The study
evaluated the logistics performance of Nigerian ports in the post
privatization regime. The objectives of the study was among other things, to
investigate the existence of delay in ship husbandry operations and
processing of shipping trade in Nigeria seaports; The study used export
facto research design, employing secondary data sourced from the Nigeria
ports Authority, The Nigeria Shippers Council, The World Bank, the United
Nations Conference on Trade and Commerce and the Central Bank of
Nigeria.The Net Output Model
approach for estimating value of time lost, the paired sample-test and the
log-linear multiple regression analysis methods were used to analyze the data obtained. It was found that,there exist disproportionate levels of
delay in ship husbandry operations in the individual seaports of Nigeria
such that, in each for Onne, Lagos Apapa, Warri, Rivers and Calabar
ports, the delays encountered by ship operators in ship husbandry operations
is 1.878 days, 5.34 days, 3.47 days, 2.81 days and 2.44 days respectively.
The Nigeria port sector average delay in ship husbandry operations is
9.2days. The result of the study also indicate the existence of 9.0days,
16.73days, 14.1days, 15.6days, and 13.4days delays in the processing of
shipping trade in each of Onne, Lagos Apapa, Warri, Rivers and Calabar
ports respectively. It was recommended that port authorities and terminal
operators in collaboration with the Nigeria Shippers Council should develop
delay reduction policies and strategies in ports in order to ensure that
trade processing and ship operations time in Nigeria ports comply with
global benchmark.
Keywords:
Maritime logistics, ship turnaround time, cargo dwell time, logistics
performance.
1.INTRODUCTION:
The concept of Port
Logistics is viewed as that which connotes the process of planning,
implementing and managing the movement of goods and information involved in the
ocean carriage of goods and trade through the seaports (Aylin, 2016; Nwokedi, Ndikom & Okoroji, 2021). Logistics according to Aylin and Yucel
(2016) encompasses
all the processes involved in planning, organizing and executing the efficient
transportation and storage of goods and services from the point of origin to
the point of consumption in order to meet customer requirements in a timely and
cost-effective manner. According to Panayides (2006),
“the integrated demand for maritime transport brings on a maritime logistics
concept”. The main function of shipping is to move cargoes of shippers from one
port to another. By adding logistics activities to the main function like
collecting the cargoes in one point, informing the delivery position, helping
customers who want special services, preparing bill of lading, container
tracking, performing intermodal services and information flow (Heaver, Meersman, & Van de Voorde
2000), the shipping service gets more close to the value added shipping
logistics concept. Hult et al. (2007) defined the
value of maritime logistics as facilitating the higher efficiency and
effectiveness of a maritime logistics service. Maritime
transport operators are accordingly encouraged to keep pace with other
logistics functions as a central member of a global logistics integration
system (Panayides & Song 2008). Available empirical
literature are in agreement that the central goal of thedevelopment and implementation of the
logisticalfunctions in the planning of
maritime and port operations is to improve operational efficiency and
productivity of concerned firms, while optimizing time, cost, risk and other
input variables (Dongping Song, 2021; OlapojuOlabisi, 2019). This implies that, the implementation of
port logistical functions should reduce or optimize associated operational
costs, port service time, business risk, and ensure port users (consumer)
satisfaction, especially with service time and cost of port usage, while
improving output (revenue, throughput, etc.) to Port authorities and Terminal
operators.These suggest that, one key
measure of Port Logistics performance especially when viewed from the
perspectives of port user (shippers) satisfaction is Port service time (Ndikom, Nwokedi, Buhari & Okeke (2017). Port
service time indicates whether or not the port users face challenges of delay
in processing trade through the seaports. This in turn can be viewed in two
major components name:
(i)Ship-turnaround
time, which indicates the service time for ship operations and vessel husbandry
experiences of ship operators in a given port.The ship-turnaround time provides the basis for understanding the amount
of delay or otherwise, that ship operators experience in particular ports.
(ii)Cargo
dwell time, which indicates the overall time of processing shipping trade from
the port by shippers. The cargo dwell time as well provides the basis for
understanding the quantum of delays experiences of shippers in seaports.
The current study therefore foresees the need to investigate the
logistics performance of the Nigeria ports from the perspectives of delays in
ship husbandry and trade processing. To do this, the study identified the
central problems, aim and objectives to be pursued by the study in subsequent
sections. It
is very important to note here that the port concessioning and privatization policy of the Nigerian
Government in 2001, saw the transition of the Nigerian ports from Landlord port
models to service port models in which private corporations were enlisted to
carryout port operations and provide port services; while the Government
through the Nigeria Ports Authority (NPA) regulate the operations of the
private service providers. According to Ndikom (2011),
the clear policy intent for this was to improve the management performance of
the day-to-day running of ports, in order to enthrone efficiency, improve productivity
and ensure port user satisfaction. These were all lacking in the era of the
landlord model, when Government through the NPA, functioned as both the service
provider, and the regulator. Part of the aim of the privatization policy was
also that the Nigeria Ports Authority (through the hiring of private companies
to operate and manage the port facilities), will enthrone competitiveness in
port service provision, which will in turn reduce or optimize the respective
cost and price of service production and consumption, optimize time of ship
operations and husbandry as well as time of processing of shipping trade in the
ports. Available empirical studies suggest that the productivity of the
Nigerian ports over the years has improved, following the implementation of the
2001 port reform regime. These improvements are evident in the areas of port
revenue, cargo throughput, ship traffic and container
throughput trade handled in the ports. However, African Development Bank
(2010); UNCTAD (2022) and World Bank report (2023), all indicate rising port costs
of shipping trade to Nigeria and other Sub-Saharan African ports as a result of
elongated time of ship operations and trade processing. This represents problem
situation such that, Nigeria has not significantly addressed the challenges of
increasing port costs of shipping through Nigerian ports, associated with
delays and elongated time of processing shipping trade. These anomalies
therefore point towards the existence of a problem situation where the port privatization
exercise has failed to improve the logistics performance of the ports, in terms
of time of ship husbandry and operations and trade processing. Moreover, there
is a seeming lack of empirical studies that provides adequate knowledge and
information on the level of time delays faced by ships trading in Nigeria as
well as the quantum of time delay to which shipping trade is exposed in Nigerian
ports.
