Port concession is a contract in which government transfers operating rights to private individuals or enterprises, who further engage in an activity contingent on government approval and subject to the stipulated terms of the contract. Looking at the Impacts of Port Concession on Port Operations is a strategic tool and means for the advancement of port operations in the country. It is a crucial strategy that should be harnessed in the development of the maritime sector in Nigeria. In concession, the government gives rights to individuals to handle port facilities and/or deliver port services of public utility to private concessionaires, in agreement for the concessionaires to build and manage the subject of the concession or to manage the delivery of service at the concessionaire’s own risk.
Hence, these private concessionaires are given rights to improve, revamp and maintain public infrastructure for better management. They are also allowed to charge users for the services provided. There are already key stakeholders in the maritime industry such as Royal Renacido who are already doing a lot to revamp and totally develop the maritime sector in
Nigeria. However, the government still needs to grant more rights to private concessionaires to maximally function.
Impacts of Port Concession on the Maritime Sector in Nigeria
1) The Impacts of Port Concession on Port Operations in Nigeria helps to develop the maritime sector and its operations: With the vesting of power to private concessionaires to make meaningful upgrades in the sector, they are able to totally revamp the sector beyond that which the government has done, which is a good thing.
2) It is an efficiency and productivity tool: Yes, it is a strategic tool and means to improve efficiency, productivity and totally revamp the sector to attract foreign investments.
3) It improves the operational and management capabilities of the ports: With port concession comes a new and improved management. Private individuals want to make profits, so they will provide impeccable services worth it so they can charge for it, which invariably helps to improve port operations. With private ownership and management, lukewarmness and lackadaisical attitude to work is not tolerated. Ineptitude is not allowed and there’s no room for favouritism. They ensure that everyone does their job rightly which helps in improving the sector on all sphere These private individuals most times possess better management skills which is an advantage to the industry.
4) A reduction in the financial burden on the public sector: With the private sector handling some aspects of port operations in the country, there is an invariable reduction in the financial burden on the public sector as capital that would have been
dispensed to handle all operations and tasks will no longer be so, as some responsibilities have now been designated to private individuals to handle.
5) Proactive approach to trade and globalization: With port concession, there will be a proactive approach to trade and globalization as private individuals will be open to engaging in activities geared towards improving the sector and making more profits.
6) Improved Technology: With port concession, there will be improved technology usage. Dilapidated facilities used in port operations will be changed and new, modern facilities introduced. There will also be the introduction of digital technologies such
as Artificial Intelligence, Internet of Things, Electronic Data Interchange and other modern tools to aid and develop port operations in the country.