Port Regionalization: Towards a New Phase in Port Development
CHAPTER ONE
OBJECTIVE OF THE STUDY
The main focus of this study is to examine port regionalization: towards a new phase in port development. Specifically the study seeks to:
- Examine the nature of Port terminals and inland freight distribution.
- Investigate approach towards Substantiating the regionalization phase.
- Examine Governance issues in the regionalization phase.
CHAPTER TWO
LITERATURE REVIEW
INTRODUCTION
Our focus in this chapter is to critically examine relevant literatures that would assist in explaining the research problem and furthermore recognize the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps.
CONCEPTUAL FRAMEWORK
Port terminals and inland freight distribution
Port development
One of the most widely acknowledged conceptual perspectives on port development is the Anyport model developed by Bird (1980) describing how port infrastructures evolve in time and space. Starting from the initial port site with small lateral quays adjacent to the town centre, port expansion is the product of evolving maritime technologies and improvements in cargo handling. This is also marked by changing spatial relationships between the port and the urban core, as docks are built further away from the central business district. In the later stages, increased specialization of cargo handling, growing sizes of ships, and ever increasing demands for space for cargo-handling and storage results in port activity being concentrated at sites far removed from the oldest facilities. In turn, original port sites, commonly located adjacent to downtown areas, became obsolete and were abandoned. Numerous reconversion opportunities of port facilities to other uses (waterfront parks, housing and commercial developments) were created. Three major steps can be identified in the port development process identified by Anyport (Figure 1): setting, expansion and specialization. The three phases depict well port development processes, especially in large traditional ports. The model remains a valid explanation of port development. However, the model has some weaknesses in view of explaining contemporary port development.
First of all, it does not explain the recent rise of seaport terminals that primarily act as transshipment hubs in extensive maritime hub-and-spoke and collection and distribution networks. Increased cargo availability has triggered changes in vessel size, liner service schedules and in the structure of liner shipping. Carriers and alliances have reshaped their liner shipping networks through the introduction of new types of end-to-end services, round-the-world services and pendulum services, especially on the main east-west trade lanes.
CHAPTER THREE
SUBSTANTIATING THE REGIONALIZATION PHASE
INTRODUCTION
This chapter considered the approaches towards substantiating the regionalization phase for port development. This segment is very important to maritime expatriates and serve as map for achieving this new paradigm shift.
PORT REGIONALIZATION AND LOGISTICS INTEGRATION
The transition towards the port regionalization phase is a gradual and market-driven process imposed on ports that mirrors the increased focus of market players on logistics integration. International supply chains have become complex and logistics models evolve continuously as a result of influences and factors such as globalization and expansion into new markets, mass customization in response to product and market segmentation, lean manufacturing practices and associated shifts in costs and time dependent distribution strategies (Hesse and Rodrigue, 2004). Customers‘ need for a wider array of global services and for truly integrated services and capabilities (design, build and operate) triggered integrated logistics strategies (Christopher, 1992; McKinnon, 2001) and a shift from transportation-based 3PLs (Third Party Logistics) to warehousing and distribution providers and at the same time opened the market to innovative forms of non-asset related logistics service provision, that is 4PL (Fourth Party Logistics). Intensified competition at the supply side creates pressures on cost management and on margins. The evolutions in supply chains and logistics models urge market players such as shipping lines, stevedoring companies, inland transport operators and forwarders to re-think their role in the logistics process and poses great challenges to the role of ports as functional nodes in logistics networks. The tendency towards logistics integration in the port and maritime industry and the impact of changes in logistics on the functional role of ports in value chains are well documented in recent literature. Robinson (1992) places the role of seaports within a new paradigm of ports as elements in value-driven chain systems. Notteboom and Winkelmans (2002) and Heaver et al (2001) primarily discussed logistics integration and the changing role of port authorities in the new logistic-restructured environment, while Martin and Thomas (2001) addressed structural changes in the container terminal community. The development of the logistics industry has enabled many freight forwarders to take control of larger segments of the supply chain. The level of functional integration of land distribution is increasing rapidly. Many distribution functions that used to be separated are now controlled by a single entity. In a conventional situation, the majority of distribution activities were performed by different entities ranging from maritime shipping lines, shipping and custom agents, freight forwarders and rail and trucking companies.
CHAPTER FOUR
ISSUES AND CONECERN OF PORT REGIONALIZATION
INTRODUCTION
While advocating for port regionalization is a great idea, some scholars have showed great concern on what might be the issues that would hinders the achievement of this goal. This chapter considers the issues and concerns about regionalization of Port in Nigeria.
