COMPARATIVE ANALYSIS OF THE MODES OF TRANSPORTATION OF PETROLEUM PRODUCTS OUT OF KADUNA REFINERY AND PETRO-CHEMICAL COMPANY, NIGERIA

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Date
2013-02
Authors
OBASANJO, Obafemi Thompson
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Abstract
Issues such as time, safety, cost, reliability, speed and capabilities need to be considered for a transport system to be effective and efficient. Transport cost goes a long way to determine the price at which the end-user will purchase a product. This study seeks to compare the cost, time, constraints and the pattern of flow transporting petroleum products by three different modes of transport out of Kaduna refinery to selected locations in northern Nigeria. Data used are from both primary and secondary sources. Information was obtained from truck drivers using systematic sampling techniques while interview was used to source for information from Pipeline and Product Marketing Company officials and Nigerian Railway Corporation. For the truck drivers, every seventh driver awaiting loading at the refinery were interviewed for ten (10) days. In all, 182 respondents were successfully interviewed on issues such as constraints associated with the transportation of petroleum products, time and cost of transporting petroleum products by different modes and the frequency of trips. Secondary sources include information from NRC and PPMC. The data obtained were analyzed using both inferential and descriptive statistics. Proportional flow map was used to show the distribution pattern of flows, the result revealed that Kano recorded the highest quantity of tankers in-flow for the delivery of petroleum products. Using K-W test, the study reveals that the major constraints confronting tanker drivers in conveying petroleum products to the selected locations is delay at police and military check points (mean= 1.72), followed by mechanical problems (mean=2.17). Furthermore, the correlation matrix of the trucking problem result reveals that five pairs of the variables were inter-related; these variables are bad roads, off-loading, delay at police and military check points, short deliveries, mechanical problems and theft/robbery. The student t-test also shows that distance, cost and temporal variation were significant at 0.05 confidence level using Student-t test. Also, Student-t test was conducted for cost and time of transporting petroleum products and it revealed that there is a significant difference in the cost and time of transporting petroleum products by rail, road and pipeline. It shows that the adoption of pipeline transport as the major means of transporting petroleum products could potentially save up 95 percent of the haulage costs while rail transport could save up to 40 percent. For instance, the combination of roadpipeline costs shows a t-test value of 4.902, p. <0.004, while rail-pipeline shows a t-test value of 4.744, p.<0.005 and road-rail indicates a t-test value of 3.815, p. <0.012, at 5 degrees of freedom and at 0.05 level of significance respectively, in that the compared mean’s t-test is statistically significant, t value is 3.382, p.<0.020 for road – rail time. The time difference is also significant for rail-pipeline transport with t-value 5.491, p.<0.003 and road-rail transport with t-value 5.358, p<0.003, at 5 degree of freedom and at 0.05 level of confidence. Cumulatively, this shows that pipeline transport is the most cost-effective mode of transport. It is on the basis of these findings that the study recommend an effective implementation and improvement on the usage of pipeline transport as the major mode of transporting petroleum products.
Description
A Thesis Submitted to the School of Postgraduate Studies, Ahmadu Bello University, Zaria in partial fulfillment of the requirements for the Award of Masters Degree in Transport Management, Department of Geography, Faculty of Science, Ahmadu Bello University, Zaria, Nigeria
Keywords
COMPARATIVE ANALYSIS,, TRANSPORTATION,, PETROLEUM PRODUCTS,, KADUNA REFINERY,, PETRO-CHEMICAL,, COMPANY
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