1.1 Aim
and Objectives of the Study
The aim of the study
is to evaluate the logistics performance of the Nigeria seaports in the post
privatization regime. The specific objectives of the study are:
1.To
ascertain the existence of delay in ship operations and husbandry in Nigerian
seaports
2.To
assess the existence of delay in the processing of container shipping trade in
Nigerian ports
1.2
Research Question
1.What is the quantum of delay in ship
operations and husbandry in Nigerian seaports?
2.What amount of delay exists in the
processing of container shipping trade in Nigerian ports?
1.3
Hypotheses
1.There is no delay in ship
operations and husbandry in Nigerian seaports.
2.There
is no existence of delay in the processing of container shipping trade in
Nigerian ports.
2. LITERATURE REVIEW
Several works have been carried out in this area to evaluate
the logistics performance of Nigerian ports with regards to delays encountered
by ship owners in ship husbandry and delays encountered by shippers in
processing shipping trade through the ports. Many authors have tried to define
the concept of “Logistics” vis-a-vis
“Maritime Logistics”. The Council of Supply Chain Management Professionals
(CSCMP, 2010) define logistics as: “the process of planning, implementing, and
controlling procedures for the efficient and effective transportation and
storage of goods including services, and related information from the point of
origin to the point of consumption for the purpose of conforming to customer
requirements. According to Nwokediet al (2021), Maritime logistics,
similar to port logistics, is an integrated concept aimed at addressing all
aspects of logistics and supply chain challenges associated with maritime
transportation and the delivery of goods via the seaports, with focus on
improving and/or maximizing efficiency of ports and maritime transport, bring
about cost-effectiveness in port operations and use, limiting time of port
service delivery, improving maritime safety and security services, improving
quality of service quality, utility/customer satisfaction, etc., associated
with the use of maritime transport and seaports in the delivery of consignments
by shippers and freight forwarders. Portal
cranes play vital role in bulk ports that would handle loads with heavy
weight and high height, lifting and laying down often during the operating
process; Haiwei, Weijian, Ning and Yufei (2015).In modern logistics
system, ports also contain value added services like warehousing, packaging,
inland connections, repairing and assembly which make ports (a cluster of
organizations) to fully become a link in supply chain (Bichou
& Gray, 2004; Carbone & De Martino, 2003). According to Tuna and Arabelen,
(2013), “Maritime logistics is referred to as the process of planning,
implementing and managing the movement of goods and information involved in the
ocean carriage.”Tuna and Arabelen, (2013), suggests that the main issue in maritime
logistics lies in the concept of integration which has to be evident in
physical level (intermodal or multimodal), economic/strategic level (vertical
integration, management structure) or organizational level (relationship based,
people and process integration between organizations. Lee et al (2012) notes
that, while maritime transportation focuses on the individual functions
relating to sea transportation, maritime logistics focuses on the effective and
efficient cargo and information flow in the scope of logistics system. Maritime
logistics is not only interested in sea transportation activities like
shipping, loading and unloading but also in value added logistics activities
like warehousing, packaging, repairing, stuffing, storage, etc. It is evident
that with the above definitions, the Nigerian ports have failed to live up to
expected heights. This is witnessed in the delays encountered by ship owners
who call at the Nigerian ports and the delays also encountered by shippers in
shipping trade processing of goods. Ships spend more time at Nigerian Ports
than the global benchmark (of 1.25 days for container ships) for Ship
Turnaround time while cargoes spend more time at the ports before been cleared
to leave which does not conform to the global benchmark (of 4 days) for cargo Dwell
time in efficient ports. Ship Turnaround Time (STRT) is a port-related factor
that influences the flow of shipping trade via the ports and is defined as the
total time that
a vessel spends at a
port from its arrival to departure. According to Nwokedi
et al (2021), STRT is a major factor that influences port choice by ship owners
and operators as it indicates the level of efficiency of use of port
superstructures and cargo handling equipment. Thus, high ship turnaround time
may imply longer period of stay in ports by vessels awaiting services with the
attendant implications on the economy and finances of the affected ship-owners
and operators. Higher STRT also increases the risk of delay in delivery of
shipments and cargo to the shippers’ warehouses in the hinterland markets,
which could result to situation of stock-out and scarcity in the domestic
markets, price inflation, shutdown, etc, among other
negative economic implications. Cargo dwell time (CDWT) as a port-related
factor influencing the flow of shipping trade via the ports. It is the
measure of the time that
elapses from the time the cargo arrives in the port to
the time the cargo
leave the port premises after all permits and clearances have been secured for
the cargo to leave the port to the shippers’
terminal and/or warehouse. There are up to 32 government agencies
including the Nigerian Customs Service, all of which cause avoidable delays in
the clearing of imported goods and consignments (Nwokedi
et al 2021).These numerous agencies
mostly constitutes a major delay in shipping trade processing through the
Nigerian causing the Cargoes to spend more time at the port than is required, (Ndikom, 2011). In this study, our interest is to determine
the existence and quantum of delay of ship husbandry operations that exists in
the Nigerian Ports as well as the existence and amount of delays that exists in
shipping trade processing in the Nigerian Ports and the best way to tackle
these anomalies.
