CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Transport or transportation is the movement of people and goods from one place

to another (Wikipedia, 2007). In the view of Badejo (2002), transportation is the

movement of goods; people and services from one place to another through a specialized

means or mode e.g. road, rail, air, and water and head porterage.The term transport is

derived from the Latin Trans (“across”) and Porte (“to carry”). Industries which have the

business of providing equipment, actual transport, transport of people or goods and

services used in transport of goods or people make up a large broad and important sector

of most national economies, and are collectively referred to as transport industries.

Aspects of Transport

The field of transport has several aspects: loosely they can be divided into a triad

of infrastructure, vehicles and operations. Infrastructure includes the transport networks

(roads railways, airways, waterways canals, pipelines, etc.) that are used as well as the

nodes or terminals (such as airports, railway stations, bus stations and seaports). The

vehicles generally ride on the network, such as automobiles bicycles, buses, trains, and

aircrafts. The operations deal with the way the vehicles are operated on the network and

the procedures set for this purpose including the legal environment (Laws, Codes,

Regulations, etc). Policies, such as how to finance the system (for example, the use of

tolls or gasoline taxes) may be considered part of the operations.

Transport and its subsequent development worldwide is an indispensable catalyst

for activating and stimulating the tempo of the economic, political, societal and strategic

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development of any society is it developed or developing. By implication, it connotes the

development of an efficient, flexible and dynamic transport system which is very vital for

meaningful socio-economic and political transportation or development to occur and also

for binding and unifying the various component parts of any society ranging from the

village level to global perspective together.

Generally, transport provides opportunity for spatial interaction to occur. It

allows movement of goods, services and passengers, hence it plays a pivotal role in the

logistics chain. Overland transport in Nigeria includes road, railway and pipelines. These

models of transport are under threats due to poor maintenance, total neglect and outright

sabotage respectively. By extension, the logistics chain supply is affected due to absence

of time and place utilities usually created by efficient transport system.

1.2 Statement of the Research Problem

Logistics is vital to modern business and societal development. Unreliable

delivery will halt the operating system (Lecture Notes, 2007). Transportation is pivotal

to an efficient logistics chain.

In Nigeria, traditional and modern modes are in use in the transport system. Many rural

localities are inaccessible to the modern modes of transport. Consequently, such areas

depend on primitive modes of transport such as: human porterage and beast of burden.

Until certain conditions change, it is obvious that traditional modes of transport will

continue to prevail in many areas in Nigeria.

The modern modes of transport mostly associated with the urban areas are in a

sorry state. The effect of the deplorable condition of the nation’s transport system has

been affecting the socio-economic development of the country. This is because as a

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socio-economic enabler, the transport system facilitates physical distribution in the

supply chain (Ecomaritime Digest, 2006).

Our freight transportation system enables consumers to enjoy the availability of

goods, which are not produced in their immediate locality because of climate or soil

conditions, the lack of raw materials, utilities, or labour, or the cost of production.

Freight transportation allows consumers a choice of goods, which would not otherwise be

available. A good transportation network makes possible the mobility of people for

economic, educational and social purposes while reducing or eliminating isolation and

promoting economic, social and political development plus economic and political unity

in the country. Overland transport is currently the dominant mode of transport in Nigeria

due to the underdevelopment of the inland and coastal waterways. Only through

understanding logistics processes and trend can be Nigerian government develop and

implement transport policies that meet the current and future needs of

Nigerian industries.

This study was carried out to assess the impact of overload transport on logistics

chain in Nigeria against the backdrop of the near total collapse of the transport system in

the country.

The following research questions constitute the major critical issues thrown up in this

study and they form the bedrock of the research problem.

1.3 Research Questions

i. What are the modes of overland transport in Nigeria?

ii. What is the relationship between transport and the logistics chain

in Nigeria?

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iii. Why is overload transport more predominantly used in the logistics

chain in Nigeria?

iv. What are the factors accounting for the continued importance of

traditional means of transport in certain localities in Nigeria?

v. What factors are responsible for the decline in the performance of

railway transport in Nigeria?

vi. What are the problems of road transport in Nigeria?

vii. What is the problem with pipeline as means of transport in Nigeria?

viii. What are the major thrusts of transport policy in Nigeria?

ix. How has overland transport impacted on logistics chain

performance in Nigeria?

1.4 Objectives of the Study

The aim of this study is to assess the impact of overland transport on logistics

chain performance in Nigeria.

The specific objectives are to:

i. Identify the active modes of overland transport in Nigeria.

ii. Examine the relationship between transport and the logistics chain in Nigeria

iii. Examine why overland transport is more predominantly used in Nigeria.

iv. Determine the factors accounting for the continued importance of traditional

means of transport in certain locations in Nigeria.

v. Identify the factors responsible for the decline in the performance of railway

transport in Nigeria.

vi. Examine the problems of road transport in Nigeria.

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vii. Highlight the major thrusts of transport policy.

viii. Examine how overland transport has impacted on the logistics chain

performance in Nigeria.

1.5 Statement of the Hypothesis

The following are the hypotheses of the study:

H0: There is no relationship between logistics chain efficiency and the poorly

developed overland transport in Nigeria.

Ha: There is relationship between logistics chain efficiency and poorly developed

overland transport in Nigeria.

H0: There is no relationship between a logistics chain and the crude traditional means

of overland transport in Nigerian rural areas.

Ha: There is relationship between a logistics chain and the crude traditional means of

overland transport in Nigerian rural areas.

1.6 Significance of the Study

Transportation remains the engine of growth and an indispensable superstructure

for the development and efficiency of the logistics chain, and by extension of the national

economy. Overland transport in Nigeria which includes road and railways are more

predominantly used, but are in a sorry state. The situation with the railway is in utter

neglect and mismanagement, while road transport is in deplorable condition due to

overwhelming traffic that should have been shared with the inland waterways and the

coastal waterways. Coupled with this is the lack of maintenance of the highways.

The importance of this study lies in the light it sheds on the factors that have

continued to emphasize the significance of overland transport in Nigeria and how it

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impacts on the logistics chain performance. Policy makers and stakeholders generally can

pick a cue from the implications of the findings of this study.

1.7 Scope of the Study

Transportation is key to logistical activities. In Nigeria, overland transport modes

are dominant even though they are neglected and poorly maintained. This study is

limited to examining the impact of overland transport on logistics chain performance in

Nigeria.

The other aspects considered were factors accounting for the continued importance of

traditional means of transport in certain localities in Nigeria.

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CHAPTER TWO

LITERATURE REVIEW

2.1 Relevance of Transportation

According to Badejo (2002), transportation is the movement of goods; people and

services from one place to another through a specialized means or mode e.g. road, rail,

air, water and head porterage/walking. Transport and its subsequent development

worldwide is an indispensable catalyst for activating and stimulating the tempo of the

economy, political, societal and strategic development of any society be it developed or

developing. By implication it follows that the development of an efficient, flexible and

dynamic transport system is very vital for meaningful socio-economic and political

transformation or development to occur. Transportation also helps in binding and

unifying the various component parts of any society ranging from the village level to

global perspective together. It is therefore necessary to highlight the importance of

transport (Pounds, 1976).

