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Business & Economy
Business & Economy

Road transport owners demand 50% hike in cement freight charges

The FrontierThe FrontierOctober 1, 2024 3391 Minutes read0

The Nigerian Association of Road Transport Owners, Ashaka branch, has called on Gombe State governor, Muhammadu Yahaya, to intervene in securing a 50% increase in cement freight charges from Ashaka Cement Plc and Lafarge Holcim.

The association, expressing concerns over rising operational costs amid the country’s economic downturn, said the static freight rates are no longer sustainable, reports The PUNCH.

Despite the increasing cost of cement, transportation charges have remained the same, making it difficult for transporters to keep up with rising expenses, especially the maintenance of vehicles damaged by poor road networks.

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Speaking through their lawyer, Barrister Luka Haruna, along with Buba Dan-Kasa, the Branch Chairman, and Mohammed Samaila, the Secretary, NARTO lamented that the persistent rise in fuel, gas, and truck maintenance costs has worsened their financial burdens.

They noted that, despite multiple requests for an upward review of freight charges, the management of Ashaka Cement has remained indifferent.

NARTO said, “We are major stakeholders in transporting cement, local gypsum, and coal on behalf of Ashaka Cement Plc and Lafarge Holcim. However, the management has turned a deaf ear to our pleas for increased transport fares, even as the price of cement continues to rise.”

The transporters noted that they had halted business operations for about 20 days, as the stagnant freight rates have made it impossible to sustain their operations.

“Cement prices have skyrocketed, yet the transport fares have stayed the same. Meanwhile, retailers are burdened by the frequent price hikes. We urge the Gombe State Government to establish a committee to evaluate the actions of Ashaka Cement’s management under the leadership of Ibrahim Aminu and his team,” NARTO added.

They called for a 50% increase in freight rates, citing the current economic realities and urging the state government to safeguard the interests of its citizens and the transport sector.

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