PORT CONCESSIONS

Implications of port concessions

Literature Review: Implications of port concessions

Chapter One

Introduction

The first chapter of the report would consist of an introduction on the research topic followed by a statement of problem describing the area of research, then the aims and objectives. A methodology would be chosen and the scope and limitations fully explained and would conclude with an outline of chapters.

The seaport is a fundamental organization which is critical to the growth and development of any nation. It is a point of transshipment of cargo by land and sea, it is a sector that provides maritime activities which include berthing of ships, navigational channels, serves as an interface between sea going vessels and land via the port (Jaja, 2009). A seaport can be also said to be an enclosed piece of land on the water front which serves as a receiving and exit point along a specified shoreline where different modes of transport change from land to sea or sea to land; it also encompasses the link between intermodal systems of transport. It is a link where cargo is moved, handled, loaded or unloaded to and from ships (Oluwale, 1996). Nigeria consists of eight major ports which are under the control of the Nigerian ports authority (NPA); they are divided into two major zones, the western and eastern zones, each comprising of 4 ports each. Emphasis would be at the Lagos Apapa port as this is the most important seaport in Nigeria, its challenges and problems are similar to the other seven ports in the country so this port would be the basis of generalization on all the ports.

The developments of these ports have been slow and rigorous due to various challenges being faced by the sector (Muya, 2006). These challenges include economic, social, (IT) infrastructure and bottle neck bureaucratic policies of the government with the lack of adherence to regulations has hindered the provision of services which meet international standard and make the ports by far the most expensive in west Africa due to excessive inventory cost, dwell time and indirect logistics cost (Muya, 2006b). Nigeria's loss has become its more competitive neighboring ports' gain. These ports include Cotonou in Benin, Freetown in Sierra Leone, Tema in Ghana and Douala in Cameroon.

Nigeria is located in West Africa; it stretches across an area of 923,768 km sq. It is situated within the tropics of the western coast of Africa and borders with Benin, Niger, Chad and Cameroon. The country's borderline is approximately 800km and boasts of several beaches. Nigeria has a current population of 154.7 million people, it has the largest natural gas reserves on the African continent, the country derived its income from agriculture in the early 1960's before the oil boom in early 1970 which has allowed for Nigeria to become a part of (OPEC) in 1971 and is now the 11th largest crude oil exporter in the world (world bank, 2008).

Figure 1 Map of Nigeria source: (Federal Republic of Nigeria)

Nigeria has international trade relations throughout the ...