THE IMPORTANCE OF CARGO PROCEDURE AND DOCUMENTATION IN NIGERIA

1.1 Introduction

Cargo represents a generic term for items for merchandise often refer to as goods. They are often conveyed through modal transport. Initially, the word cargo is formerly known to confer shipload. However, in recent time, cargo is an umbrella term for all form of freights that are carried by ship, van, truck, and train or enclosed in the container. Also, the categories and definition of cargo vary across the different terminals of transport. Cargo delivery system is used to transport goods and materials from one location to another. Cargo delivery system is employed widely in marines and railways for the transportation of heavy goods, containers, and components. Cargo handling equipment Vehicle generally comprises cranes, container handlers, yard tractors and forklifts (Sislian, Jaegler & Cariou, 2016).

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, Limitations of the Study and Definition of technical terms.

---

1.2 Background of Study

The global cargo handling equipment market can be segmented based on propulsion, equipment type, application, and region. Based on propulsion, the cargo handling equipment vehicle market can be classified into diesel, electric, and hybrid. In terms of propulsion, the diesel segment accounts for a market can be segmented into prominent share of the market. Based on equipment type the Conveyer, Forklift, Truck, Aviation Dolly, Automated Guided

China is the global leader in cargo handling equipment capacity and accounted for nearly 30% of the total cargo handled in 2017. The high cargo handling equipment capacities of the ports in China is driving the growth of the market in Asia Pacific. This trend is likely to continue in the coming years, leading to an increase in the demand for cargo handling equipment as well as automation at ports is expected in the region in coming years.

The assumption of the study on cargo handling equipment is a facilitating apparatus that determines level of port performance. It is common knowledge that ports play a key role in economic growth and development. Similarly, European Union (2013) reported that nearly 75% of the trade worldwide is handled in ports. This implies that effective cargo handling leads to positive outcomes to port performance and countries economic growth and development. According to Sislian, Jaegler and Cariou (2016) the process of cargo clearance in its international standards should take three to four days. But this is not the case in African port where the processes take 15 days to three weeks. Their assumption is that dwell time and clearance time are major commercial instruments used to attract cargo and revenues.

In a similar manner, Alderton and Saieva (2013) notes that cargo handling is the backbone of a port, this is in line with Rigot (2012) who suggest that the port performance indicators that focus on the cargo-handling are very important in evaluating the performance of a port. Based on the analysis provided above no one can deny that cargo handling equipment have effects to port performance. Therefore, more plans and efforts geared towards developing cargo handling equipment at ports should be given a priority. This is due to the fact that Tongzon (2007) recognized that there are factors influencing the decisions to route cargo through a certain port over the other.

Esmer (2008) noted that ports have become an intersection node in logistic chains, in which goods engage in additional operations taking advantage of proximity or their stay in transit to other places. Hence, port efficiency is an important requirement in order to survive in the competitive world of shipping industry. Different facilities in the port are expensive to run and purchase. Hence, under-utilizations will result in capital loss and higher cost for running the port. Vessel tracker (2012) shows that cargo clearance at port is a serious problem. While UNCTAD (2012) noted that internationally, it should take between two to three days to clear the cargo, but in Nigeria it takes between ten to seventeen days for customers to clear their local imports and transit imports through.

The various activities within the maritime sector of any nation’s economy could be seen as the life wire for growth and development. Shipping operations being a major aspect of maritime transport remain the most effective means of transportation in the international exchange of goods. The primary function of a seaport is to transfer cargo between maritime and inland transport, quickly, efficiently and at a reasonable cost (Stephens and Ukpere, 2011), with the aid of various equipment designed to handle specific types of cargo for transhipment. Cargo transfer efficiency can be enhanced with the use of adequate cargo handling equipment.

Therefore, in Meditarian Shipping Company where the research was carried out, the activities that was conducted is to know the Importance of Cargo Procedure and Documentation in Nigeria.

---

1.3 Statement of Problems

Investigation revealed that many ports are facing similar problems related to cargo handling equipment. One of the main reasons for this shift as explained by Kiwanuka (2013) resulted from poor cargo handling equipment. It is noted that cargo clearance at the port are surrounded with several problems including the delay in clearance. Therefore, since maritime trade in Africa on domestic economies, accounts for more than 90% of the continent’s imports and exports, ports therefore play a fundamental role in facilitating Africa’s integration to international trade.

However, with reference to the fact explained above it seems that cargo handling equipment in Nigeria port have been given little attention. The assumption is that Nigeria has the opportunity to become a vital International Hub for landlocked countries such as Uganda, Rwanda, Burundi and DRC. The general shift in trade to the East (China and India) is likely to be beneficial to Nigerian sea ports in the form of increasing demand (Sislian, Jaegler & Cariou, 2016).

---

1.4 Aim and Objectives of the Study

The aim of the study is to investigate the in Importance of Cargo Procedure and Documentation in Nigeria using Meditarian Shipping Company as a case study. In achieving this aim, the following specific objectives were set out as follows:

1. To examine the impact of improved infrastructure on efficient cargo delivery documentation in Meditarian Shipping Company;
2. To determine the major causes of poor infrastructure documentation of cargo delivery in Meditarian Shipping Company;
3. To investigate the major category of cargo procedure and documentation in Meditarian Shipping Company; and
4. To identify and assess the effects of bad infrastructure in efficient cargo delivery documentation in Meditarian Shipping Company.

---

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:

• Are there major causes of poor infrastructure documentation of cargo delivery in Meditarian Shipping Company?
• What are the major category of cargo procedure and documentation in Meditarian Shipping Company?
• What are the effects of bad infrastructure in efficient cargo delivery documentation in Meditarian Shipping Company?
• What is the impact of improved infrastructure on efficient cargo delivery documentation in Meditarian Shipping Company?

---

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 significant relationship between improved infrastructure and efficient cargo delivery documentation in Meditarian Shipping Company.
• H1: There is a significant relationship between improved infrastructure and efficient cargo delivery documentation in Meditarian Shipping Company.

Hypothesis Two

• H0: There are no significant causes of poor infrastructure documentation of cargo delivery in Meditarian Shipping Company
• H1: There are significant causes of poor infrastructure documentation of cargo delivery in Meditarian Shipping Company

---

1.7 Significance of Study

This study is worth pursuing because improved infrastructure will enhances port cargo delivery in Nigerian ports, increased port productivity and performance and increased through put variables such as ship turn round time, cargo traffic loss through other ports e.g Cotonou, vessel delay time etc.

The efficient infrastructure tends to help tackle port congestion problems, making Nigerian ports a hub in the West African Region, protect vessels and quays wall against damages as well as allowing for smooth maneuvering of vessels alongside the quays during berthing. The agencies of government will find the recommendations of the research useful on how to ensure efficient cargo delivery through improved infrastructure.

It is also believed that the study will help investors knowing where they can safely invest their money in port infrastructures. The study will serve as a guide to more competent researchers to carry out further investigation. In summer, those to benefit from this research on completion include; government agencies, investors, general public, researcher/cadets, banks, maritime regulators and experts, marine insurance companies.

This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.

---

1.8 Scope of Study

The scope of the research focuses on the Importance of Cargo Procedure and Documentation in Nigeria using Meditarian Shipping Company as a case study.

---

1.9 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

1. 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.
2. Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this project work. There were lots of information needed from the staffs of this institution to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
3. Research material: availability of research material is a major setback to the scope of the study.
4. Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
5. 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

Cargo: It refers in particular to goods or produce being conveyed generally for commercial gain either by ship, boat or aircraft (Jean-Francois et al, 2015).