ANALYSIS OF COST OPTIMIZATION OF PORT OPERATION (A CASE STUDY OF APAPA PORT IN LAGOS STATE)


ANALYSIS OF COST OPTIMIZATION OF PORT OPERATION (A CASE STUDY OF APAPA PORT IN LAGOS STATE)

TABLE OF CONTENT

Title Page………………..i

Certification………….…ii

Dedication………………iii

Acknowledgment……….iv

Table of content……...…v

CHAPTER ONE

INTRODUCTION

1.1    Background of the study

1.2    Statement of the problem

1.3    Significance of the study

1.4    Objectives of the study

1.5    Research questions

1.6    Research hypotheses

1.7    Limitations of the study

1.8    Scope of the study

1.9    Definition of terms

References

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1    INTRODUCTION

2.2    THEORETICAL FRAMEWORK

2.3    CONCEPTUAL FRAMEWORK

2.4    EMPIRICAL REVIEW

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research Design

3.2 Population of the Study

3.3Sample Size Determination

3.4 Method of Data Collection

3.5    Method of Data Analysis

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS, AND INTERPRETATION

BIODATA OF RESPONDENTS

TABLES BASED ON RESEARCH QUESTIONS

RESEARCH HYPOTHESIS

DECISION RULE

CONCLUSION

CHAPTER FIVE

SUMMARY, CONCLUSION, AND RECOMMENDATION

FINDINGS

DISCUSSION OF FINDINGS AND CONCLUSION

RECOMMENDATION

APPENDIX A

QUESTIONNAIRE ADMINISTRATION

CHAPTER ONE

INTRODUCTION

Background of the study

In many markets, firms compete over time by expending resources with the purpose of reducing their costs. Sometimes, the cost reducing investments operate directly on costs. In many instances, they take the form of developing new products that deliver what customers need more cheaply. Therefore, product development can have the same ultimate effect as direct cost reduction. In fact if one thinks of the product as the services rendered to customers, then product development often is just cost reduction. The globalization of trade and subsequent breakdown in trade barriers has generated tremendous growth in maritime transportation. Thus the stiff competitions among part operators have increased thedesire to attract port uses. Therefore, port operators will have to optimize the cost of their operations if they must benchmark good productivity and performance for their terminals.

There is no doubt that the maritime sector especially the port system is vital and instrumental to the national economic survival of the country. Nigeria is a popular nation, renowned for her international nature of business. Quality customer service is the benchmark principle for the maritime professional and customer care techniques. Therefore, the economic justification of a port is its ability to satisfy its customers at a lower price and also be able to make profits. With regards to costs emanating from the vessel, it can be affirmed that port costs, above all are the most significant, since theydepend on the gross tonnage of the vessel and the time it spends in the port. Bulk carriers are those which tend to spend most time in port as well as being the greatest in size. The costs of towing, which depend on the circumstances of the movement, tend to represent approximately 10% to 15% of the cost scale of the vessel [5]. More so, other costs due to the vessels stay at port, including agency fees average approximately 5 or 10% of the total. The port tariffs on the merchandise are situated at less than 50% of the total. Where all costs of unloading are considered in relation to port costs, the former are situated at about 70% of the total where all costs are also included storage, weighing etc. With a clear tendency to drop when using cranes of greater efficiency and capacity, about 30% would correspond to port costs. It is evident that Nigerian ports operate at very low optimal capacity, in spite of the expected large volume of cargo traffic that passes through it. It is very pertinent to note that vessel delay period is a very serious problem that contributes to over 60% of our ports low productivity problem in recent times. Ndikom [3], further confirms that regrettably, at Lome port, dock workers load 700mts per day as against less than 250mt per day at Nigerian ports. The five days difference in loading arrangements between Nigerian ports and other ports in terms of ship delay rate billings of US$4,000 is rather too staggering and unfortunate. In clear terms, this is enough to deny Nigerian ports cargo and revenue that would ordinarily have come our way. Kaspi, et al, looked at the minimization of cost and optimum port performance as anchored on reducing port turnaround time.

