Fuel subsidy reforms and supply chain performance of maritime terminal operations in Nigeria
Date
2024-03
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Federal University of Technology, Owerri
Abstract
The study investigated the fuel subsidy reforms and the supply chain performance of maritime terminal operations in Nigeria. The objectives of the study were among other things, to evaluate the effects of fuel subsidy reforms on the cargo throughput, bulk road vehicles calls, and ship calls handled at maritime terminals involved in the petroleum product import and distribution supply chain. The study also determined the coefficients of elasticity of cargo dues and ship dues payments of terminal operators as a result of variations in the pump price of petroleum products, daily swap import, number of approved supply vendors and annual subsidy payment occasioned by fuel subsidy reforms. Exploratory research design was used in which time series quantitative data on daily swap import, number of supply vendors approved, annual subsidy payment, pump price per liter, are sourced from secondary sources and used as proxies for fuel subsidy reforms while cargo throughput, ship call traffic, bulk road vehicles calls, cargo dues payments and ship dues payments of the terminal operators were obtained from the Nigeria port authority statistical reports and used as proxies for supply chain performance of the terminal operators in the handling of petroleum product transiting through it over the period. The methods of data envelopment analysis (DEA) and log linear multiple regression analysis were used to analyze the data obtained using statistical software. It was found that a 1% annual increase in pump price per liter will increase the throughput of petroleum product handled in the marine terminals by 0.12% while a 1% increase in daily swap import leads to a 0.653% decrease in cargo throughput handled in the terminals. In a similar manner, a percentage increase in number of supply vendors will lead to a 0.012% decrease in cargo throughput performance of the marine terminals while a percentage increase in annual subsidy payment will lead to a decline of 0.17% in cargo throughput performance of the terminal operators in the petroleum products supply chain. Furthermore, a 1% annual increase in pump price per liter will lead to a decline in ship dues paid by terminal operators by 1.196% per annum while a 1% increase in daily swap import leads to a 0.292% decrease in ship dues paid by marine terminal operators per annum. Similarly, a one percent increase in number of supply vendors will lead to a 0.453% decrease in ship dues paid by marine terminal operators involved in the distribution chain of petroleum products in Nigeria while a one percent increase in annual subsidy payment will lead to a decline of 0.232% in ship dues paid by terminal operators in the petroleum products supply chain. The equation depicting the effect of fuel subsidy reforms on cargo throughput handled at the terminals is: Log CARPUT = 30.817 + 0.12LogPUPRI - 0.653LogDSI – 0.012LogNSV - 0.17LogASP. Similarly, the equation depicting the effect of fuel subsidy reforms on ship dues payments of the terminal operators is: Log SHDUES = 25.67 – 1.196LogPUPRI - 0.292LogDSI + 0.453LogNSV - 0.232LogASP among many other empirical relationships. The policy implications of the results were discussed and recommendations proffered on the basis of the research findings.
Description
This thesis is for the award of Doctor of Philosophy (PhD.) in Maritime Management Technology
Keywords
Fuel subsidy reforms, marine terminal operations, supply chain performance, Department of Maritime Management Technology
Citation
Ndubuisi, K. E. (2024). Fuel subsidy reforms and supply chain performance of maritime terminal operations in Nigeria (Unpublished Doctoral Thesis). Federal University of Technology, Owerri, Nigeria