3.METHODOLOGY
The study used secondary data obtained from
the Nigerian ports authority and the Nigerian Shippers Council and the use of
descriptive statistics, inferential statistics and multiple linear regression
models in establishing the objectives. It also used secondary data obtained
from World Bank publications on cargo global dwell time and ship turnaround
time benchmarks in ports to determine the ship husbandry and trade processing
time delay in Nigerian ports.
3.1 Research
Design: The
study used ex-post facto research design. It used time series historical data
on the logistics performance of each of Onne port,
Warri port, Calabar port, Lagos Apapa
port, and Port-Harcourt port in terms of ship turnaround time performances and
cargo dwell time performances of each of the ports between 2007 and 2021.
Secondary data on ship turnaround time performance, cargo dwell time
performance of each port were collected.
3.2 Method
of Data Analysis: The ship
turnaround time and cargo dwell time experiences of shippers and ship-owners in
each of the ports of Apapa Lagos, Calabar,
Onne, Warri and Port-Harcourt Ports provide evidences
of the average times spent in ship husbandry and cargo processing through each
port.The average ship turnaround time
and cargo dwell time benchmarks operational in global ports represent the
expected time standard required for ship husbandry and trade processing that
all efficient seaports should comply with. The time delay experiences of
ship-owners in ship husbandry (Tdsh) in each
Nigerian seaport is obtained by comparing the global average ship turnaround
time benchmark with the actual ship turnaround time experiences of ship-owners
in each of the ports used in the study. Similarly, time delay experiences of
ship-owners in trade/cargo processing (Tdtp)
in each Nigerian seaport is obtained by comparing the global average cargo
dwell time benchmark of 4days with the actual cargo dwell time experiences of
shippers in each of the seaports.
In this way, the delays in ship husbandry and
cargo processing in the seaports will be obtained using equations (1) and (2)
below;
Where:
Tdsh = Time delay in ship husbandry in each of the
ports experienced by ship-owners
STRa = Actual ship turnaround time experiences of ship-owners in each of
the ports
STRe = Expected Ship turnaround time or global
ship turnaround time benchmark
Tdtp = Time delay in trade processing experienced by shippers in ports
CDTa= Actual cargo dwell time experiences of shippers in the ports
CDTe = expected cargo dwell time or cargo dwell
time standard benchmark
4.0
RESULTS AND DISCUSSION OF FINDINGS
In this section, the data collected from the Nigerian ports
authority (NPA) and UNCTAD were used for the study and presented as shown in
the various tables below:
Table 1: Cargo Throughput (tons), Ship
Traffic Performance, Effort (Man-hours) and Number of days Ship is worked at
Berth in Nigerian Ports in Post Reform Era (2007-2021).
Year
Cargo
throughput (tons)
Ship
traffic
At
Berth (Days)
Effort
(Man-hours)
2007
57,473,350
4,849
3.39
8760
2008
64,372,749
4,623
3.58
8760
2009
65,775,509
4,721
4.60
8760
2010
6,744,727
4,881
4.27
8760
2011
83,461,697
5,232
4.27
8760
2012
77,092,625
4,837
4.04
8760
2013
78,281,634
5,369
4.2
8760
2014
84,951,927
5,333
4.3
8760
2015
77,387,638
5,014
4.6
8760
2016
70,365,036
4,373
4.1
8760
2017
71,535,636
3,897
4.3
8760
2018
74,677,604
3878
4.3
8760
2019
81,264,169
3259
4.23
8760
2020
80,826,672
4054
4.1
8760
2021
79,915,877
4100
4.3
8760
Source:NPA Statistical Report, 2019
Table 1shows
data collected for each of the identified variables which covered a period of
15 years, between 2007 and 2021, considered as the post port privatization
regime in the study. The table showed a tremendous increase in the volume of
cargo throughput as well as ship traffic that called at the Nigerian ports
during the Post port privatization regime as against what was obtainable during
the pre port privatization regime. It gave evidence
to the fact that cargo throughput and ship traffic improved tremendously as a
result of the privatization of the Nigerian Seaports which was one of the main
aims of introducing the Privatization policy. It also showed an increase in the
number of days that ships were been worked upon at berth in the post port
privatization regime which was against the aim of introducing the privatization
policy. As the number f days spent at berth
increased, the number of man hours spent on working on these ships also
increased. These are all evident in Table 1.