Badejo (2007) noted further that generally, transport provides opportunity for

spatial interaction to occur. It allows movement of goods, services and passengers to take

place and to circulate. It also links areas of production with areas of consumption.

Transport is associated with positive impact and contribution to the growth of the

national economy through economies of scale and the multiplier effects which it exerts

on the overall space economy. It also promotes the development of the financial and

banking institutions. More importantly, transport also encourages and supports rapid

population growth and expansion thereby putting pressure on existing infrastructure and

creating demand for more of those infrastructure – e.g. housing, water supply, energy

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supply, educational and recreational facilities (Pounds, 1976).Rapid population growth

and expansion are attributable of areas with extensive terminal space utilization of

consumption such as seaports, airports, railway stations, and major public transport

interchanging points (Badejo, 2002).

Furthermore, international relationship is generally strengthened and fostered with

the use of transport. Hence it is often used as a weapon or tool for promoting

international peaceful co-existence and relationship.Finally, transport has also assisted in

institutional development and growth of the sector, since each mode of transport has its

own special characteristics and attributes, government has responded by creating

different institutional frameworks through which these characteristics and attributes,

which vary from one mode of transport to the other could be addressed and managed.

Hence, Port Authority, Railway Corporation, Public Transportation Agencies etc. They

all have the aim of achieving sustainable transport operations and management for the

country (Emielu, 1990).

2.2 Overland Transport Mode (Rail)

Rail transport is the transportation of passengers and goods along railways or

railroads. A typical railway (or railroad) track consists of two parallel steel (or in older

networks, iron) rails, generally anchored perpendicular to beams (termed sleepers or ties)

of timber, concrete, or steel to maintain a consistent distance apart, or gauge.

The rails and perpendicular beams are usually then placed on a foundation made

of concrete or compressed earth gravel in a bed of ballast of prevent the track from

buckling (bending out of its original configuration) as the ground settles over time

beneath and under the weight of the vehicle passing above. The vehicles traveling on the

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rails are arranged in a train: a series of individually powered or unpowered vehicles

linked together, displaying marketers. These vehicles (referred to, in general, as cars,

carriages or wagons) move with much less friction than rubber tyres on a paved road, and

the locomotive that pulls the train tends to use energy far more efficiently as a result

(Pounds, 1976).In rail transport, a train consists of rail vehicles that move along guides to

transport freight or passengers from one place to another. The guide way (permanent

way) usually consists of conventional rail tracks, but might also be monorail or maglev.

Propulsion for the train is provided by a separate locomotive, or from individual motors

in self-propelled multiple units.Most trains are powered by diesel engines or by

electricity supplied by trackside systems.

Historically the steam engine was the dominant form of locomotive power

through the mid 20th century, but other sources of power (such as horses, rope or wire),

gravity, pneumatics, or gas turbines are possible.

Road Transport

Automobile

An automobile is a wheeled passenger vehicle that carries its own motor.

Different types of automobiles include cars, buses, trucks, and vans. Some include

motorcycles in the category, but car are the most typical automobiles (Wikipedia, 2007).

As of 2002 there were 550 million passenger cars worldwide (rightly one car for every

ten people), of which 170 million in the U.S. (roughly one car for every two people).The

automobile was thought of as an environmental improvement over horses when it was

first introduced in the 1890s. Before its introduction, in New York alone, more than 1,800

tons of manure had to be removed from the streets daily, although the manure was used

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as natural fertilizer for crops and to build topsoil. In 2006, the automobile is recognised

as one of the primary sources of worldwide air pollution and a cause of substantial noise

pollution and adverse health effects.

Pipelines

Pipelines are utilized to efficiently transport natural gas and oil products from

mining sites to refineries and other destinations. In addition, the so-called slurry pipelines

transport products such as cola, which is ground to a power, mixed with water, and

moved as a suspension through the pipes.

2.3 Overland Transport in Nigeria

Rudimentary form of (Traditional modes) these were means used in early times.

Head Porterage

This involved the use of human head for carrying load over long distance.

Although there is no capital investment, it is slow and laborious: only a small quantity of

goods can be moved at a time (Iloeje, 2001).

Beast of Burden

Beasts of burden such as donkeys, oxen, horses and camels have been used for

centuries in most part of the world camels and horses are still very much in use in certain

parts of Nigeria like Maiduguri, Sokoto and Kano. Although beasts of burden carry more

load than human beings, compared to means of transport, the volume of load is still

small. Beside beasts are slow in movement.

Rail Transport

In Nigeria, the railway was the first of the modern system of wheeled transport.

The construction of railways started in 1898 with the Lagos – Ibadan line that was

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completed in 1901 and later extended to Jebba in 1909. After the construction of a bridge

across the River Niger at Jebba the Lagos – Jebba line was extended to Kano in 1915

(Iloeje, 2001).Another line started from Port Harcourt in the eastern part of the country in

1912, reaching Enugu in 1916, and was later extended to Jos and Kaduna, thus linking

the Western and Eastern lines. In subsequent years, branch lines were built to link

KauraNamoda with Zaria, Nguru with Kano and Maiduguri with Kafanchan.

According to Emielu (1990) Nigeria is currently serviced by a railway system of, 505

kilometers, all of single-track 1,07mm gauge.

The railway plays a significant role in opening up trade and other relations

between various parts of Nigeria and facilitates the movement of export and import goods

within the country.

Functions of Rail Transport

Railways in Nigeria according to Iloeje (2001) were to:

1. Open up land which is potentially good for major crop production.

2. Facilitate tapping resources of agriculture, mining forestry.

3. Link up different regions, thus promoting inter-regional trade and flow of ideas.

4. Increase industrial development

5. Link important cities and facilitate the movement of peoples.

6. Move troops and supplies in times of emergency. The first four purposes appear

to be the primary objectives for rail construction in Nigeria. The 5th subsidiary while

the last is of small consideration.

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Road Transport in Nigeria

Roads in Nigeria can be grouped into four major categories on the basis of the

authority responsible for their construction (Emielu, 1990).

There are the trunks “A” roads, which are federal inter-state highways.They form the grid

framework on which the rest of the road system is built. A number of major routes make

up the trunk “A” system. These include routes from the parts of Lagos. Warri, Port

Harcourt, and Calabar to the northern parts of the country (Iloeje, 2001).

Trunk road “A”, connects Warri with Kano via Benin – Lokoja and Kaduna.

Trunk road A2 connects Port Harcourt to Jos via Enugu and Makurdi.Another North –

South route is the “A3” which connects the port of Calabar directly with Maiduguri.

There is also the route from Lagos via Abeokuta to Sokoto. Finally, there are some east-

west routes such as that from Lagos via Benin City to Calabar and the one from Kaima

via Ilorin and Lokoja to KatsinaAla (Iloeje, 2001).The trunk B roads are local roads,

which serve mainly as feeders to the trunk A and B roads: these are constructed by local

government authorities (Iloeje, 2001).

