KEY POINTS
- NARTO demands a 50 percent hike in cement freight rates.
- Rising operational costs have made current rates unsustainable.
- Gombe State Government urged to intervene for a fair resolution.
The Nigerian Association of Road Transport Owners (NARTO), Ashaka branch, has called on Gombe State Governor Muhammadu Yahaya to help secure a 50 percent increase in cement freight charges from Ashaka Cement Plc and Lafarge Holcim.
The association cited rising operational costs amid the ongoing economic crisis, highlighting the challenges faced by transporters in keeping their operations viable.
Speaking through their legal counsel, Barrister Luka Haruna, along with Branch Chairman Buba Dan-Kasa and Secretary Mohammed Samaila, NARTO voiced its frustration over stagnant freight rates.
According to Punch, they argued that these static rates are no longer sustainable given the skyrocketing cost of vehicle maintenance, compounded by poor road infrastructure across the country.
Economic realities affecting transport
Despite a significant increase in the price of cement, transport charges have remained unchanged, making it harder for transporters to sustain their business. NARTO emphasized that repeated requests for an upward adjustment in freight rates have been ignored by Ashaka Cement’s management, worsening the economic pressures on transporters.
The transporters suspended their business activities for 20 days due to these challenges, demanding an immediate solution. They noted that while cement prices have risen dramatically, the cost of transporting these materials has not been adjusted, placing an undue burden on transport operators and retailers alike.
“We are major stakeholders in transporting cement, gypsum, and coal for Ashaka Cement Plc and Lafarge Holcim,” NARTO said. “Yet, our calls for increased transport rates have fallen on deaf ears, despite the continuous hike in cement prices.”
Urgent Government action sought
NARTO is urging the Gombe State Government to step in and establish a committee to evaluate the actions of Ashaka Cement’s management, particularly under the leadership of Ibrahim Aminu. The association believes this review is necessary to safeguard the interests of its members and the broader transport sector.
The association further requested the increase in freight rates, citing the urgent need for a fair adjustment in light of the current economic situation.
They stressed the importance of the government’s role in mediating this issue to ensure the sustainability of the transport sector, which is crucial for the state’s economy.
