THE IMPACT OF IMPROVED INFRASTRUCTURE AND EFFICIENT CARGO DELIVERY IN NIGERIA PORT (A CASE STUDY OF CALABAR PORT COMPLEX)

THE IMPACT OF IMPROVED INFRASTRUCTURE AND EFFICIENT CARGO DELIVERY IN NIGERIA PORT (A CASE STUDY OF CALABAR PORT COMPLEX)

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ABSTARCT

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 Infrastrutural 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.

CHAPTER ONE

INTRODUCTION

1.1   Background of the Study

        Maritime transport investment is one of the major transport sector that requires various infrastructural investment and as well large equipment facilities which enhances its maritime operation. This is because maritime transport (sea port) accommodate large vessels and other maritime and international shipping which helps in the economic development of the nation. Therefore, there is need to allow private sector to come through concession and privatization in the development of the sector so as to help the nation in the maritime transport sector. This because the port (maritime domain) act as a catalyst and gateway for any nations economy.

        There is a notion that because ports serve as vital links in the trading chain (Chin and Tongzon, 1998), a greater participation of the private sector in both the ownership and operation of container ports could not only enhance the operational efficiency of these ports (Tongzon and Heng, 2005), but also the economic well being of the entire country. It is about eight years that the Nigerian port system was concessioned to private investors; and there are observations that this has caused tremendous improvement in port operations culminating in high level of efficiency in the ports. Anagor (2014) notes the transfer of port operations to private organizations has resulted in high level of improvement, with substantial investments in terminal infrastructure and cargo handling equipment, increased cargo throughput (which has grown by about 250% in most terminals over the past eight years), leading to a restoration of importers’ confidence to doing business in Nigerian ports. It is in the light of this that this paper would assess the impact of concession of Nigerian seaports on the economic growth of the country.

        A consideration of Nigeria’s large coastal water and seaports (predominantly in the Southern region of the country) reveals that the maritime sector has contributed substantially to the economic development of the country. It is not surprising that a large volume of the country’s international trade is in one way or the other connected to the maritime sector; for instance, the distribution of the crude oil and related products from the various oil wells in the country is distributed to the international buyers through the various seaports and maritime routes of the country. This perhaps explains why Ndikom (2006) views a port as a gateway to the nation’s economy, with shipping services being a primary logistic service of critical importance. This impact is not peculiar to Nigeria as there are suggestions of similar impacts in other countries. For instance, the observation by Trujillo (2005) that there are 2,814 international ports catering for freight traffic in the world is an indication of the level of business activities associated with the maritime sector across the world. It is estimated that port traffic increases at an average rate of 3% per year, with nearly 90% of goods exchanged through international trade facilitated through the maritime transportation network. The United Nations Conference on Trade and Development believes that a large share of international trade would not have been possible without the infrastructures provided by seaports, regarded generally as the interface between maritime transport and land transport or inland navigation (UNCTAD, 2002).

        In contemporary global commerce, seaport or maritime transport play an important role as a nation’s major gateway to international trade, thus becoming a good instrument for measuring the economic health of a nation (Ogunsiji and Ogunsiji, 2010; UNCTAD, 2008). The ports have considerable influence not only on the volume and conditions of trade, and by implication, on the capacity for economic development. In Nigeria, for instance, greater percentage of international trade is routed through the sea, and by virtue of her population, may account for about 70% of all seaborne trade in the West African sub region (Fivestar Logistics, 2008). This may also explain the Federal government of Nigeria’s transformation agenda for the sector through the establishment of agencies such as NIMASA, which has been is working towards building requisite human capacity in the maritime sector.

1.2   Statement of the Problem

        There are observations that seaports are key logistic elements of supply chains (Photis et.al, 2007; Robinson, 2007 and Wouter, 2007), serving as the interface between maritime and land transportation systems. However, this role (especially the volume of trade would have occurred) cannot be efficiently carried out without sufficient ports infrastructure. Therefore, it is expected that seaports move from the traditional port functions of loading and discharging, to more advanced activities that would add value and enhance efficient management of internal port operations.

        Several factors impact on maritime port administration, especially those managed by public authorities. For instance, it has been suggested that port reformation process and the overlap between public and private ownerships are critical elements that influence seaport performance (Everett, 2007; Robinson, 2007). There are also views that the level of investment is critical in ports management. Due to the complex nature of ports, analysts suggest that any analysis of investment made in ports should take into consideration in ports infrastructure, superstructure, as well as hinterland connections (Hilda, 2005; Paixao, 2005). Other elements to be considered include port capacity and landside limitations (Bassan, 2007); port competitive structure, and port regulations changes (Goss, 1990); port networks (Zeng, 2002); port efficiency (Clark et al., 2004), among others.

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   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.

1.5   Research Questions

        The following research questions are hereby stated for the study.

1.     To what extent do improved infrastructure ensure efficient      cargo delivery in Calabar Port, Nigeria?

2.     What are the major causes of poor infrastructure in Nigerian   Ports?

3.     Does bad infrastructure affect efficient cargo delivery in Nigerian ports?

4.     What are the major categories of port infrastructures?

1.6   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.

1.7   Basic Assumptions of the Study

        The following assumptions were made in the study;

1.     Improved infrastructure ensures efficient cargo delivery.

2.     The distributed questionnaires will be collected and used        adequately without bias.

3.     That Calabar port shall provide a true and unbiased information      for the study being the case study.

4.     The supervisor will give the researcher adequate guidance.


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