IMPROVING EFFICIENCY IN THE PORT-TO-SITES TRANSPORTATION OF CONTAINERS IN THE MANUFACTURING SUPPLY CHAIN

Abstract

The literature lacks clarity on the impact of location on container transportation efficiency in Nigeria, necessitating a comprehensive understanding of port-hinterland relationships and transportation costs. The paper explores the importance of a firm's location in Lagos and Ogun States, Nigeria, for efficient port-hinterland freight transportation. The study surveyed 43 publicly quoted manufacturing firms in Lagos and Ogun States, listed on the Nigerian Stock Exchange for over ten years. These firms are located in the major industrial estates in Lagos and Ogun States, which are Ilupeju, Agbara, Ewekoro, Ikeja, Ikorodu, Isolo, and Shagamu. The majority of firms, 88.9%, utilise trucks for transporting containers from the port to their factory sites. The Pearson Correlation analysis reveals a significant correlation (r=0.55) between location and container transport costs. The study suggests that new firms should choose strategic locations with rail and inland waterways for effective container transportation. Existing businesses should concentrate on strategizing to mitigate the negative effects of portto-site transport on their revenue and profit