The densest road networks correspond with the industrial zones, the construction

of the roads was often hindered by the many rivers, which flow through Nigeria.

Therefore, it often becomes necessary to spend huge sums for money on bridging the

rivers or ferrying traffic across them.

2.4 The role of Rail Transportation in the Transportation sector of Nigeria

Since the industrial revolution era when the railway was first introduced, the rail

as a mode of transport has undergone numerous transformations that has been it develop

its capacity to move safely, persons, carry heavy and bulky goods overland for longer

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distances at improved speed and at reasonable cost. The Nigerian Railways, even at its

rudimentary level, had offered economic benefits and potential such as the following

identified by Ecomaritime Digest (2007):

(a) An alternative mode of transport.

(b) Huge source of employment where in corporations offered over 45,000 job

positions to Nigerians up till 1983, but currently reduced to less than 7,000 workforces

due mainly to the poor infrastructure and low operational status of the corporation.

(c) Instrumental to improved trade and commerce within and between communities

as well as precipitate the rapid urbanization of towns like Ibadan, Kafanchan, Minna,

Kano, Port Harcourt, Aba, etc.

(d) Provided revenue to governmental up till 1964 as the sole carrier of goods and

persons across the vast expanse of land in Nigeria.

(e) Provides economies of scale and multiplier effects on the economy as currently

enjoyed by OANDO, WAOSCO, Dangote Group and Ashaka Cement in moving their

products by rail to create easy availability of products and reduction in unit cost to

consumers.

(f) Provides environment friendly operations few noise levels and emissions.

(g) The peculiarity of rail transport is an added advantage for the development

of inland container Depots (ICDs) and government ports decongestion programme as

well as tourist and tourism development.

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Government Railway Reforms

Several measures had been taken in the past to arrest the declining trend of the

corporation’s performance dating from the 1970s when government entered into a

bilateral technical – management agreement with the Rail India Technical and Economic

services (RITES) in 1979 (Ecomaritime Digest, 2007).

In 1996, the Nigerian Government through a counter trade arrangement with the

Romanian Government received for NRC 400 CBX (flat) wagon, 50 guard vans in

addition to workshop machines and equipment. Again in 1995, Nigeria signed another

bilateral pact with the Peoples Republic of China through CCEC to rehabilitate the

corporation. In 2001 government through BPH commissioner CPCS – Trains com.

(ANAC of Canada and MessrsVoest – Alpine Industrial Services (VAIS) and

TEMOINSA variously to either assist government in its privatization bid of the railways,

provide Techno – Management support to NRC, rehabilitate a number of grounded

locomotive and wagons, and to undertake the refurbishment of NRC workshops for

effective performance (Ecomaritime Digest, 2007).

Regrettably, however, all of these measures which are today seen as adhoc and

short term palliatives have not had the effect needed for improved NRC operational

performance hence government’s current decision to under take a more comprehensive

reform and restructuring of the NRC.

Current Development Programme for Nigerian Railway Corporation

In the light of the various problems highlighted and the failure of the palliative

measures put in place since 1979, the Federal Government in 2001 decided on a more

comprehensive programme of development of a 25 year development plan that is to be

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executed in two phases – Phase 1 being the immediate phase, entail the rail line

concession programme, institutional reform, and basic repairs/rehabilitation programme,

whereas phase II, the medium to long term phase, covers the expansion and

modernization programmes.

Immediate plan and Programme of Action

Under the immediate stage, projects being pursued are:

(i) Concession for the following three segments/sections of the railway

network/Western. Central and Eastern by the Government through the Bureau of Public

Enterprises (BPE).

(a) Western Line Lagos – Kano – Nguru

(b) Eastern Line: Port Harcourt – Maiduguri

(c) Central Line: Ajeokuta – Itakpe – Warri Standard gauge.

(ii) Spare parts for rehabilitation of rolling stock in about 16 lots and track

improvement projects.

(iii) Gombe – Bauchi – Ashaka wash out replacement and reconstruction.

(iv) Rail linkage projects between Apapa and Tin-Can Island in Lagos and Port

Harcourt – Onne in Rivers State.

(v) Institutional Restructuring of the NRC into two parts, Regulatory Authority and

Development Authority.

For the purpose of achieving the utilization of the existing network target of at 60

km/ph for the freight trains and 80km/ph for passenger trains to meet specified freight

and passenger traffic volumes, a number of projects requiring immediate execution were

identified as follows:

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(a) Rehabilitation involving rail and track works on 1499km within the 3,505km

narrow gauge line.

(b) Signal and communication equipment at 180 stations.

(c) Refurbishment and overhaul of 8000 wagons and coaches.

(d) Overhaul of 20 and 50 (Chinese) locomotives including support spare parts; and

(e) Some extension works involving the following:

(i) Tin-Can – Apapa Ports connection

(ii) Onne – Port Harcourt ports connection

(iii) Completion of the remaining 9km on the Ajaokuta – Itakpe – Warri

line up to Warri Port.

It is the hope and view of NRC Management/the Federal Government that if

about 60% - 70% of the proposed investment is judiciously expended on the

rehabilitation of the existing network of 505kms and 180 stations, and likely impact will

reflect a tremendous improvement in the capacity utilization of the network of 505kms

and 180 stations, and likely impact will reflect a tremendous improvement in the capacity

utilization of the rail network, and increase in the freight train speed from its present

position of less than 30kms/ph to at least 60km/ph and a total daily train movement on

the entire network to increase from less than 10 per day to about 40 per day.

Medium and Long term Development Plan and Programme of Action

The medium of long-term development plan and programme of action constitutes

the phase II of the Nigerian Railway Corporation’s 25-year development plan. This

phase is expected to deal with modernization and the construction of new lines and the

conversion to standard gauge, continuation of the national technological capacity

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development relying strongly on the concept of the Private Public Partnership investment

model, whereas, Phase II is to stabilize the system as in the completion of conversion and

construction of the new standard gauge lines.

2.5 Objectives of the Nigeria Transport Policy

Government enunciated the following policy, principle and objectives for the

nation’s transport sector in order to ensure that available transport services meet fully the

need of the nation and that the best is made of resources dedicated to the sector (National

Transport Policy, 1993).

(a) Be adequate to support the existing and future needs for efficient movement of

people and goods.

(b) Be adequate to meet the requirement for social and economic development

and be able to perform its proper role as an instrument of social and economic

development and be able to perform its role as instrument of social and economic

policies of the nation.

(c) Assure adequate and economic mobility of people and goods and efficient

provision of public services, thereby act as an instrument of national integration and

unity.

(d) Improve competitiveness of Nigeria exports through its efficient operations.

(e) Assure that essential transport services are affordable to majority of Nigerians:

transport cost should not be a barrier to having access to employment opportunities or to

the delivery of essential social and public services;

(f) Transport facilities and services should use economic resources in the most

efficient manner.

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(g) Free market forces should as far as possible, play the dominant role in assuring

efficient allocation and, use of resources. Government interventions in the transport

sector should promote efficiency, avoid creating economic distortions and assure

protection of transport users.

