EFFECT OF PORT REFORM ON CARGO THROUGHPUT LEVEL AT ONNE SEAPORT NIGERIA
ABSTRACT
This Thesis focuses on the impact of reforms on port performance using Onne and Rivers ports as a reference point. It analyses the pre and post reform eras of the ports in terms of their performance. The reforms took effect from 2006 after the Federal Government of Nigeria concessioned the ports to private investors. Parameters such as Ship traffic, Cargo throughput, Ship turn round time, Berth Occupancy and personnel were used as variables for the assessment. Secondary Data were collected from the Nigerian Ports Authority and Integrated Logistics Services Nigeria (INTELS) for the period 2001 to 2010 and analyzed using two techniques, a two-sample t-test to evaluate the difference between sample means and Data Envelopment Analysis to assess the efficiency of the ports.The findings show that the reforms resulted in significant improvements in cargo through put as compared to the pre-reform era. The t-test shows that average Port throughput has increased significantly since the reform(concessioning) came into effect.Data envelopment analysis revealed a continuous improvement in the overall efficiency of both Ports since 2006 when the new measure was introduced. Average Ship turnaround time improved in the ports due to modern and fast cargo handling equipment and more cargo handling space which were provided. There is an increase in Ship traffic calling at the ports, resulting in increased cargo throughput and berth occupancy rate at the ports of Onne and Rivers. The reform also led to more private investment in the ports’ existing and new facilities and the introduction of a World Class service in port operation. This study concludes that the ports of Onne and Rivers are performing better under the reform programme of the Federal Government of Nigeria. It finally recommends the introduction of an integrated intermodal transport system for an effective and swift transfer of cargoes to and from the hinterland. Also, there is an urgent need for a regulator to appraise the performance of the reform programme from time to time as provided by the agreement and for the full adoption and utilization of management information system (MIS) to aid performance efficiency.
TABLE OF CONTENTS
PAGE
Certification ———————————————————————————–ii
Dedication ————————————————————————————-iii
Acknowledgements —————————————————————————iv
Abstract —————————————————————————————-v
List of Tables ———————————————————————————ix
List of Figures ——————————————————————————–x
CHAPTER ONE:INTRODUCTION
1.1 General Background ——————————————————————–1
1.2 Statement of the Problem ————————————————————-6
1.3 Objectives of the Study —————————————————————-7
1.4 Research Questions ——————————————————————–8
1.5 Research Hypotheses ——————————————————————8
1.6 Significance of the Study ————————————————————-9
1.7 Scope of the Study ———————————————————————-9
1.8 Limitation of the Study ——————————————————————-9
1.9 Brief Description of Onne and Rivers Ports —————————————-9
1.9.1 Port Harcourt Port (Hard Quays) —————————————————-10
1.9.2 Onne Port Complex ——————————————————————-10
1.9.3 Federal Ocean Terminal (FOT) ——————————————————11
1.9.4 Federal Lighter Terminal (FLT) —————————————————–11
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.0 Introduction —————————————————————————–12
2.1 Conceptual Framework —————————————————————-12
2.1.1 Port Privatization ———————————————————————13
2.1.2 Commercialization ——————————————————————-16
2.1.3 Corporatization ———————————————————————–16
2.1.4 Port Performance Measurement —————————————————-17
2.1.5 Performance Measurement Studies Using Data
Envelopment Analysis (DEA) —————————————————–18
2.1.6 Privatization ————————————————————————–21
2.1.7 Devolution —————————————————————————-22
2.2 Port Reforms in other Countries ——————————————————22
2.2.1 Colombia and Argentina Ports —————————————————–24
2.2.2 India Jawaharlal Nehru Port Trust (JNPT), Mumbai —————————-26
2.2.2.1 The Pre-reform Scenario ———————————————————-27
2.2.2.2 Evolution of Port Reforms Policy in India ————————————–28
2.2.2.3 Impact of Reforms ——————————————————————29
