STRATEGIES FOR EFFECTIVE TERMINAL OPERATIONS AND PORT DEVELOPMENT

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STRATEGIES FOR EFFECTIVE TERMINAL OPERATIONS AND PORT DEVELOPMENT

CHAPTER ONE

INTRODUCTION

1.1 Background Of The Study

International trade is trade between/among two or more countries. It is concerned with imports and exports of goods and services. It is mainly carried out via sea ports and airports. Over 80% of international trade activities are carried out via sea ports. International trade plays a vital role in international marketing. Whereas, international trade concentrates more on import and export, international marketing according to Ceteora et al (1979) is the performance of business activities that direct the flow of goods and services to customers or users in more than one nation. While Ifezue (1992) holds the opinion that international marketing is the performance of one or more of the business tasks or activities (market intelligence, product development, pricing, distribution and promotion) across national boundaries. It is deducible from the above that international marketing is the practice of marketing concept and strategies beyond the practitioners’ countries.

Ports are highly significant in facilitating international trade. They play critical roles or interface between marine and land or air and land-based transportation. They are part of the international supply chain network. (Pomeroy, 1994).

Effective ports management is crucial in successful international trade practice. This is because it ensures clean, safe and secure ports operations and provides effective and efficient ports services and reception facilities.

Effective ports management reduces traffic, ports congestion, promotes international relationships and facilitates international trade by providing conducive and efficient ports and ports services.

1.2 Statement Of The Problem

Effective ports management facilitates international trade because it reduces some of the traffic bottle-necks and huddles that usually cause delays and discourage international traders from venturing into foreign markets.

However, it is observed in a country like Nigeria, that there is need to enlighten managers of ports to ensure effective ports management. Nigerian ports, especially the sea ports are not effectively managed, and as a result the ports are constantly congested. A typical case is the sea ports in Lagos.

Besides ports’ congestions, there appear that are no effective security apparatus in the ports to curb the increasing and alarming rate of insecurity in the ports. This is an ineffective terminal management and operations situation.

Above all, the port reception facilities are poorly managed and speedily deteriorate due to ineffective terminal management and operations. There is increasing uproar from international traders calling for Nigerian ports to be effectively managed in order to put a stop to the menace currently faced by international traders and other users of the facilities.

1.2 Significance Of The Study

This study will be a tool in the hands of port managers to achieve effective terminal management and operations objectives in Nigeria. This is owing to the fact that the study will disclose what is meant by effective terminal management and operations, how to achieve it in the Nigerian context and how it facilitates international trade in Nigeria and Globally.

1.3 Research Questions

a) What is effective terminal management and operations?

b) How does effective terminal management and operations facilitate international trade?

c) What relationship exists between effective ports management and international trade activities?

d) How can the Nigerian ports be effectively managed?

1.4 Research Hypotheses

The hypotheses below are developed and will be tested to ascertain the role of effective ports management in facilitating international trade in Nigeria.

Ho:1 There is no significant relationship between effective ports management and adequate, efficient and effective port-reception facilities.

Ho:2 There is no significant relationship between effective ports management and traffic reduction/decongestion of ports in Nigerian.

Ho:3 There is no significant relationship between adequate ports reception facilities, less cargo traffic and successful international trade practice.

1.5 Scope Of The Study

The study lays emphasis on the concept of effective ports management, the scope of port administration, Jetties and terminals in Nigeria. Functions of the organs in terminal management and operations and administration and he role of effective terminal management and operations in facilitating international trade, especially the sea ports in Nigeria.

1.6 Definition Of Terms

The following are some of the key words in the study.

Port An entry point or gateway meant for reception of imports and exports of goods. A transit area.

Port Reception facilities – Equipment and machines used to load and offload cargos into and out of ships or vessels.

Habour The path that leads to the port from the ocean, through which a vessel navigates.

Port system – A system consisting of subsystems which inter relate and complement the services and operations of the port.

Sea Port – A notable point along a given shareline, where the mode of transport changes from land to water borne and vice versa (Folarin, 2000) in Ndikom, 2008.

Air Port – A notable point where the mode of transport changes from land to air and vice versa (Ndikom, 2006).

Cargo -Goods, persons or materials meant for transportation.

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