CHAPTER ONE

INTRODUCTION

1.1 Background to the study

The ability of ports to ensure efficient cargo transfers is one central dimension of their
overall function as transport modes. Before containerization, such as in the late 19^th
century, large sea ports were already competing in their attempt providing fast transit
between sea and land, in a context of growing global trades (Marnot, 2022). Such aspects
are even more crucial nowadays when the port can be considered as only one element of
value-driven supply chains (Robinson, 2022) or as a set of independent terminals operated
by global actors (Olivier and Slack, 2016). While port efficiency as a whole may be
understood from various perspectives, its influence on trade facilitation (Clark, 2004)
and regional development (Haddad, 2020) has been well underlined. Ways to measure
port efficiency and performance are very diverse, but the time factor has been so far largely
left aside, especially in international comparative studies of ports. More frequent are case
studies of specific aspects such as fast-ship services (De Langen, 2019), broader approaches
such as the global synchronization of transport terminals in a context of space/time collapse
(Rodrigue, 2019), or operations research about queuing models of vessels in relation to port
entrance channels and berth allocation and productivity. Geography of time efficiency thus
remains missing, although it would provide a better understanding of port operations as a
whole and, to some extent, of the territories where such ports are located. This exercise
would also contribute to further discussing the geographical dimension of port operations,
beyond sole technical and economic factors (Ducruet, 2014).

Maritime transport is the backbone of world trade and globalization. 24 hours a day and all year round, ships carry cargoes to all corners of the globe. This role will continue to grow with the anticipated increase in world trade in the years to come as millions of people are expected to be lifted out of poverty through improved access to basic materials, goods and products Wagner & Bode, (2018). The global maritime interactions, transnational trade relationships and connections are strongly tied to livable port systems. Since the turn of the century, natural disasters (such as hurricanes Sandy and Katrina in the United States), economic crises (such as in 2018), terrorist attacks and labor strikes have caused large financial losses to companies, pointing to the need for better risk management of supply chains. For example, as described by Tang (2016), Ericsson suffred a loss of 400 million Euros after a fire shut down production of its semi-conductor supplier in 2000, and Apple was unable to supply various customers due to lack of electronic ships after an earthquake in Taiwan in 1999 interrupted the production of its main supplier. Also, according to Jüttner (2015), a strike that closed 29 ports on the West Coast of the United States in 2002 caused losses estimated at a billion Dollars. Modern supply chain management practices, such as Lean Six Sigma, Just in Time and outsourcing, have made these chains leaner and more efferent (Wagner & Bode, 2018).

The movement of large and heavy cargo for construction projects is part of tramp shipping, which is still considered a niche problem (Pache 2019). At the same time, containerisation has dominated international trading in intermodal transport, with 20⁰ or 40⁰ steel boxes transported with different modes of transport from vessels, trains, and trucks and handled in many other ports across the world throughout the end-to-end supply chain (Song 2021).

The recent expansion of infrastructure development towards the modularization and
renewable energy sectors urges academic interest in the project logistics sector. Project logistics is the transportation processes for cargo with characteristics such as large, heavy, out-of-gauge, high-value, and critical items. The project cargo is usually part of an infrastructures project; that requires specialized stowage, lifting, transporting, loading, and discharging at different ports (Denktaş, 2018)). Malaksiano  (2016). proposed to evaluate the performance of non-specialised vessels carrying project cargo using the Time Charter Equivalent (TCE) as a standard performance
measure of ship operating efficiency to the market rate (Malaksiano and Melnyk 2020).
Comparing TCE with the FRTC (Freight Rate Time Charter) shows many opportunities
for the non-specialised dry cargo vessel to perform project cargo transportation. The
efficiency of project cargo transportation is influenced by the following factors: the
hatches’ dimensions and design, the size and shape of holds, deck equipment,
the ship’s cargo gears, maximum permissible load, maneuverability, and ship’s
seaworthiness (Malaksiano and Melnyk 2020). Many developing countries remain less competitive in global trade as a result of dilapidated, weak and inefficient port structures (Tupy, 2005 and Ondiege  2013). The existing facilities have failed to live up to expectations in the realities of the continued neglect in the face of reform, globalized and intensified economic connectivity. Therefore, many ports in the developing economy, especially in Africa, remain less competitive. Even as effective and efficient port infrastructure is vital to unlocking the economic potential of most African states.

In Nigeria, the port development dates back to the colonial era. The colonial government built the first commercial port in Nigeria as part of the strategy to evacuate raw materials from the hinterland. Efficient port operations hinge on harmonization of the different stages of cargo processing efficiently to lessen the time of cargo delivery from arrival at the port. The port reform has been implemented to facilitate the cargo handling procedure and enhance port operations in Nigeria. Part of the change involves the concessions of major terminals to an interested investor.