(h) Government enterprise or parastatals should operate under conditions of

commercial discipline: be assured managerial freedom and be fully accountable for their

results:

(j) Effective measure should be taken to assure safety of transport operation and to

reduce as far as possible accident with resulting loss of life, injuries and damages.

(k) Transport operations and development should avoid causing environmental

damage; effective measure should be taken to reduce pollution.

2.6 The Federal Ministry of Transport

The Federal Ministry of Transport is the Government arm which responsibility is

the promotion, coordination and development of transport systems and administration in

Nigeria.

According to Onwumere (2008), the Federal Ministry of Transport (FMOT) is in charge

of the following sub-sector:

A Nigerian Maritime Administration and Safety Agency

B Nigerian Ports Authority

C Nigerian Shippers Council

D National Inland Waterways Authority

E Nigerian Railway Corporation

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The Functions of the Federal Ministry of Transport

The overall functions of the ministry of transport can be grouped into four as

identified by Onwumere (2008).

(1) The formulation of policy on transport in general and the sub-sectional

policies aimed at achieving specific goals in the sub-sector for example, the

National Shipping Policy Decree 10 for the maritime industry by the Government,

National Transport Policy, and Port Reforms.

(2) The coordination of the activities of the various departments, parastatals and

agencies under its supervision.

(3) The development of transport facilities in such areas of monopoly requiring

government investment and control: - Nigerian Ports, Inland Waterways, and others.

(4) Supervision of the activities/operations of transport facilities under its

agencies – Ports, Ferries, Barges, Aircraft, Rail and their services. Internally, the

Ministry as a government body takes the responsibility of internal development through

the following ways:

(a) The coordination of developments within the Ministry;

(b) The Appraisal of the economic, social and technological development and plans;

(c) The monitoring of development plans and ensuring their implementation;

(d) Representation of the Ministry in the development plans for submission to the

Central Planning Office of the Ministry of Economic and National Planning.

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Onwumere (2008) also noted that another area that needs highlight is the

international scene. The ministry has international responsibilities and these include:

1. Coordinating and participating in international and sub-regional conference

such as:

(a) The ports management association

(b) Union of national shipping lines

(c) Regional negotiating committee, which is now the association of shippers’

council.

2. Representation at the conference of African ministers of maritime transport

organized by the African union.

3. Coordination of delegates and representation at the United Nations Conference on

Trade and Development (UNCTAD) meeting. This is also an important role because the

UNCTAD Committee on shipping is the policymaking body for world shipping multi

modal transport and other related issues, organized by UNCTAD.

4. Arrangement and representation at the conference of African ministers of

Transport communication and planning-organized by Economic commission of African

(ECA).

5. Coordination of the World (Bank Projects and programmes concerning

transport in Nigeria.

6. Other functions: Apart from the aforementioned functions of the ministry of

transport, which are summed up as Regulatory, supervisory, administrative, coordinating

and representation, the ministry also has the functions of providing current and authentic

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transport statistics and information to the society as well as playing advisory role to the

Federal Government on general transport issues.

In addition, it provides training and manpower development in the transport sector of the

economy.

2.7 Factors Involved in Transport Demand, Provision and Assessment

According to Hoyle and Knowles (1999), transport is itself a major complex

industry in terms of land use, employment and functions. Transport infrastructures and

facilities occupy large areas of land and water space and transport services provide

substantial employment. In both these dimensions, transport is highly significant

geographically.

The second idea is that transport facilities and services taken as a whole or in

terms of their component parts, are a major factor affecting the environment and the

spatial distribution and development of all other forms of economic and social activity.

In this sense, transport is a major influence on virtually all other phenomena capable of

analysis in terms of spatial variations and structures (Taffe, Gauthier and O’Kelly, 1996).

Changes in transport demand usually originate with changes in the pattern of

resource exploitation and are often stimulated by changes in population structure density,

distribution or mobility as well as by people’s desire to improve living standards.

Resource exploitation involves the extraction, processing and marketing of resources,

requires an increasingly specialized division of labour to generate higher standards and

although stimulated by trading opportunities is limited by trade constraints (Hoyle and

Knowles, 1999).

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The form of the transport network provided and the nature of the transport

systems that operates upon it is a product of competing constraints. Historical factors are

essential to a proper understanding of modern transport systems, for all existing transport

networks have been inherited from the recent or more distance and from decision-making

processes now modified or superseded. In Britain or France, this principle applies equally

to Roman road networks and to recently constructed motorways (Hudson, 1996).

According to Hoyle and Knowles (1999), the importance of inherited transport systems

and of superseded decisions-making processes is that they provide part of the framework

within which present-day decisions are taken and future development planned. Historical

legacies provide, in other words, one set of constraints that condition, positively or

negatively, the ways and methods in which future transport systems can be designed and

implemented.

The physical environment influences the development of transport infrastructures

– roads, railways, seaports and airports-both directly and through the comparative costs

of construction. The morphology of any specific component of a transport network – a

railway station, an air terminal, a motorway, a container terminal – is set within a specific

environmental context and its development raises particular environmental questions,

problems and perhaps controversies.

All the factors discussed above are underpinned in many respects by

technological factors (Hans on 1995).The technological characteristics of individual

transport modes pipelines, railways, canals, roads – impose limitations with regards to

usage and maintenance costs. Similarly, vehicles offer potentialities and impose

limitations by reason of their individual or collective technological characteristics:

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bicycles, cars, ships, trains, aero planes, trucks and hovercraft all have appropriate

physical, social and economic environments within which they operate and without

which they either cannot operate or are unsuitable. Advanced technology is expensive

and transport costs are therefore frequently a reflection of technological inputs. Together,

technology and cost factors are closely related to environmental issues, for the adaptation

of a transport system to physical conditions or to environmental concerns is dependent

upon technological capacity and available financial resources. in many port cities, for

example, the relocation of port facilities and the consequent opportunities for inner-city

renewal are basically derived from the evolution of global maritime transport technology

(Hoyle et al., 1988) while the restructuring of urban transport systems is virtually a

continuous process in the context of urban economic evolution and rapidly changing

technology (Hanson, 1995; Hudson, 1996).

There is a sense in which political factors transcend the logic of other factors

discussed above and their interrelationship. Political decisions involving transport

investment, like those in other spheres, hinge upon issues both broader and more specific

than those outlined here. Political considerations are significant in a sense in relation to

transport. Governments, according to Knowles and Hoyle (1999), are a major source of

capital for investment in transport infrastructure, although private investment is also very

important in some countries. In addition, governments are involved in the regulation of

the supply of transport services. In the control of inter modal competition (to varying

degrees). In safety control, in the coordination of investment allocation between modes

and areas, and in decisions concerning pay and working conditions. In all these ways,

governments are often in a position to decide what happens in transport terms, but

23

decisions can only be taken in the context of consideration, relevant factors involved

(Cloke and Bell, 1990)

Economic factors involve a different set of perspectives. Traditionally, economic

approaches to transport have involved the assessment and analysis of traffic flows – the

collection, dissection and discussion of movement along a line, through a node or within

a network, in relation to demand and costs. The objective of such approaches underlines

the essential economic perspective claims of other forms of investment or activity for

available finance. These perspectives have led transport economists and planners to

develop sophisticated quantitative transportation models to attempt to forecast future

traffic trends and to identify interrelationships between different transport models,

usually expressed as the modal split. Implications have been assessed for investment and

planning (Hoyle and Knowles 1990).

