TREND ANALYSIS OF CONTAINER OPERATION IN APAPA PORT NIGERIA

Abstract

This study examined the container operation in Nigeria sea port of Nigerian seaports have over the years manage and develop port infrastructures in order to gain insights into shipping operational development in the country. The objectives are to assess the level of infrastructural developments with a view to showcase the areas that need more attention both by the terminal operators and the government. Similarly, to examine the relationship between investment by the operators and cargo throughput at the ports after it has been concessioned. Structured questionnaire was used to collect information about infrastructural developments. Descriptive analysis and chi-square statistics were used to analyses collected data. The results from the findings indicated that, though ports have improved in terms of infrastructural developments especially in the area of cargo handling equipment infrastructures, warehousing, Quay development.

 

 

 

 

TABLE OF CONTENT

Title page

Approval page

Dedication

Acknowledgment

Abstract

Table of content

CHAPETR ONE

1.0   INTRODUCTION 

1.1        Background of the study

1.2        Statement of problem

1.3        Objective of the study

1.4       Research question

1.5        Research Hypotheses

1.6        justification of the study

1.7        Scope and limitation of the study

1.8       study area

1.9       Organization of the study

CHAPETR TWO

2.0   LITERATURE REVIEW

CHAPETR THREE

3.0        Research methodology

3.1    sources of data collection

3.3        Population of the study

3.4        Sampling and sampling distribution

3.5        Validation of research instrument

3.6        Method of data analysis

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS AND INTERPRETATION

4.1 Introductions

4.2 Data analysis

CHAPTER FIVE

5.1 Introduction

5.2 Summary

5.3 Conclusion

5.4 Recommendation

Appendix

 

 

 

 

 

 

 

 

 

