ANALYSIS OF CAPACITY OF UTILIZATION OF SHIP BERTHING FACILITIES IN ONNE SEAPORT

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Abstract

This study focuses on the capacity utilization of berthering facilities in port performance using Onne and Rivers ports as a reference point. The study focuses on the pre and post reform eras of the ports in terms of their performance. The reforms took effect from 1996 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 thoroughly assessed. primary Data were collected using the questionnaire and other secondary data sources to aid the successful completion of the study.

 

 

 

 

 

 

 

TABLE OF CONTENT

Title page

Approval page

Dedication

Acknowledgment

Abstract

Table of content

CHAPETR ONE

1.0   INTRODUCTION 

1.1        Background of the study

1.2        Statement of problem

1.3        Objective of the study

1.4        Research Hypotheses

1.5        Significance of the study

1.6        Scope and limitation of the study

1.7       Definition of terms

1.8       Organization of the study

CHAPETR TWO

2.0   LITERATURE REVIEW

CHAPETR THREE

3.0        Research methodology

3.1    sources of data collection

3.3        Population of the study

3.4        Sampling and sampling distribution

3.5        Validation of research instrument

3.6        Method of data analysis

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS AND INTERPRETATION

4.1 Introductions

4.2 Data analysis

CHAPTER FIVE

5.1 Introduction

5.2 Summary

5.3 Conclusion

5.4 Recommendation

Appendix

 

 

 

 

 

 

 

 

 

CHAPTER ONE

INTRODUCTION 

  • 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 ‚Äúports are more than piers‚ÄĚ that is, more than just infrastructure or a complex infrastructure (Prakash, 2005). 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 organized in three zones of Western, Central and Eastern zones. (Chioma, 2011) 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). Ndikom (2006) summarized that a port is a gateway to the nation‚Äôs 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 (Trujillo 2005). 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). A port is a location on a coast or shore containing one or more harbours where ships can dock and transfer people or cargo to or from land. Port locations are selected to optimize access to land and navigable water, for commercial demand, and for shelter from wind and waves. The use of the sea as a means of transport in Nigeria dates back to the 15th century (1485) when the Portuguese sailed into Lagos with their vessels basically to trade on artifacts in Benin City. From the pre-independence era till date, the nation‚Äôs maritime industry is characterized by the domination of foreign vessels and/or carriers from the developed market economies of Western Europe and America. In order to control this scenario, subsequent developments led to the opening of ports at Apapa and Port Harcourt, rolling in the creation of the Nigerian Ports Authority (NPA) by the provision of Ports Act 1954 to load and discharge as well as maintain and develop the ports (Njoku, 2009). From the commencement of operation of the NPA in 1956, Nigeria had operated a service port model. This was fraught with a lot of challenges which informed the idea of switching over to a landlord port model or port concession. The port concession program was completed in 2006 after an international competitive bidding process. This led to the emergence of 26 terminals which were concessioned to private terminal operators on the Build, Operate and Transfer (BOT) model. The reform brought about ceding of cargo handling operations at the port to private terminal operators, leaving NPA as the landlord. The Nigerian ports witnessed a rapid transformation as a result of this reform in which Nigerian ports were concession to the port operators called concessionaires. The ports as well as the terminal operators are under-listed as follows: Before the advent of port concession (1956-2005), the Nigerian port system suffered from numerous ills which included the following: The turnaround time for ships was too long and usually calculated in weeks, sometimes months, depending on the cargo being loaded or discharged; Cargo-handling plants and equipment owned by the NPA were few and mostly unserviceable leading to shipping companies hiring these machines from private sector sources after having paid NPA; Dwell time for goods in ports was prolonged due to poor port management and as a such overtime cargo filled the most active seaports leading to port congestion; Labour for ship work was held in the vice-grip of wharf overlords who controlled dockworker unions and supplied less than the manpower paid for. This fraud, which became accepted by the maritime community lasted for years and was usually perpetrated to extract maximum revenue from helpless ship owners and their agents without minding how this impacted on the Nigerian economy and the already dented image of the Nigerian seaports. Onne Port Complex is situated in the heart of Niger Delta, Nigeria‚Äôs main Oil and Gas production area. It was created to supplement Port Harcourt‚Äôs port capacity and traffic. The Onne Oil and Gas free zone, located south of port Harcourt on Bonny River in Rivers State, was established by the Federal Government of Nigeria to provide an Oil Service Centre and Support Base to serve Nigerian onshore and offshore fields, whilst also providing easy access and duty-free distribution to the entire West African and Sub-Saharan oil and gas industry. The Onne Oil and Gas free zone was established by Government Decree No.8, issued in the Official Gazette No. 12 on the 29th march, 1996 declaring an area of some 26square kilometers in Onne/Ikpokiri of Rivers state as dedicated ‚ÄúOil and Gas Free Zone‚ÄĚ