2.8 New Direction in Road maintenance

Just like any other structure, once a road is built it has to be maintained. Failing

government revenue over the last decade have meant that government have had to try and

save money wherever possible, and because the results of insufficient road maintenance

do not become obvious for some years, road maintenance had been one of first areas to

suffer. In the developed world, cuts in road maintenance generally worldwide, where

money and other resources for even the most essential maintenance have been in short

supply, the situation has become much more serious, particularly in recent years

(Thriscutt, 1990).

In the developing world generally, it is estimated that over a quarter of the road

network now needs partial or total reconstruction. In sub-Saharan Africa which has been

24

the hardest hit due to continued recession and initially weak economies, a survey showed

that over 40 percent of highways require some degree of reconstruction, and some 30

percent of road were receiving no maintenance at all having been virtually abandoned.

The direct result of this is that much more has to be spent to rehabilitate the roads than

would have been required at the proper time to keep them in good condition (Hudson

1996).

According to Thriscutt (1990), in one typical African country, a reduction in road

maintenance funding of US$100 million over about 12 years has resulted in the need now

to spend at least US$330 million to put neglected roads back into reasonable condition.

However, the biggest loss comes not to government directly, but to everyone who uses or

depends upon the road. In this same country, the author noted, it is estimated that extra

cost of transport over the neglected road at least four times as much as the money saved

by reducing maintenance. This takes no account of the development opportunities that

may have been lost due to high transport costs.

In an effort to reverse the trend of deteriorating roads in the developing countries

Thriscutt (1990) observed that bilateral and international aid agencies are now switching

their funds for roads away from new construction and into building up maintenance

capacities. It has not been easy to bring about this change in aid policy. Politicians in

developing world have favoured prestige road building projects, giving a façade of

development, rather than the sort of long-term institution buildings, which is a primary

feature of maintenance projects (Hanson, 1995). Donors also have pushed for new

construction, seeing it as a better advertisement for their aid, and a better market for their

products, than road maintenance. The result has been that, in a number of countries,

25

governments have been left with an increase length of main highways which the

overburdened local maintenance organisations cannot maintain, because funds have not

been adequately appropriated (Hudson 1996).

Even technical staff in road departments have looked upon road maintenance as a

thoroughly unglamorous occupation, lacking in technical interest and best carried out by

the less able and ambitious members of the organisation.

Within the past decade, it has been gradually realized that (far from being uninteresting)

road maintenance, viewed as an exercise in technical management, presents a number of

fascinating and challenging opportunities. Faced with limited resources, often

unpredictable climatic conditions, and growing traffic loads on a widely dispersed road

network, the maintenance engineer must be ready for any event anywhere in the system,

and must be prepared to react in order to keep traffic moving at the lowest possible cost.

2.9 Logistics

Logistics is the art and science of managing and controlling the flow of goods,

energy, information and other resources like products, services, and people, from the

source of production to the market place. It is difficult to accomplish any marketing or

manufacturing without logistical support. It involves the integration of information,

transportation, and packaging. The operating responsibility of logistics is the

geographical repositioning of raw materials, work in process, and finished inventories

where required at the lowest cost possible (Wikipedia, 2007).

2.9.1 Business Logistics

Logistics as a business concept evolved only in the 1950s.This was mainly due to

the increasing complexity of supplying one’s business with materials and shipping out

26

products in an increasingly globalized supply chain, calling for experts in the field who

are called supply chain logicians. This, according to Ballou (1998), can be defined as

having the right item in the right quantity at the right time at the right place for the right

price and this is the science of process and incorporates all industrial sectors. The goal of

logistics work is to manage the function of project life cycles, supply chains and resultant

efficiencies.

In business, logistics may have either internal focus (inbound logistics), or

external focus (outbound logistics) covering the flow and storage of materials from point

of origin to point of consumption (Coyle &Bardi, 1999).

According to Ballou (1998) the main functions of a logistics manager include

inventory management, purchasing transport, warehousing, and the organizing and

panning of these activities. Logistics managers combine a general knowledge of each of

these functions so that there is a coordination of resources in an organisation.There is two

fundamentally different forms of logistics. One optimizes a steady flow of material

through network of transport links and storage nodes. The other coordinates a sequence

of resources to carry out some project (Coyle and Bardi, 1999)

The relatively recent development of business logistics hassled, as it has evolved,

to the use of variety of terms of refer to it. In the 1960s and 1970s the terms physical

distribution, distribution, materials management, and physical supply were common.

Physical distribution and distribution refer to the outbound flow of goods from the end of

the production process to the consumer; physical supply and materials management refer

to the inbound flow of material from the raw materials to the end consumer became

27

recognized, the term business logistics became widely used to reflect the broadening of

the concept (Ballou, 1998).

Today, the term supply chain management is coming into use to reflect the

importance of forming alliances and partnership to streamline the flow of materials.

Business logistics remains the dominant, all-encompassing term for this important

concept at this time.

2.9.2 Logistics Activities

Logistical activities are the basic functions that have to be performed in any

logistics system. It is important to recognize that they are the components of a true

system. In that they are all interrelated. Very often a change in one will create a ripple

effect of change throughout the entire system.

The basic logistics system can be described very simply. The process begins with

a customer placing an order with the organization product is then either produced or

supplier from an inventory to the customer. As more products are sold, more raw

materials must be acquired from suppliers and more products produced to fill demand or

replenish inventories. The way that the parts of this system are configured will determine

how and when the customer receives the order. Thus, the output of the logistics system is

customer services, and the job of the logistician is to design a system that delivers a

desired level of customer service at the lowest total cost. Cost cutting, while important,

must be balanced with the need to provide optimum levels of customer service and

satisfaction (Ballou, 1998).

Customer service can be defined and measured in many ways, and in most firms

multiple measures will be used.

28

According to Wikipedia (2007), the starting point for design of a logistics system

is the determination of customer service levels that will give the firm a strategic

advantage over competitors. The logistician must learn which elements are important to

customers, how well competitors perform them, and how well the logistician’s

organisation is perceived to perform them. The logistics system must then be designed to

deliver the required level of service at the least possible cost. Determining customer

service levels is an ongoing, never-ending task, because customer needs are constantly

changing and evolving-presenting challenges and opportunities to the firm and its

competitors alike.

2.10 The role of Transport in Logistics

The definition of logistics adopted by the council of Logistics Management is “the

process of planning, implementing, and controlling the efficient, effective flow and

storage of goods, services and related information from point of origin to point of

consumption for the purpose of conforming to customer requirements”. Every business

firm, regardless of what it produced or distributes, requires the movement of goods from

one point to another and, therefore, is involved in transportation. Transportation

essentially concerns the spatial dimension of the business firm. “The spatial dimension

refers to geographical relationship and reflects the juxtaposition of firms with respect to

their material sources, markets, and competitors, plus the spatial relations of the later to

their sources and markets.

