A STUDY OF PORT CONCESSIONING IN NIGERIA AND PRODUCTIVITY

0
205

ABSTRACT

This study is on A study of port concesioning in Nigeria and productivity. The total population for the study is 200 staff of Apapa seaport, Lagos state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made clearing agents, marine officers, sub officers and junior staff was used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies

 CHAPTER ONE

INTRODUCTION

  • Background of 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

Relatively, it is pertinent to understand that the concept of concession is an integral part of a privatization principle that sees the actual contracting out of the management of the port to private sector for a period of time. It is the process by which the assets of a state-owned enterprise are entrusted to a private operator for a limited period of time whose duration can be extended. It main objective which reflect an aspect of globalize policy is basically to ensure gradual divestment of government shares from the public ports and transferring same to private management hands, which ignites increased efficiency, performance, productivity and competition amongst the ports. It is also aimed at transforming, restructuring and reforming the ports, thereby creating user-friendly ports with an improved operational performance and functions. This concept of concession if adequately implement will reduce undue waiting time of vessels and increased vessel turn-around time at the ports, manifesting in lower operating costs of vessels, sheds, cargo berths and terminals at the end.

The embrace of port reform in Nigeria is aimed at making our ports not only user-friendly but also investor-friendly, by achieving shorter turn-around time of vessels, transparent shipping operations and reduction in shipping cost and losses, which in turn leads government into providing modern cargo handling plants and equipment to enhance smooth operations at the ports. However, it is imperative to state clearly that the operational functionality of the port terminal operations through the provisions, of super structures and infrastructural facilities will increase the efficiency, performance and productivity of any port system, thereby registering an appreciable cargo throughput at the end of the day. Unfortunately, this has never been the case for Nigerian ports, which over the years have suffered from numerous problems which are identified as but not limited to port neglects, lack of infrastructural facilities and funding, lack of shipping policy, inconsistence of government policy, undue interruptions and interventions by government in maritime issues and operations, management problems, high port charges, ageing port infrastructure, cumbersome and bureaucratic cargo clearance, inadequate investment in equipment. These challenges however over the year have hindered the operational functionality, performance, flow of administrative links and development of Nigerian ports.

The growth in shipping business, the need for congenial business environment of the ports, advent of containerization and advances in cargo handling methods which imposed considerable infrastructure requirements in seaports, the growing inability of government to finance its owned ports and other risen challenges has led to deregulation processes of Nigeria ports this in turn introduced several measures aimed at minimizing and correcting anomalies and malaise in the port services and maritime industry as a whole

  • STATEMENT OF THE PROBLEM

The potential of Nigeria to achieve sustainable economic growth and development are no doubt due to its rich and diversified basic resources. Unfortunately, despite Nigeria’s huge investments in the public’s investment returns was less than 0.5% per year since 1960. So to remedy the poor performance of public enterprises, the federal government revisits privatization ideology that is hinged on reforms, including the concession of the port, which can have serious consequences for Nigeria’s economy if well guided.

In the 1990s, Nigerian ports showed very low levels of efficiency, which resulted in long lead times for vessels and increasing the residence time of the containers. It often took weeks to unload and reload a ship instead of 48 hours considered standard in other regions such as Asia. Furthermore, the workforce was bloated and unproductive, the cargo was subject to massive flight levels, and port charges were excessive. Perhaps worst of all, the port infrastructure required substantial renovation and rehabilitation, and this investment would require substantial external financial support, the federal government was reluctant to provide given the existing operating inefficiencies in the sector.

  • OBJECTIVE OF THE STUDY

The objectives of the study are;

  1. To determine the role of the management style in the administration of the port of Apapa after concession
  2. To assess the impact of port concession on port congestion
  3. To review the effectiveness of the concession on freight compensation
  4. To determine the role of the concession on freight handling efficiency
    • RESEARCH HYPOTHESES

For the successful completion of the study, the following research hypotheses were formulated by the researcher;

H0there is no role of the management style in the administration of the port of Apapa after concession.

H1: there is role of the management style in the administration of the port of Apapa after concession

H02: there is no impact of port concession on port congestion

H2there is impact of port concession on port congestion

  • SIGNIFICANCE OF THE STUDY

The recommendation of the study is hopefully contributing to a more competitive Apapa port in terms of better management and a better administration of the port in the West African region. It is believed that the economy of most developing countries such as Nigeria, are highly dependent on maritime transport system, while it is also responsible for the development of a transport system. This is because the effective port and cargo handling system will encourage shipping companies, importers and exporters to make full use of port facilities in the nation’s seaport. Therefore, the concession is a global phenomenon. It is often rooted in the culture longtime globalization; Thus Nigeria cannot afford to stay away from the global market where capital goods mainly channeled through the ports.

  • SCOPE AND LIMITATION OF THE STUDY

The scope of the study covers A study of port concesioning in Nigeria and productivity. The researcher encounters some constrain which limited the scope of the study;

  1. a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
  2. b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

1.7 DEFINITION OF TERMS

 PORT: A port is a maritime commercial facility which may comprise one or more wharves where ships may dock to load and discharge passengers and cargo. Although usually situated on a sea coast or estuary, some ports, such as Papa, Lagos, are many miles inland, with access from the sea via river or canal.

CONCESIONING: In the case of a public service concession, a private company enters into an agreement with the government to have the exclusive right to operate, maintain and carry out investment in a public utility (such as a water privatisation) for a given number of years.

PRODUCTIVITY: Productivity describes various measures of the efficiency of production. Often, a productivity measure is expressed as the ratio of an aggregate output to a single input or an aggregate input used in a production process, i.e. output per unit of input

A STUDY OF PORT CONCESSIONING IN NIGERIA AND PRODUCTIVITY