Abstract
The most significant elements
that enable us to understand economic growth and development levels of nations
are economic indicators of the country of interest. As much as these indicators
have positive and high
values, they affect the
economic, social,
psychological and cultural texture of the nation positively.
These effects increase the culture, living and welfare levels of the
individuals in the society. Logistics is one of the tools that play an
important role in the change and improvement of economic indicators. Logistics
industry provides significant macro contributions to national economy by creating employment, and
creating national income and foreign investment influx. On the micro scale,
logistics industry is a key industry in increasing the competitive
power of corporations. Furthermore, the logistics
industry has an important mission in revitalizing and
improvement of the competitiveness of other
industries. Today, all industries are
dependent on logistics sector. The present study aimed to investigate
how the logistics variables of transportation and communication affected
economic growth in Nigeria. The effect
of both transportation industry
variables and communication
industry variables that form the logistics industry on the increase in
per capita income
TABLE
OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objectives of the Study
1.4 Research Questions
1.5 Significance of the Study
1.6 Scope of the Study
1.7 Limitations of the Study
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Conceptual Framework
2.1.1 Logistics
2.1.2. Forms of Logistics
operation
2.1.2.1 Supply Chain Management
2.1.2.2 Air Freight Logistics
2.1.2.3 Land Logistics
2.1.2.4 Express Delivery
2.1.2.5 E-commerce
2.1.3 Logistics
Functions and Activities
2.2 Theoretical Framework
CHAPTER THREE
METHODOLOGY
3.1 Introduction
3.2 Research Design
3.3 Sources of Data
3.4 Population
of the Study
3.6 Validity of the Instrument
3.7 Reliability of the
Instrument
CHAPTER
FOUR
PRESENTATION,
ANALYSIS AND INTERPRETATION OF DATA
4.1 Introduction
4.2 Data
Presentation and Analysis
CHAPTER
FIVE
SUMMARY
OF FINDINGS, CONCLUSION AND RECOMMEDATIONS
5.1 Summary of Findings
5.3 Conclusion
5.4 Recommendations
BIBLIOGRAPHY
CHAPTER
ONE
INTRODUCTION
1.1 Background of the Study
It is
expedient to note that, over 90 percent of International Trade is done by sea
or carried by ships. It is believed that
on daily basis, these ships move millions of tons of cargoes comprising goods
and commodities, fuel, crude oil, raw materials, machinery and equipment,
foodstuffs, medicaments, around the world. The situation is not different in
Nigeria, being a member of international community. It is estimated that well
over 90 percent of her visible international trade is sea borne. The maritime
industry, if effectively harnessed, has the capacity to be a big factor in the
national economy; with revenue at maximum potentials, capable of competing with
oil and gas revenue. Maritime revenue can be a major contributor to the Gross
Domestic Product (GDP) of a nation. Gross domestic product (GDP) estimates are
commonly used to measure the economic performance of a whole country, but can
also measure the relative contribution of an industry or sector. The economic
growth of a nation depends on how efficient and cost effective, the port is
operated and managed. Just as the economic growth of a nation demands for port
facilities, also the port facilities must be run or operated efficiently to
enable further economic growth or expansion (Emeaghara, 2008). The World Bank's
logistics Performance Index (LPI) and United Nation Conference on trade and
Development (UNCTAD's) Logistics and Supply Chain Index( LSCI) are targeted
at espousing information about countries
trade competitiveness in the area of transport and logistics (Jean-Francois and
Lauri, 2014).
Due
to the trend of nationalization and globalization in recent decades, the
importance of logistics management has been growing in various areas. For
industries, logistics helps to optimize the existing production and
distribution processes based on the same resources through management
techniques for promoting the efficiency and competitiveness of enterprises. The
key element in a logistics chain is the transportation system, which connects
the separated activities. Transportation occupies one-third of the amount in
the logistics costs and transportation systems influence the performance of
logistics system hugely (Tseng, Yue and Taylor, 2005). Transportation is
required in the whole production procedures, from manufacturing to delivery to
the final consumers and returns. Only a good coordination between each
component would bring the benefits to a maximum.
