CHAPTER ONE: GENERAL INTRODUCTION

1.1 Background of the study

Maritime transport investment is one of the major transport sector that requires various infrastructural investment and as well large equipment facilities which enhances its maritime operation. This is because maritime transport (sea port) accommodate large vessels and other maritime and international shipping which helps in the economic development of the nation. Therefore, there is need to allow private sector to come through concession and privatization in the development of the sector so as to help the nation in the maritime transport sector. This because the port (maritime domain) act as a catalyst and gateway for any nation’s economy.

There is a notion that because ports serve as vital links in the trading chain (Chin and Tongzon, 1998), a greater participation of the private sector in both the ownership and operation of container ports could not only enhance the operational efficiency of these ports (Tongzon and Heng, 2005), but also the economic wellbeing of the entire country.   Ports that are concession to private investors; there are observations that this has caused tremendous improvement in port operations culminating in high level of efficiency in the ports. Anagor (2014) notes the transfer of port operations to private organizations has resulted in high level of improvement, with substantial investments in terminal infrastructure and cargo handling equipment, increased cargo throughput (which has grown by about 250% in most terminals over the past eight years), leading to a restoration of importers’ confidence to doing business in Cameroonian ports. It is in the light of this that this paper would assess the impact of concession of Cameroon seaports on the economic growth of the country.

A consideration of Cameroon large coastal water and seaports (predominantly in the South and littoral regions of the country) reveals that the maritime sector has contributed substantially to the economic development of the country. It is not surprising that a large volume of the country’s international trade is in one way or the other connected to the maritime sector; for instance, the distribution of the crude oil and related products from the various oil wells in the country is distributed to the international buyers through the various seaports and maritime routes of the country. This perhaps explains why Ndikom (2006) views a port as a gateway to the nation’s economy, with shipping services being a primary logistic service of critical importance. This impact is not peculiar to Cameroon as there are suggestions of similar impacts in other countries. For instance, the observation by Trujillo (2005) that there are 2,814 international ports catering for freight traffic in the world is an indication of the level of business activities associated with the maritime sector across the world. It is estimated that port traffic increases at an average rate of 3% per year, with nearly 90% of goods exchanged through international trade facilitated through the maritime transportation network. The United Nations Conference on Trade and Development believes that a large share of international trade would not have been possible without the infrastructures provided by seaports, regarded generally as the interface between maritime transport and land transport or inland navigation (UNCTAD, 2002).

In contemporary global commerce, seaport or maritime transport play an important role as a nation’s major gateway to international trade, thus becoming a good instrument for measuring the economic health of a nation (Ogunsiji and Ogunsiji, 2010; UNCTAD, 2008). The ports have considerable influence not only on the volume and conditions of trade, and by implication, on the capacity for economic development. In Cameroon, for instance, greater percentage of international trade is routed through the sea, and by virtue of her population, may account for about 70% of all seaborne trade in the central African sub region. Back in 1776, Adam smith noted that a business working in country town without link to the the outside world can never achieve high level of efficiency because it small market will limit the degree of specialization. Because shipping is one of the cheapest and efficient mode of transportation over long distances, it has since the ancient times been at the fore front of opening up the world, and thus a major driver of the process of globalization. Cameroon is a country located in Central Africa, with a coastline of about 400 kilometers along the Gulf of Guinea with The Port of Douala as the main gateway for international trade and commerce.

The Port of Douala is located in the city of Douala, which is the economic capital of Cameroon. The port handles about 95% of the country’s international trade, making it the largest and busiest port in the country. The port has 21 berths, with a total quay length of about 4.5 kilometers, and handles a wide range of cargo, including containers, petroleum products, and general cargo. The  port is operated by the National Ports Authority (Port Autonome de Douala), which is responsible for the management, operation, and development of the port. The port is also supported by a range of other agencies and stakeholders, including shipping companies, freight forwarders, customs authorities, and transport operators.

Douala sea port plays a crucial role in the country’s economy, providing access to international markets for Cameroon’s exports and facilitating the importation of goods and services. The port also serve as key hub for regional trade, connecting Cameroon to other countries in Central Africa and beyond. The development and modernization of the port are therefore essential for the economic development of Cameroon and the wider region.

1.2 Statement of the Problem

The efficient delivery of cargo is crucial for businesses and economies worldwide. However, inadequate infrastructure often hinders the timely and cost-effective transportation of goods. This problem is particularly notable in regions such as Europe, Asia, Africa, and specifically in Cameroon, at the Douala seaport.

In Europe, despite significant investments in transportation infrastructure, challenges remain in ensuring efficient cargo delivery. Factors such as congested road networks, outdated ports, and limited intermodal transportation systems contribute to delays, increased costs, and reduced reliability in cargo transportation.

Asia, with its rapidly growing economies and expanding trade volumes, also grapples with infrastructure-related issues. Although infrastructure investments have been made in ports, rail networks, and logistics hubs, there are still concerns over transportation time, costs, and the overall efficiency of cargo delivery within the region.

Africa, as a continent, faces unique challenges in cargo delivery due to inadequate infrastructure. Insufficient road networks, limited rail connectivity, and underdeveloped ports hinder the efficient movement of goods. These infrastructure gaps hinder economic growth, trade facilitation, and complicate logistics operations across the region.

In Cameroon, the largest seaport, Douala, plays a vital role in international trade. However, the port’s infrastructure has been identified as a bottleneck, negatively impacting cargo delivery efficiency. Insufficient berths, outdated cargo handling facilities, and capacity limitations contribute to delays, congestion, and increased costs, affecting the overall competitiveness of Cameroon’s trade sector.

Therefore, it is imperative to assess the impact of improved infrastructure on efficient cargo delivery in the Douala seaport in Cameroon in order to Understand the specific infrastructure-related challenges and their implications for cargo transportation efficiency. this will enable stakeholders to identify opportunities for optimization, support economic growth, and improve logistics operations and supply chain management in these regions. Douala seaport is the largest port in Cameroon, playing a crucial role in the country’s international trade. The current infrastructure at the Douala seaport is often cited as a bottleneck in cargo delivery efficiency. However, several initiatives have been undertaken to address these challenges. For instance, the ongoing Douala Port Expansion Project aims to improve port infrastructure, including the addition of new berths and the modernization of cargo handling facilities (World Bank, 2020).

1.3 Research Question.

1.3.1 Main Research Questions

• What is the impact of improved infrastructure on efficient cargo delivery in the Douala seaports?

1.3.2 Specific research questions

• What is the impact of transportation infrastructures on efficient cargo delivery in the Douala seaport?
• What is the impact of communication infrastructures on efficient cargo delivery in the Douala seaport?
• What is the impact of wharehousing infrastructure on efficient cargo delivery in the Douala seaport?

1.4 Research objectives.

1.4.1 Main research objective.

• To determine the impact of improved infrastructure on efficient cargo delivery in the Douala seaport.

1.4.2 Specific objectives.

• To determine the impact of transport infrastructure on efficient cargo delivery in the Douala seaport.
• To examine the impact of communication infrastructure on efficient cargo delivery in the Douala seaport.
• To analyze the impact of warehousing infrastructure on efficient cargo delivery in the port of Douala.