Table
2: Ship Turnaround Time (STRT) Benchmark in Global Ports for Various Vessel
Types
s/n
year
(i)
Container Vessel (days)
(ii) Liquid BULK (days)
(iii)
Dry bulk Cargo (days)
(iv) Global average (days)
1
2007
0.80
0.96
2.08
1.28
2
2008
0.8
1.0
2.04
1.28
3
2009
1.0
1.1
2.0
1.366666
4
2010
1.0
0.95
2.01
1.32
5
2011
0.8
0.90
2.23
1.31
6
2012
0.7
1.2
2.0
1.3
7
2013
0.7
0.85
2.04
1.196666667
8
2014
0.8
0.93
2.05
1.26
9
2015
1.0
0.94
2.08
1.34
10
2016
0.9
1.0
2.06
1.32
11
2017
0.8
0.95
2.08
1.276666667
12
2018
0.70
0.94
2.05
1.23
13
2019
0.7
1.10
2.05
1.283333333
14
2020
0.8
0.96
2.06
1.273333333
15
2021
1.0
1.0
2.05
1.35
Source: UNCTAD Review of maritime Transport, 2011, 2017 and
2022Editions.
The Ship Turnaround Time
(STRT) is a measure that indicates the average time, that it takes a vessel to
be loaded and/or discharged, on arrival in a given seaport, until it departs
the port terminal, after loading or discharging with a global benchmark of 4
days. Based on the STRT data for the trio of Container Vessel, Liquid Bulk
carriers, Dry bulk Carriers, a global average STRT benchmark for all ships
trading in global ports, was determined as shown in item (iv) for the post
privatization regime. This data set shall be used in further analysis to
determine the existence of delay in ship operations and husbandry in Nigerian
Sea ports. This table is of great importance as it shall be used to compare the
global average STRT for all ships trading in the Nigerian Seaports to ascertain
the quantum of delay that actually exists in ship operations and husbandry of
Nigerian seaports.
Table
3: Post Reform Ship turnaround (STRT) Time Performance Indicating the Lead-Time
in Vessel Husbandry in Nigerian Ports between 2007 and 2021
s/n
year
(i) Onne port STRT (days)
(ii) Lagos Apapa
STRT
(iii)
Rivers STRT (days)
(iv) Warri STRT
(v) Calabar
STRT (days)
(vi) STRT average in Nigerian
ports
1
2007
2.55
6.75
4.2
5.00
3.0
4.3
2
2008
2.76
5.59
3.2
6.50
4.01
4.412
3
2009
3.50
6.55
3.6
5.8
3.95
4.68
4
2010
3.84
5.38
2.55
5.36
3.43
4.112
5
2011
2.05
5.48
3.09
4.71
3.25
3.716
6
2012
3.5
7.1
4.19
3.75
4.84
4.676
7
2013
4.6
6.2
3.83
5.35
4.45
4.886
8
2014
3.70
7.9
5.77
5.90
5.00
5.654
9
2015
2.59
7.2
6.55
4.00
3.72
4.812
10
2016
3.39
7.5
4.05
3.09
3.45
4.296
11
2017
2.47
7.53
5.00
4.19
4.55
4.748
12
2018
3.70
5.3
3.00
3.15
3.00
3.63
13
2019
2.30
7.8
2.26
4.51
3.05
3.984
14
2020
3.10
5.4
4.8
5.6
3.20
4.42
15
2021
3.50
7.8
5.5
4.5
2.95
4.85
Sources: Nigeria Shippers Council (NSC) 2019 performance report;
Nigerian Ports Authority (NPA), Statistical Report, various editions. UNCTAD
Review of Maritime Transport.
Table 3 above shows
data/record of the STRT performance of each of the ports of Onne,
Lagos Apapa, Rivers, Warri and Calabar
between 2007 and 2021, considered as the post reform era in the study. The
average STRT prevailing in the Nigerian port sector, for all ships trading in
Nigerian ports, each year covered in the post reform era (2007-2021), was
determined as shown in item (vi). For each of the ports, it was noticed that an
average of 4 days was spent by ships in ship operations and husbandry in
Nigerian Seaports. This is as against the global STRT followed by average
benchmark of global ports posited in Table 2. It is evident from the table that
Lagos port has the highest STRT followed by Warri Port with Onne
port having the lowest time spent by ships in its port.
Table
4: Cargo Dwell Time Performance of Nigerian Seaports Indicating the Time Spent
in Processing Seaborne trade in the Seaports Post Port Reform Era (2007-2021)
s/n
year
(i) Onne port Cargo dwell time (days)
(ii) Lagos Apapa
dwell time
(iii)
Rivers Port Dwell time (days)
(iv) Warri port dwell time (days)
(v) Calabar
Dwell time (days)
(vi) Nigerian average
(vii) Dwell time global average
benchmark
1
2007
11
19
18
17
13
15.6
4
2
2008
10
20
16
20
13
15.8
4
3
2009
12
19
19
18
15
16.6
4
4
2010
13
20
20
21
18
18.4
4
5
2011
12
19
20
17
17
17
4
6
2012
11
21
15
20
18
17
4
7
2013
15
19
16
20
20
18
4
8
2014
14
22
18
21
19
18.8
4
9
2015
11
21
20
19
20
18.2
4
10
2016
15
19
17
18
15
16.8
4
11
2017
13
23
18
21
17
18.4
4
12
2018
15
21
20
20
18
18.8
4
13
2019
14
23
20
22
21
20
4
14
2020
16
22
16
20
18
18.4
4
15
2021
13
23
18
20
19
18.6
4
Source: Nigeria Shippers Council (NSC) 2019 performance report;
Nigerian Ports Authority (NPA), Statistical Report, various editions. UNCTAD Review
of Maritime Transport.
