An Evaluation Of The Inland Transportation And Its Effect On Logistics In Nigeria

An Evaluation Of The Inland Transportation And Its Effect On Logistics In Nigeria

Abstract

This study is on evaluation of the inland transportation and its effect on logistics in Nigeria. The total population for the study is 200 staff of ministry of transportation, 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 up directors, marine officers, senior staff 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

1.1 Background of the Study

Transportation represents one of the most important human activities worldwide. Transportation is defined according to Oni (2009), as the conveyance of goods and people over land, across water, and through the air from one location to another. Ighodalo (2009) observed that several modes of transportation exist for both man and goods; and that these modes, can be grouped into four basic categories, namely: rail, road, water and air. Water transport is associated with inland waterways, coastal waters and the deep sea (Ismaila, 2008). Inland waterways are navigable water bodies which include: rivers, lakes, coastal creeks, lagoons and canals, found within the geographical dimensions of a state (Aderemo and Mogaji, 2010). The movement of goods and services along inland waterways is one of the oldest means of transporting goods and services from point to point (Fellinda, 2006). This is largely due to the fact that inland water transport (IWT) offers the most economical, energy efficient and environmental friendly means of transporting all types of cargo from place to place (Ojile, 2006). In most cities, urban freight transport is almost exclusively performed by road. Railways and waterways are seldom used for carrying goods in urban areas Several authors (e.g. ) acknowledge the potential of shifting a part of Inter-urban flows towards the waterway network. In fact, inland waterways are the only land infrastructure with free capacity and are therefore not subject to congestion problems. Inland navigation is the most energy and carbon-efficient mode as a ship uses 1 to 2 times less fuel than a train and 3 to 5 times less fuel than a truck and can be economically competitive. In Europe, inland navigation is already commonly used for the transportation of bulk materials over longer distances and consequently to supply port-cities in those products. Logistics can be considered as a tool for getting the products and services where they are needed and when they are desired. It is difficult to accomplish any marketing or manufacturing without logistical support. It involves the integration of information, transportation, inventory, warehousing, material handling, and packaging. The operating responsibility of logistics is the geographical repositioning of raw materials, work in process, and finished inventories where required at the lowest cost possible. To varying degrees, the logistics function also includes sourcing and procurement, production planning and scheduling, packaging and assembly, and customer service. It is involved in all levels of planning and execution: strategic, tactical and operational. Logistics management is an integrating function which coordinates and optimizes all logistics activities, as well as integrates logistics activities with other functions, including marketing, sales, manufacturing, finance, and information technology. Quite a few studies have reviewed intermodal opportunities for city logistics and even fewer have focused on initiatives using the inland waterway Network. Nemoto et al builds a general research framework for intermodal transport in the context of city logistics and provides few examples of implementation of city logistics solutions using waterborne transport. Apart from the fact that It is a sustainable and the most environmentally friendly mode in terms of energy consumption, noise and gas emission and also that it remains the oldest means of transporting persons and goods from point to point (Fellinda, 2006), it has the ability to tackle traffic congestions challenges in Lagos Metropolis when used as a complement mode to road. Lagos roads and its furniture are saturated and over stretched with the responsibility of moving millions of residents daily. Water travel is a realistic and potentially effective option given that Lagos state is blessed with abundant water bodies that could be harnessed to offer fast, safe, comfortable and cheap water transportation service.

1.2 Statement of the Problem

The enormous coastal trade opportunities it present for indigenous shipping companies in Nigeria overtime failed due to shipping policy in place over the years, directed on such trade. Several policies initiatives are currently directed on the operation and the management at the inland waterways such as the coastal and inland shipping (cabotage) Act passed 2003. However, it is not enough a thing to initiate policies whereas the management administration or rather the expected enforcement pattern of such policies is not inputted. This really affects on logistics especially those in Lagos state.

