Comparative analysis of foreign and coastal trade cargo handling charges in SIFAX seaport terminals, Nigeria

Abstract

The study was carried out to compare the cargo handling charges of SIFAX terminal in Lagos ports, Nigerian for coastal import and export trade between Nigeria and tropical West African countries handled via the port operator’s terminal; and foreign import and export trade between Nigeria and other countries other than tropical West African countries handled through the SIFAX port terminal. The objective of the study among other things was to determine if significant differences exist in the cargo handling charges coastal shippers and ocean (foreign) shippers are made to pay by the terminal operator in the handling of coastal export and import trades, as well as foreign imports and exports via ocean shipping to countries other than coastal West African countries. Secondary data on the cargo dues and container handling charges for import and export trade types was obtained from the SIFAX terminal as a case study. The data covered a period of three years between 2019 and 2021. The statistical method of difference of mean was used to analyze the data obtained while the t-test was used to investigate the significances of the differences in charges. The analysis was implemented by the use of SPSS version 20.1. It was found that, for the import trade, there exist significant differences between the charges per ton of cargo handled and per TUE and FEU handled. Coastal import trade between Nigeria and tropical West African Countries are charged significantly lower cargo handling charges per ton of cargo handled than foreign imports from countries other than the tropical West African countries. For container export trade, the study concludes that there is no significant difference between the container handling charges per FEU and TEU exported to foreign countries other than tropical West African countries and per FEU cum TEU exported via coastal shipping to tropical West African countries. This indicates that there is no disparity in the pricing policy of the terminal operator with regards to export container handling charges. The same amount of charges is paid by shippers for export of laden TEUs and FEUs to all destinations and regions.