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PORT PRIVATIZATION AS A STRATEGY FOR EFFECTIVE PORT MANAGEMENT IN NIGERIA

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PORT PRIVATIZATION AS A STRATEGY FOR EFFECTIVE PORT MANAGEMENT IN NIGERIA

 

CHAPTER ONE

INTRODUCTION

 

1.1 BACKGROUND OF THE STUDY

In the words of flere (1992), a port is a gateway from the modern perspective. We used the word port to mean seaport and sometime rivers port.

That is a gateway between land and water. One side of gateway  is used by ships, coasters and sometimes air crafts, the other by railways, motors scanners and perhaps barges, through such gate ways; constantly passes some port of the traffic would.

That is grades of passengers or both. It is indeed the fundamental characteristics of a port that it should be able to accommodate ships on  one hand, and inland transport vehicles on the other hand.

That is why every port is equipped to look two ways outward over its economic interland (Ndikom, 2008). In one respect the analogy of the gate way become somewhat strained flamely in the case of coast-wise vessel and inland waterway carries receiving cargo direct from ocean going ships.  (Ihenacho, 2005).

However, the port hinterland  interaction suffers a significant set back when the sea side traffic is halted  by virtue of anomalies, such as port congestion Ndikom, (2004) Maintains that privatization is a — globalized concept that has to do  the with initiation of privates sector participation in the business of government owned public enterprise. It is also a strategy where government owned public enterprises functions and management is transferred o the private sector. Then privatization policy is a policy that is reflective of an outright transfer or sale of state ownership of public infrastructure into private hands. This policy does not mean that government stays always from the economic spare, rather it hangs its role from that of a regulator (Ndikom, 2008).

Productivity on the other hand, is measure of how efficiently inputs are being used within the economy to produce out puts.

Productivity is commonly defined as ration of outputs to a volume measured of inputs to a volume measured of input.  Growth in productivity means that an industry can produce more output from the same amount of input. Productivity growth is an important contribution factor to a relation long-term material standard or living. Productivity measure can be either single factor relating a measure of output to a single measure of input.

 

 

 

The purpose of this degree of research is to evaluate the degree to which port privatization policy affects port productivity in Nigeria (Iheanacho, 2005).

1.2 Statement of the problem

Over the years, the management and control of the overall port operations have been left in the hands of managers who seem not to understand the rudimentary challenges of the industry. This has had serious economic implications on port efficiency and productivity culminating into negative trends which is not in the interest of the entire port operation. The primary goal of privatization and commercialization programmes of the Federal government of Nigeria is to make the private sector the leading engine of economic growth in the country. Overtime, through direct massive investment and participation by government, Nigeria has developed a large public sector economy. In spite of the image investment, public enterprise such as ports has failed woefully to perform the functions and attain the objectives for which they were set-up. The gross failure of the ports to live up to the expectations is partly responsible for the current move towards economic liberalization, competition and privatization. The philosophy behind the privatization programme, therefore, is to restructure and naturalize the ports sector not only to lessen the dominance of unproductive investment in the sector but also to initiate the process of gradual transfer to the private sector of public enterprises, which are better elevated through private sector initiatives.

 1.3 Objectives of the Study

The aim of this study is to assess the effect of port privatization policy and port productivity in Nigeria. While the specific objectives are as follows:

 

  1. Reduction in the number of agencies at the ports ii. To increase efficiency and productivity

iii.     To determine the effects of government policy inconsistencies in Nigeria ports iv.     Reintroduction of certain agencies at the ports, such as  NAFDAC v.          Making policies recommendation

  1. To encourage cheaper and user friendly operational concepts vii. To induce consistent increases in healthy port competition

 

1.4 Research Questions

In order to achieve the objective of this research, the study will attempt to provide answers to the following research questions.

 

  1. How does port privatization policy affect port productivity?
  2. What is the difference between port privatization policy in 2008-2010 and that of the years before?
  3. How can port productivity in Nigeria be enhanced?
  4. How can we determine good quality services through entrenchment of privatization policies in ports operation?

1.5 Research Hypothesis

HO1: There is no significant relationship between port privatization policy and port productivity.

H02: There is no significant relationship between port privatization, port operational performance and efficiency in     service delivery.

HO2: There is no significant relationship between port privatization policy and increased port revenue generation. HO3: There is no significant relationship between port privatization and increased services delivery.

 1.6 Definition of terms

Definition of Technical Terms (Port Terminologies)

 

Gross Registered Tonnage (GRT): Ship internal space measured in unit of 100 cubic feet.

Ship Turnaround Time (TRT): Time taken by a ship on the process of entering Port, Discharging Cargo, Re-loading and leaving the port. Cargo Throughput: The sum of foreign imports, exports and domestic cargoes discharged and loaded.

Waiting Time: Time between arrival at road of vessel and berth excluding preventing delay.

Berth Occupancy: A period in which a Berth is occupied by a vessel. Revenue Earned: Amount accruable to the company for services rendered.

Revenue Collected: Physical money collected for services rendered. Inward Traffic: The addition of import and domestic cargo discharged in a port

Outward Traffic: The addition of Export and Domestic outgoing cargo ship from the port.

Vessel Entered: This refers to the vessels that enter the Nigerian territorial water and is recorded at the signal station by the harbour master.

Vessels Cleared: A vessel having called at the signal station and or gains berthing facilities and eventually steams out of the territorial waters.

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