1.1 Introduction
Maritime logistics has been traditionally regarded as the primary means of transporting parts and finished goods (viz outbound logistics) on a global scale and has recently attracted considerable attention from academics and practitioners alike. However, the term ‘maritime logistics’ is not easy to define and its precise definition, scope and role within global supply chains are yet to be established (Song and Lee, 2009).
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.
1.2 Background of Study
Globalization and the technological revolution in the transport sector including containerization, logistics integration and the consequent expansion of the maritime industry have redefined the functional role of shipping and ports in global logistics and supply chains and have generated a new pattern of freight distribution. The rapid increase in world trade in the past decade has restructured the global maritime industry, having brought about new developments, deregulation, liberalization and increased competition. There have been dramatic changes in the mode of world trade and cargo transportation, characterized by the prevalence of business-to-business and integrated supply chains. These changes have been embodied in the increasing demand for value-added logistics services and the integration of various transportation modes such as inter- or multi-modal transport systems. As a consequence, the business stability and sustainability of the industry is largely subject to how well it adapts to such a dynamic environment. Therefore, high-quality logistics services and the effective and efficient integration of transport and logistics systems offered by a maritime operator (ie a shipping company or port/terminal operator) has become an important issue.
Historically, however, the initial attempt to define maritime logistics was made by Panayides (2006), who suggests that, for a better understanding and ultimate definition of the term, the starting point should be to consider the underlying scope and characteristics of the two areas making up the term (ie ‘maritime transport’ and ‘logistics and supply chain management’). On the one hand, maritime transport (ie shipping and ports) is clearly concerned with the transportation of goods and/or passengers between two or more seaports by sea; on the other hand, logistics is the function responsible for the flow of materials from suppliers into an organization, through operations within the organization and then out to customers. A supply chain is composed of a series of activities and organizations that materials (eg raw materials and information) move through on their journey from initial suppliers to final customers. Supply chain management involves the integration of all key business operations across the supply chain. In general, logistics and supply chain management relate to the coordinated management of the various functions in charge of the flow of materials from suppliers to an organization through a number of operations across and within the organizations, and then reaching out to its consumers (Harrison and van Hoek, 2011). Based on this clean-cut understanding, Panayides (2006) further elaborates on the issue of convergence of maritime transport and logistics. These two terms are largely attributed to the physical integration of modes of transport facilitated by containerization and the evolving demands of endusers that require the application of logistics concepts and the achievement of logistics goals. At the centre of maritime logistics is, therefore, the concept of integration, be it physical (intermodal or multimodal), economic/strategic (vertical integration, governance structure) or organizational (relational, people and process integration across organizations) as an ongoing attempt to create a greater value for shareholders (Lee and Song, 2015).
Therefore, in Lagos State where the research was carried out, the activities that was conducted is to know the Logistics Performance in Apapa Seaport.
1.3 Statement of Problems
Investigation revealed that the growth of world container trade during the last decades reflects the coalescent markets in the world. The geographic separation of supply and demand in maritime industry has raised the expectations towards transportation services. Keeping up with the growth of global container traffic was considered as one of the biggest challenges. In addition, customers expect fast and reliable services in a wide geographical network.
Vessel capacity and utilization provide only one possibility for competitiveness. Vertical and supply chain integration are characterizing the modern transport industry, as transport businesses are gearing up towards global logistics services based on the principle of the ‘one-stop-shop’. In order to accomplish this goal, it is necessary to integrate port, hinterland transportation and logistics management services. It follows that strategic aspects of supply chain integration and diversification are of significant importance in the contemporary shipping industry
1.4 Aim and Objectives of Study
The aim of the study is to evaluate the Maritime Logistics and its Effect on Port Efficiency. In achieving this aim, the following specific objectives were laid out as follows:
- To find out whether there is effective and efficient integration of transport and logistics systems in Apapa Seaport;
- To ascertain the role of ports in the context of supply and logistics chains in Apapa Seaport; and
- To ascertain whether maritime logistics have an encouraging performance in Apapa Seaport, Lagos State.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- Does maritime logistics have an encouraging performance in Apapa Seaport?
- What is the role of ports in the context of supply and logistics chains in Apapa Seaport?
- How effective and efficient is the integration of transport and logistics systems in Apapa Seaport?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: There is no role of ports in the context of supply and logistics chains in Apapa Seaport.
- H1: There is role of ports in the context of supply and logistics chains in Apapa Seaport.
Hypothesis Two
- H0: Maritime logistics does not have an encouraging performance in Apapa Seaport, Lagos State
- H1: Maritime logistics has an encouraging performance in Apapa Seaport, Lagos State
1.7 Significance of Study
The study will be very significant to students and it will give insight on Logistics Performance in Apapa Seaport. The study will also serve as a reference to other research that will embark on the related topic.
