Forecasting Cargo Growth And Regional Role Of The Port Of Nigeria

Project and Seminar Material for Transport Management Technology

Forecasting Cargo Growth And Regional Role Of The Port Of Nigeria


Astract


This study was carried out on forecasting cargo growth and regional role of the port of Nigeria using Apapa Sea Port of Lagos State as case study. To achieve this 4 research questions were formulated. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprise of all the staff of Apapa Port, Lagos State. In determining the sample size, the researcher conveniently selected 67 respondents while 50 were received and validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables and percentage. While the hypotheses were tested using Chi-square statistical tool. The result of the findings reveals that the Nigerian port authorities plays the following roles; develop, own and operate ports and harbours, provide safe and navigable channels, offer cargo handling and storage services, maintain port facilities and equipment and ensure safety and security. Also there are evident factors impeding cargo growth in Nigeria. Additionally, the findings disclosed that clearance delays, lack of effective strategies, poor management practices, increased freight rates, delay of import/export processes and security concerns are among many others the challenges militating against the effective development of Nigerian sea ports. And forecasting will significant roles in the development of sea ports in Nigeria, among the roles include; it will serve as the bases for effective planning for development, it will facilitate Co-ordination and Control over port activities, it will aid the relevant authorities to predict the future of Nigerian ports, and it will aid the managerial officers to create a progressive direction for the development of ports. In regard to the findings, the study recommends that there is need to strengthen the implementation of policy reforms measures and regulations which has been introduced in the sector. This will help to achieve desired goals in the area of ports operations, terminal management, administration and cargo growth in Nigeria, and the activities of the managerial staff should be monitored to ensure that corrupted practices do not prevail the sector. Also, unqualified staff working with the posts should be trained to step up their competences. While new government policies should be enacted encouraging the establishment of new sea ports and jetties like the Dangote deep seaport project currently ongoing at Lekki โ€“ Lagos state outside Apapa area so as to reduce the growing pressures capable of creating road congestions due to increasing import and export of goods.


Table of Content


Preliminary Page(s)

  • Title Page
  • Certification
  • Dedication
  • Acknowledgement
  • Table of Content
  • List of Tables
  • Abstract

Chapter One:

Introduction

  • 1.1 Background of the study
  • 1.2 Statement of the problem
  • 1.3 Objective of the study
  • 1.4 Research Question
  • 1.5 Research Hypothesis
  • 1.6 Significance of the Study
  • 1.7 Limitation of the Study
  • 1.8 Scope of the study

Chapter Two:

Review of Literature

  • 2.1 Conceptual Framework
  • 2.2 Theoretical Framework
  • 2.3 Chapter Summary

Chapter Three:

Research Methodology

  • 3.1 Area of Study
  • 3.2 Research Design
  • 3.3 Population of the Study
  • 3.4 Sample Size Determination
  • 3.5 Sample Size Selection Technique and Procedure
  • 3.6 Research Instrument And Administration
  • 3.7 Method of Data Collection
  • 3.8 Method of Data Analysis
  • 3.9 Validity of the Study
  • 3.10 Reliability of the Study
  • 3.11 Ethical Consideration

Chapter Four:

Data Presentation and Analysis

  • 4.1 Data Presentation
  • 4.2. Test of Hypothesis

Chapter Five:

Summary Conclusion and Recommendation

  • 5.0 Summary
  • 5.1 Conclusion
  • 5.2 Recommendation
  • References
  • Appendix