CHAPTER ONE

INTRODUCTION

• Background of the study

Nigeria as a country handles about70% of all seaborne trade in the West African sub-region due to her population and economy (Five Star Ltd, 2017). However, the inefficiencies in shipping logistics necessitated the concession of Nigeria’s maritime seaports terminals. In the past, vessels were delayed at berthing spaces, bureaucracies of cargo clearance made port not to be attractive, and most shipping activities were carried out manually. Therefore, it beacons on government in an attempt to finding lasting solutions to seaports’ problems decided to privatize and or concession the ports in 2006 (Okeudo,2013). Meanwhile, lack of sufficient storage capacity at Nigerian seaports’ terminals due to lack of adequate land as well as the increasing level of congestion associated with cargo movement within and outside the terminals motivates different approaches to deal with the situation. According to Omoke et al (2015) citing Bousquet and Fayard (2015) that, a concession arrangement is one which the government grants the right to fund, build, own, improve, upgrade and maintain or operate a public infrastructure and charge used for the cost of services rendered for a limited period stated for the operators. According to official website of Five Star Ltd (2017), a company that is part of concession programme narrated that; shady transactions, inadequacy of plants and equipment, pilferage, bribery and allied vices carried out by miscreants called wharf rats, by unscrupulous labour contractors who held ship masters and agents to ransom even after they have paid all official fees, and by a multiplicity of poorly coordinated federal law enforcement and security operatives were what led to the decision of government to concession Nigerian ports. According to OECD (2008) although concessioning the seaports made it to operate like a private firm; in many cases, they pursue a mix of private and public objectives and there is considerable public sector involvement in infrastructure supply. In Nigeria, Nigerian Ports Authority (NPA) is saddled with the responsibility of management and development of port infrastructures. It acts now as the Landlord of all Nigerian owned seaports. De Langen (2008) argues that, port authority is strongly involved in infrastructure access and operations relating to maritime transport and hinterlands. The management and maintenance of quay, rail tracks/yards, warehouses and including the water front are critical to ensuring sustainable maritime transport development in Nigeria. Okorigba (2008) and Okeudo (2013) expressed that, Nigerian government initially commercialized Nigeria Ports Authority in 1992 to form Nigerian Ports Plc and rescinded that decision in 1996. However, post-concession reform as noted by Okorigba (2008) facilitated new equipment and development of port infrastructures in Nigeria. Post –concession has witnessed a very viable port which has contributed to the national economy and eliminated poor quality services and delays at the ports (Ehbenine, 2009). Based on the observation of Oni (2007), Nigerian ports do not have adequate computerized facilities that can enhance speedy port operation unlike what is obtainable in developed economy of the world. However, it is important to stress that, if and when this facilities and infrastructures are put in place and there is no proper maintenance, it is worst than not having the infrastructures in place because of money, energy and time that would have been wasted. According to NPA (2014) port concession provides better and more efficient management of shipping operations, application of socially and economically desirable projects thereby freeing government funding. De Lange (2008) illustrated how Rotterdam port authority manage infrastructure access to improve the port service efficiency and hinterland capacity by allocating slots for quayside access more efficiently. Victor et al (2016) reiterated that, lack of public finance of infrastructure has made Nigeria to lag behind in meeting demands of everchanging and developing needs of industries. Adelayo (2007) listed some major ports in Nigeria as: Apapa port, container terminal Apapa, Tincan Island, Lagos, RoRo Port, Warri Port, Port Harcout port, Onne Port and Calabar port. Although, concession contracts (OECD, 2008) can be used to stimulate innovations and many ports were awarded long-term concessions, they were issues on modalities for infrastructural maintenance and development. These issues not properly, accurately and adequately address can serve has impedance to the realization of fundamental objectives of port concession. Hence, this paper investigated the contributions, challenges and development since the emergence of port concession with a view to understand how the problems can be solved and enhance port infrastructural maintenance and development for maximum port operational efficiency. The world of cargo operations has changed considerably from the days of the open stowage of merchandise. Unitized cargoes in the form of ‘containers’ or Roll-on, Roll-off cargoes and pillarization have generated the need for alternative handling methods and changing cargo handling procedures. Ports are the gateway by which there is exchange of commodities from surplus regions to the deficit regions. Ports play a key role in the maritime nation like Nigeria especially in terms of economy and development as nearly 75% of the trade between Nigeria and the rest of the world is handled in ports. Ports also hold a social role, as they strongly contribute to the national economy and to employment. In total, around three million people are employed in ports in the 22 maritime States (Notteboom et al., 2010). Therefore, the importance of ensuring efficiency in ports is related to make Nigerian ports highly competitive at the international level. Cargo handling equipment is important at the port because the pieces determine the operations at the quay and moreover in the sheds. In the port, the equipment used includes mobile cranes, forklifts and betotti. These, though still in use in ports of the world they need to be supplemented in the port with modern equipment to be efficient. Modern ships require modern equipment for operations because of their design. However, Nigerian ports seem to lack the ability to adapt efficiently in order to meet the ever-changing and developing needs of industries. This is particularly the case where levels of public finance are no longer forthcoming and the economic crisis has reduced the capacity of governments to finance long term infrastructure. It should also be considered that the heterogeneous nature of the port sector increases the complexity of guaranteeing consistent development of the sector as a whole. According to PwC and Panteia (2013) report, port authorities are often limited in their ability to determine the level of dues, thus to impact on their resources and determine their operating income. Port costs account for a greater share of total cost associated with the logistics chain, when compared to direct transport by road. Ports also act as gateways for rail and inland waterway networks. Importers and exporters rely upon efficient transport networks and expect consistently high standards. In Nigeria, the ocean and river ports (developed and potential) are (a) Lagos (TinCan Island and Apapa), Port Harcourt, Bonny, Calabar, Sapele, Warri, Burutu, Koko (developed) (b) Oron, Badagry, Epe, Opobo, Eket, Forcados, Akassa, Brass, NunIbeno and Ikang (potential). Several studies from East Europe (Murray, 1993; Bloomen, 1994), Asia (Speece and Kawahara, 1995) and African (Dadziie, 1990) identified several reasons for the poor state of performance in ports of developing nations like Nigeria. Prominent and common to all the weak logistics system, deriving from poor infrastructural base, management inertia and incremental but uncoordinated and unimpressive improvement in logistics are directly specific to Nigeria (Ballou, 1985; Cullinane and Wang, 2007; Ogunsiji and Ogunsiji, 2010). It is necessary therefore to examine performance within the sector, and to test whether current institutional arrangements are sufficiently robust to ensure that market incentives are strong enough to foster best practice in all parts of the cargo handling operations at the ports. Visiting the port to witness the activities and cargo handling operations may not present the real challenges and situations of Nigerian ports unlike being an importer or exporter. Many ports are unable to provide potential customers with the right mix or standard of services because they do not have the right mix of infrastructure. Common complaints from shipping lines and other port users according to (Pwc and Panteia, 2013) can be related to insufficient depth of water; lack of quay space, resulting in vessels having to wait for a berth; lack of storage space behind the quay, often caused by the “city centre” locations of older ports and insufficient (or outdated) mechanical equipment. For container ships, the most common problems are too few cranes (preventing the ship from working as many holds as the operator would like) or the absence of ship-to-shore gantry cranes (resulting in slower handling rates). Yard congestion caused by lack of space can also slow down crane handling rates on the berth. For bulk ships, the most common problem is lack of automation (ship loaders and pneumatic or screw discharge equipment linked to high speed conveyor systems to the storage area or plant); and poor interface arrangements for rail and inland waterway transport. Part of the problem is when customers or shippers want to reserve berthing windows so that scheduled services are not disrupted by unforeseen delays waiting for a berth; to negotiate service contracts with the port authority or cargo handling company giving them a guaranteed loading/discharge rate or ship turnaround time; dedicated storage areas within the port and extended cargo collection and delivery times. Of course, these always tend to cause commotions and confusion at the ports.

