CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Transportation system is an essential component of a contemporary society, made to provide effective and economical movement between the component parts of a nation and offer optimal possible movement to all citizens (Leshem and Ritov, 2007). Transport is so central to all economic activity - in moving raw materials to factories, labor to worksites, inputs and outputs along supply chains, consumers to services, and products to customers (Andrew, Taner, Brian and Trevor 2015). Road transport is a catalyst of metropolitan, rural and national growth. It is a catalyst by facilitating the movements connected with urban and national development and providing the means whereby products and services are offered to market and customers, creating opportunities for social and economic interaction and employment. Without transport, access to these facilities would certainly not be feasible and the services they provide not consumable. Transport is what provides life to development (Gunnarson, 1998; Speathing 1999; Oni, 2001; Atubi, 2006). In the past few years, African cities have been experiencing massive population increases. This is primarily because of fastest urbanization and rural exodus (International Association of Public Transport and African Association of Public Transport 2010). Such fast-growing cities deal with huge challenges in terms of infrastructure provision and they have to deal with the increasing demand for transport. This is particularly shortened as much of the existing road infrastructure in African cities is far from being suitable for the actual transport need.
Congestion is very easy to identify when roads are visibly full of cars, trucks, buses and walkways full of pedestrians. Congestion, both in perception and reality influences the movement of individuals and freight in many metropolitan areas and is deeply connected to our history of high degree of accessibility and mobility (Downs, 2004). Andrew et al (2015) specified congestion as a process that slows the flow of individuals and goods, making trips take longer and arrival times more uncertain. Time spent in traffic is usually time that might otherwise be spent doing something productive for drivers, travelers, as well as goods.
Road traffic jam is, nevertheless, expected to exacerbate in the nearest future especially in developing nations, consequently of the predicted world urban population explosion, where about fifty percent of the world population is anticipated to reside in cities by mid-21st century (World Bank, 1999). This projection warranted the need for scientific study into the generic qualities of what road traffic congestion, a social disorder, as it impacts travel pattern and free flow of products and services in metropolitan Lagos. Remarkably, throughout the years, capacity growth has been considered a significant remedy for minimization of road traffic congestion in metro Lagos. Paradoxically, the construction of new roads and expansion of old ones by successive administrations in Lagos has never ameliorated the issue. Demand has constantly superseded supply, since vehicular volume for passengers and freight in addition to human population in Lagos has continued to increase throughout the years.
The city of Lagos, a popular world fast growing city, has throughout the years been experiencing issue of road traffic congestion. This issue has consequently made the city immobile over time and space (Taiwo, 2005). The ubiquity of road traffic jam in metropolitan Lagos reduces accessibly to spatially located metropolitan resources and land uses. Therefore, have unfavorable effect on socio-economic growth and development of the city. Road traffic jam in Lagos is associated with the pronounced issues of longer transit time between origin and destination of goods, thus, culminating to high cost of transportation, too much energy usage and its attendant impacts of air and noise pollution.
Sequel to this, the business environment today has presented outsourcing of parts of the supply chain of logistical activities to minimize production expenses. Furthermore, thus competition force enhances economies of scales and effectiveness and therefore, outsources large components of their production to other parts of the nation. Remarkably, this has led to an even production, and various distribution outlets (clients) is to a large extent affected by transportation factors.
In the light of this, in spite of the large volumes of goods transferred from and to Lagos metropolis, there is no concrete research that really determines the final destinations of the goods. The only details that are available is the area relative to the location within and outside Lagos State, as stated by the identified companies. Thus, this does not always represent the final destinations of the goods.
Similarly, it is typically complex to forecast freight transport because of dynamics of origins, destinations, values, volume and weight of the goods being transferred. It is therefore imperative that different origins and destinations of these goods are fairly recognized, so as to facilitate an efficient and effective evaluation of freight transport as well as transport planning of Lagos Urban City (Mckinnon, 1998; Nockold, 2001). Thus, this study investigates the impact of traffic Congestion on the performance of logistics service providers in Nigeria (a case study of selected logistics companies in Lagos).
