The Impact Of Improved Infrastructure And Efficient Cargo Delivery In Nigeria Port (A Case Study Of Calabar Port Complex)

Project and Seminar Material for Maritime and Transport

The Impact Of Improved Infrastructure And Efficient Cargo Delivery In Nigeria Port (A Case Study Of Calabar Port Complex)


Abstract


This report examines the impact of improved infrastructure and efficient Cargo Delivery in Nigeria Port (A case study of Calabar Port Complex). The research also carried out a review of related literature in chapter to give the study the necessary theoretical background for the research work. The literature the Background of Marine Infrastructural Development, Current Marine Infrastructural Development in Nigeria, Channel Marking, buoys and lighthouse development in Nigeria were.The research design used in this report is descriptive design, utilizing questionnaire method to obtain information from the respondents for this project.

Primary data were collected from the primary source which questionnaire was used as an instrument of data collection while secondary data were sources from textbooks, journals, newspapers and the internet were employed. The data were presented on a frequency distribution table and analyzed using simple percentage .While hypothesis was tested using chi- square test.

The findings indicates Port infrastructure, if fully developed in Nigeria, has a big role to play in the development of our shipping sector by ensuring efficient cargo delivery from our ports. From the findings, it is also discovered that the major causes of poor infrastructural facilities in our ports are mainly from poor maintenance culture among Nigerians as well as poor finance in providing the necessary facilities needed in our ports.

It is also discovered from the findings that bad infrastructure affect efficient cargo delivery in Nigeria ports especially that of Calabar Port because of inefficient draft, bigger ships find it mostly difficult to berth in the port. The findings also reveal that high costs of cargo delivery in Nigeria ports can be linked to inefficient cargo delivery in our ports.

To this end the study recommended that Government and private terminal operators should provided the needed infrastructural facilities at the port to ensure efficient and effective cargo clearance and delivery. Also adequate funds should be made available by Governments and banks to ensure effective implementation of needed port facilities.


Table of contents


Preliminary Page(s)

  • Title page i
  • Certification page ii
  • Dedication iii
  • Acknowledgement iv
  • Abstract v
  • Table of content

Chapter One:

Introduction

  • 1.1 Background of the study
  • 1.2 Statement of the problem
  • 1.3 Objectives of the Study
  • 1.4 Research Questions
  • 1.5 Research Hypothesis
  • 1.6 Significance of the Study
  • 1.7 Scope of study
  • 1.8 Organization of Study

Chapter Two:

Review Of Related Literature

  • 2.1 Overview
  • 2.2 Conceptual Definition
  • 2.2.1 Harbour
  • 2.2.2 Port
  • 2.2.3 Logistics
  • 2.2.4 Supply Chain
  • 2.2.5 Trade Facilitation
  • 2.2.6 Seaport
  • 2.2.7 Cargo handling equipment
  • 2.2.8 The Concept of Privatization
  • 2.2.9 Importance of Concessioning Schemes
  • 2.2.10 Port Concessionaires
  • 2.3 Theoretical Review
  • 2.3.1 Product Life-Cycle Theory
  • 2.3.2 Neo Mercantilism Theory
  • 2.3.3 PESTEL Theory
  • 2.4 Empirical Review

Chapter Three:

Research Methodology

  • 3.1 Research Design
  • 3.2 Sources of data
  • 3.3 Population and sampling of study
  • 3.4 Instrumentation
  • 3.5 Modelling
  • 3.6 Method of data analysis

Chapter Four:

Results And Discussion


Chapter Five

  • 5.1 Conclusion
  • 5.2 Policy Recommendation
  • 5.3 Suggestion for further studies
  • References

Chapter One


Introduction

1.1 Background of the study

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.

Shipping by cargo delivery has for a long time been recognized as one of the strong catalysts for socio-economic development. Back in 1776, Adams Smith noted that “A business working in a country town without links to the outside world can never achieve high levels of efficiency because its small market will limit the degree of specialization”. Because shipping is one of the cheapest and efficient modes of transportation over long distances, it has since the ancient times been at the forefront of opening up of the world, and thus a major driver of the process of globalization.

