AN EVALUATION OF THE INLAND TRANSPORTATION AND ITS EFFECT ON LOGISTICS IN NIGERIA

AN EVALUATION OF THE INLAND TRANSPORTATION AND ITS EFFECT ON LOGISTICS IN NIGERIA

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CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

          Infrastructure is defined as part of a structure; material or economic base of a society or an organization. Therefore, infrastructure can be seen as the basic structure that fosters the good performance of cities’, states’ or countries’ essential services. In this sense, for a country to have a good logistics infrastructure system in the different modes of transportation, constant investments from both public and private sectors are needed. Organizations, especially in a competitive and globalised world, require infrastructure compatible with their needs and demands, in order to transmit their products and services to different producers and demand centres in different parts of the globe.

          Transportation and property are important in physical and economic development of towns and cities all over the world. Property and land values tend to increase in areas with expanding transportation networks, and increase less rapidly in areas without such improvements. Rapid and continued rise in housing and land prices are expected in cities with transportation improvements and rapid economic and population growth (Oni, 2008).

          Man, nations, regions and the world would be severely limited in development without transportation, which is a key factor for physical and economic growth (Oyesiku, 2002). Transportation systems and land use are interdependent. Indeed findings of earlier studies indicate compelling and consistent connections amongst them (Ewing and Cervero, 2001; Polzin, 2004). According to Bailey, Mokhtarian, and Littlel (2008), transportation route is part of distinct development pattern or road network and mostly described by regular street patterns as an indispensable factor of human existence, development and civilization. The route network coupled with increased transport investment result in changed levels of accessibility reflected through cost benefit analysis, savings in travel time, and other benefits. These benefits are noticeable in increased catchment areas for services and facilities like shops, schools, offices, banks, and leisure activities.

          Road networks are observed in terms of its components of accessibility, connectivity, traffic density, level of service, compactness, and density of particular roads. Level of service is a measure by which the quality of service on transportation devices or infrastructure is determined, and it is a holistic approach considering several factors regarded as measures of traffic density and congestion rather than overall speed of the journey (Mannering, Walter, and Scott, 2004).

          Access to major roads provides relative advantages consequent upon which commercial users locate to enjoy the advantages. Modern businesses, industries, trades and general activities depend on transport and transport infrastructure, with movement of goods and services from place to place becoming vital and inseparable aspects of global and urban economic survival. Developments of various transportation modes have become pivotal to physical and economic developments. Such modes include human porterage, railways, ropeways and cableways, pipelines, inland waterways, sea, air, and roads (Said and Shah, 2008).

1.2     STATEMENT OF THE PROBLEM

          Recently, the macroeconomic indices have shown that for many growing economies, the value added by transport to the economy accounts for three to eight per cent of GDP, while employment in transport sector ranges between 2.5 and 11.5 per cent of total paid employment. For a struggling economy like Nigeria, intensified investment in transport will not only create millions of jobs, but also stimulate critical sectors of the economy, facilitate the safe and efficient movement of people and goods, promote economic development, competitiveness and even strengthen security – on which the Federal Government alone plans to spend, and waste about N3 billion every day, including weekends in 2012.

          Reflecting on the histories of successful nations, economic growth, prosperity and opportunity for everyone have followed investments in transport infrastructure. Investing in the sector is the basic foundation for governance and economic growth. A key example is the United States of America where between 1980 and 1991, almost one-fifth of the increase in productivity in their economy was attributable to investment in roads - interstate highways and municipal link roads.  

          Efficient highways, rail systems, airlines, airports, harbours and waterways will not only provide the backbone to grow our economy by moving people and goods around seamlessly, cheaply and safely, it can also employ millions of workers to generate substantial share of economic output of the country. If well exploited, transportation can actually contribute in excess of 10 per cent of our total domestic product annually compared to the current levels of informality and low contribution.

          Lastly, an effective transportation system can have direct and significant effect on the daily lives of our people. Properly targeted and managed investments in transport facilities will mean effective travel that could save time, fuel and reduce pollution; lives will be saved and fewer delays and less hassle for the average Nigerian.