2.2.2.4 Performance Indicators ————————————————————29 2.2.3 Reforms and Infrastructure Efficiency in Spain’s
Container Port ——————————————————————————–32
2.3 Empirical Review ———————————————————————–33
2.3.1 Early Port Performance in Nigeria ————————————————-33
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Data Collection ————————————————————————-37
3.1.1 Research Design ———————————————————————-37
3.1.2 Primary Data ————————————————————————–37
3.1.3 Secondary Data ———————————————————————–37
3.2 Methods of Data Analysis ————————————————————-38
3.2.1 DEA Application to Seaport Efficiency Measurement ————————–38
3.2.2 Paired Sample t-test ——————————————————————40
3.2.3 Cargo Throughput (Metric Tonnes) ————————————————41
3.2.4 Berth Occupancy Rate (BOR) (%) ————————————————-41
3.2.5 Turn Round Time (TRT) (Days) —————————————————-42
CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA
4.1 Data Presentation ————————————————————————-44
4.2 Data Envelopment Analysis (DEA) of Onne and Rivers Ports
Efficiency Level from 2001 – 2010———————————————————49
4.3 DEA Comparative Analysis of Performance of Onne& Rivers ports– ———-51
4.4 Test of Hypothesis ————————————————————————54
4.5.1 Discussion: Cargo Throughput ——————————————————–61
4.5.2 Berth Occupancy Rate (%) ————————————————————-64
4.5.3 Vessel Turn Round Time —————————————————————67
4.6 New Port Performance Indicators ——————————————————-68
4.6.1 Port Related Employment in the Region ———————————————69
4.6.2 Emergence of more Companies ——————————————————-70
4.6.3 Information and Communication Technology (ICT) in Port ———————-71
CHAPTER FIVE: SUMMARY, CONCLUSION ANDÂ Â RECOMMENDATIONS
5.1 Introduction ——————————————————————————–72
5.2 Summary of Findings ———————————————————————72
5.3 Conclusion ———————————————————————————-75
5.4 Recommendations ————————————————————————-75
5.5 Contribution to Knowledge —————————————————————77
5.6 Area for Further Study ———————————————————————77
References ———————————————————————————–78
LIST OF TABLES
Table 2.1 Port of Cartegena (Colombia) Performance improvement since
Private concessioning in 1994 ————————————————————–24
Table 2.2 Selected Performance Indicators for Argentina (Buenos Aires) ———–25
Table 2.3 Colombia: Operating Performance before and after Reforms ————–26 Table 2.4 Selected Performance Indicators of all major Indian ports taken together over the period 1995-2003 ——————————————————–31
Table 2.5 Selected Performance Indicators of JNPT over the period of
1995- 2002————————————————————————————–31
Table 4.1 Onne and Rivers Port Performance 2001- 2005——————————-45
Table 4.2 Onne and Rivers Port Performance 2006 – 2010 —————————–47
Table 4.3 DEA Performance Analysis for Onne Ports ———————————–50
Table 4.4 DEA Performance Analysis of the Rivers Ports ——————————51
Table 4.5 DEA Comparative Analysis of Onne and Rivers Ports– ——————–52 Table 4.6 Cargo Throughput (m/t) Of Onne and Rivers ports (2001-2010)
Including Petroleum Products —————————————————54
Table 4.7 Paired Samples Descriptive Statistics for Onne Port ————————-55
Table 4.8 Paired Samples Descriptive Statistics for Rivers Ports ———————-55
Table 4.9 Paired Sample‘t’-test analysis for Cargo throughput————————-56
Table 4.10 Cargo Throughput (m/t) of Onne and Port Harcourt Ports
(excluding petroleum products) from 2001-2010 —————————————-57
Table 4.11 Paired Samples Descriptive Statistics for Onne Port ———————–58
Table 4.12 Paired Samples Descriptive Statistics for Port Harcourt ort —————58
Table 4.13 Paired Sample t-test analysis for Cargo throughput ————————59
Table 4.14 Cargo Throughput (m/t) of Onne and Rivers ports (including
Petroleum Products) from 2001-2010 ——————————————————63
Table 4.15 Berth Occupancy Rate (%) of Onne and Rivers Ports ———————-66 LIST OF FIGURES
Figure 3.1 Breakdown of Ship time in port ————————————————42
Figure 4.1 Comparative Analysis of Ports graphs —————————————–53
Figure 4.2 Cargo Throughputs (m/t) of Onne and Rivers Ports
(including Petroleum Products) 2001-2010 ————————————————63
Figure 4.3 Berth Occupancy Rate (%) of Onne and Rivers
Ports (2001-2010) ——————————————————————66
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EFFECT OF PORT REFORM ON CARGO THROUGHPUT LEVEL AT ONNE SEAPORT NIGERIA
