Posted: January 18th, 2023

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 impact of concessions on port range competitiveness is an important topic in the shipping industry, particularly in the case of the Apapa port in Nigeria. Concessions, or the granting of rights to private companies to operate and manage port facilities, can have a significant impact on the competitiveness of a port range, potentially leading to improvements in efficiency, service quality, and overall performance. In the case of the Apapa port, concessions have been implemented in an effort to modernize and improve the port’s operations, but there have also been challenges and criticisms of the concession process.

One of the key benefits of concessions is that they can bring in private investment and expertise to modernize and improve port facilities. In the case of Apapa, the concession process has led to significant investments in new equipment and infrastructure, including the construction of new terminals, the expansion of existing ones, and the acquisition of state-of-the-art technology. This has helped to improve the overall efficiency of the port, reducing congestion and bottlenecks, and allowing for faster turnaround times for ships.

Concessions can also improve service quality at ports by introducing competition and allowing for the development of specialized terminals. In the case of Apapa, the concession process has led to the establishment of dedicated terminals for specific types of cargo, such as container terminals, bulk terminals, and liquid terminals. This has allowed for a more tailored and efficient approach to handling different types of cargo, improving service quality and customer satisfaction.

Another potential benefit of concessions is that they can help to increase the competitiveness of a port range by attracting more business. In the case of Apapa, the improved efficiency and service quality resulting from the concessions have helped to make the port more attractive to shipping companies, leading to an increase in the volume of cargo handled at the port. This, in turn, has boosted the port’s competitiveness within the region and has helped to support the growth of the local economy.

However, there have also been challenges and criticisms of the concession process at the Apapa port. One of the main concerns has been the impact on port workers, with some arguing that the concessions have led to job losses and reduced labor protections. There have also been accusations of corruption and favoritism in the selection of concessionaires, with some critics alleging that the concessions have been granted to well-connected individuals rather than the most qualified companies.

Another challenge has been the limited involvement of the local community in the decision-making process surrounding the concessions. Some have argued that the concessions have been implemented without adequate consultation with local stakeholders, leading to concerns about the potential impact on the local economy and the environment.

In this view, the impact of concessions on port range competitiveness is a complex issue, and the experience at the Apapa port in Nigeria is a case in point. While concessions have brought in private investment and expertise, and have led to improvements in efficiency and service quality, there have also been challenges and criticisms of the process. Further research and analysis is needed to fully understand the impacts of concessions on port competitiveness and to identify best practices for ensuring that concessions are implemented in a fair and transparent manner.