THE IMPACT OF REFORMS ON PORT PERFORMANCE IN NIGERIA: A CASE STUDY OF ONNE AND RIVERS PORTS

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THE IMPACT OF REFORMS ON PORT PERFORMANCE IN NIGERIA: A CASE STUDY OF ONNE AND RIVERS PORTS

 

ABSTRACT

This Thesis focuses on the impact of reforms on port performance using Onne and Rivers ports as a reference point. It analyses the pre and post reform eras of the ports in terms of their performance. The reforms took effect from 2006 after the Federal Government of Nigeria concessioned the ports to private investors. Parameters such as Ship traffic, Cargo throughput, Ship turn round time, Berth Occupancy and personnel were used as variables for the assessment. Secondary Data were collected from the Nigerian Ports Authority and Integrated Logistics Services Nigeria (INTELS) for the period 2001 to 2010 and analyzed using two techniques, a two-sample t-test toevaluate the difference between sample means and Data Envelopment Analysis to assess the efficiency of the ports.The findings show that the reforms resulted in significant improvements in cargo throughputas compared to the pre-reform era. The t-test shows that average Port throughput has increased significantly since the reform(concessioning) came into effect.Data envelopment analysis revealed a continuous improvement in the overall efficiency of both Ports since 2006 when the new measure was introduced. Average Ship turnaround time improved in the ports due to modern and fast cargo handling equipment and more cargo handling space which were provided. There is an increase in Ship traffic calling at the ports, resulting in increased cargo throughput and berth occupancy rate at the ports of Onne and Rivers. The reform also led to more private investment in the ports’ existing and new facilities and the introduction of a World Class service in port operation. This study concludes that the ports of Onne and Rivers are performing better under the reform programme of the Federal Government of Nigeria. It finally recommends the introductionof an integrated intermodal transport system for an effective and swift transfer of cargoes to and from the hinterland. Also, there is an urgent need for a regulator to appraise the performance of the reform programme from time to time as provided by the agreement and for the full adoption and utilization of management information system (MIS) to aid performance efficiency.

 

TABLE OF CONTENTS

PAGE

Certification ———————————————————————————–ii

Dedication ————————————————————————————-iii

Acknowledgements —————————————————————————iv

Abstract —————————————————————————————-v

List of Tables ———————————————————————————ix

List of Figures ——————————————————————————–x

 

CHAPTER ONE:INTRODUCTION

1.1 General Background ——————————————————————–1

1.2  Statement of the Problem ————————————————————-6

1.3 Objectives of the Study —————————————————————-7

1.4  Research Questions  ——————————————————————–8

1.5  Research Hypotheses  ——————————————————————8

1.6  Significance of the Study  ————————————————————-9

1.7 Scope of the Study ———————————————————————-9

1.8 Limitation of the tudy ——————————————————————-9

1.9  Brief Description of  Onne and Rivers Ports —————————————-9

1.9.1 Port Harcourt Port (Hard Quays) —————————————————-10

1.9.2 Onne Port Complex ——————————————————————-10

1.9.3 Federal Ocean Terminal (FOT) ——————————————————11

1.9.4 Federal Lighter Terminal (FLT) —————————————————–11

 

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.0 Introduction —————————————————————————–12

2.1 Conceptual Framework —————————————————————-12

2.1.1 Port Privatization ———————————————————————13

2.1.2 Commercialization ——————————————————————-16

2.1.3 Corporatization ———————————————————————–16

2.1.4 Port Performance Measurement —————————————————-17

2.1.5Performance Measurement Studies Using Data

Envelopment Analysis (DEA) —————————————————–18

2.1.6 Privatization ————————————————————————–21

2.1.7 Devolution —————————————————————————-22

2.2Port Reforms in other Countries ——————————————————22

2.2.1 Colombia and Argentina Ports —————————————————–24

2.2.2 India Jawaharlal Nehru Port Trust (JNPT), Mumbai —————————-26

2.2.2.1 The Pre-reform Scenario ———————————————————-27

2.2.2.2 Evolution of Port Reforms Policy in India ————————————–28

2.2.2.3 Impact of Reforms ——————————————————————29

2.2.2.4 Performance Indicators ————————————————————29 2.2.3 Reforms and Infrastructure Efficiency in Spain’s

Container Port ——————————————————————————–32

2.3 Empirical Review ———————————————————————–33

2.3.1 Early Port Performance in Nigeria ————————————————-33

 

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Data Collection ————————————————————————-37

3.1.1 Research Design ———————————————————————-37

3.1.2 Primary Data ————————————————————————–37

3.1.3 Secondary Data ———————————————————————–37

3.2 Methods of Data Analysis ————————————————————-38

3.2.1 DEA Application to Seaport Efficiency Measurement ————————–38

3.2.2 Paired Sample t-test ——————————————————————40

3.2.3 Cargo Throughput (Metric Tonnes) ————————————————41

3.2.4 Berth Occupancy Rate (BOR) (%) ————————————————-41

3.2.5 Turn Round Time (TRT) (Days) —————————————————-42

 

CHAPTER FOUR: PRESENTATIONAND ANALYSIS OF DATA

4.1 Data Presentation ————————————————————————-44

4.2 Data Envelopment Analysis (DEA) of Onne and Rivers Ports

Efficiency Level from 2001 – 2010———————————————————49

4.3 DEA Comparative Analysis of Performance of Onne& Rivers ports– ———-51

4.4 Test of Hypothesis ————————————————————————54

4.5.1 Discussion: Cargo Throughput ——————————————————–61

4.5.2 Berth Occupancy Rate (%) ————————————————————-64

4.5.3 Vessel Turn Round Time —————————————————————67

4.6 New Port Performance Indicators ——————————————————-68

4.6.1 Port Related Employment in the Region ———————————————69

4.6.2 Emergence of more Companies ——————————————————-70

4.6.3 Information and Communication Technology (ICT) in Port ———————-71

 

CHAPTER FIVE: SUMMARY, CONCLUSION AND   RECOMMENDATIONS

5.1 Introduction ——————————————————————————–72

5.2 Summary of Findings ———————————————————————72

5.3 Conclusion ———————————————————————————-75

5.4 Recommendations ————————————————————————-75

5.5 Contribution to Knowledge —————————————————————77

5.6 Area for Further Study ———————————————————————77

References ———————————————————————————–78

THE IMPACT OF REFORMS ON PORT PERFORMANCE IN NIGERIA: A CASE STUDY OF ONNE AND RIVERS PORTS

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