THE EFFECT OF LOGISTICS INDUSTRY ON THE ECONOMIC GROWTH IN NIGERIA (A CASE STUDY OF THE MARITIME INDUSTRY)
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- 1-5 Chapters
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- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
Statement of the Problem
Policy inconsistency has been one of the problems encountered in maritime sector in Nigeria, the issue of inadequate policy formulation and implementation; hence the contribution of the maritime sector to economic growth has been a subject of debate. Concessionaires in Nigeria’s seaports situated at Warri, Port Harcourt, Lagos, Calabar, Onne, and Sapele have recently listed obstacles to efficient operation. Inadequate power supply and incessant removal of management of government agencies in the nation’s maritime industry are some of the factors impeding the efficient running of the ports. The concessionaires, who spoke under the aegis of the Seaport Terminal Operators Association of Nigeria (STOAN) in commemoration of eight years of port reforms, cited the aforementioned glitches to be affecting the effective and efficient running of the nation’s seaport. Other hitches are the arbitrary arrest of vessels at berth and attendant consequences, poor power generating system, friction among maritime statutory agencies due to overlapping functions and lack of national carrier capacity for the United Nation Conference on Trade and Development (UNCTAD) 40:40:20 carriage rights. The concessionaires that spoke through the, stressed that since they took over the running of the ports nearly a decade ago, they have been contending with these constraints.The poor implementation of the nation’s Cabotage Act 2003 was one of the factors militating against the growth and development of the Nigerian Maritime sector. It combines with poor implementation of the international port state control policy to encourage the visit to the Nigerian port by aged vessels with archaic handling facilities. In addition, the concessionaires condemned the proliferation of tank farms around the port locations, especially in Lagos, saying that they are constituting security risk to the ports and their users.
In other words, when a ship operator chooses a port of destination, he does not only think of reaching the port in time but also the reliability of leaving the port in time.
A higher utilization of the vessel will only be achieved if time in port is improved which will signify that fixed cost by the operator will be spread over increased number of voyage. This will consequently lead to reduced cost of ship operation. Traditionally; the turnaround time of a ship in port is a function of two variables namely:
(i) Waiting time or queuing time
(ii) Service time
The time of a vessel in port is high when either of the two is high compared to normal or the combination of the two.
Waiting time is always high when the demand for berths is higher than the supply. Here the major task of a port planner is to serve the annual vessels efficiently often referred to as the design capacity.In traditional maritime nations such as United Kingdom, USA, the Scandinavians, other European Countries among others, the factors of time, proper planning, co-ordination and implementation of clear-cut policies through government intervention largely account for the enviable levels of efficiency, sophistication and monumental success in their maritime activities especially in respect of its contribution to economic growth. The reverse appears to be the case in Nigeria as the fortunes of the industry have continued to suffer progressive catastrophe over the years. A very near example is the fact that the Nigerian National Shipping Line (NNSL) which took delivery of 19 (nineteen) brand new tonnages from European shipyards in 1979 and 1980, has not only lost all her vessels but has been liquidated altogether. This is complicated by the inability of governments of different types to float an indigenous national carrier up till date.
If delay in clearing goods at country is poor will make cost of good to go up and the country product will not be competitive in the market. Lack of online checking will make physical checking tortious and time consuming adding to delay in clearing of goods and will lead to the payment of additional fees at the port.
1.3 Objectives of the Study
The main objective of this study is to ascertain the effect of Logistic industry on Performance of Nigerian economy with focus on Maritime Industry. The specific objectives were to:
i. Determine the extent to which material handling affects service quality
ii. Ascertain the extent of the relationship between customer ordering processing and customer satisfaction
iii. Determine the effect of warehousing on revenue of Nigerian ports
iv. Ascertain the nature of relationship between container traffic and GDP maritime sector contribution.
v. Evaluate the extent to which transportation influences cargo throughput of Nigerian ports.
1.4 Research Questions
With the above objectives in focus, the study seeks to find answers to the following questions.
i. To what extent does material handling affect service quality?
ii. What is the extent of the relationship between customer ordering processing and customer satisfaction?
iii. What is the effect of warehousing on revenue of Nigerian ports?
iv. What is the nature of the relationship between container traffic and GDP maritime industry contribution?
v. To what extent does transportation influences the cargo throughput of Nigerian ports?
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