Evaluation of ship-owner’s demand for port services relative to changes in port pricing policy regimes in Nigeria

Abstract

The study evaluated the Ship-owner’s Demand for Port Services Relative to Changes in Port Pricing Policy Regimes in Nigeria. Its specific objectives was among other thing to estimate the coefficient of average rate of change of ship-owner’s demand for port services in Nigerian seaports relative to changes in pilotage rates charged by the Nigerian Port Authority (NPA) between 1977 and 2022. This was in realization of the fact that port charges have implications on port cost borne ship-owners and other categories of port users. It used the quantitative research design methods. It sourced secondary data from the NPA on the ship traffic call and shipping tonnages handled in the Nigerian ports over the 45 years covered in the study as proxies for ship-owners demand for port services. It also obtained time series data on pilotage rates charged by the ports between 1977 and 2022 from the NPA. The average rate of change quantitative tool and regression analysis were used to analyze the data obtained. It was found that, the average rate of change coefficient of ship traffic calls handled in the Nigerian seaports relative the trend of pilotage rates charged by the seaports over the period is 34.719. It results also show that there is significant influence of variations in pilotage rates charged by the Nigerian ports on the ship traffic calls handled in Nigerian seaports. The findings of the study further reveal that for each 1 naira variation (increase) pilotage rates charged by the NPA each year between 1977 and 2022, the GRT/shipping tonnage handled by the seaports increased by an average rate of 1713332 GRTs. Recommendations were proffered based on the study findings.