Sustainable assessment of operational efficiency at lagos port complex
1. Sustainable Assessment of Operational efficiency at Lagos Port Complex
By
Caleb Danladi Bako
PhD Researcher
As climate change awareness, regulatory oversight, and industry interventionscontinue to
impact upon the operational standards of modern port systems, sustainability has become a
critical concern, which may ultimatelyalter the scope and standards of practice throughout this
global community. Operational facilitiesare said to be ‘sustainable’ if they meets the needs of
the present without compromising the abilityof future generations to meet their own needs.
The Nigerian shipping industry represents just 1.6% of the total gross domestic product,
however, since 2007; traffic flows have more than doubled,resulting in significant opportunities
for port expansion,performance improvement, and global alliances.
Regulated by the Nigerian Port Authority (NPA),there are currently six critical port complexes
throughout the nation, each of which retains its own operational and strategic advantages. The
Lagos Port Complex (LPC) is Nigeria’s largest port, and is currently averaging in excess of 9.4% in
annual year over year growth for container processing. As the NPA currently predicts growth
and resource demands based upon market forces, regional capabilities, and network dynamics,
the opportunity for LPC to systematically and strategically improve its performance outcomes is
wholly based upon a commitment to competitive advantage and systemic growth.
As the NPA continues to expand its commitment to sustainability and responsible operations,
the Lagos Port complex is indicative of a radical opportunity to lead the marketplace,
systematically improving sustainable outcomes through operational, logistical, and partner-
based rehabilitation.
Historically, the port system in Nigeria has had a history of poor management. Now known in
Nigeria simply as the “Haskoning Study,” the report concluded that the administration of the
Nigerian ports was characterised by an unusually high degree of centralisation. Although the
sector was supposed to be controlled by the state-owned Nigerian Ports Authority (NPA),
permission from either the President or the Transport Minister was required for virtuallyall
major decisions. As a result, key decisions affecting both policy and operations in the sector had
slowed virtually to a standstill. In addition, NPA was responsible for both regulation of port
operations, as well as the day-to-day operational decisions themselves.Because it had the
authority to set its own tariffs, NPA was inclinedto raise its prices to deal with internal budget
deficits,instead of working to improve efficiency and productivity.
By the end of the 1990s, repeated tariff increases, along with unchecked inefficienciesand poor
governance, had made Nigerian ports among the slowest,and most expensive,in the world.
However, following major reforms in port system through privatisation in the 2000s, Nigeria
achieved greater annual efficiencylevelswith improvements in cargo throughput, vessel
numbers and ship turnaround time. However, in spite of these improvements, Nigeria still
experiencedperformance issueswith high port charges, delays in cargo clearance and multiple
taxation and developmentof intermodal transport.
2. Beyond the structural dimensionsof port sustainabilityand improvement, characterise a
purposeful and strategic awareness and developmenttraining protocol for increasing
performance and enhancing continuity. This framework of collaborative developmentseeks to
align employee priorities and commitments with the broader institutional and regulatory
standards that manifest in the form of protocol and organisational policy. Strategies such as
tactical familiarisation, environmental assessments, and sustainability agenda setting provide
the critical foundations for ports to generate holistic,structure-driven, stakeholder-committed
solutions that not only align localised interests,but expand best practices across user
populations and operational standards.
A critical limitation of sustainable agendas is the cost and technological demands associated
with system improvements and goal commitments. A pragmatic, alternative-drivenparadigm
for identifyingimprovement criteria, assessing innovative technologies, and outlining a cost-
benefitparadigm for decision making processes. By applying a decision tree approach to port
sustainability,solutions can be evaluated according to their relative benefitsas well as their
overarching costs, creating alignment between best fit solutions and their relative affordability
such objectives are complementary to the model of systems administration and sustainability
that creates full scale improvements through selective,but effective interventions.
In conclusion new technologies and strategic developmentshave led almost automatically to
greater port competition, both at port authority level and at the level of companies operating
within the various ports. Increasing the sustainability of operations involvesimproving efficiency
to helpreduce costs, utilise available capacity and achieve businessobjectives. Efficientlyusing
resources means that the organisation can maximise its returns. It allows it to offer lower prices
to consumers while maintaining profit margins, providing a sustainable source of revenue.
