Global freight transportation to hit $205bn in 2023

Abiola Seun

Global port and marine operations report has indicated that global maritime freight transportation revenue will grow from $166 billion in 2019 to $205 billion in 2023.

Also, spending in transportation and logistics on the Internet-of-Things, ( IoT), and smart systems is projected to rise to over $130 billion in 2020.

Speaking to journalists on the lack of preparedness to key into the projected revenue expectation from the global maritime and freight supply chain, the Chairman of the Port Consultative Council (PCC), Otunba Kunle Folarin, said that the failed shipping policy of Nigeria has already disqualified Nigeria from benefiting from the projected revenue because the country does not have the tonnage to participate in such trade.

Also, the Chartered Institute of Transport and Logistics, CILT, in Nigeria has called for deliberate efforts by Nigerians in the maritime and logistics sub-sectors to invest in the global value chain, saying, now is the time to identify how ports and port operations, including Harbour Masters, will navigate the digital future.

The national Vice President of the Institute, Mr. Alban Igwe, said that the world has gone digital and those Nigerian logistics operators and maritime players must begin to think digitally to be globally competitive.

Igwe also said there is digital freight which will be delivered digitally, operators must know where these cargoes are going or coming from.

He explained that Nigerians must be key players in freight consolidation or in trans-shipment of cargoes.

Igwe stated: “You either consolidate the freight or get involved in the trans-shipment or transportation or warehousing as all these are supply chain. We must invest in digital supply chain so that when the oil economy is crashing, we will deliberately invest in the maritime supply chain because that one will not crash.

“And if we are going to invest, it is not going to be crude method of supply chain; we must have a digital eye to see the directions of the freight, what kind of freight are we talking about, how do we move them to where they are needed?

“We must also invest in multi-modalism; the ancient way of doing maritime is to look into the sea, now we are looking beyond the sea because as the cargo is coming and going out, it uses other modes of transport.

“We are also looking at sea-air combination, which is another inter-modal linkages where you can do freight by sea as much as you can do by air. We are also looking at the human capital, the reason you are talking to me is because you and I are knowledgeable in this area, so you are going to need a lot of knowledgeable human capital in this area.

“The whole issue is delving into the era of blue economy, we are moving from oil economy to the blue economy. We are going to have a lot of human capital development on the blue economy if we are going to play in this sector.”