CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
The entire universe Technological growth has brought about significant changes in the world. A port is a site on the coast or coastline with one or more harbors where ships can dock and transport passengers or cargo to or from land. Port locations are chosen to maximize access to land and inland water, market demand, and wind and wave protection. The Portuguese arrived into Lagos with their ships in the 15th century (1485) to trade in antiques in Benin City. From the days before independence to the present, the nation’s maritime industry has been dominated by foreign ships and/or carriers in established market economies. The efficiency of ports has increased by a factor of ten since the concession was granted. As ships arrive in Apapa, there is no waiting period; each docks immediately and begins the discharge, as opposed to what used to be the case from 2004 to 2006, when the development began (Barnabas, 2015) Because the majority of the few facilities handling NPA merchandise were defunct, the transport firms were forced to hire these facilities from the private sector, incurring significant expenditures. Because products stayed at ports for such a long time, most active seaports were overburdened, resulting in massive port congestion. The dockers’ unions were controlled by a mafia that had no qualms about supplying labor for ships.
The resulting bottleneck causes shipments to appear as if they have vanished into thin air, and NPA often appeared unable to force the return of such cargoes, to to the frustration of persons in the “labor business.”
As a result, porous entrance points, also known as dangerous miscreants wharf rats flooded ports, earn their daily food, resulting in predictable catastrophe tales from responsible businesspeople. As the clocks struck a new century, the maritime industry in Nigeria, which accounted for 70% of all seaborne trade in West Africa and supported the economic demands of a fifth of the black race, was still mired in inefficiency; its ports were classed as some of the most inefficient in the world.
The Nigerian Ports Authority (NPA) was established in 1955 to streamline the previous scenario of several port authorities and substantial duplication of tasks. However, this reform has brought with it its own set of issues, namely, over-concentration and government accountability. As a result, inefficiency and corruption have worsened.
However, prior to developing Apapa seaport, the Nigerian federal government conducted one of the most ambitious concession port plans ever attempted by the end of 2004. The success of this program is due to the government’s vision and drive, as well as the necessity to close large gaps in the sector that have stifled economic development (James et al 2007). The federal government has a concession on one of these ports.
Nigerian port operations and development began in the mid-nineteenth century, long after the country had sailed from the sea of commerce. The Lagos lagoon, which opened in the early 1900s, was the first attempt to provide facilities for ocean-going vessels. In 1913, the Apapa port in the southwest was set aside for expansion, and work on the first four deep-water spaces (548.64m) began in 1921. In 1948, the four berths were extended downstream with the construction of an additional 762m of berth length. The discovery of coal in Enugu led to the construction of the Port Harcourt port, which opened in 1913 on the country’s eastern side.
Despite these advancements, there is still a lack of a consistent policy framework.
The Nigerian Ports Authority (NPA) was established in 1954 to remedy some of the country’s infrastructure and institutional flaws. In essence, the NPA was throughout charge of providing infrastructure and assistance for the functioning of Nigeria’s seaport as well as enabling maritime transportation in the country. During the first ten years, NPA worked hard to expand the two inherited ports – Apapa and Port Harcourt. He oversaw the addition of six 943m berths to the port of Apapa’s existing berths, as well as the addition of four berths with a total quay length of 506m to the port of Port Harcourt’s facilities.
With the advent of globalization, however, it has become clear that the government lacks the resources and management to effectively manage the situation.
His Excellency President Olusegun Obasanjo ordered the NPA’s privatization to be strengthened in 2001. In 2003, the National Council on Privatisation (NCP), the country’s top political body for sector reforms, with the BPE as its secretariat, began an investment process in Nigerian ports involving the private sector and expertise, with the goals of increasing port efficiency, lowering the cost of reduced port services to end users, eliminating the flow of funds from limited government resources, stimulating activity, and accelerating economic development. As a result, the port’s concession deal was fully implemented in 2006. (Marine International Business 2007).
Taking note of the new paradigm However, the government’s inability to comprehend APM’s condition is compounded by the fact that the organization has been subjected to maltreatment as a result of constant interference, politicking, and corruption. Other challenges that led to the house – reforms include: discouragement due to age and poor infrastructure / superstructure, which was due to the Authority’s difficulties in accessing funds for projects fixed assets; the factory and insufficient availability of crafts; poor access to the port; vandalism aids to navigation port by undesirable elements; non-competitive environment leading to complacency in any respect; bureaucracy and external interference in the – reforms (Marine Business International, 2007).
STATEMENT OF PROBLEM
In the 1990s, Nigerian ports were inefficient, resulting in extended lead times for vessels and increased container dwell time. Unloading and reloading a ship could take weeks instead of the 48 hours that other regions, such as Asia, consider usual. Furthermore, the staff was overworked and inefficient, the cargo was subjected to massive flight levels, and port fees were exorbitant. Worst of all, the port infrastructure needs significant reconstruction and rehabilitation, which would necessitate significant external financial support, which the federal government was hesitant to grant given the sector’s existing operational inefficiencies.
Three primary operators administer Apapa Port Terminal, which handles over 90% of the country’s imports;
OBJECTIVES OF THE STUDY
The study’s goals are as follows:
1. Evaluate the impact of a port concession in Nigeria, specifically in relation to Apapa ports.
2. To determine the role of management style in the administration of the apapa port following concession.
3. Evaluate the effects of the port concession on port congestion and examine the effectiveness of the freight compensation concession.
4. To explore potential options for mitigating the effect and preventing future occurrences.
RESEARCH HYPOTHESIS
HYPOTHESES ONE HYPOTHESES ONE HYPOTHESES
Ho: concession port boosts freight clearance efficiency
Ho: a concession port does not boost cargo clearance efficiency.
TWO HYPOTHESES
Ho: a port concession can help relieve congestion in the port.
Hello, granting a port concession does not alleviate port congestion.
SIGNIFICANCE OF THE STUDY
The study’s recommendations could ideally lead to a more competitive Apapa port in terms of better management and administration in the West African region. Most developing countries’ economies, such as Nigeria’s, are said to be heavily reliant on maritime transportation, and it is also responsible for the creation of such a system. This is because a well-functioning port and cargo handling system will encourage shipping companies, importers, and exporters to use the nation’s seaport to its maximum potential. As a result, the concession is a worldwide phenomena. It is typically founded in a long-standing culture of globalization; as a result, Nigeria cannot afford to remain isolated from the global market, where capital goods are mostly channeled through the United States.
SCOPE AND LIMITATION OF THE STUDY
This study work is exclusively for the duration of the study. The study examines the effects of port concessions in Nigeria. As a result, the research is limited to the performance of Apapa Port following the concession process. Furthermore, it will enable the researcher to complete the research in a timely manner, taking into account the time limits and other constraints that may be encountered in the course of any future attempt to expand the scope of the research. The study’s scope was limited due to various constraints experienced by the researcher. The following are examples of these limitations, however they are not exhaustive.
a) RESEARCH MATERIAL AVAILABILITY: The researcher’s research material is insufficient, restricting the study’s scope.
b) TIME: The amount of time allotted to the project.
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