1.2 Statement of the Problem
Logistics sector present economic benefits to countries. The ability to transfer goods around the world and have it berth in one home country encourages international trade, employment opportunities, ease of business for large, medium and small enterprises (Dwarakish & Salim, 2015). Logistics also gives room for development by integrating a country into the international trade schemes of the world, thereby moving them closer to becoming a big a force in terms of trade (Jouili, 2016). More significantly, logistics generate revenue through duty fees, clearing fees, tax payments on goods (Owuputi, 2020).
Nevertheless, these benefits become hindered when logistics encounter problems of congestion as a result of lack of sufficient storage space, corruption in the form of outrageous charges and bribes, absence of an appropriate scheduling system and documentation procedures to ensure the smooth transition of ships/ freight in and out of its origin, poor infrastructures in place. Presently, many logistics companies in Lagos have been is confronted with high cost of doing business caused by unlawful payments and extortions, long dwell time leading to inefficiency. With the delay in clearing and delivering of goods to customers as at when due as a result of traffic congestion usually experienced on Lagos roads. For that reason, this study looks for to examine the impact of traffic Congestion on the performance of logistics service providers in Nigeria (a case study of selected logistics companies in Lagos).
1.3 Objectives of the Study
The main aim of this study is to examine the impact of traffic congestion on the performance of logistics service providers in Nigeria by using some selected logistics companies in Lagos State as a case study. However, the specific objectives therefore included:
i) To identify the factors responsible for traffic congestion in Lagos State
ii) To examine the economic effects of traffic congestion on the performance of logistics service providers in Lagos State.
iii) To find out the impacts of traffic congestion on freight movement among logistics service providers in Lagos State.
iv) To evaluate the traffic control measures used in managing traffic congestion in Lagos State.
1.4 Research Questions
The following statements were considered to be the research questions for this study.
i) What are the factors responsible for traffic congestion in Lagos State?
ii) What are the economic effects of traffic congestion on the performance of logistics service providers in Lagos State?
iii) What are the impacts of traffic congestion on freight movement among logistics service providers in Lagos State?
iv) What are the traffic control measures used in managing traffic congestion in Lagos State?
1.5 Research Hypotheses
The following statements were considered to be the research hypotheses for this study.
i) There is a significant correlation between traffic congestion and the performance of logistics service providers in Lagos State
ii) There is a significant correlation between traffic congestion and freight movement among logistics service providers in Lagos State
1.6 Significance of the Study
The sustenance of a nation's economic growth hinges on unhindered free flowing, advanced and smart transportation systems.
The study would assist in alleviating the traffic congestion resulting from the neglect of other transport modes apart from road. This study would be relevant to city designers and engineers involved in the design of intersections, in that it would increase knowledge as to what is needed or the basic factors to be considered when designing intersections. This study will also increase knowledge of students who are interested in to research more on the topic like this. The study will also be beneficial to drivers, especially motorists and pedestrians, to understand the causes of traffic congestion at intersection because 95% of those traffic congestion are due to driver error and wrong perceptions of other road users.
Most importantly, it would be beneficial to business owners and logistic companies which will enable them carry out their business effectively and efficiently.
This study is also significant in that all road users would be equipped with a better understanding of the causes of traffic congestion and this will go a long way in reducing heavy traffic on the roads.
1.7 Scope of the Study
The scope of this study is to examine the impact of traffic congestion on the performance of logistics service providers in Nigeria by using some selected logistics companies in Lagos State as a case study. The research study seeks to evaluate the traffic congestion within major roads in Lagos. The scope of this study was limited Oshodi-Apapa expressway in Lagos Nigeria, this is as a result of the peculiar nature and state of the road and the kind of traffic generated on this road on daily basis.
1.8 Limitations of the Study
The researcher faced some limitations during the course of this research. It was difficult to locate the right office to get information, and also commuters, operators, and private car owners were not willing to supply the needed information due to the confidentiality and sensitivity of the data. It took a strenuous time to obtain genuine information. Thus, researcher had to source for the available data used in carrying out this study.
