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Posted: September 8th, 2022
Impact of concession on port range competitiveness
Impact of concession on port range competitiveness using Apapa port (Nigeria) as a pilot study
The 2006 port reform and concession in Nigeria saw the transfer of port operational services from the public to the private sector, albeit in the absence of full privation. The move was focused on increasing competitiveness among individual port terminals, reducing congestion and delays, and increasing the industry’s performance in general.
Significant progress has been witnessed post concession, and authorities will admit that the move has been valuable in shaping the system’s performance while still maintaining control of the ports. The concession saw the delineation of the six Nigerian ports in two 25 individual terminals awarded to different operators.
The Apapa port was one of these terminals and whose operational control was granted to AP Moller, a private operator. After the reform, the Apapa port has advanced in different areas. For instance, Cargo throughput has increased remarkably. Additionally, the turnaround time for the ships has increased notably. Security around the port environment in Apapa has also improved. As a result, the Apapa port has emerged to be one if not the most competitive and effective terminal.
According to the Nigeria Port Authority (NPA), the concession has provided individual terminals with a better and more efficient and personalized management system. Privatization has made each terminal operator strive for efficiency, thus creating competitiveness among terminals. This has, in turn, improved the overall performance of the Nigerian port system.
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