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Posted: September 30th, 2022
Impact of concession on port range competitiveness using Apapa port (Nigeria) as a pilot study
Impact of concession on port range competitiveness using Apapa port (Nigeria) as a pilot study
The port reform and concession that took place in Nigeria in 2006 resulted in the transition of port operational services from the public sector to the private sector, although this did not result in the ports being fully privatized. This action was taken with the goals of improving efficiency across the industry as a whole, boosting competitiveness among the various port terminals, and decreasing the amount of congestion and delays that occur.
After the concession, significant development was observed, and the authorities would acknowledge that the decision was beneficial in molding the system’s performance while still maintaining control of the ports. As a result of the concession, the six ports in Nigeria were divided into a total of 25 distinct terminals and awarded to a variety of different companies.
One of these terminals was the Apapa port, and the administration of its operations was given to AP Moller, a private company that operates ports. Following the implementation of the reform, the Apapa port has made progress in a variety of areas. For example, there has been a significant increase in the amount of cargo that is processed. In addition to that, the amount of time it takes for the ships to turn around has significantly grown. Enhanced safety measures have been implemented all over the Apapa port environment. As a direct consequence of this, the port of Apapa has developed into one of, if not the most effective and competitive terminal.
The Nigerian Port Authority (NPA) asserts that the concession has made it possible for individual ports to implement management systems that are superior, more effective, and more tailored to their specific needs. Because of privatization, each terminal operator now has an incentive to improve their efficiency, which has led to increased competitiveness among terminals. The overall efficiency of the port system in Nigeria has consequently increased as a result of this development.
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