Infrastructure Financing And Management: The Impact Of Concession On The Operations And Performance Of Nigerian Seaports

Infrastructure Financing And Management: The Impact Of Concession On The Operations And Performance Of Nigerian Seaports

Abstract

This paper study examined the effect of privatization on the performance of Nigerian seaports, using pre- andpost-privatization data. A Mann- Whitney Wilcoxon( MWW) test was applied to data( secondary) on two major indicators of harborage operation( average situation residency and average turn- around time). The result of the analysis showed that on average, the situation residency and turn- around time bettered from51.35 to72.47 and8.18 days to4.83 days independently. It was also set up that at a0.05 position of significance, the concession of Nigerian anchorages has significantly bettered average situation residency and average reversal time of the vessels calling at Nigerian anchorages. The study emphasises the need to give enabling terrain through the expression and perpetration of effective programs as a way of icing optimal performance of the concession model.

1. preface

Maritime conditioning could be seen as a life line of any developing frugality. Shipping has come the most effective mode of transportation in the transnational exchange of goods. Transportation of bulk goods over a fairly long distance is most economically done by ocean. This is farther eased through advances in technology which has brought about more effective, dependable and demand acquainted transportation system. It’s estimated that over 90 of global commerce is seaborne( 1). This reflects the position of reliance on shipping for the movement of goods generated in transnational trade deals.

Port reforms are policy measures by government aimed at enhancing effectiveness and productivity of anchorages by revitalizing and strengthening the functional and functional modalities at the anchorages( 2). Within the Nigerian environment, anchorages reforms were with a view to making Nigerian anchorages both stoner and investor friendly, therefore enhancing smooth operations at the anchorages.

The reform model chosen by the Nigerian government was port concession, whereby the government retains power the structure, and contracts out the operation and operation of the installations to the private sector on competitive base for a specified period of time. Bousquet and Fayard( 3) note that a concession arrangement is one in which the government( or her agency) grants the right to fund, make, enjoy, ameliorate, upgrade, maintain or operate a public structure, and charge druggies for the cost of services, for a limited period of time to a private sector driver. The sanctioned view about concession in Nigeria seems to be contained in the structure Concession Regulatory Commission Act( 2005) where concession is described as

a contractual arrangement whereby the design exponent or contractor undertakes the construction, including backing of any structure, installation and the operation and conservation thereof and shall include the force of any outfit and ministry for any structure and the provision of any services( 4).

With respect to harborage operations, concession refers to parcel of harborage outstations andre-organization of stevedoring companies( 5). The contractual arrangement embodies service criteria and specifies the specialized rates and practices anticipated from the concessionaire. maybe, it’s because of the stake that the government still has in the adventure that motivates government to insure that her programs are enforced both in specialized and social terms as noted by( 6).

The enhancement of harborage effectiveness or productivity seems to be the major provocation for harborage concessions in Nigeria. still, the position of achievement of this ideal is yet to be determined. This paper thus seeks to establish the impact of the reform by analysing the major indicators of harborage operations performance in the harborage. This impact would be established by

examining of the impact of harborage concession on weight average situation residency in Nigerian anchorages

analysing the impact of harborage concession on reversal time of vessels calling at the anchorages, and

drawing consequences and making recommendations grounded on the exploration findings

This study examines only the impact of concession on two major indicators of harborage operation( average situation residency and average reversal time), from 1995- 2012 in Nigerian anchorages. Attention has been drawn to the ways concession has bettered the effectiveness of services in the Nigerian anchorages, with recommendations able of aiding in the fruition of the points and objects of the exercise.

Although several studies similar as( 7, 8, 9, 10) had studied the conception of privatization and how its operation in seaports has increased competiveness and effectiveness, these haven’t been specific to Nigeria. This study will round these being studies by establishing the impact of privatization( harborage concession) on average situation residency and vessels turn- around time of Nigerian seaports.