• STATEMENT OF THE PROBLEM

Ports are the gateway by which there is exchange of commodities from surplus regions to the deficit regions. Ports play a key role in the maritime nation like Nigeria especially in terms of economy and development as nearly 75% of the trade between Nigeria and the rest of the world is handled in ports. Ports also hold a social role, as they strongly contribute to the national economy and to employment. In total, around three million people are employed in ports in the 22 maritime States (Notteboom et al., 2010). Therefore, the importance of ensuring efficiency in ports is related to make Nigerian ports highly competitive at the international level. It is in view of the above that the researcher intends to investigate the containers operation in Apapa port Nigeria

• OBJECTIVE OF THE STUDY

The main objective of this study is to investigate the trend analysis of container operation in Apapa port Nigeria. But to aid the successful completion of the study the researcher intends to achieve the following specific objective;

1. To ascertain the effectiveness of container operation on the effectiveness of Apapa port
2. To examine the impact of container handling technique on the operational efficiency of Apapa port

• To examine the relationship between container operation and the efficiency of the management of Apapa port

1. To examine the role of Apapa port on the economic development of Nigeria
   • RESEARCH QUESTION

To aid the successful completion of the study, the following research questions were formulated by the researcher;

1. Does Apapa port play any role in Nigeria economic development?
2. Is there any relationship between container operation and the efficiency of the management of Apapa port

• Does container handling technique has any impact on the operational efficiency of Apapa port

1. How effective is container operation technique in Apapa port?
   • RESEARCH HYPOTHESES

The following research hypotheses were formulated to guide the completion of the study

H₀: there is no significant relationship between container operation and the efficiency of the management of Apapa port

H₁: there is a significant relationship between container operation and the efficiency of the management of Apapa port

H₀: Apapa port does not play any significant role in Nigeria economic development

H₂: Apapa port does play a significant role in Nigeria economic development

• JUSTIFICATION OF THE STUDY

The profitability and efficiency of every organization lies in the effectiveness of her management team. Ports Authority (NPA) is saddled with the responsibility of management and development of port infrastructures. It acts now as the Landlord of all Nigerian owned seaports. De Langen (2008) argues that, port authority is strongly involved in infrastructure access and operations relating to maritime transport and hinterlands.

As part of the requirement for the award of a B.Sc., this study is carried out to ascertain the trend of container operation in Apapa port.

• STUDY AREA

Apapa is a Local Government Area in Lagos, located to the west of Lagos Island. Apapa contains a number of ports and terminals operated by the Nigerian Ports Authority (NPA), including the major port of Lagos State and Lagos Port Complex (LPC). In its legislation, the NPA itself does not refer to any port called “Port of Apapa”, rather it refers to the “Port of Lagos”, “Port of Port Harcourt” and “Port of Calabar” The region of Apapa lies near the mouth of Lagos lagoon, and contains ports and terminals for various commodities such as containers and bulk cargo, houses, offices and a small old disused railway station (Apapa North).  It is the site of a major container terminal which was owned and operated by the Federal Government of Nigeria until March 2005, and now is operated by the Danish firm A. P. Moller-Maersk Group. Adjacent to the container port is the Tin Can Island Port, which has ro-ro facilities.  It also houses some refineries like the Bua Group. It also has commercial offices of many shipping, clearing and transportation companies. Other notable buildings include the Folawiyo Towers. Apapa houses the headquarters of the Nigerian newspaper Thisday

• SCOPE AND LIMITATION OF THE STUDY

The scope of the study covers trend analysis of container operation in Apapa port Nigeria. But in the cause of the study, there were some factors which limited the scope of the study;

1. a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
2. 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.
3. c) Finance: the finances at the disposal of the researcher was very limited as such could not finance a broader scope of the study

1.9 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

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