Cargo handling equipment enhances such as aspects of port operation as schedule of arriving vessels, allocation of wharf space and quay crane resources to service the vessels. They similarly enhance ship operations, especially loading and unloading of cargoes (Somuyiwa and Akindele, 2015). The efficiency of terminal operations is important for cargo transhipment that will ensure Nigeria ports comply with the 48 hours cargo clearance rule of the International Maritime Organisation (IMO). However, Igbokwe (2013) suggests that there has been little improvement over time on the efficiency and productivity of Nigeria port management in meeting the IMO stipulation on cargo clearance. By the assessment of Somuyiwa and Akindele (2015) handling plants and equipment in Nigerian Ports are either old, obsolete, malfunctioning, broken down or insufficient, with adverse effects on cargo handling operations. The previous studies were done before the private operators took over the operation of Lagos Port Complex (LPC). The situation however changed after the concession of the port operation, as latest cargo handling equipment with high lift capacity were procured at Tin Can port, Lagos in line with the port terminal concession policy (Somuyiwa and Akindele, 2015).

Shipping by cargo delivery, especially container shipping, has been both a cause and effect of globalization. Container shipping could lay claim to being the world’s first truly global industry. In fact, container shipping could claim to be the industry which, more than any other, makes it possible for a truly global economy to work. It connects countries, markets, businesses and people, allowing them to buy and sell goods on a scale not previously possible. It is now impossible to imagine world trade, and ultimately our lives as consumers, without container shipping. Shipping has led to a phenomenal growth in world merchandise trade, which has consistently grown faster than output. In 2006, goods loaded at ports worldwide are estimated at 7.42 billion tonnes, up from 5.98 billion tonnes in 2000. The value of total world exports increased from US$6,454 billion in 2002 to US$40,393 billion in 2005, representing an increase of 64 per cent.

According to Kummi (2007), shipping has emerged as one of the most powerful socio-economic and political forces shaping the world today. The phenomenon of shipping is moving the world towards increasing and irreversible integration of economic, social, cultural and political systems. Globalization through shipping trade has “decoupled time and space” resulting in the “death of distance”. Thanks to globalization, the once big world has been transformed into “one little village”.

Shipping has been one of the main causes and effects of globalization. The impact of globalization on shipping, especially container shipping, has been most phenomenal. Indeed, shipping connects countries, markets, businesses and people, allowing them to produce, buy and sell goods on a scale not previously possible. It therefore becomes necessary, if not imperative for countries to try to evaluate impact of improved infrastructure and efficient cargo delivery in Nigeria port.

Consequently, this study is an appraisal of the impact of improved infrastructure and efficient cargo delivery in Nigeria port.


1.2 Statement of the problem

Despite the great important played by ports in Nigeria to the country’s development, economic growth and trade, but still there is low rate of growth of infrastructure and efficient cargo delivery to port users. Such situations have a direct impact on government revenue and hinder growth of trade due to poor transaction and collection that could be earned from selling services and products. Therefore, there is a need to study how improved infrastructure and cargo delivery can facilitate the growth of trade in Nigeria.


1.3 Objectives of the Study

The following objectives are stated to guide the study.

  1. To examine the impact of improved infrastructure on efficient cargo delivery in Nigerian port
  2. To determine the major causes of poor infrastructure in Nigerian Ports.
  3. To identify and assess the effects of bad infrastructure in efficient cargo delivery in Nigerian ports.
  4. To investigate the major category of port infrastructure.

1.4 Research Questions

  1. What is the impact of improved infrastructure on efficient cargo delivery in Nigerian port?
  2. What are the major causes of poor infrastructure in Nigerian Ports?
  3. What are the effects of bad infrastructure in efficient cargo delivery in Nigerian ports?
  4. What is the major category of port infrastructure?

