A STUDY OF PORT CONCESSIONING IN NIGERIA AND PRODUCTIVITY

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ABSTRACT

This study is on A study of port concessioning in Nigeria and productivity.Consequently, the study is restricted to the productivity of Apapa port after the concession exercise. This study adopted a survey form of research in a cross-sectional manner.To obtain comprehensivedataforthisstudy, the Marketing/Commercial Department of NPA, the terminal operators as well as the Shipping companies/Agents operating in Apapa port only comprises the population of the study.A convenience sampling was used to select a sample of 100 elements in order to represent the population. The study depended on two major sources namely; Primary and Secondary source.The data collected was presented and analyzed with the aid of qualitative and quantitative techniques. The result of the study showed that Port concession improve the efficiency of cargo handling. The study concluded that effective and efficient management of the port is necessary to increase its productivity, serve the public and generate more revenue for the government and the empowerment of private companies. The study recommended that effort must be made by the regulatory agencies in checking the excesses of these private enterprises to avoid exploitation of the Nigerian shippers.

CHAPTER ONE

GENERAL INTRODUCTION

Background to the study

Maritime transport plays an important role of being many nations’ major gateway for international trade and are a good instrument for measuring the economic health of a nation (Ogunsiji&Ogunsiji, 2010, UNCTAD, 2008). The ports have considerable influence on the volume and conditions of trade as well as the capacity for economic development of nations still developing. In Nigeria, greater percentage of international trade is routed through the sea, and given its huge population, it is believed that the Nigerian economy may account for about 70% of all seaborne trade in the West African sub-region (Fivestar Logistics, 2008). Hence, the country’s ports are increasingly challenged to meet the pressure mounted from movement of ships and cargo in and out of the ports. The pattern of port reforms all over the world is towards deregulating, revitalizing, decentralizing and privatizing the sector and organizes competition within it. However, port reforms are policy measures by government that are aimed at revitalizing, strengthening operational and functional modalities at the ports, thereby resulting in increased efficiency and productivity

A port is an area on a coast or shore containing one or more harbors where ships can dock and transfer people or shipment to or from land. Port sites are designated to enhance the access to land and inland water, market demand, and sheltered from the wind and waves. The use of the sea as a means of transportation in Nigeria dates back to the 15th century (1485), when the Portuguese sailed in Lagos with their ships mainly to trade in artifacts in Benin City. In the days before the independence to date, the marine industry of the nation is characterized by the domination of foreign ships and / or carriers in developed market economies of Western Europe and America. To control this scenario, subsequent developments have led to the opening of the ports in Apapa and Port Harcourt, roll in the creation of the Nigerian Ports Authority (NPA) through the provision of Harbours Act 1954 to charge and discharge as well maintain and develop the ports (Njoku, 2009). The efficiency of ports is a multiple of what it was before the concession.