The purpose or function of transportation is to serve as a connecting link between

the spatially separated units within a firm’s own organisation (such as between plants and

29

warehouses) and between units of the firm and units of other firms and individuals (such

as suppliers and customers).

To emphasize the significant role played by overland transport, www.fhwa.dot,

(2007) noted that it is imperative that we understand that the modern logistics structure

rests on efficient motor carrier transportation. Techniques such as JIT and Efficient

Consumer Response (ECR) would not be possible without the highly developed trucking

industry.

Robert Delaney, Vice President of Cass Logistics and Consultant to Pro-Logic

indicated in his 11th annual state of Logistics report that the mort carriers have an 82

percent share of the freight market and freight expenses constitute 50 present of the total

cost of logistics.

Delaney also points out that the efficient motor carrier network has made possible

the lowering of the level of safety stock with its resultant reduction in inventory carrying

cost.

30

CHAPTER THREE

RESEARCH METHOD

3.1 StudyArea

The study examined the impact of overland transport on logistics chain

performance in Nigeria. Nigeria is located between latitude 4oN and 14oN, and longitude

3oE and 15oE. It is bounded in the North by Niger

RepublictheWestbyBeninRepublicandintheEastbytheCameroonRepublic. The

ChadRepublic is to the Northeast and the Atlantic Ocean is to is South via the Gulf of

Guinea.

Aside from the traditional modes of overland transport (human proterage and

beasts of burden) most used in rural areas of the country, the modern overland transport

modes include railways roads/highways and pipelines.

Railways

As of 2003, Nigeria’s poorly maintained rail system had 3,557 kilometers of

track, 3505 kilometers of which were narrow gauge and the remainder standard gauge.

The country has two major rail lines: one connects Lagos on the Bright of Benin and

Nguru in the Northern state of Yobe; the other connects Port Harcourt in the Niger Delta

and Maiduguri in the North Eastern State of Borno.

Highways

Nigeria has roughly 113,000 kilometers of surface roads, but they are poorly

maintained and are even cited as a cause for the country’s high rate of traffic fatalities.

However, in 2004, Nigeria’s Federal Road Maintenance Agency (FERMA) began to

patch 32,000 kilometer federal road network, and in 2005 FERMA initiated a more

31

substantial rehabilitation. The rainy season and poor equipment pose challenges to road

maintenance.

Many of the roads reported as paved may be graveled. Because of poor maintenance and

years of heavy freight traffic (in part of result of the failure of the railroad system much

of the road systems is barely usable.

Pipelines

In 2004, Nigeria had 105 kilometers of pipelines for condensates, 1,896

kilometers for natural gas, 3,638 kilometers for oil, and 3,626 kilometers for refined

products. Various pipeline projects are planned to expand the domestic distribution of

natural gas to Benin, Ghana, Togo through the West African Gas Pipeline, and,

potentially, even to Algeria (where Mediterranean export terminals are located) by

proposed NIGAL pipeline.

3.2 Research Design

Research designs re plans that guide decision about when and how often to collect

data, what data to gather, from whom and how to collect data, and how to analyze data.

The study used sample survey, which enabled the researcher to use sample of the

population to conduct the research. This enabled the researcher to administer

questionnaire to a wide range of individuals within the population who constitutes the

sample. Structured interview was also used to gather data.

32

3.3 Population of the Study

The population of this study was made up of the following organisations.

(a) Nigerian Railway Corporation (NRC)

(b) Federal road maintenance agency (FERMA)

(c) Department of petroleum resources (DPR)

(d) Lagos state transport management authority (LASTMA)

(e) Advanced logistics and procurement services limited. (ALPSL)

3.4 Sample size and Sampling Techniques

A total of 185 copies of the questionnaire were distributed among the invited

sample. The proportionate stratified random sampling was used under the probability

sampling techniques.The instruments used for this study include questionnaire, interview

and non-participant observation. The questionnaire was made up of both close-end and

open-ended questions. The close-ended questions restricted respondents to some

response options. For the open-ended questions, no response options were provided.

Only questions pertinent to the problem were asked and the respondents were free to

supply their response in their own words and in any manner they deemed fit. The

structured interview was conducted asking respondents the same questions in the same

order. This was because the researcher wanted different answers to reflect differences

among subjects.

The researcher also used non-participant observation in order to complement

other methods.

3.5 Validity and Reliability of Research Instrument

33

Validity is the degree to which a measuring instrument measure what it is

designed to measure. To determine the validity of the instrument (questionnaire) used in

this study, the research requested for the input of experts in transport planning.

This guaranteed that the questions were relevant and would elicit the desire information.

To further, enhance the validity of the instrument, a pilot test was done to assess how

respondents would interpret and provide answers t the questions in the instrument.

The reliability of these is the stability, dependability and predictability of the

questionnaire. The reliability of the questionnaire was assured by re-presenting questions

from the questionnaire in the structured interview. This was to determine consistency,

and hence reliability of the instrument in eliciting information from respondents.

3.6 Method of Data Collection

Data gathered were those relevant to understanding the variables representing the

problem and testing the hypothesis. The statistical test was done to either uphold or reject

the null hypotheses.

Chi square statistical test and Z-Score were used to analyze the data gathered in respect

of the hypotheses.

Chi−square (X2 ) =(O f−E f )

2

E f

Where Of = observed frequencies

Ef = expected frequencies

Degree of freedom = (r – 1) (c – 1)

Where r = number of rows

c = expected frequencies

Expected frequency is determined by

34

(Columun ) (Row total )Grand total

Z = x−μPm

Where x = mean

Pm = population mean

= mean critical value of Z – score

35

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 Introduction

This chapter is designed to test the hypothesis posited to analyze the different

responses to the research questions. The chapter is divided into two parts.

Part I deals with respondents’ classification and characteristics. Part II deals with testing

the hypotheses; analyzing data according to responses to the research questions.

Relationship proposed between variables in the hypotheses were tested, an conclusions

were drawn either in rejection or in support of each hypothesis.

4.2 Part 1 Respondent’s classification

The names of respondents were made optional. The respondents were given the

option to omit their names. Data on this item was of no use, hence the researcher made it

optional for respondents, who needed privacy.

36

Table 4.1 Respondents’ Classification and Characteristics

Variable Sample size Sample

composition

Percentage (%)

1. Sex 185

(a) Male 121 65

(b) Female 64 35

2. Age 195

(a) Under 20 years 32 17

(b) 20-40 years 88 48

(c) 41-60 years 53 29

(d) 61 years above 12 6

3. Status 185

(a) Junior staff 37 20

(b) Middle management 91 49

(c) Top management 57 31

Source: Authors Field Survey, 2015

Table 4.2: Sample of the Study

S/N Organisations Sample

composition

(%)

1 FERMA 58 31

2 NRC 31 17

3 DPR 27 15

4 LASTMA 29 16

5 ALPSL 40 21

Total 185 100

Source: Authors Field Survey, 2015

37

4.3 Part 2 Hypothesis Testing

Hypothesis I

There is no relationship between logistics chain efficiency and the poorly

developed overland transport in Nigeria.