They developed a regression model to relate turnaround timeand port cost which was highly related with allocation of port facilities. Beatriz et al, argues that the optimal organization of the industry can be studied by means of cost and production functions. They reviewed the literature on econometric ports’ structure and propose that the calculation of key cost indicators (economics of scale, scope and so forth) is best in determining optimal port structure is order to minimize the cost of port operations.

1.2   Statement of the problem

It is evident that Nigerian ports operate at very low optimal capacity, in spite of the expected large volume of cargo traffic that passes through it. It is very pertinent to note that vessel delay period is a very serious problem that contributes to over 60% of our ports low productivity problem in recent times. Ndikom [3], further confirms that regrettably, at Lome port, dock workers load 700mts per day as against less than 250mt per day at Nigerian ports.

The five days difference in loading arrangements between Nigerian ports and other ports in terms of ship delay rate billings of US$4,000 is rather too staggering and unfortunate. In clear terms, this is enough to deny Nigerian ports cargo and revenue that would ordinarily have come our way. Kaspi, et al, [2], looked at the minimization of cost and optimum port performance as anchored on reducing port turnaround time. They developed a regression model to relate turnaround timeand port cost which was highly related with allocation of port facilities. Beatriz et al [1], argues that the optimal organization of the industry can be studied by means of cost and production functions. They reviewed the literature on econometric ports’ structure and propose that the calculation of key cost indicators (economics of scale, scope and so forth) is best in determining optimal port structure is order to minimize the cost of port operations.

1.3   Significance of the study

This study attempts to optimize the cost of port operations in Nigeria.With regards to costs emanating from the vessel, it can be affirmed that port costs, above all are the most significant, since theydepend on the gross tonnage of the vessel and the time it spends in the port. Bulk carriers are those which tend to spend most time in port as well as being the greatest in size.In the light of the above, this study attempted to bridge the gap by offering an optimal cost to port operations in Nigeria.

1.4   Objectives of the study

The broad objective of the study is the analysis of optimum cost of port operations. The specific objectives include:

Determination of the minimum cost of port operations. Determination of the optimality range of cost variability. Determination of the optimality range of resource variability.

1.5   Research questions

1. Is there a minimum cost of port operations?

2. What is the optimality range of cost variability?

3. What is the optimality range of resource variability?

1.6   Research hypotheses

1.     Ho: There is no minimum cost of port operations.

Hi:There is minimum cost of port operations.

2.     Ho: There is no optimality range of cost variability.

Hi: There isoptimality range of cost variability.

3.     Ho:There is no optimality range of resource variability.

Hi: There isoptimality range of resource variability.

1.7   Limitations of the study

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview). Time constraint- The researcher will simultaneously engage in this study with other   academic work. This consequently will cut down on the time devoted for the research work.

1.8   Scope of the study

The study focuses on the analysis of cost optimization of port operations using Apapa port as a case study.

1.9   Definition of terms

Cost: This is an amount that has to be paid or spent to buy or obtain something.

Cost optimization: This means finding an alternative with the most cost effective or highest achievable performance under the given constraints, by maximizing desired factors and minimizing undesired ones.

Port: This refers to a town or city with a harbor or access to navigable water where ships load or unload.

References

Ajidahun, C.O. (2007). The training, development and education of library manpower in information technology in university libraries in Nigeria.World Libraries 17 (1).

Appleby, P.C. (1991). Modern business administration. London: Pitman.

Boock, M., &Vondracek, R. (2006).Organising for digitization: A survey. Portal: Libraries and the Academy 6(2): 197-217. Cortez, E.M., Dutta, S.K., &Kazlauskas, E.J. (2004).

Digicult (2003) Europe: Creating cooperation for digitization.

Ekere, F.C., &Ekere, J. (2008).Contemporary challenges facing library and information science professions in Nigeria.In Nworgu, B.G. (Ed.).Global challenge and enhancement strategies. Proceeding from first International Conference of the Faculty of Education, University of Nigeria, Nsukka, held from 17th-21st June.

.


TYPE IN YOUR TOPIC AND CLICK SEARCH.






RESEARCHWAP.COM

Researchwap.com is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. Researchwap.com guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.

TESTIMONIES FROM OUR CLIENTS


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • "Researchwap.com is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "researchwap.com" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing researchwap.com.