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 Warri Port, Delta State where the research was carried out, the activities that was conducted is to know the Maritime Logistics as an Emerging Discipline.
1.3 Statement of Problems
The growth of world container trade during the last decades reflects the coalescent markets in the world. The geographic separation of supply and demand 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 as an Emerging Discipline using Warri Port in Delta State as a case study. In achieving this aim, the following specific objectives were laid out as follows:
- To ascertain the role of ports in the context of supply and logistics chains in Warri Port
- To find out whether there is effective and efficient integration of transport and logistics systems in Warri Ports
- To ascertain whether maritime logistics assess its potential as an emerging discipline
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 assess its potential as an emerging discipline?
- What is the role of ports in the context of supply and logistics chains in Warri Port?
- How effective and efficient is the integration of transport and logistics systems in Warri Ports?
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 Warri Port.
- H1: There is role of ports in the context of supply and logistics chains in Warri Port.
Hypothesis Two
- H0: Maritime logistics do not assess its potential as an emerging discipline
- H1: Maritime logistics assess its potential as an emerging discipline
1.7 Significance of Study
The study will be very significant to students and Warri Ports. The study will give insight on Maritime logistics as an emerging discipline. The study will also serve as a reference to other research that will embark on the related topic.
1.8 Scope of the Study
The scope of the study covers Maritime logistics as an emerging discipline (using Warri Port as a case study). The researcher encounters some constrain which limited the scope of the study.
1.9 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Research material: availability of research material is a major setback to the scope of the study.
- Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
1.10 Definition of Terms
Maritime logistic: More broadly speaking, maritime transport logistics in Texas can be defined as anything that encompasses the processes of moving goods from one place to another utilizing cargo ships.
Maritime Transport: Maritime transport, fluvial transport, or more generally waterborne transport is the transport of people or goods via waterways. Freight transport by sea has been widely used throughout recorded history
1.11 Organization of the Study
This research work is organized in five chapters, for easy understanding, as follows:
Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
Chapter two highlights theoretical framework on which the study is based, thus the review of related literature.
Chapter three deals on the research design and methodology adopted in the study.
Chapter four concentrate on the data collection and analysis and presentation of finding.
Chapter five gives summary, conclusion, and recommendations made of the study.
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