The CDWT is a measure
that indicates the average time, that it takes a shipper to process his/her
shipping export or shipping import trade through the seaport, from the terminal
operators, customs authorities, ports authority and other government agencies
operating in the ports, until the trade (containerized or otherwise) is
delivered away from the seaport to the consignees or shippers warehouse.The average CDWT prevailing in the Nigerian
port sector, for all trades in Nigerian ports for each year covered in the post
reform era (2007-2021), was determined as shown in item (vi),
on table 4. The record/data for the cargo dwell time CDWT benchmark for the
global port sector/shipping industry is also shown in item (vii). The table
shows a tremendous difference between the Nigerian average CDWT and that of
global ports which points to the existence of delay in the processing of
container shipping trade in Nigerian ports.
Table
5: The Existence of Delay in Ship Husbandry in Nigerian Port Sector (2007-2021)
N
Range
Minimum
Maximum
Sum
Mean
SHDELAYNIGERIAVERAGE
15
1.99
2.40
4.39
47.79
3.1860
SHDELAYONNE
15
2.66
.74
3.40
28.16
1.8776
SHDELAYAPAPA
15
2.58
4.06
6.64
80.09
5.3396
SHDELAYWARRI
15
3.45
1.77
5.22
52.02
3.4682
SHDELAYRIVERS
15
4.23
.98
5.21
42.20
2.8136
SHDELAYCALABAR
15
2.14
1.60
3.74
36.46
2.4309
Valid N (listwise)
15
Descriptive
Statistics
Std. Deviation
SHDELAYNIGERIAVERAGE
.51546
SHDELAYONNE
.71292
SHDELAYAPAPA
.98693
SHDELAYWARRI
1.01464
SHDELAYRIVERS
1.22399
SHDELAYCALABAR
.71752
Valid N (listwise)
Source: Authors
Calculation
Table 5 above shows the result of the extent
of delay in ship husbandry in the five major seaports in Nigeria in the
extended years of post-reform from 2007-2021.The result of the study indicate that average delay suffered by ship
operators in getting their vessels loaded or discharged in the Nigerian port
sector is 3.19 days (76.56 hours) with a standard deviation of 0.5154.This implies that following the
implementation of the port reform policies in Nigeria, the Nigerian port sector
still witness delays in ship husbandry as a result of increased ship turnaround
time to the extent of 3.19 days (76.56 hours) on average. It also indicates
that the port sector in Nigeria is still yet unable to achieve compliance with
the global port sector standard ship turnaround benchmark of 1.2 days for all
ship types. Thus, ship owners transiting through the Nigerian seaports suffer
delays up to an average of 3.19 days (76.56 hours), which consequently
increases port cost borne by the ship operators and charterers. Table 5 also
reveals the extent of delay that ship operators suffer in the individual
seaports. For example, in Onne and Lagos Apapa seaports, the average delays suffered by ship
operators between 2007-2021 post reform period is 1.88 days (45.12 hours) and
5.34 days (128.16 hours) respectively with respective standard deviations
of0.71292 and 0.98693. In Warri, Rivers
and Calabar seaports, ship operators suffer averages
of 3.47 days (83.28 hours) 2.81 days (67.44 hours) and 2.43 days (58.32 hours)
delays respectively as a result of higher ship turnaround time in Nigerian
ports in comparison to the standard global port sector benchmark.The result indicates that the ship operators
suffer the most (highest delays in ship husbandry) delays in the Lagos Apapa ports, followed by the Warri seaport, while in the Onne seaport, ship operators and charterers suffer the
least amount of delay in ship husbandry operations. Figure 1 below is a
comparison of the amounts of delays in ship husbandry operations in individual
Nigeria seaports, affecting ship operators and charterers in the post reform
era.
Figure 1.Average
delay (days) in ship husbandry operations in Nigeria ports affecting ship
operators and charterers
Source: Prepared by
Author.
The figure 1 above presents a graphical view
of the extent of delay in days that ship operators and charterers face in the
loading and discharge of their vessels in the individual Nigerian ports, and
the local port sector average. It is important to further show by what
percentages these delays differ or increased, from the global port sector ship
turnaround time benchmark, as shown in table 6 below.
Table
6: Percentage (differences) between Delays in Ship Husbandry Operations in
Nigerian seaports and Global Port Sector standard Benchmark indicating extent
of increase in delay in Nigeria
Ports
Difference-increase
in delay
Difference- increased delay
Days
%difference
Hours
%difference
Onne port
0.59
45.74%
14.16hrs
45.74%
Lagos Apapa
4.05
313.82%
97.18hrs
313.82%
Warri port
2.18
168.9%
52.32hrs
168.9%
Rivers Port
1.52
117.8%
36.48hrs
117.8%
Calabar port
1.14
88.37%
27.36hrs
88.37%
Nigerian port
sector
1.90
147.2%
45.6hrs
147.3%
Global port sector
benchmark
1.29
-
30.96hrs
-
Source: Authors
calculation
The result of the study presented in table 6 above
indicates that between 2007 and 2021 represented as the post concession era in
the Nigerian maritime/port industry, the delays in ship husbandry operations
(loading and discharging operations, etc.,) affecting ship operators and
charterers in the sector is about 147.3% higher than the global port sector
standard benchmark of 1.29 days (30.96 hours). The Nigerian port sector is
about 1.90 days (45.6 hours), higher than the global standard benchmark. The
individual ports of Nigeria each have higher time delays of ship husbandry and
operations than the global port sector benchmark. For example, the delay
experienced by ship operators in Onne and Lagos Apapa seaport is 45.74% and 313.82% respectively higher
than the global port sector standard ship turnaround time benchmark. Warri
seaport, Rivers port and Calabar port have respective
significant delays of 168.9%, 117.8%, and 88.37%; higher than the global port
sector benchmark. Figure 2 below shows the ranking of the Nigerian seaports in
increasing order of delays in ship husbandry operations, affecting ship
operators and charterers in Nigerian shipping industry.
