A Logistics Approach to Seaport Efficiency (Updated Version)

 ABSTRACT

Although there is widespread recognition of the potential of ports as logistics centers, widely accepted performance measurements for such centers are yet to be developed. The essence of logistics management is an integrative approach to the interaction of different processes and functions within the port extended to a network of organizations for the purpose of cost reduction and customer satisfaction. The logistics approach often adopts a concept, “value-added service” between functions, processes and even supply chains. This approach could be beneficial to port efficiency by directing port strategy towards relevant value added logistics activities. This paper seeks to show that through conceptualizing ports from a logistics management approach, it is possible to suggest a relevant concept for ports operations. A proposed concept is tested in a survey by the researcher. This research discusses various definitions as well as what qualifies a port to be classified as an efficient port and some common practices that ensure success at these ports. The literature review gives explanatory details of such processes, as the provision of value-added services are necessary for international trade facilitation. Secondary sources such as books, corporate journals and electronic library among others are used for this research. Information discovered as a result of inquiries and investigation discloses that value added services boost the services rendered to customers and modernizes the entire logistics chain thereby facilitating trade between trading parties. The idea of this research is to contribute to a better understanding of the value-added services concept to improve knowledge generally as well as on implementation of the concept.

TABLE OF CONTENTS

Declaration i

Acknowledgement ii

Abstract iii

Table of Contents iv

List of Tables ix

List of Figures x

List of Abbreviations xii

Chapter 1

INTRODUCTION

1.1 Background to the study 1

1.2 Problem statement 2

1.3 Research objectives 3

1.4 Research questions 3

1.5 Scope of study 3

1.6 Significance of study 4

1.7 Organization of chapters 4

Chapter 2

LITERATURE

2.1 Introduction to seaport 5

2.2 Seaport 5

2.2.1 Inland port 5

2.2.2 Fishing port 6

2.2.3 Warm water ports 7

2.2.4 Dry port 8

2.2.5 Cruise home port 9

2.2.6 Cargo port 10

2.3 Seaport Eciency 11

2.4 Reasons for the emergence of the logistics approach concept 12

2.4.1 Seaport congestion 12

2.4.2 Seaport capacity problems 13

2.5 Value-added services at seaports 15

2.5.1 Documentation and processing 18

2.5.2 Facilities/equipment 18

2.5.3 Cargo handling 19

2.6 Benets of the value-added services at seaport 19

Chapter 3

METHODOLOGY

3.1 Research method 21

3.2 Research design 21

3.3 Population sample 22

3.4 Sample size 22

3.5 Sampling method 22

3.6 Research instrument 22

3.6.1 Primary data 23

3.6.2 Secondary data 23

3.6.3 Pre-testing 23

3.6.4 Limitation of data collection 24

3.7 Sample frame 24

3.8 Data analysis and presentation 25

Chapter 4

PRESENTATION AND ANALYSIS OF DATA

4.1 Response rate 26

4.2 Respondents demographics 27

4.3 Overall satisfaction with service delivery 31

4.3.1 Quality of service received from a port relative to ideal desired service 31

4.3.2 Willingness to recommend a port to importers and exporters 32

4.3.3 The extent of respondents expectations to standard of service 32

4.3.4 Satisfaction with quality of service at a port 33

4.3.5 The ow of information at a port 34

4.3.6 General appearance of employees and environment 34

4.3.7 Favorable nature of business terms and conditions at a port 35

4.3.8 Port consultation with customers 36

4.3.9 The ports understanding of its customers 36

4.3.10 Ability of port authority to apologize for inconvenience to customers 37

4.3.11 Timeless and truthfulness of a port in discharging its service 38

4.3.12 Dependability of a port in discharging its duty as well as solving customers

compliments 38

4.3.13 Willingness of port sta to attending to customers 39