CONCERNS IN THE REGIONALIZATION PHASE
Over-optimism: The regionalization phase undoubtedly creates new opportunities for ports and inland centers to develop integrated logistics concepts that meet customers‘ aspirations in terms of supply chain management solutions. Unfortunately, it often triggers a too optimistic attitude among planners in terms of the future development potential of specific port and inland sites. Different locations and load centre networks are vying for logistics sites and in pursuing this goal they often overestimate future traffic potential. A lack of clear insights into market dynamics could lead to wishful thinking by local governments and an overoptimistic perspective on the logistics development potential of the regions concerned. This can lead to overcapacity situations, redundancies and cutthroat competition between incumbent sites (ports or logistics zones in the hinterland) and newcomers in the market.
Slow start: Another point of concern is the time needed to develop a regional load centre network. Even in case the benefits of port regionalization are quite obvious, it often demands years of painstaking efforts of port authorities and market 15 players to gradually build the network. The case of New York is illustrative in this respect as it went through all the phases in port development (Rodrigue, 2004).
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
SUMMARY
The focus of the study centred on port regionalization: towards a new phase in port development using the Appapa Port in Lagos State as case study. Specifically, it examine the approach towards substantiating port regionlization and the issues and concerns that could impede the achievement of this new paradigm in maritime sector.
The research adopted a descriptive approach examining closely Existing models on the spatial and functional evolution of ports and port systems which only partially fit into the new freight distribution paradigm. Sources of data was from secondary data ranging from journals, library materials, data from Nigeria Port Authority and other internet materials which was deemed relevant for the study.
CONCLUSION
Regionalization represents a new phase in the development of port systems, which has traditionally focused on the port itself. In this phase, inland distribution becomes of foremost importance in port competition, favoring the emergence of transport corridors and logistics poles. The port itself is not the chief motivator for and instigator of regionalization. Regionalization results from logistics decisions and subsequent actions of shippers and third party logistics providers. Port authorities are invited to embrace and enhance the regionalization process in view of addressing current port-related challenges, mainly congestion, growing costs, limited handling capacity and the generation of additional traffic while being able to answer the requirements of modern freight distribution. With a more efficient access to the hinterland, mainly through modal shift, port competitiveness is thus increased. This also leads to questions with respect to the limits of port regionalization in terms of capacity and cost efficiency. The strategic scope of port authorities should go beyond that of a traditional facilitator. Port authorities can play an important role in the creation of core competencies and economies of scope by an active engagement in the development of inland freight distribution, information systems and intermodality. Direct and indirect forms of networking with nodes and market players constitute probably the most important role for port authorities in the regionalization phase, as gaining competitive advantage will more and more become a matter of going beyond the port boundaries both in terms of physical investments and managerial capabilities.
RECOMMENDATION
From the findings of the study, the following recommenmdation were drawn:
- There is need to strengthen the implementation of policy reforms measures and regulations which has been introduced in the sector. This will help to achieve desired goals in the area of ports operations, terminal management, administration and cargo growth in Nigeria.
- The maritime sector in Nigeria should wake up to this call of paradigm shift in their sector, train expatriates who can develop models on port services can be regionalised in Lagos State as a means of promoting inland/Island transportation especially in those state with poor road networks as this will curb the issue of traffic and enhance efficient transportation system.
- The activities of the managerial staff should be monitored to ensure that corrupted practices do not prevail the sector. Even as they ensure that unqualified staff working with the posts should be trained to step up their competences.
- New government policies should be enacted encouraging the establishment of new sea ports and jetties like the Dangote deep seaport project currently ongoing at Lekki – Lagos state outside Apapa area so as to reduce the growing pressures capable of creating road congestions due to increasing import and export of goods.
REREFRENCE
- Baird, A.J. (2000) Port privatisation: objectives, process and financing, Ports and Harbors, 45, 14-19.
- Baird, A.J. and A.J. Lindsay (1996) Strategic choice in the Global Container Shipping Industry: A resource-based approach, IAME ’96 Conference, International Association of Maritime Economists, Vancouver.
- Barke, M. (1986) Transport and trade (Oliver & Boyd, Edinburgh) Bird, J. (1980) Seaports and seaport terminals (London, Hutchinson University Library)
- Brooks, M. (2001) Good governance and ports as tools of economic development: are they compatible? Proceedings of the IAME2001 conference, Hong Kong, 1-19. Buck Consultants (1996) Seaports and their hinterlands (Nijmegen)
- Buck Consultants (1997) Samenwerking tussen zeehavens in Nederland: verslag van samenwerking in de praktijk, Nationale Havenraad (Nijmegen)
- Cariou, P. (2001) Vertical integration within the logistic chain: does regulation play rational? The case for dedicated container terminals, Transporti Europei, 7, 37- 41.
- Carruthers, R. and J.N. Bajpai (2002) ―Trends in Trade and Logistics: An East Asian Perspective.‖ Working Paper No. 2, Transport Sector Unit. Washington, D.C.: World Bank.