Figure 2. Ranking Nigerian
seaports in order of increased delays in ship husbandry operations affecting
ship-owners in post reform era.
Source: Prepared by
Author.
Table
7: Determining the Existence of Significant Difference between the Global Port
Sector Ship Turnaround Time Benchmark and Average Delay in Ship Husbandry in
Nigerian Seaport
Mean
N
Std. Deviation
Std. Error Mean
Pair 1
GLOBALSTRT
1.2924
15
.04480
.01157
SHDELAYNIGERIAVERAGE
3.1860
15
.51546
.13309
Paired Samples Test
Paired Differences
Mean
Std. Deviation
Std. Error Mean
95% Confidence Interval of the Difference
Lower
Pair 1
GLOBALSTRT -
SHDELAYNIGERIAVERAGE
-1.89351
.52053
.13440
-2.18177
Paired Samples Test
Paired Differences
t
df
Sig. (2-tailed)
95% Confidence Interval of the Difference
Upper
Pair 1
GLOBALSTRT -
SHDELAYNIGERIAVERAGE
-1.60525
-14.089
14
.000
Authors Calculation
Table 7 above
investigated the existence of significant difference between the global port
sector ship turnaround time benchmark for all ships, and the Nigerian port
sector average delays in ship husbandry operations affecting operators in
Nigerian ports. The result reveal a mean global port sector STRT benchmark of
1.29 days (30.96 hours) with standard deviation of 0.0448 and a mean Nigerian
port sector delays in ship husbandry operations of 3.19 days (76.56 hours) with
standard deviation of 0.5155. The t-score is -14.089 and the p-value is 0.000
with 14 degrees of freedom. There, the study infers that there is significant
difference between the extent of delays in ship husbandry operations in
Nigerian port sector and global port sector benchmark. The result implies that
ship operators and chatterers suffer much extended higher delays in Nigerian
ports, suggesting the need for corrective measures to be implemented.
Table
8: The Existence of Delay in the Processing of Container Shipping/Seaborne
Trade in Nigerian Ports
N
Range
Minimum
Maximum
Sum
Mean
TRADEDELAYNIGERIAPORTS
15
4.40
11.60
16.00
206.40
13.7600
TRADEDELAYONNE
15
6.00
6.00
12.00
135.00
9.0000
TRADEDELAYAPAPA
15
4.00
15.00
19.00
251.00
16.7333
TRADEDELAYRIVERS
15
5.00
11.00
16.00
211.00
14.0667
TRADEDELAYWARRI
15
5.00
13.00
18.00
234.00
15.6000
TRADEDELAYCALABAR
15
8.00
9.00
17.00
201.00
13.4000
Valid N (listwise)
15
Descriptive Statistics
Std. Deviation
TRADEDELAYNIGERIAPORTS
1.23335
TRADEDELAYONNE
1.81265
TRADEDELAYAPAPA
1.57963
TRADEDELAYRIVERS
1.75119
TRADEDELAYWARRI
1.50238
TRADEDELAYCALABAR
2.44365
Valid N (listwise)
Source: Authors
Calculation
Table 8 above shows the result of the extent
of delay in the Processing of Container Shipping/Seaborne Trade in Nigerian
Ports in the five major seaports in Nigeria, in the extended years of
post-reform from 2007-2021.The result
of the study indicate that average delay suffered by shippers in getting their
seaborne (containerized and non-containerized trade) processing in the Nigerian
port sector is 13.76 days (330.24 hours) with a standard deviation of
1.2335.This implies that, following the
implementation of the port reform policies in Nigeria, the Nigerian port sector
still witness delays in processing seaborne import and export trade as a result
of increased cargo dwell time, to the extent of 13.76 days (330.24 hours) on
average. It also indicates that the port sector in Nigeria is still yet unable
to achieve compliance with the global port sector standard cargo dwell time
benchmark of 4.0 days (96) for all trade types. Thus, shippers transiting trade
through the Nigerian seaports suffer delays up to an average of 13.76 days
(330.24 hours), which consequently increase port cost borne by the shippers.
