TREND ON ANALYSIS OF PORT CAPACITY UTILIZATION IN NIGERIA (A STUDY OF APAPA PORT)

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ABSTRACT

This study was carried out to investigate the trend on analysis of port capacity utilization in Nigeria with a particular reference to Apapa Port, Lagos. To achieve this objective, three research questions and three research hypotheses were formulated to guide this study. The data collected were analyzed using simple percentages and tables to analyze research questions and regression statistical analysis techniques were used for testing of research hypothesis. A structured questionnaire was used as the major instrument for data collection from the staff of Apapa Port, Lagos State. After the careful analysis of the data, the following findings were revealed that there is a strong significant relationship between port capacity   and cargo handling in Nigeria; there is relationship between port infrastructural and cargo handling. However, port infrastructural and cargo handling affects capacity utilization in Nigeria and there is a strong relationship significant between port utilization and cargo handling in Nigeria. The study concluded with some recommendations that Nigeria port should be made the hub port for the entire African sub region. It is worthy of note that a lot of port infrastructural facilities have been built in our ports therefore government must ensure that these facilities are properly maintained; government should take legislative and policy measures to develop the port system. Nigeria waterways need to be properly dredged so as to encourage vessels of more TEUs to navigate our waterways and government should ensure that port tariffs are moderate to make Nigerian ports more competitive.

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

A port is a location on a coast or shore containing one or more harbours where ships can dock and transfer people or cargo to or from land. Port locations are selected to optimize access to land and navigable water, for commercial demand, and for shelter from wind and waves. The use of the sea as a means of transport in Nigeria dates back to the 15th century (1485) when the Portuguese sailed into Lagos with their vessels basically to trade on artifacts in Benin City. From the pre-independence era till date, the nation’s maritime industry is characterized by the domination of foreign vessels and/or carriers from the developed market economies of Western Europe and America. In order to control this scenario, subsequent developments led to the opening of ports at Apapa and Port Harcourt, rolling in the creation of the Nigerian Ports Authority (NPA) by the provision of Ports Act 1954 to load and discharge as well as maintain and develop the ports (Njoku, 2009).

From the commencement of operation of the NPA in 1956, Nigeria had operated a service port model. This was fraught with a lot of challenges which informed the idea of switching over to a landlord port model or port concession. The port concession program was completed in 2006 after an international competitive bidding process. This led to the emergence of 26 terminals which were concessioned to private terminal operators on the Build, Operate and Transfer (BOT) model. The reform brought about ceding of cargo handling operations at the port to private terminal operators, leaving NPA as the landlord. The Nigerian ports witnessed a rapid transformation as a result of this reform in which Nigerian ports were concession to the port operators called concessionaires.

Before the advent of port concession (1956-2005), the Nigerian port system suffered from numerous ills which included the following; the turnaround time for ships was too long and usually calculated in weeks, sometimes months, depending on the cargo being loaded or discharged; Cargo-handling plants and equipment owned by the NPA were few and mostly unserviceable leading to shipping companies hiring these machines from private sector sources after having paid NPA; Dwell time for goods in ports was prolonged due to poor port management and as a such overtime cargo filled the most active seaports leading to port congestion; Labour for ship work was held in the vice-grip of wharf overlords who controlled dockworker unions and supplied less than the manpower paid for. This fraud, which became accepted by the maritime community lasted for years and was usually perpetrated to extract maximum revenue from helpless ship owners and their agents without minding how this impacted on the Nigerian economy and the already dented image of the Nigerian seaports. As a result of the compounded problems, the Nigerian seaports were rated as one of the costliest seaports in the world.

Consequently, it adversely affected the patronage of our seaports (Njoku, 2009).

1.2    STATEMENT OF THE PROBLEM

Ndikom (2006) stated that many port premises and quay aprons had fallen to disuse and failed road sections inside the ports made movement of goods within port grounds cumbersome and very slow. Following the seaport congestion, complaints of untraceable or missing cargoes were being regularly lodged against the NPA, all to no avail. Security inside Nigerian seaports was compromised by the relentless ingress of multitudes of all shades of persons into the seaports. As a result, miscreants called wharf rats easily gained access into the ports and pilfered goods in storage or vehicle parts. In fact, security within port grounds was at the mercy of an elusive racket. However, this study is to investigate the trend on analysis of port capacity utilization in Nigeria.

1.3    OBJECTIVES OF THE STUDY

The following objectives of this study were stated to guide this study:

1. To investigate the trends of analysis of port capacity in cargo handling in Nigeria.
2. To determine the port infrastructural and cargo handling capacity utilization.
3. To determine the challenges of facing Apapa Port in proper utilization of port capacity in Nigeria.
4. To make useful recommendations based on the research findings.

1.4    RESEARCH QUESTIONS

The following research questions were formulated to guide this study:

1. Does the trends of analysis of port capacity in cargo handling in Nigeria?
2. Does the port infrastructural and cargo handling affect capacity utilization?
3. Does the challenges of facing Apapa Port in proper utilization of port capacity in Nigeria?

1.5    RESEARCH HYPOTHESES

The research hypotheses were formulated to guide this study:

Hypothesis 1

H₀:    There is no significant relationship between port capacity and    cargo handling in Nigeria.

H₁:    There is a significant relationship between port capacity and      cargo handling in Nigeria.

Hypothesis 2

H₀:    Port infrastructural and cargo handling does not affect capacity utilization in Nigeria.

H₁:    Port infrastructural and cargo handling affects capacity      utilization in Nigeria.

Hypothesis 3

H₀:    There are no challenges of facing Apapa Port in proper     utilization of port capacity in Nigeria.

H₁:    There are challenges of facing Apapa Port in   proper utilization of port capacity in Nigeria.

1.6    SCOPE AND LIMITATION OF THE STUDY

         This study is on the trend on analysis of port capacity utilization in Nigeria with a particular reference to Apapa Port.

However, there is no study undertaken by a researcher that is perfect. The imperfection of any research is always due to some factors negatively affecting a researcher in the course of carrying out research.  Therefore, time constraint has shown no mercy to the research. The limited time has to be shared among many alternative uses, which includes reading, attending lectures and writing of this research, also distance and its attendant costs of travelling to obtain information which may enhance the writing of this study was a major limitation.

1.7    DEFINITION OF TECHNICAL TERMS

1. a) Port Capacity: Port capacity is the estimated capacity of a port or an anchorage to clear cargo in 24 hours usually expressed in
2. b) Capacity Utilization: Capacity utilization is a measure of the extent to which the productive capacity of a business is being
3. c) Capacity Utilization Rate: The capacity utilization rate measures   the proportion of potential economic output that is       actually realized.
4. d) Ports: A port is a facility at the edge of an ocean, river, or lake for receiving ships and transferring cargo and persons to and    from them.
5. e) Cargo: Cargo are goods or produce being conveyed generally for commercial gain – by ship, boat, or aircraft,      although the term is now often extended to cover all types of      freight, including that carried by train, van, truck, or       intermodal

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 TREND ON ANALYSIS OF PORT CAPACITY UTILIZATION IN NIGERIA (A STUDY OF APAPA PORT)