Terminal operator accuses Honeywell of stalling port development plan

Operators of Terminal “A” at Tin-Can Island Port, Lagos State, JosepDam Port Services Limited, has accused Honeywell Flour Mills of stalling its port development plan.
The Managing Director of the firm, Simon Travers, made the allegation when the House of Representatives Committee on Privatisation and Commercialisation visited the JPS facility in Lagos on Thursday to intervene in the face-off between the two companies.
Travers disclosed that due to the presence of a conveyor belt belonging to Honeywell in the area concessioned to it by the Nigerian Ports Authority since 2006, the operators have been unable to execute its port development plan.
“We have a concession agreement with the NPA, which clearly states what our development plan is and we cannot fulfill the developmental plan on the basis that there are structures within the terminal in our way,” the Josepdam boss said.
However, the Managing Director of Honeywell Flour Mills, Lanre Jaiyeola, who was also at the meeting, said the conveyor belt has been deactivated, not removed from JosepDam’s terminal.
“JPS has no power to demand the removal of the conveyor belt since there is an agreement between the milling firm and NPA,” Jaiyeola said.
The Vice- Chairman, House Committee on Privatisation and Commercialisation, Shadimu Mutiu, who led the lawmakers to the terminal, said the visit of the committee was to broker peace and resolve the rift, which has been in court for more than 10 years.
According to Mutiu: “We are here in respect of the petition written by Honeywell against JPS and we are here to see how we can amicably solve the problem without necessarily resulting to legal settlement.
“The conveyor belt in question belongs to Honeywell, but it is situated inside Terminal A, which belongs to JPS.
“Hopefully, we will resolve the issue out of court.”
The Deputy Director, Bureau of Public Enterprises, Abdulaziz Muazu Mafindi, said the Bureau and the Nigerian Port Authority had made efforts in the past to resolve the issue but no sustainable agreement has been reached between JPS and Honeywell.
Mafindi said: “BPE and NPA jointly handed over the operations and management of the terminal to JPS.
“It is our responsibility to hand over this terminal without any encumbrances, but unfortunately this was not done as a result of the presence of Honeywell conveyor belt in their terminal.
“We expect that at the end of the concession agreement, we expect that there should be a remarkable infrastructure development in the terminal so that it would have added value when the terminal will be re concessioned, but they have not been able to do that because of the presence of the conveyor belt.
“In the past, we have made so many effort to mediate and find a lasting solution to this problem but unfortunately here we are again trying to solve the same problem.”
During this time, the company was able to still carry out development and maintenance works in excess of $13.5 million.
The JPS chief said: “Some of what we have done are warehouse renovation and extension, new generator house, gate house, 100 seat training complex and many more.”
Furthermore, Travers assured the committee members of his readiness to invest millions of dollars to develop the terminal into a world class bulk terminal with contractors and suppliers readily engaged.
Towards this, Travers said JPS is looking forward to have these issues resolved and have granted additional time to conclude their plans to develop the terminals as they require unhindered use of their terminal from any third party to enable it have full access of the land space within the agreement.