Question 6

The poorly developed overland transport in Nigeria hampers logistics chain

efficiency.

Discussion

A total of 122 (66%) respondents indicated “Yes” in response to question 6, while

63 (34%) disagreed.

Table 4.3: Observed frequencies for Question 6

Organisations Yes No Total

FERMA 38 20 58

NRC 20 11 31

DPR 16 11 27

LASTMA 18 11 29

ALPSL 30 10 40

Total 122 63 185

Source: Authors Field Survey, 2015

38

Table 4.4 Contingency Table – Hypothesis I

Organisations Yes No Total

FERMA 38.25 19.25 58

NRC 20.44 10.56 31

DPR 17.81 9.19 27

LASTMA 19.12 9.88 29

ALPSL 26.38 13.62 40

Total 122 63 185

Source: Authors Field Survey, 2015

Table 4.5: Observed and Expected frequencies

Of Ef Of - Ef (Of - Ef)2 (Of-Ef)2/Ef

38 38.25 -0.25 0.0625 0.002

20 19.75 0.25 0.0625 0.003

20 20.44 -0.44 0.1936 0.01

11 10.56 0.44 0.1936 0.018

16 17.81 -1,18 3.2761 0.184

11 9.19 1.18 3.2761 0.356

18 19.12 -1.12 1.2544 0.066

11 9.88 1.12 1.2544 0.127

30 26.38 3.62 13.10 0.50

10 13.62 -3.62 13.10 0.962

2.228

Sources: Authors Field Survey, 2015

Calculated value of X2 = 2.228

Degree of freedom = (5 -1) (2 – 1) = 4

The critical value of X2at 0.05 level of significance, with a degree of freedom of 4 is

9.488.

39

Decision rule

Reject the null hypothesis if the X2 calculated is greater than the X2 critical.

Otherwise, do not reject HO

Inference

Since the calculated value of X2 (2.228) is less than the critical value of X2

(9.488), we accept the null hypothesis.

Conclusion

There is no relationship between logistics chain efficiency and the poorly

developed overland transport in Nigeria.

Hypothesis 2

There is no relationship between the logistics chain and the crude traditional

means of overland traditional in Nigeria rural areas.

Variable X F Fx Fx2

Strongly agree 4 102 408 1632

Agree 3 37 111 333

Disagree 2 17 34 68

Strongly disagree 1 29 29 29

185 582 2062

Means ( x ) =

∑ fx

∑ f

= 582185

= 3.15

40

Standard Deviation (SD) = √∑ fx2

∑ f− X 2

= √2062185

− (3 . 15 )2

¿ √11.15−9 . 92

¿ √1. 23

S.D = 1.11

P.M= √ 1.11

185

= 1. 1113.60

= 0.08

U = X + 1.96 (0.08)

= 3.15 1.96(0.08)

= 3.15 0.1568

= 3.31 or 2.99

Z =

X−μPm

=

3. 15 − 3 .310 . 08

or 3 . 15+3 .310. 08

= -2 or 80.75

41

Decision Rule

From the result of the Z score above, the values fall outside the acceptance region

(+1.96). But -2 and 80.75 fall within the critical region.

Inference

Reject the null hypothesis.

Conclusion

The crude traditional modes of overland transport in Nigerian rural areas

contributed to the inefficiency of the logistics chain.

42

Table 4.6: Responses to Question 8-11

Item Statement Response No (%)

8 Transportation remains the engine of growth

and indispensable superstructure for an efficient

logistics chain.

Yes

No

185

-

100

-

9 Modern efficient overland transport in Nigeria

will substantially improve the quality of life in

many areas and ways, but any improvement

inevitably brings costs of various kind

Yes

No

185

-

100

-

10 The creation of economic utility through the

logistics chain is a function of an efficient

transportation system.

Yes

No

185

-

100

-

11 Good transportation has the effect of holding to

a minimum the time and cost involved in the

spatial relationships of the firm.

Source: Authors Field Survey, 2015

Discussion/Majority

All the respondents answered in the affirmative questions 8-11.

Respondents affirmed that an efficient logistics chain is a function of a good transport

system.

Question 12

What are the factors that make traditional mode of transport in certain localities in

Nigeria to continue to be important?

Discussion

Respondents identified the following factors:

Lack of good motorable roads, especially during the rainy seasons;

43

Low aggregate demand for transport in the rural areas thereby making it

uneconomic for the operation of vehicular transport:

Small scale production by farmers and little profit realized by them do not

encourage the use of vehicular transport.

Question 13

Which are the active modes of overland transport in Nigeria?

Respondents identified the overland transport modes in Nigeria as

Railways

Highways

Pipelines

Head porterage and

Beasts of burden

Question 14

What is the relationship between transport and the logistics chain in Nigeria?

Respondents noted that good transportation has the effect of holding to a minimum the

time and cost involved in the spatial relationships of the firm, particular as it creates value

by creating place and time utility.

Question 15

Why is overland transport more predominantly used in the logistic chain in

Nigeria?

Respondents noted that the concentration of traffic on overland transport in Nigeria is

traceable to the gross neglect of the inland and coastal waterways.

44

Question 16

What are the factors responsible for the decline in the performance of railway

transport in Nigeria?

Respondents’ identified the following factors:

Nigeria’s road network has improved bigger, faster and more comfortable trucks

and passenger buses are capturing more freight and passengers from the railways.

Steady decline since the mid-1950s n the transport of export products.

The railway is no longer able to provide an efficient and reliable service to

consumers.

Question 17

What are the problems of road transport in Nigeria?

Respondents noted the following factors

Rainfall causes erosion on most Nigerian roads.

High temperature causes melting of tar on tarred roads, alternation of high and

low temperature causes formation of bumps on road.

High cost of road construction over rivers and marshy areas.

Reckless driving and accidents.

Question 18

What is the problem with pipeline as a means of transport in Nigeria?

Respondents noted the following problems

It can be easily destroyed by mischievous individuals, or during wars or civil

disorders.

45

It many also be easy to steal from the materials being transported by simply

tapping from the pipeline at some remote places.

Apart from not being suitable for transporting most goods, human beings cannot

be conveyed by this means.

Question 19

What are the major thrusts of transport policy in Nigeria?

Assuring that transport services are adequate to meet the social and economic

needs of the country and to provide an effective instrument of national

development policies.

Assuring the most efficient use of resources within the transport sector and the

sustained improvement of the sector’s productivity.

Question 20

How has overland transport impacted on logistics chain performance in Nigeria?

Respondents observed that overland transport in Nigeria has made the transport

component of the logistical activities very costly and inefficient mainly because of the

problems associated with the poorly maintained highways and the moribund railways.

4.4 Implication of Research

The implications of the research findings are:

1. The pressure of traffic on overland transport owing to non-performance of the

inland coastal waterways has made logistics very expensive.