  • STATEMENT OF THE PROBLEM

The increasing number of containers and the mounting dimensions of vessels are adding stress to seaports to increase the capacity of container terminals. Ports are bound to respond with new terminals and added infrastructure facilities. For example, according to the United Nations, more than 700 new container berths will be required in East Asian ports between 2007 to 2015 to accommodate anticipated growth in container trade (UN and Korea Maritime Institute, 2007). The ocean transport industry is growing at a faster rate than seaports can build facilities (Pallis and de Langen, 2010) because it takes many years from 2 to over 10 from decision to completion of changes in the infrastructure to increase capacity (Henesey, 2006). As many terminals are exceeding capacity limits, seaports need to deal with the problems

  • OBJECTIVE OF THE STUDY

The main objective of this study is to assess the capacity utilization of ship berthing facilities in onne seaport in Port Harcourt, but to aid the completion of the study, the researcher intends to achieve the following specific objectives;

  1. To examine the effect of port concession on the effectiveness of Onne port
  2. To examine the relationship between port berthing facilities and effectiveness of port decongestion
  • To ascertain the impact of effective utilization of ship berthing facility on the successful operation of Onne port in Nigeria
  1. To examine the role management on the effective capacity utilization of berthing facilities in Onne seaport.
    • RESEARCH QUESTIONS

To aid the successful completion of the study, the following research questions were formulated by the researcher;

  1. Is there any effect of port concession on the effectiveness of Onne port?
  2. Is there any significant relationship between port berthing facilities and effectiveness of port decongestion?
  • Does effective utilization of ship berthing facility have any impact on the successful operation of Onne port in Nigeria?
  1. Does the management play any role on the effective capacity utilization of berthing facilities in Onne seaport?
    • SIGNIFICANCE OF THE STUDY

It is believed that at the completion of the study, the findings will be of great importance to the management of Onne seaport, as the study seek to explore of the merit of effective utilization of ship berthing facilities on the successful operation of Onne seaport in port Harcourt, the study will also give an insight to the Nigerian port authority to make adequate provision and rehabilitation of ship berthing facilities to all the seaport in the country so as to decongest Apapa (Lagos) port and ensure effectiveness on the operation of Nigeria seaport, the study will also be useful to researchers who intends to embark on a study in a similar topic as the study will serve as a reference point to other studies. Finally, the study will be of importance to student, teachers, academia’s and the general public as the study will add to the pool of existing literature in the study area and also contribute to knowledge.

  • SCOPE AND LIMITATION OF THE STUDY

The scope of the study covers an analysis of capacity utilization of ship berthing facilities in Onne seaport. But in the cause of the study, there are some factors that limited the scope of the study;

 

  1. a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study.
  2. b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities        and examinations with the study.
  3. c) FINANCE: The finance available for the research work does not allow for wider coverage as resources are very limited as the        researcher has other academic bills to cover.

1.7 OPERATIONAL DEFINITION OF TERMS

Ship

A ship is a large watercraft that travels the world’s oceans and other sufficiently deep waterways, carrying passengers or goods, or in support of specialized missions, such as defense, research and fishing.

Ship berthing

Berth is the term used in ports and harbors for a designated location where a vessel may be moored, usually for the purposes of loading and unloading. Berths are designated by the management of a facility (e.g., port authority, harbor master). Vessels are assigned to berths by these authorities

Seaport

A¬†seaport¬†is further categorized as a “cruise port” or a “cargo port”. Additionally, “cruise ports” are also known as a “home port” or a “port of call”

 

1.8 ORGANIZATION OF THE STUDY

This research work is organized in five chapters, for easy understanding, as follows. Chapter one is concern with the introduction, which consist of the (background of the study), statement of the problem, objectives of the study, research questions, research hypotheses, significance of the study, scope of the study etc. Chapter two being the review of the related literature presents the theoretical framework, conceptual framework and other areas concerning the subject matter.     Chapter three is a research methodology covers deals on the research design and methods adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study.



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