Conferring monopoly right on a company is bad but worse when the monopolist does not act for the common good. In a monopolist economy, one company is the sole producer and distributor of a particular commodity or service. It is directly opposed to perfect competition where an industry is opened to all participants with the ability to invest.
A credible source in the mining industry has intimated this press that Sierra Leone Government loses millions of dollars as it grants exclusive right over the port and rail in PortLoko and Tonkolili districts to Leon Rock.
Matters are made worse when the port is just left on a free ride without a constant and robust monitoring mechanism. “Government loses millions of dollars on a monthly basis if it does post a credible official to monitor the use of the port at Pepel,” an indigene of Pepel intimated this press adding that the harbour needs expansion.
Since it took over mining, the port at Pepel in PortLoko district, the Iron Ore miner, Leon Rock has done nothing to expand it for more ships to anchor.
At the moment, only one ship docks at the port and stays there for close to a month and another ship comes only when it moves.
“For a month, only one ship stays at the wharf, but with the expansion of the port, different companies will bring their bigger vessels,’ the source who is an indigene of Pepel expressed hope. He is hopeful that once the port is stretched to hold at least four ships saying “there will be more job opportunities for the youth” lending credence to the adage that the more the quantity, the more the merrier.
Sierra Leone Government was trapped in similar situation in 2008 when it offered monopoly right to African Minerals Limited, a company that exploited Iron Ore in Sierra Leone for several years.
Investigation carried out by this press showed that Leon Rock is yet to start real mining operations in Sierra Leone. Throughout its seven years of existence in the mining industry, Leon Rock has been transporting and exporting the ore left behind by the defunct Iron Ore miner, Shandong.
Drawing parallels with other mining companies, a stakeholder in Pepel said government would realise more if it ends monopoly in the management of the port and rail.
“Imagine what government will derive if the port is entrusted to a company with the capacity to expand it so that four ships can anchor at the time,” he said. He went on to state that the port had remained in its current state since Sierra Leone Development Company (DELCO) stopped mining operations in Sierra Leone.
DELCO started mining in 1930 transporting Iron Ore from Lunsar to Pepel in the PortLoko district. But, the company was not destined to last too long as it shut down operations in 1975.
Several companies including Marampa Mines took over after the closure of DELCO. In 2008, African Minerals got exclusive right to ship Iron Ore from Tonkolili to Pepel in PortLoko district using the 192-mile rail which they fixed for themselves.
Now, a company bigger than African Minerals Limited is poised to invest in the port and rail, but government granting exclusive right to only Leon Rock, It goes without saying that mining operations will be monopolised with government on the wrong end.
With monopoly right, Kingho has made little contribution to the community as roads are not taken care of. The only road used to reach Pepel is in bad shape; it is muddy and riddled with potholes causing road crashes very often. Vehicles and motor cycles got trapped in the muddy road, and the locals appeal to government to allow more companies to invest in their communities as they look forward to better days.