Port Rationalization; Towards a New Phase in Port Development

Port Rationalization; Towards a New Phase in Port Development
Abstract
Logistics integration and network orientation in the port and maritime industry have redefined the functional role of ports in value chains and have generated new patterns of freight distribution and new approaches to port hierarchy. Existing models on the spatial and functional evolution of ports and port systems only partially fit into the new freight distribution paradigm. This research aims to add to existing literature by introducing a port regionalization phase in port and port system development. It is demonstrated that the regionalization phase and associated hinterland concepts demand new approaches to port governance and a functional focus that goes beyond the traditional port perimeter. The research adopted a descriptive approach examining closely Existing models on the spatial and functional evolution of ports and port systems which only partially fit into the new freight distribution paradigm. Sources of data was from secondary data ranging from journals, library materials, data from Nigeria Port Authority and other internet materials which was deemed relevant for the study. Findings from the study revealed that although Inland distribution is becoming a very important dimension of the globalization/maritime transportation/freight distribution paradigm through port regionalization, it has met with a lot of issues and concerns that tend to impede it from being substantiated in Nigeria. The study therefore recommend 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. The maritime sector in Nigeria should wake up to this call of paradigm shift in their sector, train expatriates who can develop models on port services can be regionalised in Lagos State as a means of promoting inland/Island transportation especially in those state with poor road networks as this will curb the issue of traffic and enhance efficient transportation system.
Chapter One
Introduction
1.1 Background of the Study
Inland distribution is becoming a very important dimension of the globalization/maritime transportation/freight distribution paradigm through port regionalization. Port regionalization is the logistical integration between maritime and inland transport systems, particularly through the development of rail and barge corridors between a port and a network of inland load centers. Starting from the initial port site with small lateral quays adjacent to the town center, port expansion is the product of evolving maritime technologies and improvements in cargo handling.
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 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 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 Nigeria’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 and accordingly are regarded as major accelerators of local economic development. According to Ekong, (1984) and Badejo, (1998), the ports create 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). However, the ability of ports to adequately perform its international/regional functions and experience development is dependent also on the extent of cargo growth.
1.2 Statement of the Problem
Structural changes in logistics have generated new patterns of freight distribution and necessitated new approaches to port hierarchy. Customers are calculating the total logistic cost of transporting containerized goods, implying that current efficiency improvements in logistics, namely for container transportation, are derived for a large part from inland distribution. The development of global supply chains increased the pressure on the maritime haul, on port operations, and last but not least on inland freight distribution. Inland accessibility as such has become a cornerstone in port competitiveness (CEMT, 2001). It thus appears that the battle over port forelands will be decided over the hinterland, a segment of the distribution chain over which port players and port authorities could play a more significant role.
1.3 Objective of the Study’
The main focus of this study is to examine port regionalization: towards a new phase in port development.
Specifically the study seeks to:
- Examine the nature of Port terminals and inland freight distribution
- Investigate approach towards Substantiating the regionalization phase.
- Examine Governance issues in the regionalization phase.
1.4 Research Question
The research is guided by the following questions
- What is the nature of Port terminals and inland freight distribution?
- What are the approach towards Substantiating the regionalization phase?
- Are there Governance issues in the regionalization phase?
1.5 Significance of the Study
This will be most relevant to Nigeria port authorities as it will enlighten them on the new dimension of port development, the challenges of governance as militating factors the effective development of Nigerian sea ports and the possible ways in this inland transportation can be promoted. More so, the study will add empiracally 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.
1.6 Scope of the Study
The scope of the study borders on port regionalization: towards a new phase of port development. The study examined the nature of port terminal and freight distribution. It will decipher in diagram approaches toward substantiating port regionlization and finally how governance poses as a challenge of achieving this port regionalization. The study is however delimited to Apapa Sea Port of Lagos State, Nigeria.
1.7 limitation of the Study
In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints as well as difficulties in gathering material related to the topic. 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.
1.8 Methodology
The research adopted a descriptive approach examining closely Existing models on the spatial and functional evolution of ports and port systems which only partially fit into the new freight distribution paradigm. Sources of data was from secondary data ranging from journals, library materials, data from Nigeria Port Authority and other internet materials.
Chapter Five
Summary, Conclusion and Recommendation
5.1 Summary
The focus of the study centred on port regionalization: towards a new phase in port development using the Appapa Port in Lagos State as case study. Specifically, it examine the approach towards substantiating port regionlization and the issues and concerns that could impede the achievement of this new paradigm in maritime sector.
The research adopted a descriptive approach examining closely Existing models on the spatial and functional evolution of ports and port systems which only partially fit into the new freight distribution paradigm. Sources of data was from secondary data ranging from journals, library materials, data from Nigeria Port Authority and other internet materials which was deemed relevant for the study.
5.2 Conclusion
Regionalization represents a new phase in the development of port systems, which has traditionally focused on the port itself. In this phase, inland distribution becomes of foremost importance in port competition, favoring the emergence of transport corridors and logistics poles. The port itself is not the chief motivator for and instigator of regionalization. Regionalization results from logistics decisions and subsequent actions of shippers and third party logistics providers. Port authorities are invited to embrace and enhance the regionalization process in view of addressing current port-related challenges, mainly congestion, growing costs, limited handling capacity and the generation of additional traffic while being able to answer the requirements of modern freight distribution. With a more efficient access to the hinterland, mainly through modal shift, port competitiveness is thus increased. This also leads to questions with respect to the limits of port regionalization in terms of capacity and cost efficiency. The strategic scope of port authorities should go beyond that of a traditional facilitator. Port authorities can play an important role in the creation of core competencies and economies of scope by an active engagement in the development of inland freight distribution, information systems and intermodality. Direct and indirect forms of networking with nodes and market players constitute probably the most important role for port authorities in the regionalization phase, as gaining competitive advantage will more and more become a matter of going beyond the port boundaries both in terms of physical investments and managerial capabilities.
5.3 Recommendation
From the findings of the study, the following recommendation were drawn:
- 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.
- The maritime sector in Nigeria should wake up to this call of paradigm shift in their sector, train expatriates who can develop models on port services can be regionalised in Lagos State as a means of promoting inland/Island transportation especially in those state with poor road networks as this will curb the issue of traffic and enhance efficient transportation system.
- The activities of the managerial staff should be monitored to ensure that corrupted practices do not prevail the sector. Even as they ensure that unqualified staff working with the posts should be trained to step up their competences.
- 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 – 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.


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