1.3     OBJECTIVES OF THE STUDY

          The general objective of this study is to evaluate the use of inland transportation and its effect on logistics in Nigeria. The specific objectives are to find out the following:

1.       To examine the effect of transportation on logistics system in Nigeria.

2.       To determine the relationship between road transportation and logistics         systems in Nigeria.

3.       To determine the relationship between Inland Waterways and road      transportation in Lagos State.

4.       To find out the problems facing Lagos State Waterways Authority in   transportation system.

1.4     RESEARCH QUESTIONS

          The following research questions were formulated to guide this study:

1.       What is the effect of transportation on logistics system in Nigeria?

2.       Is there any relationship between road transportation and logistics       systems in Nigeria?

3.       Is there any relationship between Inland Waterways and road    transportation in Lagos State?

4.       Are there any problems facing Lagos State Waterways Authority in     transportation system?

1.5     RESEARCH HYPOTHESES

          The following research hypotheses were formulated to guide this study:

Hypothesis 1

H0:     There is no significance relationship between the effect of transportation and           logistics system in Nigeria.

H1:     There is a significance relationship between the effect of transportation and logistics system in Nigeria.

Hypothesis 2

H0:     There is no significant relationship between road transportation and logistics           systems in Nigeria.

H1:     There is a significant relationship between road transportation and logistics   systems in Nigeria.

Hypothesis 3

H0:There is no relationship between Inland Waterways and road     transportation in Lagos State.

H1:     There is a relationship between Inland Waterways and road       transportation in Lagos State.

1.6     SIGNIFICANCE OF THE STUDY

          In this study, the researchers have set out to evaluate the inland transportation and its effect on logistics system in Nigeria in Lagos State Waterways Authority. It would enable the officer’s in-charge to improve on the system of transportation where lapses are discovered or exists.

          The study would also educate those who do not understand the essence of transportation and its economic growth of any nation.

To stakeholders and interested persons in transport sector, this study is expected to enkindle their interest the more and they will take note of various recommendations mentioned here and help steer the management team towards forming a study organizations to present accurate economic growth that will measure the Nigerian gross domestic product.

          This study will also help to serve as literature (reference source) to students, individuals or corporate bodies into what to carry out on further research on the similar topic.

1.7     SCOPE OF THE STUDY

This study is limited to Lagos State Waterways Authority and upon the research topic which is an evaluation of the inland transportation and its effect on logistics system in Nigeria.

1.8     LIMITATION OF THE STUDY

The study limitation was inability of management to divulge certain information which they consider sensitive and fear of publication which might be detrimental to their operations in the ministry.

Distance and its attendant cost of travel in order to obtain information which to write this study was also a major limitation. Another limitation to the study is short time factor which did not give time for thorough research work, hence gathering adequate information becomes very difficult.     

          Finally, lack of materials on the topic; this is new in the area of the subject. Therefore, the researcher resolved to seek friendly approach in order to obtain the needed materials or information from the organization under study through the administration of questionnaire.

1.9     DEFINITION OF TERMS

A)      Transportation: It is an act, process, or instance of transporting or being           transported. Any device used to move an item from one location to another. Common forms of transportation include planes, trains, automobiles, and other two-wheel devices such as bikes or motorcycles.

b)      Accessibility: accessibility refers to ease of reaching destinations. People in places that are highly accessible would reach many other activities or         destinations quickly and people in inaccessible places can reach many fewer          places in the same amount of time, so that nearer or less expensive places are         weighted more than farther or more expensive places.

c)       Logistics: Logistics is generally the detailed organization and    implementation of a complex operation. In a general business sense,      logistics is the management of the flow of things between the point of origin       and the point of consumption in order to meet requirements of customers or    corporations.

d)      Logistics Management: Logistics management is the part of supply chain           management that plans, implements, and controls the efficient, effective        forward, and reverses flow and storage of goods, services, and related     information between the point of origin and the point of consumption in      order to meet customer's requirements. The complexity of logistics can be   modeled, analyzed, visualized, and optimized by dedicated simulation   software. The minimization of the use of resources is a common motivation in all logistics fields. A professional working in the field of logistics        management is called a logistician.





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