The table 8 also reveals the extent of delay that shippers encounter in the
individual seaports. For example, in Onne and Lagos Apapa seaports, the average delays encountered by shippers
in getting their consignments delivered through the Nigerian ports between
2007-2021 post reform period is 9.00 days (216 hours) and 16.73 days (401.42
hours) respectively with respective standard deviations of1.81265 and 1.57963. In Rivers, Warri and Calabar seaports, shippers encounter averages of 14.067
days (337.61 hours), 15.60 days (374.4 hours) and 13.40 days (321.6 hours)
delays in processing shipping trade, respectively in the ports,as a result of higher cargo dwell time in
Nigerian ports, in comparison to the standard global port sector CDWT
benchmark.The result indicates that the
shippers encounter the most (highest delays in trade processing) delays in the
Lagos Apapa ports, followed by the Warri seaport,
while in the Onne seaport, shippers encounter the
least amount of delay in processing shipping trade. Figure3 below is a
comparison of the amounts of delays in the processing of seaborne in individual
Nigeria seaports, affecting shippers in Nigeria, in the post reform era.
Figure 3: comparison of the amounts of delays in the
processing of seaborne in individual Nigerian seaports, affecting shippers in
Nigeria, in the post reform era.
The figure 3 above presents a graphical view
of the extent of delay in days that shippers encountered in processing and
delivering their seaborne trade and consignments through the individual
Nigerian ports. It is important to further show by what percentages these delays
differ or increased from the global port sector cargo dwell time benchmark, as
shown in table 9 below.
Table
9: Percentage (differences) between Delays in Processing Shipping Trade in
Nigerian seaports and Global Port Sector CDWT Benchmark
Ports
Difference-increase
in delay
Difference- increased delay
Days
%difference
Hours
%difference
Onne port
5.00
125%
120hurs
125%
Lagos Apapa
12.733
318.33%
305.59hours
318.33%
Warri port
11.60
290%
278.4hours
290%
Rivers Port
10.067
251.68%
241.61hours
251.68%
Calabar port
9.40
235%
225.6hours
235%
Nigeria port sector
9.76
244%
234.24hours
244%
Global port sector
benchmark
4.00
-
96.0hrs
-
Source: Authors
calculation
The result of the study presented in table 9
above indicates that between 2007 and 2021 represented as the post concession
era in the Nigerian maritime/port industry, the delays in processing and
delivering seaborne trade, affecting shippers in the sector is about244% higher than the global port sector CDWT
benchmark of 4 days (96 hours). The Nigerian port sector induces about 9.76
days (234.24 hours) higher delays in processing shipping trade through it than
the global port sector CDWT benchmark. The individual ports of Nigeria have
each higher time delays of processing shipping trade through it than the global
port sector benchmark. For example, the delay experienced by shippers in Onne and Lagos Apapa seaport is
125% and 318.33% respectively higher than the global port sector cargo dwell
time benchmark. Rivers seaport, Warri port and Calabar
port have respective delays in processing seaborne trade through it of 251.68%,
290%, and 235%; higher than the global port sector benchmark. Figure 4 below
shows the comparison of the global port sector CDWT benchmark and the Nigerian
port sector average delays encountered by shippers in processing shipping trade
in the ports.
Figure 4: Comparison
of the global port sector CDWT benchmark and the Nigerian port sector average
delays encountered by shippers in processing shipping trade in the ports.
Table
10: Determining the Existence of Significant Difference between Global Port Sector
Cargo Dwell Time Benchmark and Average Delay in Processing Shipping Trade in
Nigerian Seaports
Mean
N
Std. Deviation
Std. Error Mean
Pair 1
GBLOBACDWT
4.0000
15
.00000
.00000
TRADEDELAYNIGERIAPORTS
13.7600
15
1.23335
.31845
Paired Samples Test
Paired Differences
Mean
Std. Deviation
Std. Error Mean
95% Confidence Interval of the Difference
Lower
Pair 1
GBLOBACDWT -
TRADEDELAYNIGERIAPORTS
-9.76000
1.23335
.31845
-10.44300
Paired Samples Test
Paired Differences
t
df
Sig. (2-tailed)
95% Confidence Interval of the Difference
Upper
Pair 1
GBLOBACDWT -
TRADEDELAYNIGERIAPORTS
-9.07700
-30.649
14
.000
Source: Authors
Calculation
Table 10 above investigated the existence of
significant difference between the global port sector cargo dwell time (CDWT)
benchmark for all trades, and the Nigerian port sector average delays in
processing seaborne container and non-container trade transiting through the
ports, affecting shippers in Nigeria. The result reveal a mean global port
sector CDWT benchmark of 4.00 days (96 hours) with standard deviation of 0.000
and a mean Nigerian port sector delays in processing of seaborne trade of
13.76d days (330.24 hours) with standard deviation of 1.23335. The average
difference between the delays in trade processing in Nigerian ports and the
global port sector CDWT benchmark is 9.76 days (234.24 hours), against the
Nigerian port sector. The t-score is -30.649 and the p-value is 0.000 with 14
degrees of freedom. We infer that there is significant difference between the
extent of delays in the processing of shipping trade in Nigerian port sector
and global port sector CDWT benchmark. The result implies that shippers suffer
much extended higher delays in Nigerian ports in the post reform era,
suggesting the need for corrective measures to be implemented.
4.1. Test of
Hypotheses
Here,
the various hypotheses of the study were tested. The hypotheses tested include:
H01:There is no
delay in ship operations and husbandry in Nigerian seaports.
H02:There is no existence of delay in the
processing of container shipping trade in Nigerian seaports.
Table 11-
Test of Hypothesis H01: There is no delay in ship operations and husbandry
in Nigerian seaports.
