Lagos during a port facility tour by the managing director of NPA, Habib Abdullahi, said the extension became necessary in order to make up for some terms of the contract not met by the Nigerian Ports Authority.
Such terms included the failure of NPA to hand over the port’s administrative block and other properties initially meant to be taken over by the two concessionaires ab-initio.
He however did not explain if the Bureau of Public Enterprises (BPE), or the ICRC was part of the agreement to grant the extension.
The Tin Can Island Port was established in February 17, 1977. It was an amalgam of Roll On-Roll-Off (RORO) and Tin Can Island Port. The terminals at the port were concessioned to private operators in May 2006 during the federal government’s port reform programme.
The port has five terminal operators. TICT won concession bid for terminal B for a period of 15 years, while Port and Cargo terminal Limited got Terminal C for a period of 10 years.
According to Efioita, the extension was given after an agreement was reached with the concessionaires over portions of concession areas that NPA was still occupying, which were supposed to be occupied by the concessionaires in line with the concession agreement.