Determining Benchmarks for Cargo Throughput Performances of Privatized Seaports in Nigeria

Abstract

There exists the challenge of seeming lack of empirically determined cargo throughput benchmark models for the privatized West African port terminals particularly in Nigeria, as target benchmarks which terminal operators and port authorities must drive towards to ensure that the current improvement in port productivity experienced in the post concession era is sustained. The study was therefore aimed at developing benchmarks for the cargo throughput performances of the privatized five Nigeria ports of Apapa (Lagos), Port-Harcourt, Onne, Warri and Calabar. Such benchmarks developed for each seaport must be higher than the pre-privatization cargo throughput performances of the seaport. This became important following the improvements observed in the cargo throughput performances of the various ports from the year 2006 after the privatization of the ports and the recent recession faced in the Country which seems to have retarded the cargo throughput performances and other measures of seaport performance in the various Nigeria ports. Using C_p1, C_L1, C_w1, C_o1, C_c1, to represent the base year 2006 cargo throughput performances of Port-Harcourt, Lagos, Warri, Onne and Calabar seaport respectively; and n, d, to represent the number of post privatization years covered in the study and common difference in cargo throughput performances; the study used a historical design approach in which time series data on cargo throughput performances of the ports were obtained from the Nigeria ports Authority (NPA) annual statistical reports were analyzed using the converging and diverging arithmetic series mathematical modeling tool and MATLAB software, to determine benchmark models, for ensuring that the improved cargo throughput performances of the various seaports, are sustained to remain higher that the pre-privatization cargo throughput performances. The study developed the following Cargo throughput benchmark models for each seaport as findings. Lagos port = C_L1 + (n – 1)d ≥ 15223340; Onne port = C_o1 + (n -1)d ≥ 15820381; Port-Harcourt port = C_p1 + ( n -1)d ≥ 28016979; Warri = C_w1 + ( n-1)d ≥4643128; Calabar = C_c1 + (n-1)d ≥ 7963434. It was recommended that to improve port revenue which is a dependent factor on cargo throughput and vessel call rate, cargo throughput benchmarks model developed for the individual seaports should be used to empirically model quantum s of cargo throughput needed to economically sustain and improve the level of port operations. It should equally influence port marketing drives. This will ensure that the performance of the ports does not recede into the poor performance indices experienced in the pre-privatization era.