Maritime
industry plays an important role in international freight; it can provides a
cheap and high carrying capacity conveyance for consumers. Therefore, it has a
vital position in the transportation of particular goods, such as crude oil and
grains. Its disadvantage is that it needs longer transport time and its
schedule is strongly affected by the weather factors. To save costs and enhance
competitiveness, current maritime logistics firms tend to use large scaled
ships that incorporate operation techniques. Moreover, current maritime
customers care about service quality more than the delivery price. Thus, it is
necessary to build new logistics concepts in order to increase service
satisfaction, for example real-time information, accurate time windows and
goods tracking systems. The operation of maritime transport industry can be
divided into three main types: (1) Liner Shipping: The business is based on the
same ships, routes, price, and regular voyages. (2) Tramp Shipping: The
characters of this kind of shipping are irregular transport price, unsteady
transport routes, and schedule. It usually delivers particular goods, such as
Dry Bulk Cargo and crude oil. (3) Industry Shipping: The main purpose of
industry shipping is to ensure the supply of raw materials. This sometimes
needs specialized containers, such as the high-pressure containers for natural
gas (Tseng et al, 2005).
It is
important to note that economic growth partly depends upon moving goods
efficiently and safely through the transportation chain. Since the current
scenario of world trade goes to cellular vessels, thus the demand for
transportation of goods via sea increases tremendously. In view of this, more
and more terminals are expanding in order to cater for available demand
(Olayinka and Ogundele, 2015). In other words, improved supply chain and
logistics (seaport development) will guarantee trade expansion and larger
foreign direct investment. This means that transportation and logistics
improvements are critical to trade flows and the competitiveness of an
economy’s exports and imports.
Logistics
management is very critical for the performance of maritime industry in Nigeria
because of its complex nature. Logistics management is needed more than ever
before in order to facilitate movement of cargoes from one location to another
in efficient and effective manner.
Tilanus (1997) uses ‘five important key terms’, which are logistics,
inbound logistics, materials management, physical distribution, and
supply-chain management, to interpret the concept of logistics. Logistics is the entire process of materials
and products moving into, through, and out of firm. Inbound logistics is the
movement of material received from suppliers.
1.2 Statement
of the Problem
Policy
inconsistency has been one of the problems encountered in maritime sector in
Nigeria, the issue of inadequate policy formulation and implementation; hence
the contribution of the maritime sector to economic growth has been a subject
of debate. Concessionaires in Nigeria’s seaports situated at Warri, Port
Harcourt, Lagos, Calabar, Onne, and Sapele have recently listed obstacles to
efficient operation. Inadequate power supply and incessant removal of
management of government agencies in the nation’s maritime industry are some of
the factors impeding the efficient running of the ports. The concessionaires,
who spoke under the aegis of the Seaport Terminal Operators Association of
Nigeria (STOAN) in commemoration of eight years of port reforms, cited the
aforementioned glitches to be affecting the effective and efficient running of
the nation’s seaport. Other hitches are the arbitrary arrest of vessels at
berth and attendant consequences, poor power generating system, friction among
maritime statutory agencies due to overlapping functions and lack of national
carrier capacity for the United Nation Conference on Trade and Development
(UNCTAD) 40:40:20 carriage rights. The concessionaires that spoke through the,
stressed that since they took over the running of the ports nearly a decade
ago, they have been contending with these constraints.The poor implementation
of the nation’s Cabotage Act 2003 was one of the factors militating against the
growth and development of the Nigerian Maritime sector. It combines with poor
implementation of the international port state control policy to encourage the
visit to the Nigerian port by aged vessels with archaic handling facilities. In
addition, the concessionaires condemned the proliferation of tank farms around
the port locations, especially in Lagos, saying that they are constituting
security risk to the ports and their users.
In
other words, when a ship operator chooses a port of destination, he does not
only think of reaching the port in time but also the reliability of leaving the
port in time.
A
higher utilization of the vessel will only be achieved if time in port is
improved which will signify that fixed cost by the operator will be spread over
increased number of voyage. This will consequently lead to reduced cost of ship
operation. Traditionally; the turnaround time of a ship in port is a function
of two variables namely:
(i)
Waiting time or queuing time
(ii)
Service time
The
time of a vessel in port is high when either of the two is high compared to
normal or the combination of the two.
