Private Investors in the Shipping Industry in Nigeria
Chapter One
Objective of the study
The following objectives will be ascertain;
- To ascertain the effect of private investors in shipping industry in Nigeria
- To ascertain the effect of lack of transparency with private investor in shipping industry in Nigeria
- To find out the challenges faced by shipping industry that affect private investors
CHAPTER TWO
LITERATURE REVIEW
LITERATURE REVIEW
INTRODUCTION
Our focus in this chapter is to critically examine relevant literature 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
World maritime industry
The process of navigating or engaging in commerce through various types of navigable waters introduces the related concept of shipping. (Garner, 2009.314) defines shipping as relating to ships, as shipping interests, shipping affairs, shipping business, shipping concerns. Rolins (1980) viewed shipping vessel, as receiving on board a ship for transportation, to have transported by a carrier, to take or draw into a boat, to engage, to serve on a ship. (webster, 2008:587). Shipping involves the art of transporting goods, often termed cargo, from one point to another on any stretch of water. Shipping could therefore be on land also. Shipping business can be said to be one of the oldest businesses in the world. Historically, it constitutes a major source of political power and territorial influence for “he who rules the sea, rules the world” (Mukherjee, 2010:19), a fact underscored by the various conquests of the Egyptians, Turkish, Roman, and Spanish, Greek, Portuguese and British empires. The story of the shipping industry since the Second World War has been one of ingenuity, professionalism, fabulous profits and some miscalculations. (Ma, 2011:14). Adam Smith, the father of modern economics, viewed shipping as one of the principal stepping stones to economic development. In chapter three of the “Wealth of Nations”, he argued that the central force in a capitalist society is the division of labour and the extent to which it can be practiced depends largely and crucially upon the size of the market. He saw shipping as a source of cheap transport which can open up wider markets to specialization, offering prices way below every other means of transportation (Mshelia, 2002:12). Historical evidence indicates that, maritime pioneers, explorers, navigators, merchants and sea masters were non-Africans. They discovered sea routes, developed navigational aids and exploited mercantile trade and territories to their advantage. The world maritime industry is operated largely by private business individuals and organized groups. The role of national governments in the industry is limited to creating territorial water limits, developing regulations, enforcement of law and creation of basic infra- and superstructure in some cases. Today maritime industry ischaracterized by high and increasing technological innovations in the form of large capacity vessels, high speed inbuilt cargo handling equipment, multicargo compartments, transshipment transfer, highly trained and skilled personnel, trade groups, regional trade zones, cartel links, mergers, harsh competitions and aggressive marketing (Prasad,2011:7) The state of maritime industry in Nigeria deserves attention.
The Nigerian Shipping Industry
Shipping in Nigeria basically started during the second half of the last century via efforts of the foreign shipping lines. Woreman line started as a trading house in Hamburg and developed into a visible shipping company in 1894. Their first ship “Theresa Henrietter” left Hamburg for West Africa on 24th march, 1849. Elder Dempster commenced services in Nigeria in 1892 with their first ship “Fore runner”. This was followed by another British line “Palm line” which came into being after the Second World War. In 1960, Nigerian shipping line joined the trade as a junior. This period marked the formation of the Nigerian National Shipping Line (NNSL) in 1958. This marked the beginning of our national carrier’s participation in sea borne trade from humble beginnings of three second hand vessels, it grew to 12 owned vessels in 1970. By 1977, NNSL contracted to build 12 new vessels which were successfully delivered, making a total of 24 vessels (Iniodu and Ukpong, 2004:39). Today, the ships have all been grounded and some put to scrap due to poor management of the national fleet. However, there has been a renewed interest in the venture due to lack of alternatives to maritime transport.
Factors that Influence the development of Nigerian Shipping Industry
There are three major factors that influence the development of shipping industry in Nigeria; they are lack of capital, poor incentives for investors, poor integrated transport system.
Chapter Three
Research methodology
Research Design
The research design adopted in this research work is the survey research design which involves the usage of self-designed questionnaire in the collection of data. Under the survey research design, primary data of this study will be collected from Admiral Marine Shipping Nigeria Ltd and Emiros Cargo Limited in Lagos state in order to determine private investors in the shipping industry in Nigeria. The design was chosen because it enables the researcher to collect data without manipulation of any variables of interest in the study. The design also provides opportunity for equal chance of participation in the study for respondents.
Population of Study
The population of study is the census of all items or a subject that possess the characteristics or that have the knowledge of the phenomenon that is being studied (Asiaka, 1991). It also means the aggregate people from which the sample is to be drawn.
Population is sometimes referred to as the universe. The population of this research study will be Seventy-five (75) staffs of Admiral Marine Shipping Nigeria Ltd and Emiros Cargo Limited in Lagos state in order to determine private investors in the shipping industry in Nigeria
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION
This chapter is about the analysis and presentation of data collected from the field through questionnaire. The analysis of the data with particular question immediately followed by the presentation of findings.
As mentioned in chapter three, 75 questionnaires were administered and 50 were retrieved and necessary analysis was carried out on them and presented as follows:
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain private investors in the shipping industry in Nigeria. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of private investors in the shipping industry in Nigeria
Summary
This study was on private investors in the shipping industry in Nigeria. Three objectives were raised which included: To ascertain the effect of private investors in shipping industry in Nigeria, to ascertain the effect of lack of transparency with private investor in shipping industry in Nigeria and to find out the challenges faced by shipping industry that affect private investors. The total population for the study is 75 staffs Admiral Marine Shipping Nigeria Ltd and Emiros Cargo Limited in Lagos state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
Shipping is of great importance to the Nigerian economy. One of the major challenges facing Nigeria at present is that it has no meaningful participation in the Shipping Industry on which Nigeria depends, both for Exports and Imports. Practically all Nigerian Exports are shipped “Free on Board” (FOB), while its Imports are shipped ‘Cost Insurance and Freight’ (CIF). The study find out that there always an issue between private investor and the shiping due to charges impose on them am, making it difficult to run smooth business transaction
Recommendation
Maritime policy makers should understudy developed economies with a view to duplicating some features and toe their own path of growth
Increased investment in shipping infrastructure and maintenance by indigenous operators to continually meet an acceptable international standards
References
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