Evaluation of Compulsory Regulatory Port Services and Revenue Generation of Onne Port Nigeria

Abstract

Compulsory regulatory services are those port services which are required by Port Authority to provide to port users and/or vessels that call to the port. These services are by port statutory requirement that the Port Authority provides such services and collect revenues from the port users who benefits from such services. Such revenues collected include pilotage fees, lease fees, berth rent, MOWCA, contingency deposit, ship dues etc. This study evaluated the impacts of these compulsory regulatory port services on revenue generation of Onne Port Nigeria. In carrying out the study, secondary data consisting of time series data on port revenue covering a period of six years (2016-2020) of Onne port obtained from NPA Onne annual reports. The data collated were analyzed using multivariate statistics of stepwise regression method with the help of computer aided software SPSS version 22. The results inform that the mix of the independent variables have significant impacts on revenue generation of Onne Port Nigeria. The findings further show that unit increase on pilotage and other services have positive significant impacts on revenue generation while, unit increase on lease and throughput fees have negative significant impacts on revenue generation due to discounts offered to port users for increase in unit patronage. The study recommends that the port authority should ensure adequate pilotage and maintenance of other services to satisfy potential port users to earn loyalty and increase patronage by port users in order to generate more revenues and adopt an optimization approach to manage discounts on unit increase on throughput and lease fees to minimize the effect on the overall revenue generation specially in a long run.