1.3 Objective of the Study

The objectives of the study are;

1. To evaluate the extent of Government commitment to the development of inland water transport in Nigeria
2. To ascertain the relationship between the inland transportation and effect on logistics
3. To ascertain the effect of inland transportation on Nigeria economy

1.4 Research Hypotheses

The following have been put forward for testing

1. H0: there is no relationship between the inland transportation and effect on logistics
   H1: there is relationship between the inland transportation and effect on logistics
2. H0: there is no effect of inland transportation on Nigeria economy
   H1: there is effect of inland transportation on Nigeria economy

1.5 Significance of the Study

The study will be very significant to students, ministry of transport and the general public. The study will give a clear insight on evaluation of the inland transportation and its effect on logistics in Nigeria. The study will also serve as a reference to other researchers

1.5 Scope and Limitation of the Study

The scope of the study covers an evaluation of the inland transportation and its effect on logistic in Nigeria. The result of this work shall be of immense assistance to each to these user groups in the advancement of their interest.

1.6 Scope and Limitation of the Study

This study could have covered the impact of financial accounting reporting on corporate performance of all the sectors of the Nigerian economy but due to the challenges of such a task especially the financial resources with which to execute it, it is limited to braving industry. The study used the Nigerian Breweries plc, Enugu. The researcher encounters some constrain which limited the scope of the study;

a) Availability of Research Material:

The research material available to the researcher is insufficient, thereby limiting the study

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.

c) Organizational Privacy:

Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.

1.7 Definition of Terms

Inland Transportation:

By rail, barge, or road, our flexible inland transportation services cover both FCL (full container load) and LCL (less than full container load), and help ensure your products are collected and delivered to the right place, at the right time

Logistics:

Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics is the management of the flow of things between the point of origin and the point of consumption in order to meet requirements of customers or corporations

1.8 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows

• Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
• Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
• Chapter three deals on the research design and methodology adopted in the study.
• Chapter four concentrate on the data collection and analysis and presentation of finding.
• Chapter five gives summary, conclusion, and recommendations made of the study

Chapter Five

Summary, Conclusion and Recommendation

5.1 Introduction

It is important to ascertain that the objective of this study was to ascertain an evaluation of the inland transportation and effect on logistics in Nigeria.

In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations are made, which in the opinion of the researcher will be of benefit in addressing the challenges of inland transportation and effect on logistics in Nigeria

5.2 Summary

This study was on an evaluation of the inland transportation and effect on logistics in Nigeria. Three objectives were raised which included: To evaluate the extent of Government commitment to the development of inland water transport in Nigeria, to ascertain the relationship between the inland transportation and effect on logistics, to ascertain the effect of inland transportation on Nigeria economy. In line with these objectives, three research hypotheses were formulated and three null hypotheses were posited. The total population for the study is 200 staff of ministry of transportation, 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 up directors, marine officers, senior staff and junior staff was used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies

5.3 Conclusion

In the introduction to this paper, the urgency of significant combination of inland waterways in Lagos state was pointed out. Logistics will play a critical role in the recovery of the inland waterways sector and economy as well. International and domestic trade, which will have a major impact and will in fact be one of the drivers of economic growth, will depend to a large extent on the availability of infrastructure alongside the River Nile. The greatest obstacle for development or change is not admitting the need for it. Since the Lagosians authorities, companies and logisticians seem to be aware of the problems and challenges which need to be solved, developing an efficient logistics inland waterways system should not be difficult for these parties. However the key question is whether there is a serious interest in overcoming these challenges or not before it is too late. Logistics can potentially become the most important source of cost and quality advantages available to companies in

5.4 Recommendation

There is need to ensure that there are functional social amenities in the coastal region of the country. As we know, the water ways does not require intensive expenditure to create water ways, compare to what is obtainable in construction of other modes counterparts like roads and railway. The area should be compensated in the area of provision of social amenities like steady electricity, pure water for drinking and other. This will not only attract investors in the region but will also boost the quality of life in the area. These have a way of increase the market and industrialization of the area and in turn make IWT transport more viable and profitable.

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