Chapter One


Introduction

1.1 Background of the Study

Interest in Nigerian port operation is not recent (Badejo, 2001; Asoluka 2002; Olukoju, 2006; Oyesiku and Gbadamosi 2008; Prasad 2010; Badejo, 2012). However, the current level of interest and concerns generated by the sector is as a result of increasing complexity, popularity and growth in global shipping and overall cargo activities. Given this dynamics, it has become desirable and fashionable for government institutions to constantly review and re-strategies in other to cope and meet up with attendant changes taking place in the industry. The Nigerian Ports Authority (NPA, 2017)acquired a new status NP Plc in 1992, again reversed to its traditional name in 1998. Though created in 1954, the Organization commenced operations in April, 1955 (Badejo, 2009; 2012; Badejo and Solaja, 2014). Prior to this period and even before the evolution of modern Nigeria, the wide coast-land stretching from Lagos to Port Harcourt had been a beehive of activities involving Africans and Europeans (Badejo, 1998; Abubakar 2005; Ekpo 2012; Badejo and Solaja, 2014). It is therefore natural that the exploitation of these resources was only a matter of time. however, these begging incentive for development were exploited by various governments since the colonial days. The Nigerian Ports during the colonial days and thereafter played a pivotal role in Nigeriaโ€™s economic, political and international diplomatic agenda.

The roles of the ports in the national economy cannot be over emphasized, as they play a strategic role in economic development by functioning as gateways to international trade andaccordingly are regarded as major accelerators of local economic development. According to Ekong, (1984) and Badejo, (1998), the portscreate job opportunities, provides alternative mode of transportation, generates revenue, accelerates the rate of urbanization, exerts huge multiplier effects on the economy and promotes international peaceful co-existence amongst nations. More importantly, the ports enhance a greater deal the growth of trade and commerce (Olanrewaju and Falola, 1986; Badejo and Solaja, 2014). However, the ability of ports to adequately perform its international/regional functions and experience development is dependent also on the extent of cargo growth. Additionally, to achieve sustainable cargo growth (so as to enhance regional functions of ports), the forecasting model or system for business development most be adopted.

Forecasting in this context is the use of historical data inputs to make informed estimates that are predictive in determining the direction of future trends. Therefore, the use of forecasting in the development of ports through cargo growth is of high paramount. An exemplification of the above is traceable to the Netherlands. According to Naike (2012), the Netherlands utilized forecasting to determine how to allocate budgets or plan for anticipated expenses to boost the rate of cargo growth in the nation. Evidently, the Netherlands has been able to sustain a relatively high rate of port development through cargo growth, which in turn hoick the economic growth rate of the country through the Port of Rotterdam, in spite of the intensely competitive environment in Europe. The success of Singapore is equally attributed to the Port of Singapore which has developed a transport logistic centre and has successfully been able to attract foreign investment(Economic and Social Commission for Asia and the Pacific (ESCAP).However, the reverse is the case in Nigeria as port development in Nigeria has a chequered history with corruption compounding its ineffectiveness and crippling development. Furthermore, irrespective of the relevance of ports to Nigeria, they have encountered notable challenges of congestion and lack of adequate infrastructure which resulted to Apapa port in Lagos losing its leadership position as a regional gateway for shipping to the neighboring port of Lomรฉ in Togo. Therefore, according to Charles R.(2016), to achieve sustainable ports operations and management, there is need to introduce policy reforms measures and regulations which when implemented and pursued help to achieve desired goals in the area of ports operations, terminal management and administration. With regard to the above, the study is set to examine the challenges of Nigerian ports, regional role and forecast its prospects for development.


1.2 Statement of the Problem

Irrespective of the significant roles played by sea ports in the economic development of Nigeria, it is faced with slow cargo growth which has resulted to poor development of Nigerian sea port and is attributable to the inability of relevant authorities to utilize significant managerial techniques such as forecasting in the effective management of the port stations. This is however due to incompetents of the managers and corrupt practices among major authorities. According to Ayo (2015), Nigeria ports has face corruption challenges that are rooted in the sector-wide issues and which has disrupted its development rate. A 2018 report prepared by the Lagos Chamber of Commerce and Industry estimated that illegal charges, bureaucratic red tape, delays and poor cargo growth in ports cost the country around 3% of gross domestic product (GDP) annually. Hence, upon this background, this study is set to examine the various challenges of Nigerian ports and the role of forecasting in ensuring its future development.


