IMPACT OF GOVERNMENT POLICIES AND REFORM ON NIGERIAN PORT PRODUCTIVITY (A CASE STUDY OF CALABAR PORT)

1.1      BACKGROUND OF THE STUDY

In the modern world of a fast growing technological era, ports are playing the role of an industry, not just passive actor in transportation but also in complete supply chain management. This is why it is said that “ports are more than piers” that is, more than just infrastructure or a complex infrastructure Prakash, (2005;34).

A port in a location on a coast or shore containing one or more harbors where ships can dock and transfer people or cargo to or from land. Port locations are selected to optimize access to land and navigable waters, for commercial demand and for shelter from wind and waves. Ports with deeper waters are fewer but can handle larger and more economical ships.

Seaport are major gateway to economy of a nation, they represent a complex structure in a country’s transportation system providing harbor interface services such as pilotage, dredging, provision of berths, maintenance of navigational channels etc. the Nigerian seaports are divided into western operations with headquarters at Apapa Lagos state comprising of the following port (Apapa port complex, Tincan Island port, Calabar port). Seaport plays a strategic role in the economy of any country. In Nigeria for example, practically all import and export move through its seaport. Thus, the efficiency of the ports affects profoundly the cost of import and the competitiveness of export and is large employers of labour.

Today in any context and in any country, it is essential that ports provide efficient, adequate and competitive services. If they fail, ship-owners who find them too costly or too slow will go elsewhere. Hence if ports do not provide cost-effective services, imports will cost more for consumers and exports will not be competitive on world markets, national revenue will decline as well the standard of living of all people. Nigeria has a total of eleven ports and eight oil terminals organised in three zones of Western, Central and Eastern zones. The central zone with its headquarters in Warri and the Eastern zone with its headquarters in Port Harcourt are predominantly oil terminals, although Warri, Sample, Koko, Port Harcourt, Calabar and the Federal ocean terminal are important general cargoes. Chioma, (2011;46)

Ports not only a chain in transportation for inter-change, but they function as self-sustaining industry that is linked with domestic and international trade. At some places, ports also act as a foreign exchange earner not only in the form of transshipment or hub port but as part of supply chain management by providing logistics services to the industry. That is why a port needs to be treated as an industry. The management of a port should not only be concerned with the demand and supply of throughput but with institutional framework, application of technology, marketing strategy and ultimately economic impact of the development and implementation of projects or programmes Prakash, (2005;34). Ndikom, (2006;64) summarized that a port is a gateway to the nation’s economy and that shipping is a primary logistic service of critical importance. There are 2,814 international ports catering to freight traffic in the world. Port traffic increases at an average rate of 3% per year. Nearly 90% of goods exchanged through international trade in the world rely on maritime transport along the logistics chain that takes them from their origin to their destination. A large share of that trade would not exist without their port infrastructures which are the interface between maritime transport and land transport or Inland navigation UNTAD, (2002;34).

1.2    STATEMENT OF PROBLEM
Performance of the calabar seaport after the port reforms is relatively poor but it was worse before the port reforms. The pertinent question is to ask if the port reforms have succeeded in easing the bottlenecks to the port development thereby attracting more cargo to Calabar port or the policies have reduce congestion and generally enhance the productivity and efficiency in port operation. Before the reforms, Calabar port has been suffering a drastic low cargo throughout severe congestion, inadequate berthing facilities and low turn-around time. So far, how has the port reforms fared, judging from the annual throughput/quantity of cargo that has passed through the port since the inception of the reform programme? An answer to this question will also give a clue to the level of efficiency in the operations in the ports.

1.3    OBJECTIVE OF STUDY
 The research aims to evaluate how port policies and reform has fared in attaining its major goals of increasing efficiency and port productivity in Nigeria with reference to Calabar Port but to achieve this, the following objectives are imperative.
1.    Examine the various reform policies and the impact on port productivity.
2.    Determine the extent of compliance by port operators and shipping companies.
3.    To determine the impact of port policies and reform on ship turn-around time and safety at port.

4.    To access the impact and contribution of these policies on the GDP.
 
1.4        SIGNIFICANCE OF STUDY

 
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. 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 relatively poor performance of Nigerian seaport after the port reforms has been a concern of many. Several attempt and effort have been made to improve on the performance of Nigerian seaport; this effort comes from government and private sector. For instance, government took the initiative to concession the port in 2006 in order to enhance efficiency of the port operation, decrease the cost of port service to port users and save cost to the government for the support of the sector. However there has been no sustainable improvement on the performance, perhaps government and private sectors efforts to improve seaport performance under the port reform were geared towards the wrong direction.

1.5 RESEARCH QUESTIONS

In order to achieve the objectives of this research study, the research study will attempt to provide answers to the following research questions
1.    Does the Nigerian government have port reforms and policies?
2.    Has Government policies been implemented in ports?
3.    Has government created an enabling environment for implementation of port reforms policies?
4.    What are the effects of port policies and reforms on ship turn-around time and safety at port?

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