1.5 Research Hypothesis

  1. Ho: There is no significant relationship between improved infrastructures and efficient cargo delivery in Nigerian ports.
    H1: There is significant relationship between improved infrastructures and efficient cargo delivery in Nigerian ports.
  2. Ho: Poor maintenance culture and inadequate finance is not the major causes of poor infrastructure in Nigerian ports.
    H1: Poor maintenance and inadequate finance is the major causes of poor infrastructures in Nigerian ports.
  3. Ho: Bad infrastructure does not have negative effect in efficient cargo delivery in Nigerian ports.
    H1: Bad infrastructure have negative effect in efficient cargo delivery in Nigerian ports.
  4. Ho: There is no significance relationship between marine and overland infrastructure.
    H1: There is significance relationship between marine and overland infrastructure.

1.6 Significance of the Study

This study is worth pursuing because improved infrastructure will enhances port cargo delivery in Nigerian ports, increased port productivity and performance and increased through put variables such as ship turn round time, cargo traffic loss through other ports e.g Cotonou, vessel delay time etc. the efficient infrastructure tends to help tackle port congestion problems, making Nigerian ports a hub in the West African Region, protect vessels and quays wall against damages as well as allowing for smooth maneuvering of vessels alongside the quays during berthing. The agencies of government will find the recommendations of the research useful on how to ensure efficient cargo delivery through improved infrastructure. It is also believed that the study will help investors knowing where they can safely invest their money in port infrastructures. The study will serve as a guide to more competent researchers to carry out further investigation. In summer, those to benefit from this research on completion include; government agencies, investors, general public, researcher/cadets, banks, maritime regulators and experts, marine insurance companies.


1.7 Scope of study

This study was carried out on the impact of improved infrastructure and efficient cargo delivery of ports in Nigeria. This study is therefore limited to Apapa Port Complex.


1.8 Organization of Study

The study is divided into five chapters. Chapter one deals with the study’s introduction and gives a background to the study. Chapter two reviews related and relevant literature. The chapter three gives the research methodology while the chapter four gives the study’s analysis and interpretation of data. The study concludes with chapter five which deals on the summary, conclusion and recommendation.


Chapter Five


5.1 Conclusion

The study subjected six variables believed to be adversely affecting the efficient operation of cargo handling equipment at terminals of LPC to correlation and regression analyses. Therefore, the study concludes that inadequate workshop and misuse of equipment were the most significant problems confronting the efficient operation of handling equipment at the terminals of the Lagos Port Complex. Poor maintenance is also a significant challenge.

An understanding of the variability in the operation of various handling equipment for handling different cargo types is crucial for efficient cargo management at the terminals of any port. Cargo management cannot be efficient without minimising the challenges faced when operating cargo handling equipment.


5.2 Policy Recommendation

For terminal operators, the strategy for successful operation of handling equipment should involve devising ways to compensate for a number of factors that, individually or in combination, act to reduce the efficiency of their equipment. This should be done with a view to avoiding misuse of equipment, while adequate workshops and spare parts are provided. While it is imperative for the terminal operators to give attention to the need for increased cargo traffic through efficient handling equipment; it is also important that terminal operators provide the technical know-how for efficient operation of equipment through training and retraining of staff. This should be complemented by the provision of workshop facilities and spare parts capable of bringing about servicing and maintenance of equipment. The management under the supervision of the NPA should ensure regulations guiding the provision and operation of equipment by terminal operators are enforced.


5.3 Suggestion for further studies

Further study is required to determine the impact of the provision of workshop facilities and proper maintenance of equipment in the operation of cargo handling equipment at the terminals of the port.


The Impact Of Improved Infrastructure And Efficient Cargo Delivery In Nigeria Port (A Case Study Of Calabar Port Complex)


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The Impact Of Improved Infrastructure And Efficient Cargo Delivery In Nigeria Port (A Case Study Of Calabar Port Complex)


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