4.3.14 The approachable nature and ease of contacting port sta 40

4.3.15 Sincerity and patience in resolving customers complaints/problems 40

4.3.16 Ability of port sta instilling condence in customers 41

4.3.17 Use of required skills by employees and knowledge to answer customers

questions 42

4.3.18 Affordability of services at a port (Tari mechanism) 42

4.3.19 Knowledge and skills of sta about automated and computerized systems

4.3.20 Innovations at a port to improve service 44

4.3.21 How successful are seaports in logistics industry 45

4.4 Presentation and calculation of tonnes of cargo 45

4.4.1 Importance of a port 48

4.4.2 Challenges faced at a port 48

4.4.3 Impact of a port on a country’s maritime trade 49

4.4.4 Possible solutions to the challenges of a port 50

4.5 SWOT analysis of a port 52

4.5.1 Strengths 52

4.5.2 Weaknesses 53

4.5.3 Opportunities 53

4.5.4. Threats 53

Chapter 5

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary of findings 55

5.2 Conclusions 55

5.3 Recommendations 56

References 59

Appendices

Appendix A 60

Appendix B 62

LIST OF TABLES

Table 2.1 Beneficiaries and benets of the value-added service concept

Implementation 19

Table 3.1 Showing sample frame of interview results, questionnaire compilation and general data. 25

Table 4.1 Demographic profile of respondents 27

Table 4.5 Summary of possible solutions to challenges at a port from research

interview findings 50

LIST OF FIGURES

Figure 2.1 Inland Ports 6

Figure 2.2 Fishing Ports 7

Figure 2.3 Warm water ports 8

Figure 2.4 Dry ports 9

Figure 2.5 Cruise home ports 10

Figure 2.6 Cargo ports 11

Figure 2.7 Valued-Added Services network diagram 16

Figure 2.8 Value-Added Services at Sea ports 17

Figure 4.1 Response Rate 26

Figure 4.2 Total percentage of quality of service received from port a relative to ideal desired service 31

Figure 4.3 Total percentage of willingness to recommend your port to importers and exporters 32

Figure 4.4 Total percentage of the extent of respondents expectation to standard of service 33

Figure 4.5 Total percentage of satisfaction with quality of service at a port 33

Figure 4.6 The ow of information at a port 34

Figure 4.7 General appearance of employees and environment 35

Figure 4.8 Favorable nature of the business terms and conditions at a port 35

Figure 4.9 Port consultation with customers 36

Figure 4.10 The port understanding of its customers need 37

Figure 4.11 Ability of port authority to apologize for inconvenience to customers

Figure 4.12 Timeliness and truthfulness of a port in discharging its service 38

Figure 4.13 Dependability of a port in discharging its duty as well as solving

customers complaints 39

Figure 4.14 Willingness of port sta to attending to customers 39

Figure 4.15 The approachable nature and ease of contacting employees 40

Figure 4.16 Sincerity and patience in resolving customers complaints/problems

Figure 4.17 The ability of ports sta instilling condence in customers 41

Figure 4.18 Employees use of required skills and knowledge to answer customers

question 42

Figure 4.19 Affordability of service at a port (Tari Mechanism) 43

Figure 4.20 Technological knowledge and skills of sta about automated and

computerized system 43

Figure 4.21 Innovations at a port to improve service 44

Figure 4.22 How successful is a seaport to the logistics industry 45

Figure 4.23 A graphical representation a Port performances (TRANSIT) 45

LIST OF ABBREVIATIONS

ICDS Inland Container Depot

USD United State Dollar

LOOP Louisiana offshore oil port

USA United State of America

LTD Limited Liability Company

EDI Electronic Data Interchange

JIT Just - In - Time

SPSS Statistical package for social sciences

HND Higher National Diploma

APMT APM Terminals

MPS Meridian port service

LNG Liquefied Natural Gas

VIP Very Important personnel

GDP Gross Domestic Product

ECOWAS Economic of West African State

LTL Less than truck load

TEU Twenty Equivalent Unities

SHS Senior High School

BSC Bachelor of Science

MSC Master of science

PHD Doctor of Philosophy