1.3 Purpose of the Study

This study is aimed at;

  1. Ascertaining the role of Nigerian port authorities.
  2. Investigating if there are challenges impeding cargo growth in Nigeria.
  3. Investigating the challenges militating against the effective development of Nigerian sea ports.
  4. Examining the roles of forecasting in the development of sea ports in Nigeria.

1.4 Research Questions

This study will be guided by the following questions;

  1. What are the roles of Nigerian port authorities?
  2. Are there factors impeding cargo growth in Nigeria?
  3. What are the challenges militating against the effective development of Nigerian sea ports?
  4. What are the roles of forecasting in the development of sea ports in Nigeria?

1.5 Research Hypotheses

The study will test the validity of the following hypothesis;

  • H01: There are no factors impeding cargo growth in Nigeria
  • H02: Forecasting will not play any significant role in the development of Nigeria sea ports.

1.6 Significance of the Study

This will be most relevant to Nigeria port authorities as it will enlighten them on the factors impeding cargo growth in the country, the challenges militating against the effective development of Nigerian sea ports and the possible ways in which forecasting can contribute in the development of sea ports in Nigeria. More so, the study will add to the body of existing literature on the topic of concern and will hereby be useful researcher, students and other intellects who may want to carryout a study on a related topic.


1.7 The Scope of Study

This study covers the role of Nigerian port authorities,the factors impeding cargo growth in Nigeria, the challenges militating against the effective development of Nigerian sea ports and the roles of forecasting in the development of sea ports in Nigeria. Hence, the study will be delimited to Apapa Sea Port of Lagos State, Nigeria.


1.8 Limitation of the Study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents.

In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed.


Chapter Five


Summary, Conclusions and Recommendations:

5.1 Introduction

This chapter summarizes the findings on forecasting cargo growth and regional role of the port of Nigeria using Apapa Sea Port of Lagos State as case study. The chapter consists of summary of the study, conclusions, and recommendations.


5.2 Summary of the Study

In this study, our focus was on forecasting cargo growth and regional role of the port of Nigeria using Apapa Sea Port of Lagos State as case study. The study is was specifically focused on ascertaining the role of Nigerian port authorities, investigating if there are challenges impeding cargo growth in Nigerian, investigating the challenges militating against the effective development of Nigerian sea ports, and examining the roles of forecasting in the development of sea ports in Nigerian.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 50 responses were validated from the enrolled participants where all respondent are staff of Apapa Port, Lagos State.


5.3 Conclusions

Based on the findings of this study, the researcher made the following conclusion;

  1. The Nigerian port authorities plays the following roles; develop, own and operate ports and harbours, provide safe and navigable channels, offer cargo handling and storage services, maintain port facilities and equipment and ensure safety and security.
  2. There are evident factors impeding cargo growth in Nigeria.
  3. Clearance delays, lack of effective strategies, poor management practices, increased freight rates, delay of import/export processes and security concerns are among many others the challenges militating against the effective development of Nigerian sea ports.
  4. Forecasting will significant roles in the development of sea ports in Nigeria, among the roles include; it will serve as the bases for effective planning for development, it will facilitate Co-ordination and Control over port activities, it will aid the relevant authorities to predict the future of Nigerian ports, and it will aid the managerial officers to create a progressive direction for the development of ports.

5.4 Recommendation

Based on the findings the researcher recommends that;

  1. There is need to strengthen the implementation of policy reforms measures and regulations which has been introduced in the sector. This will help to achieve desired goals in the area of ports operations, terminal management, administration and cargo growth in Nigeria.
  2. The activities of the managerial staff should be monitored to ensure that corrupted practices do not prevail the sector.
  3. Unqualified staff working with the posts should be trained to step up their competences.
  4. New government policies should be enacted encouraging the establishment of new sea ports and jetties like the Dangote deep seaport project currently ongoing at Lekki โ€“ Lagos state outside Apapa area so as to reduce the growing pressures capable of creating road congestions due to increasing import and export of goods.

5.5 Recommendation for Further Studies

Since this study is delimited to only forecasting cargo growth and the regional role of ports in Nigeria, it is therefore ideal to conduct more studies on the impact of ports on Nigeria economy.


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