Elongated Cargo Dwell Time in Nigeria Ports, the Root-Source and Economic Implications

Abstract

The study investigated the root-source of elongated cargo dwell time in Nigerian ports and estimated the economic implications. It also compared the cargo dwell time among the ports in the West African sub-Saharan African regions. The study used exploratory research design combined with an ex-post factor research design in which secondary data was employed and analyzed using mathematical models to determine the root-source of elongated cargo dwell time in Nigerian ports, in comparison with those of other ports in the West and sub-Saharan African region. It was found that transactional dwell time constitutes the bulk of the time cargo stays in Nigerian ports after arrival. While transactional dwell time took about 73% of the total cargo dwell time in Nigerian ports, operational dwell time took about 20.5% and storage dwell time took the least, about 4.8% of the entire cargo dwell time of the time average shipper’s consignment spends in port. The Nigerian ports were also found to have the highest cargo dwell time in the West and Sub-Saharan African regions, being 475% times higher than the global average benchmark of 4 days and that of the port of Durban in South-African, 64% higher than that of Cotonou port in Benin, 53% higher than that of Tema port in Ghana, 156% higher than that of Lome port in Togo, and 109% higher than the of Mombasa port in Kenya. At an average storage rental charge rate of 7533.33 naira per TEU per day after the 3 to 4 days free cargo delivery window is closed, the estimated mean amount paid by shippers to terminal operators in Apapa port and Tin-can Island port as storage rental charges per day each year between 2014 and 2017 is 2,714,985,000 naira and 3423242500 naira respectively in each of the ports. These figures represent the daily economic implications of elongated cargo dwell time in Nigerian ports borne by shippers.