AverageDelay in ship
operation= dts
Decision: Accept H04
if industry average = 0
Port
sector/Industry Average
3.1860
Reject H01
ONNE PORT
1.8776
dts>0; Reject H01
LAGOSAPAPA
5.3396
dts>0; Reject H01
WARRI PORT
3.4682
dts>0; Reject H01
RIVERS PORT
2.8136
dts>0; Reject H01
CALABAR
PORT
2.4309
dts>0; Reject H01
Source:
Prepared by the Author. Note: since
industry average dtsis
> 0; we RejectH01
The test of hypothesis H01 shown in
table 4.11 above reveal that the average delay in ship husbandry operations in
the Nigerian port sector is 3.19; which is greater than zero, (ie.:3.19 >0). Therefore we reject
the null hypothesis H01 and accept the alternate
that, there is the existence of delay in ship husbandry operations in Nigerian
ports. Similarly, there is delay in ship husbandry operations in all the
Nigerian ports of Onne, Lagos Apapa,
Rivers, Warri and Calabar.
Table 12. Test of hypothesis H02: There is no existence of
delay in the processing of container shipping trade in Nigerian seaports.
Average Delay in ship operation = dtrade
Decision: Accept H02
if industry average = 0
Port
Industry Average
13.7600
Reject H02
ONNE PORT
9.0000
dts>0; Reject H02
LAGOSAPAPA
16.7333
dts>0; Reject H02
WARRI PORT
15.6000
dts>0; Reject H02
RIVERS PORT
14.0667
dts>0; Reject H02
CALABAR
PORT
13.4000
dts>0; Reject H02
Source:
Prepared by the Author. Note: since industry average is > 0; we
RejectH04
The test of hypothesis H02
shown in the table 12 above reveal that the average delay in the processing of
shipping trade in the Nigerian port sector is 13.760; which is greater than
zero, (ie: 13.760 >0).Therefore we reject the null hypothesis
H02 and accept the alternate that, there is
the existence of delay in the processing of shipping trade in Nigerian ports.
Similarly, there is delay in processing of shipping trade in all the Nigerian
ports of Onne, Lagos Apapa,
Rivers, Warri and Calabar.
5.CONCLUSION AND
RECOMMENDATIONS
In conclusion, the major findings of
the study indicate that there is an existence of delay in ship husbandry
operations as well as an existence of delay in the processing of shipping trade
in Nigerian Ports. The quantum of delays was also ascertained as the port sector average delay in ship husbandry operations in Nigeria
is 3.2days. The most delay in ship husbandry operations is encountered by ship
operators and charterers in Lagos Apapa port. This is
subsequently followed by the Ports of Warri, Rivers Port, Calabar
and Onne. The port sector average delay in the
processing of shipping and container trade in Nigeria as discovered by the
study is 13.7days and the Lagos Apapa port subject
shippers’ consignment to the most delay of about 16.days. This is subsequently
followed by the Ports of Warri, Rivers Port, Calabar
and Onne. It is worthy to note that with such
statistics, the Nigerian ports are not service friendly ports and thus, will
witness Ship-owners try their best to avoid its Ports. This is in a view to
avoid these delays evident in the Ports as both ship-owners and shippers
experience high logistical costs in Nigerian ports owing to these avoidable
delays. Owing to these anomalies also, Nigerian Ports will lose its ranking
globally as port service friendly ports, thus killing the image of Maritime
trade in the country. There is urgent need to address these evident problems
portrayed in this study as Nigeria loses billions of naira when ship owners and
shippers avoid its ports owing to delays in Ship Turnaround Time (STRT) and
cargo dwell time (CDWT) which is not an index for globally efficient ports
5.1.Recommendations
In proffering lasting solutions to
the evident problems identified in this study, the Port authorities, terminal
operators and the Nigerian shippers’ council should develop strategies to
ensure that the ship turnaround time prevailing in Nigerian ports should be
compliant with the ship turnaround benchmark operational in the global port sector.
This will guarantee reduced delay in ship husbandry in Nigerian ports,
affecting ship operators. The number of equipment in the ports should be
greatly considered and reviewed upwards. In suing for a higher turnaround time,
there should be in place a good number of equipment such as Cranes and
Forklifts to efficiently and effectively handle ship traffic and container
tonnage expected at the ports. All yard operations need to be digitalized.
Gross crane productivity, crane intensity and berth productivity should be
relatively considered also as they pose a threat to ship turnaround time in the
Nigerian ports. Nigeria ports Authority (NPA) should in developing a policy for
eliminating delay in ship husbandry in Nigerian ports should prioritize Lagos Apapa port and Warri port first in the implementation of
the strategies/policy, since ship operators encounter the most delays in those
ports. This is followed by Rivers port, Calabar port
and lastly, Onne port. The Nigeria Shippers Council
(NSC) should enforce that terminal operators and government agencies comply wih the cargo dwell time benchmark of 4 days operational in
the global port sector. Since the Lagos Apapa port,
Warri port and Rivers port subject shippers to the greatest delays in the
processing of shipping trade in the port, the implementation of strategies and
policies to address delay in trade processing in ports should first consider
these ports before extending to Onne and calabar with least delay experiences. Gate-in and Gate-out
should be automated as well as proper management of all shipment related
documents. If these recommendations are properly effected, Nigerian ports shall
experience proper effectiveness and efficiency to be ranked among globally
efficient ports.
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