As part of the significant employment opportunities being provided for, the revenue generation to the national economy that port services has played and would continue to play a very crucial role to the national economic development of any country that has a port. This is particularly so in the area of domestic price level of imported goods, competitiveness in import and export trade in the international market, national security. It is also, as commonly known, as the gateway of a country national economy. The port infrastructure has been the main catalyst to the development of certain type of industries like the packaging industry, flour mill, cement, dockyard services and the sole factor behind the concept of export processing zone (EPZ).
The function of ports in economic development has witnessed monumental growth over a period of time. The monumental change can be witnessed in the large volume of goods and services been exported and imported.
Also for ports to be able to harness the potential of international trade there is need for industrial harmony. it should be realized in the event of stoppage of work in the ports every part involved general public inclusive, has a lot of loose for keeping a ship in more than normal lay – time, between 20,000 to 50,000 Dollars per day is paid by the chatterer of a vessel.
The economic implication is high and this reflects in market price. On the part of the port stoppage of work results in cargo throughout and therefore decline in revenue generation. Dock – workers whose wages and salaries depend on the ports revenue will also receive less pay while some may be laid off for lack of funds.
The direct impact to national economy in the form of:
* Promotion of competitive foreign trade and commerce.
* Defining effect on domestic price level of imported goods
* Provision of employment opportunities to both specialist and semi – skilled individuals
* Contribution to national income account
* Acquisition of shipping technology and maritime skills
* Development of maritime related industries.
ports has also help to stimulate and sustain development, growth and activities in other sectors of the economy i.e. Banking, insurance law, manufacturing, haulage supply, agency, brokerage and logistics. Thus the function of ports in any economy, its implication in the national defense, economic, social and political integration makes a very strong case for the port services to be designated as strategic sector and be accord unqualified priority attention.
SHIPPING SERVICES: This sub-sector remains the heartbeat of the entire maritime industry. Physical distribution of goods to different points on the surface of our earth is largely carried by ships, hence our international trade and commerce is facilitated through the availability of reliable, efficient and adequate port services.
In effect, shipping trade has provided employment for significant level of people's both directly and indirectly. It has also helped to sustain activities and growth in other industries thereby contributing indirectly to countries national income account.
SOCIAL WELFARE : Ports have given jobs and job opportunities to young school leavers from Secondary Schools and graduates from the universities for many years. Thereby reducing the level of unemployment in the country.
The economic impact of well developed transport infrastructure in any society could be quite enormous. It does not only ensure the efficiency of the distribution process, but facilitate optimum productivity. The port, which accounts for over 90% carriage of international trade and commerce, has vast potentials to improve the economic fortune of a nation. The variety of activities associated within the ports operations can transform any economy into leading centre for international commerce. The aggregate effect has cumulative multiplier on the entire society. The investment advantage of the ports sector by government is not for its commercial profitability alone. But It is also usually for its capacity to stimulate growth and sustainable development in other sectors of a nation economic system.