INTRODUCTION
1.1 BACKGROUND OF STUDY
Maritime sector is that sector of the economy that deals with sea transportation and movement of goods and materials from one place to another.It oversees the Water borne transport which is one of the modes of transportation of goods andor persons, which has for centuries been the main prerequisite for trade transactions between nations andregions, and has without doubt, played an important role in creating economic development andprosperity(Igbokwe,2001).The maritime industry occupies a very prominent position in the economies of nations all over the world.
The industry in its strict sense embraces all business activities which take place within the maritime environment.These includes offshore economic activities such as fishing, salvage, towage,underwater resourceexploitation/extraction, and onshore economic activities in ports, shipping activities, ship construction, repair andmaintenance.
Of all these, shipping stands out as the greatest boost to a nation’seconomicgrowth andinternational status. This is because all other maritime activities revolve around shipping. The oil and gas sector, for instance depends on shipping, as it is the vehicle that drives it, enabling it to make all the difference in aneconomy. Due to the close link between shipping activities and economic development, most nations cannotafford to toy with the industry (Ndikom, 2011).Shipping as one of the world’s most international industries makes seaborne trade in a sense at the apexof world economic activity. As business has become more international, and newly industrialized countries havetaken their place alongside the Organization for Economic Corporation and Development (OECD) countries, themaritime industry has provided the vehicle for an extraordinary growth of trade. This has also led to theprogression from a world of isolated communities to an integrated global community (Stopford, 2003).
Shipping is a complex industry and the conditions which govern its operations in one sector do notnecessarily apply to another. In terms of its main assets, the ships vary widely in size and type. They provide thewhole range of service for a variety of goods, whether over shorter or longer distances. The shipping market ismade of the liner shipping, tramp shipping, bulk shipping, the charter market etc. And because shipping is aservice industry, ship demand depends on several factors including price, speed, reliability and security(Stopford, 2003).
Maritime transport is essential to the proper operation of any country’s economy and a vital part of a nationstransport infrastructure. A minister of transport in the federal republic of Nigeria was once quoted to have saidthat transport is to the Nigerian economy what the artery is to the blood circulation (Igbokwe, 2011).
In Nigeria, there are shipping lines involved in the transportation of cargo like oil, bulk cargo and finishedgoods to and fro Nigerian ports.
Coming to the area of study, Maersk line is a sub division of the AP Moller-Maersk group and is involvedin terminal operations, supply services, drilling and oil tanker services to a number of users in Nigeria. Itsheadquarters is based in Copenhagen Denmark with subsidiaries and offices in more than 135 countriesworldwide, which houses a worldwide container services, logistics and forwarding solutions and terminal activities under the brand names (Maerskline.com, 2012).
Maerskline is the largest operating unit in AP; Moller- Maerskline operates in over 550 vessels and has acapacity of 2.2 million TEU (Twenty foot Equivalent Units). It is currently the largest container shipping in the world (Maerskline, 2012).
AP Mollers-Maersk’s independent APM Terminals business unit with its separate headquarters in theHague, Netherlands, Operates a Global Port, Terminal and Inland services Network with interests in 56 ports andcontainer terminals in 36 countries on five continents.
A.P Moller-Maersk’s independent A.P.M Terminals is the Terminal operator at Apapa container Terminal.
Maerskline Nigeria commenced services in 1953, initially working under agents like John-Holt shipping NigeriaLimited, and registered its corporate entity in Nigeria on February 2nd 1988. Their main office locations include
Lagos, Port-Harcourt and Kano (Maerskline.com, 2012).
Based on the above assertions the following sections of this study shall dwell more on the various concepts of the subject matter under study.
1.2 STATEMENT OF PROBLEMS
Over the years, the operations and services rendered to users within the confines of the operatingenvironment of the maritime sector have not been satisfactory due to poor usage of ICT and insecurity. This is due to lack of modern shipping policies and some government policy inconsistencies.
Shipping operations and services have over the years been dominates by foreign shipping companies and vesselsof which Maersk-line is inclusive.
Therefore, a critical analysis of the challenges and opportunities facing these shipping lines and servicesin Nigeria is very important. Also many factors like the management of bunker, activities of pirates, application ofinformation and communication technology, safety practices and ship turn round time affect the growth andsurvival of a shipping line.
Some shipping lines know this fact. While some have taken the lead in innovating trends that would helpthem overcome these challenges, others sit with no attempt to innovate; still waiting for the changes to blow themaway. Therefore with the attempt in this direction of research study, the impact of security and Information Communication Technology (ICT) shall be critically assessed herein.
1.3 THE OBJECTIVE OF THE RESEARCH
Due to the economic prospects of the maritime sector of the country, there is great need for improvement on the operational efficiency and effectiveness of the sector. The operations carried out by shipping lines are complicated as much they are technical. And as we know, theshipping industry drives national economic development. Also for any shipping line to remain on top in theindustry, it needs to keep abreast with the current trends, the market and technological factors that driveefficiency.
A lot of factors affect the effectiveness and efficiency of a shipping line’s operations, ranging from theport infrastructure, bunker management strategy, safety practices, government policies, ship replacementtechnique etc.
A critical investigation and analysis of these shipping operations will bring to the fore, more insight intothe opportunities and challenges being faced by shipping lines in Nigeria, so as to help keep managers andstudents abreast of the survival techniques in the ever competitive shipping industry.
The business of maritime is a world encircling enterprise whose devotees must have a vast knowledge ofmatters great and small.
1.4 SCOPE AND DELIMITATION OF STUDY
The scope of this research work is the Nigerian Maritime sector which in this context is also referred to as the ‘shipping’ sector. Though challenges and prospects of the sector reviewed is not significantly different from that of other West African countries surrounding it like Guinea, Ghana, Benin, Niger etc.Thus the findings and recommendations of this work when completed can be applied to other above named developing countries.
The work was limited by the major following challenges;
1.5 RESEARCH QUESTIONS
Maritime operations are vast and therefore, the need for it to be carried out efficiently and effectively; whichbrings us to asking the various following research questions.
1.6 RESEARCH HYPOTHESES
The research hypotheses are as follows:
Hypothesis 1:
Hi: There have been increase and efficiency in port security operations due to application of ICT
Ho: There have not been increase and efficiency in port security operations due to application of ICT
Hypothesis 2:
Hi: The increase in port security efficiency is attributed to the application of ICT in Maritime operations
Ho: The increase in port security efficiency is not attributed to the application of ICT in Maritime operations
1.7 SIGNIFICANCE OF THE STUDY
History they say is made in just a day, with the successful completion of this project work, not only was history made but a great resource has been added to the few existing ones on involvement of ICT and security on the operations of the Maritime sector of the country.
At the end of this research, we will be able to appreciate the fact that this study will enable to make use of the work in both their academic and research work.
It will also be made clear that various Maritime operations today need ICT for secure, effective and efficient shipping operations.
1.8 DEFINITION OF TERMS
ICT: Information Communication Technology
Security: Security is the degree of protection to safeguard a nation, union of nations; Person or persons against danger, damage, loss and crime
Maritime: All economic and business operationsthat involves movement and transportation of goods and services from one place to another over the sea.
SALW: Small And Light Weapons
WiFi: Wireless Fidelity
OECD: Organization for Economic Corporation and Development
TEU: Twenty foot Equivalent Units
Etc.