Effect of Port Reform on Cargo Throughout Level at Seaport Nigeria
CHAPTER ONE
OBJECTIVES OF STUDY
The research aims at assessing how port reform has fared in attaining its major goals of increasing efficiency and raising throughput in Nigeria with reference to Onne Ports.
CHAPTER TWO
LITERATURE REVIEW
CONCEPTUAL REVIEW
Much of Nigeria trade is continental primarily between Nigeria and Europe, Asia and North America during the past decades, continental trade has grown in importance for Nigeria. The creation of the free trade agreement among the Economic Community of West African States (ECOWAS) and other bi-lateral and multi- lateral agreement with other countries, including globalization of world economics contributes to the continued integration of these national economies on a continental scale.
These trade agreements directly impacts Nigeria ports by encouraging overseas trade and cargo throughputs in our ports increased on a relative scale. Although Nigeria maintains both a multi-lateral (supporting the world trade organization and seeking trade partners abroad) and a bi-lateral trade policy (ECOWAS). Nigeria ports have benefited immensely from continental trade more than trade within her territory. As such, the marine sector with its focus on overseas trade is as important in the transportation policy as it is in other more maritime oriented nations.
PORT PRIVATIZATION
Defining “privatization” in today’s international ports system is fraught with frustration: the term is loosely used to refer to all manner of steps taken to enhance the commercial side of port operations, part of the definition problem arises from the purpose of privatization ranging from the ideological belief in the superiority of market discipline to the pragmatic need to redress failed nation economic development efforts (particularly in the developing world) (Ircha 2001).
Wade (1992) argued that from an ideological perspective, privatization is a sub-field in neo-classical perspective economics known as neo-liberalism which, as a general rule tends to view short-run optimal resource allocation (as derived from market forces) as the key factor for maximizing the rate of long-term economic growth.
CHAPTER THREE
RESEARCH METHODOLOGY
RESEARCH DESIGN
Data was collected for the study through secondary sources and various statistical techniques was used in analyzing the data collected for the period 2008 to 2017 (10 years) which overlaps the pre and post concession era of the Ports in the study. These statistical tool include descriptive tools such as the mean, percentage, frequency, tables and charts, The two-sample t Test was also used to test the difference between the sample mean cargo throughput for the pre reform era and the post reform era to validate if there exists any statistically significant difference in cargo throughput level otherwise signifying an improvement or reduction as the result will show.
DATA ANALYSIS
Based on the hypotheses already stated in section 1.5 in chapter one above, the following hypotheses were proposed:
Ho1: There is no statistically significant difference between the mean cargo throughput for the pre reform era and post reform era at Onne Port.
CHAPTER FOUR
RESULT AND DISCUSSION
RESULTS
Berth Occupancy Rate (%)
The Berth occupancy rate (%) of Onne is shown on the table 4.1 .The Berth Occupancy Rate of Onne Ports since2001, 2002, 2003, 2004 and 2005 prior to the reform has been44.44%, 62.96%, 74%, 72% and 71% respectively which is at an optimum point. This is as a result of the fact that from the inception of the Ports of Onne as Oil and Gas Free Zone, provision was made for enough stacking areas with an expansion space possibility. The ship call for 2001,2002, 2003, 2004 and 2005 are 3,412, 4,203 3,978, 3,579 and 3,585 vessels respectively made up of mostly Offshore Service and Supply boats .
After the reform came to stay in 2006, the Berth Occupancy rate of Onne Ports improved the more as can be seen in table 4.1 and figure 4.4. In 2006 & 2007, it stood at 71% and 70% respectively with a corresponding ship call of 4,033 and 4311; but in 2008, there was a sharp drop in the berth occupancy rate to 34% with a ship call of 3,457.
The sharp drop in berth occupancy rate of 34% and 65.86% for the Onne and Rivers Ports is as a result of the Niger Delta crisis that threatened the safety of life and properties of mostly the Oil Exploration activities in the region hence the great impact on the economy of the region and the Nation as a whole since Oil and Gas Exploration accounts for greater source of Nigeria Revenue base. After the Amnesty programme of the Federal Government, Ship call at Onne Ports improved to 3,828 and 4,086 in 2009 and 2010 respectively.
CHAPTER FIVE
CONCLUSION AND RECOMMENDATION
CONCLUSION
From the result of the study, it was found that reforms have been beneficial to the ports and the economy by an improving the cargo throughput at Onne, drop in the berth occupancy rate at Onne, Faster vessel and cargo turn round time due to more and modern cargo handling equipment and Increase in ship traffic and ship size too which brings about Economics of scale Economy of scale.
RECOMMENDATIONS
The impacts of reforms on port operation in Nigeria have contributed positively to the economy but the following recommendation will equally increase the productivity, operational efficiency and competitiveness of the ports.
- Provision of Integrated Intermodal Transport System: There is an urgent need for an integrated Intermodal transport system, since a port is also a link in the transport chain and of course, similar requirements apply as regards capacity, performance and quality of connections with short sea and feeder shipping lines and with inland transportation networks, road, rail, barges, pipelines etc; hence swift transfer of cargoes to and from the hinterland.
- Full utilization of Management Information System (MIS): It is difficult to achieve real success in operation and increased port performance without proper implementation of Management Information System (MIS). The benefit of MIS tool like cargo tracking network (CTN), Electronic Data Interchange (EDI), enables fast transfer of information between terminal operators, port management and statutory agencies like customs and stakeholders, hence increased efficiency. The use of paper medium for most information transfer or retrieval can adversely hamper or distort information.
- There is a need for a Regulator: The concession agreement made provision for an appraisal for the reform operation but there is non- implementation of such as contained in the agreement. There is also the problem of arbitrary increase in charges by the shipping companies hence there is an urgent need for a regulator to check the excesses of the shipping companies. The terminal operators ought to always publish its rates, charges and the conditions..
- Full Utilization of e-payment system: The use of e-payment will go a long way in reducing cash gratification and delays thereby realizing the 48hours cargo clearance.
- Stoppage of siting of Oil Depots (Tank Farms) in the port Areas: The siting of oil depots (Tank Farms) in the port areas is not in line with World standard. It occupies most land spaces for port expansion, creates vehicular traffic to the ports and its fire attendant risk is better not experienced because of the volatility of the oil products stored in the tanks. The Department of Petroleum Resources (DPR) and the Federal Government of Nigeria should reverse this trend in our ports for safety reasons.
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