Critical factors that impact on the efficiency of the Lagos seaports

Abstract

Background: Since the past two decades, the Lagos seaports have experienced vessel and storage yard cargo congestion, resulting in dwell times of about 30 days for containerised imports and high trade logistics costs.Objectives: The purpose of this study was to identify the critical factors that impact the operational efficiency of the Lagos seaports with a view to improving liner trade activities.Method: The study adopted an operational-based approach to understand the dynamics of the various interfaces of the port value chain. The research paradigm adopted for the study was therefore a combination of constructivism and post-positivism paradigms, which entailed the exploration and understanding of the various stakeholders in the port value chain. The epistemology of the research relied on the use of the exploratory sequential mixed method research technique (i.e. the qualitative approach followed by the quantitative approach) at the operational level of port operations.Results: The result of the research showed that significant challenges exist and that some of these challenges cut across all functions of port operations. Challenges are experienced in the areas of corruption, trade fraud, transport infrastructure deficits, the absence of a supply chain culture and shortcomings in the execution of the ‘contract of customs’. Additionally, these factors include the deficiencies in services and facilities provided by state agencies and government-appointed service providers and private sector companies such as truckers, inland container depots, Inland Container Depots (ICDs) and terminal operators.Conclusion: Specific recommendations are made to address the issues identified which, if implemented, could significantly address the current inefficiencies observed in the Lagos seaport’s operations.