Waiting
time is always high when the demand for berths is higher than the supply. Here
the major task of a port planner is to serve the annual vessels efficiently
often referred to as the design capacity.In traditional maritime nations such
as United Kingdom, USA, the Scandinavians, other European Countries among
others, the factors of time, proper planning, co-ordination and implementation
of clear-cut policies through government intervention largely account for the
enviable levels of efficiency, sophistication and monumental success in their
maritime activities especially in respect of its contribution to economic
growth. The reverse appears to be the case in Nigeria as the fortunes of the
industry have continued to suffer progressive catastrophe over the years. A very near example is the fact that the
Nigerian National Shipping Line (NNSL) which took delivery of 19 (nineteen)
brand new tonnages from European shipyards in 1979 and 1980, has not only lost
all her vessels but has been liquidated altogether. This is complicated by the
inability of governments of different types to float an indigenous national
carrier up till date.
If
delay in clearing goods at country is poor will make cost of good to go up and
the country product will not be competitive in the market. Lack of online
checking will make physical checking tortious and time consuming adding to
delay in clearing of goods and will lead to the payment of additional fees at
the port.
1.3 Objectives of the Study
The
main objective of this study is to ascertain the effect of Logistic industry on
Performance of Nigerian economy with focus on Maritime Industry. The specific
objectives were to:
i. Determine the extent to which material
handling affects service quality
ii. Ascertain the extent of the relationship
between customer ordering processing and customer satisfaction
iii. Determine the effect of warehousing on revenue of Nigerian ports
iv. Ascertain the nature of relationship
between container traffic and GDP maritime sector contribution.
v. Evaluate the extent to which
transportation influences cargo throughput of Nigerian ports.
1.4 Research Questions
With
the above objectives in focus, the study seeks to find answers to the following
questions.
i. To what extent does material handling
affect service quality?
ii. What is the extent of the relationship
between customer ordering processing and customer satisfaction?
iii. What is the effect of warehousing on
revenue of Nigerian ports?
iv. What is the nature of the relationship
between container traffic and GDP
maritime industry contribution?
v. To what extent does transportation
influences the cargo throughput of Nigerian ports?
1.5
Significance of the Study
The
study has a good number of components that would be beneficial to the operators
of Nigeria maritime industry, scholars, students, corporate organizations and
individuals. Logistics which is the main concept this study dwells on is needed
by every organization to effectively facilitate its operations. Logistics
management is critical to Nigerian ports because of number of activities that
would be executed before importers receive their consignments. The key driver
of logistics management is transportation which helps to create value along the
supply chain.
The
findings that will be established in the study will make important information
available to the operators of maritime industry in Nigeria as well as other
stakeholders.
Nigerian
ports are crucial to Nigerian economy because maritime industry is one of the
sectors that contributes greatly to internally generated revenue (IGR) of the
country. Apart from oil and gas sector, maritime sector is one of the main
focuses of the government. Hence, a work in this sector would be welcome by the
government, the operators of maritime sector and other stakeholders.
1.6
Scope of the Study
The
study was focused on impact of Logistics Management on the Performance of the
Maritime Industry in Nigeria. Related studies on logistics, logistics
management and performance with reference to Maritime industry in Nigeria and
abroad were examined.
The
study evaluated logistics management in
Nigerian ports through such variables as containerized cargo through put, bulk
cargo throughput, dry cargo through put and liquid cargo throughput as well as
container traffic. NPA and NIMASA websites visited in the course of this
research for relevant information and data that may be useful in this study.
A
review of theoretical and conceptual framework, methodology and empirical study
relevant to this research was made. The study spanned a period of 2007 to 2014 based on the period
expected for data availability. Six ports in Nigeria that ie Lagos port
complex, Tin Can Island port, Calabar port, Delta port, Rivers port/Port
Harcourt and Onne port were considered in this study
1.7 Limitations of the Study
The
limitation of the study were:
Attitude
of the Respondents
Some of the
respondents showed negative attitude towards the study because there was no financial benefit attached ,Some refused
to supply the necessary information required for fear of leaking
the secret of their organization. The researcher was able to overcome
this limitation through the help of the Managing Directors who sensitized and
educated them on proper purpose of research as an academic exercise
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