Moreover, the port plays a significant role in the development of the nation’s economy as the port is the second busiest port in Nigeria (Benson, 2018). The range of cargo stocks includes the Ro-Ro, container and another form of generalized cargo. The primary concern for improved port operation is borne out of the concern for effectiveness and efficiency in cargo handling to avoid the congestion of cargo at the terminal. The bane of port operation in Nigeria has often been associated with delaying in cargo handling, which often leads to congestion, spoilage and economic losses (Edih, 2022). Nigeria, mainly an importing nation, rely more on cargo going through this port for an economic transaction and international trade exchange (Crown, 2017).

With the growth of international trade, efficient and cost-effective transportation systems that link global supply chains have become vastly important to the economic development and prosperity. The Council of Supply Chain Management Professionals (previously the Council of Logistics Management) defines “logistics”. Based on the definition of “logistics”, “international logistics” can be defined as the process of planning, implementing and controlling the flow and storage of goods, services, and related information from a point of consumption located in a different country (Pierre, 2013).

Seaports in the supply chain can function as separate terminals, more like a checkpoint or handling highly specialized types of cargo. Or as full-fledged trade and logistics centers with many terminals, among other features. When a port terminal is mainly engaged in cargo transshipment, a port hub provides a full range of services and performs several important functions, such as cargo storage and handling, ship repairs and docking. As an important gateway in global supply chains, ports must integrate different networks and involved actors to coordinate cargo flows, ownership and payments. In this regard, the port can be considered as part of a cluster of organizations, where the performance of a network performing various activities in supply chains that create value is a collective effort that requires coordination of partners and business processes.

Modern supply chain management practices, such as Lean Six Sigma, Just in Time and outsourcing, have made these chains leaner and more efferent (Wagner & Bode, 2018). But the risks of interruptions, as seen in the examples mentioned above, have caused firms to
identify the need for a structured process for managing risks of supply shortages, leading to the concept of supply chain risk management (SCRM). The threat of financial and other losses of these interruptions has prompted growing academic interest in SCRM since 2004,

This scientific work was set to examine the issues around the cargo handling and to find out the impact of cargo handling on growth of Douala Seaport: the study began by taking us
back into the history of how cargo was handled in the past centuries all over the world and
around the port of Douala to its present-day situation and the challenges that the pot faces in
the domain of cargo handling. Since 1990s, the cargo handling industry has experienced drastic
changes with the aim of providing more efficient cargo handling techniques. For instance, moving from cranes that where being manipulated by man and beast of burden (donkey) to the just of steam engines and to hydraulic engines. During the 2000s was containerization which led to changes in workers activities, cost and productivity level. Today the cargo handling which has become the most prominent logistic problem to be address cannot be left on torch. Our purpose   is to provide possible solution to reduce container at the Douala seaport and to create space for new container just in time.  

1.2 Problem statement

Time is one of the essence in the business world today, so many logistics companies will always
want to adapt policies that will lead to maximization of time like the just in time principle. This principle cannot be attained without the factors which enable it to being put in place. Hence the principle is a dependent one; it depends on the efficiency of proper cargo handling process. Efficiency will depend on availability of factors such as equipment used for loading and unloading, efficiency in the custom clearing procedures and a good transport network which includes good and sufficient roads and railways to convey goods to their final destination within the country or from the shippers warehouse to the port for export. If the factures to this principle depend or are not put in place, it makes it very difficult to carry out just in time principle and maximized profit levels which retard the growth of this Douala Seaport. This is the main problem affecting Douala Seaport. However, in other to resolved this problem there is a need to carry out a research on the topic cargo handling and logistic operation issues at the Douala seaport.

1.3 Research Questions

1.3.1 Main Research Question

How are cargo handled with logistic operations in the Douala seaport in Cameroon?

1.3.2        Specific Research Questions

1.What are the cargo handled and logistic operations trend at the Douala seaport in Cameroon?

2. What are the cargo handling operational techniques at the Douala seaport in Cameroon?
3. What are the measures to enhance and optimizes cargo handling and operation at the Douala seaport in Cameroon?

1.4 Research Objectives

1.4.1 Main Research Objective

To assess the contribution of cargo handled and logistic operations in the Douala seaport in Cameroon.

1.4.2 Specific Research Objectives

1. To identify the cargo handled and logistic operations trend at the Douala seaport in Cameroon.
2. To analyse the cargo handling operational techniques at the Douala seaport in Cameroon.
3. To expatiate the measures to optimize cargo handling at the Douala seaport in Cameroon.