By Chuks Okoh
The Nigerian Aviation Handling Company, NAHCO, Plc on Wednesday reviewed its cargo tariff upward by additional 30 per cent.
With the new regime, a kilo of cargo, which hitherto went for N40 per kilo would now be offered at N52 per kilogram.
It was gathered that the skyrocketed cost of purchasing equipment due to the increase in dollar rate was one of the reasons for the increase in tariff.
Sources close to NAHCO said 95 per cent of equipment it uses were imported while the airports authority hikes every year its charges, adding that apron passes increased as much as 300 to 500 percent in some cases.
One of the sources further hinted that FAAN bills on the company for power has gone up drastically even when there was no power supply to NAHCO for two weeks non stop.
It was further learnt that the last increase was three years ago when the inflation rate was not as high as now.
The source stated that there was a meeting with all the relevant stakeholders before the decisions were reached at NAHCO headquarters following which agreement was reached on the hike.
It was gathered that while NAHCO insisted on 30 percent hike which was a reduction from the initial 70 percent being proposed in March, agents wanted lesser percentage increase.
When contacted, the General Manager Corporate Communications of NAHCO ,Mr Tayo Ajakaiye said . “You know, we did all we were required to do. We consulted everyone , body, agency and stakeholder that needed to be consulted. But of course you will agree with me that no one wants a price increase. So it is understandable if quite a few are raising dust. We should expect that.
“More importantly though is the fact that for ANCLA, this is the political season. So we expect that the matter of tariff review would be thrown into the mix.”
As to why it is only NAHCO that is increasing tariff while the other handlers seem to be contented with what it was before now, Ajakaye said; “I would respond to that this way: Like they say, it is not the bicycle. It is the rider. The difference is in the handling. The agents know the difference. Ask any of them.”
But, the spokesman of Skyway Aviation Handling Company Limited, SAHCOL, Mr. Basil Agboarumi in his response to enquiries made to him on the review of cargo rate, said the company was yet to review upward its cargo rate.
He said SAHOCL still charges N38 per kilo on each cargo, but noted that the cost of operations had gone high in recent time.
It was gathered that a kilo of cargo goes for N40 per kilo; N38 for ground handlers while the leadership of the clearing agents; ANLCA and National Association of Government Approved Freight Forwarders, NAGAFF, get N2 per kilo. This is apart from the 5 per cent Value Added Tax, VAT.
But, the introduction of the new tariff by the ground handling company did not go down well with clearing agents as the leadership of the Association of Nigerian Licensed Customs Agents, ANLCA, said it would resist the new rate.
The association had immediately ordered its members to stay action pending when the issue would be resolved by both parties.
The source who didn’t want to be named said that rather than review upward its tariff on cargo, the clearing gents expected a downward review especially at this critical period.
He maintained that a downward review would further encourage exportation and boost exportation of agricultural products.
But, the Chairman , ANCLA Murtala Muhammed Airport, Mr. Aloysius Igwe in a phone conversation insisted that the association was not carried along in the whole exercise.
He maintained that until the ground handler revert to the old tariff; its members would not carry out business activities with it, but could not specify how much clearing agents pay per kilo on each cargo.
He said, “We just got wind of it like a rumour and as it is now, we are kicking against it severely as an association. We have told them to revert it and we are meeting with NAHCO’s Managing Director today (yesterday) on the issue.
“We pay several charges to lots of bodies on each kilo we clear and so, it would be difficult for us to specify how much we pay per kilo, but, we have told them that we would not accept the new rate.”
The Ag. Managing Director, NAHCO, Mr. Nobert Bielderman had said recently in Lagos that the ground handling business in the country was facing a hard time due to the economic challenges in the country.
He posited that to safeguard the industry from collapse, all players would have to make sacrifices from all ends through mutual respect, understanding, maturity, tact, long term view and professionalism.
He said that NAHCO expected appropriate price adjustments in sync with current realities and urged its clients to continue to support and show continuous loyalty to its brand.
He added, “The airlines must know that there is a limit to downward price review of ground handling charges in order not to eventually compromise our safety orientation and we hereby use this medium to look elsewhere for cost saving strategies as it is no longer efficient or safe to always turn to the ground handler for price cuts.
“We also call on ANCLA, NAGAFF, trade unions and other associations to be very understanding this period in the best interest of all industry. We must sit down and together agree on the best model and way to sustain our business balancing all interest concerns. We have both worked together in even more trying periods and this time will not be different.”