2. An efficient logistics chain is a function of good transport system.

3. If the rural areas are to catch up in terms of development, modern overland mode

of transport must replace the traditional modes to enhance logistics performance.

46

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 Summary

This study with the title: An impact assessment of overland transport on logistics

chain performance in Nigeria was carried out to:

Identify the active modes of overland transport in Nigeria;

Examine the relationship between the transport and the logistics chain in Nigeria;

Examine why overland transport is more predominantly used in Nigeria;

Examine why overland transport in more predominantly used in Nigeria;

Determine the factors accounting for the continued importance of traditional

modes of transport in certain localities in Nigeria;

Identify the factors responsible for the decline in the performance of railway

transport in Nigeria;

Examine the problem of road transport in Nigeria;

Identifying the problem with pipelines in Nigeria;

Highlight the major thrusts of transport policy; and

Examine how overland transport has impacted on the logistics chain performance

in Nigeria.

The population of the study was made up of five organisations as follows:

Federal Road Maintenance Agency

Nigerian Railway Corporation

Department of Petroleum Resources

47

Lagos State Transport Management Authority

Advanced Logistics and Procurement Services Limited

A total of 185 copies of the questionnaire were distributed among individuals

drawn from the population of the study. The invited sample was selected using

proportionate stratified random sampling under the probability sampling technique.

The study of used sample survey, which enabled the researchers to use sample of

population to conduct the research. Chi-square statistical test and z-score were used to

analyze the data gathered in respect of the hypotheses.

The review of related literature was done under the following headings:

Relevance of transportation

Overland transport modes

Overland transport in Nigeria

The role of rail mode in the transport sector in Nigeria

Objectives of the Nigerian transport policy

The federal ministry of transport

Factors involved in transport demand, provision and assessment

New direction in road maintenance

Logistics

Business logistics

Logistical activities and

The role of transportation in logistics: a conceptual framework

The two null hypotheses posited were tested using both Chi-square test and Z-score.

While hypothesis I was accepted, hypothesis II was rejected.

48

Respondents showed strong support for the following statements:

Transportation remains the engine of growth and an indispensable superstructure

for an efficient logistics chain.

Modern efficient overland transport in Nigeria will substantially improve and

inevitably bring down costs of various kinds.

The creation of economic utility through the logistics chain is a function of an

efficient transportation system.

Good transportation has the effect of holding to a minimum the time and cost

involved in the spatial relationships of the firm.

Respondents identified the following factor as being responsible for traditional

mode of overland transport’s continued importance:

Lack of good motorable roads, especially during the rainy season.

Low aggregate demand for transport in the rural areas thereby making it

uneconomic for the operation of vehicular transport;

Small-scale production by farmers and little profit realized by them do not

encourage the use of vehicular transport.

The respondents identified the following as constituting overland transport in Nigeria:

Railways

Highways Modern Modes

Pipelines

Head Porterage Traditional

Beasts of burden Modes

49

Respondents identified the following factors as being responsible for the decline

in the performance of railway transport in Nigeria:

Nigeria’s road network has improved, become bigger, faster and more

comfortable trucks and passenger buses are capturing more freight and passengers

from the railway.

Steady decline since the mid-1950s in the transport of export products

The railway is no longer able to provide an efficient an reliable service to

consumers. The problems of road transport in Nigeria were identified as follows:

Nigeria’s road network has improved, become bigger, faster and more

conformable trucks and passenger buses are capturing more freight and

passengers from the railway.

Steady decline since the mid-1950s in the transport of export products.

The railway is no longer able to provide an efficient and reliable service to

consumers.

The problems of road transport in Nigeria were identified as follows:

Rainfall causes erosion on most Nigerian roads

High temperature causes melting of tar on tarred roads. Alternation of high and

low temperature causes formation of bumps on road.

High cost of road construction over rivers and marshy areas.

Reckless driving and accidents.

Respondents observed that overland transport in Nigeria has made the transport

component of the logistical activities very costly and inefficiency mainly because of the

problems associated with the poorly maintained highways and the moribund railways.

50

5.2 Recommendations

The following recommendations were made in the light of the implications of the

research findings:

1. For the overland transport modes to function optimally to enhance logistical

performance, its infrastructure, vehicles and operations must be revamped.

2. Relevant authorities should consider providing rural areas with appropriate

infrastructure, vehicles and operations to enhance logistics with performance.

3. An efficient logistics chains entails a holistic and integrated approach to

transportation to transportation to facilitate multimodal transport system. This

calls for the all-round development of the entire transport sector.

Suggested areas for further studies

Multimodal and logistical efficiency

Traditional transport mode and logistical exigencies.

5.3 Conclusion

It has been established that modern logistics structure rest on efficient overland

transport. This is because transportation creates time and place utility, both of which are

necessary for economic exchanges to take place; its availability, adequacy, and cost have

an effect on several kinds of decision made by a business firm in addition to decision

related to managing the transportation function itself. However, overland transport in

Nigeria has made the transport component of the logistics structure very costly and

inefficient, mainly because of the problems associated with the poorly maintained

highways, moribund railways and the crude traditional modes of transport in most rural

of the country.

51

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53

APPENDIX

AN IMPACT ASSESSMENT OF OVERLAND TRANSPORT ON LOGISTICS

CHAIN PERFORMANCE IN NIGERIA

QUESTIONNAIRE

1. Name (Optional)

2. Sex

(a) Male

(b) Female

3. Age

(a) Under 20 years

(b) 20-40 years

(c) 41-60 years

(d) 61 years above

4. Status

(a) Junior staff

(b) Middle management

(c) Top management

5. Organisation

6. The poorly developed overland transport in Nigeria hampers logistics chain

efficiency

(a) Yes (b) No

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7. The crude traditional means of overland transport in Nigeria rural areas

contributes to the inefficiency of the logistics chain.

(a) Strongly agree

(b) Agree

(c) Disagree

(d) Strongly disagree

8. Transportation remains the engine of growth and an indispensable superstructure

for an efficient logistics chain.

(a) Yes (b) No

9. Modern Efficient overland transport in Nigeria will substantially improve the

quality of life in many areas and ways, but any improvement inevitably brings costs

of various kinds.

(a) Yes (b) No

10. The creation of economic utility through the logistics chain is a function of

an efficient transport system.

(a) Yes (b) No

11. Good Transport has the effect of holding to a minimum the time and cost

involved in the spatial relationships of the firm

(a) Yes (b) No

12. What are the factors that make transport in certain localities in Nigeria to

continue to be important?

13. Which are the active modes of overland transport in Nigeria?

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14. What is the relationship between transport and the logistics chain in

Nigeria?

15. Why is overland transport more predominantly used in the logistics chain in

Nigeria?

16. What are the factors responsible for the decline in the performance of railway

transport in Nigeria?

17. What are the problems of road transport in Nigeria?

18. What is the problem with pipeline as a means of transport in Nigeria?

19. What are the major thrusts of transport policy in Nigeria?

20. How has overland transport impacted on logistics chain performance in

Nigeria?

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