ABSTRACT

This study was carried out to examine Nigerian ports post-concession performance. Specifically, the studydetermine the influence of concession on efficiency of port authority and evaluated the performance of Nigerian ports two years before concession(2004-2005) and five years after concession (2006-2010). The study employed DEA Window Analysis model.  From the responses obtained and analyzed, the findings revealed that  fluctuation in efficiencies over the period with a remarkable increase in efficiency in 2006 the year the terminal operators took over the operation of the ports. This may be attributable to the drastic reduction of the ports labour force than the activities of the private operators. It is also observed that none of the investigated ports achieved a hundred percent efficiency for the period under review though Apapa port with an average of 84% is the most efficient while Calabar was the least with 20.44% efficiency level. It is significant to note that cargo throughput and ship traffic has increased considerably after the concession. That is an indication that Nigerian ports are regaining the traffic lost to neighbouring countries ports in the pre- concession era. Finally, to fully appreciate the gains of the reform the policy makers should conclude all aspects of the reform. The study thereby recommend that  berth idle time for vessels should be minimized in order to enhance productive berth occupancy. Also, Concessionaires should utilize the existing terminal facility effectively so that it can accommodate more cargo.  Lastly, automated loading  systems should be provided for the loading and offloading of cargo. Also, concessionaires should train and re-train indigenous personnel that will handle this equipment.

CHAPTER ONE:

INTRODUCTION

1.1 Background of the study

The competition between ports is more intense nowadays than it used to be. Cullinane and Wang (2007) consider that port markets used to be described as monopolistic due to the exclusive and immovable geographical location of the ports and the unavoidable concentration of port traffic. The development of international container and intermodal transportation has changed the market structure from one of monopoly to one where aggressive competition takes place worldwide. Many ports, no longer enjoy the monopoly yielded by handling the cargoes that is from their hinterland rather they compete for cargoes with their neighbouring ports (Cullinane & Wang 2006, 2007, Cullinane, et al. 2004).

Due to intense competition, many studies focus their attention in measuring efficiency in ports. Cullinane and Wang, (2006) are of the view that the analysis of individual ports and terminals are essential for the health of the industry and the survival and competitiveness of its players. These studies not only provide a valuable tool for port managers and operators to use, but also contribute as input for regional port planning and operations.

As a result of this, performance measurement has become a central issue to stakeholders in the port industry globally. Ports in the West African sub region are not left out of the new world order of intense competition and technological changes in the port market. In Nigeria this is experienced in the form of cargo diversion to neighbouring ports of Cotonou, Lome and Tema in Benin Republic, Togo and Ghana respectively. In order to tackle these problems Nigeria undertook a major port reform program which culminated in the concession of all ports to the private operator. Therefore, this study evaluates the post concession performance of Nigerian ports five years after adopting the Landlord model, to understand whether the ports are on the path of efficiency which is the major objective of the concession. Therefore, this study examines  Nigerian ports post-concession performance.

1.2 Statement of the problem

For ports, measuring performance is an essential tool in order to sustain and increase competitiveness. In a nutshell, the growth in ship size, advent of containerization and advances in cargo handling methods have imposed substantial infrastructural requirement on seaports. Besides, the rising incapability of the government to funding state owned ports has led to deregulation and hence removal of ports financing and management functions from public to private sector. This shift in responsibility placed much emphasis on productivity and efficiency in the management of seaports. This is rational given that privatized ports face competition and must be productive and efficient to stay viable. From the researcher observation, Following the concession of port, it appears the management of Nigeria port authority have inadvertently indulged in practices that are inimical to labour development and effective performance. These lapses are evident in the ability of the management of Nigeria port authority to identify who needs training; bias in the selection process of trainees and improper rotation of employees to tasks not relevant to the trainee’s area of interest. It is generally asserted that the improvement of port efficiency in terms of labour development seems to be the major motivation for port concessions in Nigeria. However, the level of achievement of this objective is yet to be determined. This study, therefore, seeks to evaluate the Nigerian ports post-concession performance.

1.3 Objective of the study

The primary objective of the study is to evaluate the Nigerian ports post-concession performance. The specific objectives is as follows:

i. To determine the influence of concession on efficiency of port authority.

ii. To evaluated the performance of Nigerian ports two years before concession(2004-2005) and five years after concession (2006-2010).

1.4 Research Questions

The following questions have been prepared for the study:

i. What is  the influence of concession on efficiency of port authority?

ii. What is the performance of Nigerian ports two years before concession(2004-2005) and five years after concession (2006-2010)?

1.5 Significance of the study

This study is significant to the Nigerian government , the management of port authority. Precisely, the Nigerian Ports Authority (NPA) will find this study useful as it will enlighten them on challenges of the port sector. The study will help them determine the extent to which the objective for creating port concession has been accomplished.

The study will be significant to the academic community as it will contribute to the existing literature.

1.6 Scope of the study

---

---