A COMPARATIVE ANALYSIS OF CARGO THROUGHPUT AND REVENUE PERFORMANCE AT NIGERIAN SEAPORTS:

NAVIGATINGTHE PERFORMANCE NEXUS

Abstract

Efficient seaport operations are crucial for national economic growth, and understanding the dynamics between cargo volume and revenue is essential for optimizing port management. This study investigates the relationship between cargo throughput and revenue performance at two
major Nigerian seaports: Port Harcourt and Apapa. This research employs a comparative analysis, utilizing time-series data from 1981 to 2022, to examine how cargo throughput influences revenue generation at each port, considering their distinct operational contexts. The study analyzes factors such as cargo types, tariffs, and operational costs to understand the cargo throughput-revenue nexus. A simple linear regression model is used to quantify the impact of cargo throughput on port revenue. The findings reveal a statistically significant positive relationship between cargo throughput and port revenue at both locations, but with varying magnitudes. Specifically, a 1% increase in cargo throughput is associated with a 154.09% increase in revenue at Port Harcourt and a 1.45005% increase at Apapa. The stark difference in impact underscores the importance of port-specific factors, including infrastructure, logistics, and management practices. The study concludes that increasing cargo throughput is essential for boosting port revenue. Based on this
finding, a key recommendation is for the Nigerian government to prioritize targeted investments in infrastructure and equipment at both ports, focusing on modernization and expansion to handle larger cargo volumes efficiently. In addition, the government should adopt a single-window customs clearance system for container clearing from the seaports.