TERM PAPER ON 7 RISKS THAT CAN THREATEN THE

SUCCESS OF THE PROPOSED IBADAN INLAND CONTAINER

DRY PORT LOCATED IN MONIYA AXIS OF IBADAN AND THE

RISK RESPONSE STRATEGIES TO MANAGE THEM.

SUBMITTED BY :
ABSTRACT

As seaborne and inland transport hubs, seaports and dry ports projects are vulnerable to diversified risks, such

as climate-change-related disasters, transportation and congestion in operations, owing to their special

geographical locations and socioeconomic functions in seaborne supply chains. If appropriate actions or

management are made before the risks occur, the probability and potential damage of such risks can be

mitigated. This paper proposes an assessment to simultaneously, study the presence of these diversified risks,

give exemplary scenarios, and identify preventive or adaptive measures while conventionally categorizing

them in the affected processes/phases of project management which are :

 Initiation Phase

 Planning Phase

 Execution Phase

 Monitoring & Controlling Phase

 Close out phase

INTRODUCTION

Inland Container Depots (ICDs) or “Dry Ports” (IDPs) can be private or state-owned.

They assist in the efficient movement of cargo for shippers, shipping lines & freight forwarders playing a

crucial role in transshipment, storage and consolidation of goods. IDPs also double up as hubs for container

repair, cleaning and inspection. Inland Container Depots (IDPs) are container storage facilities located in the

interiors of a country, away from the servicing gateway ports and port towns. Such facilities are also

sometimes referred to as “Dry Ports” because they are located away from the sea and major river routes. It

serves as a common user facility with public authority status for handling containers carrying goods for import

and export under Customs control and other authorities authorized to clear merchandise for consumption,

warehousing, re-export, temporary storage for onward transit and export.

Container depots are an ideal case study of logistics and operations management.

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 RISKS AND MANAGEMENT STRATEGIES

1) SITE LOCATION AND SELECTION : It’s paramount the proposed site’s location is determinant in as

early as the initiation phase. It could pose, in the other phases, overtime project risks due to negligence of

several natural or man-made incapabilities , constraints or setbacks.

Risk strategies : First, a site suitability analysis is needed when it comes to analyzing a multitude of variables

and selecting a proper site for an inland port in any urban setting. I would conduct a location-allocation

analysis of the Moniya region axis to determine potential sites for an inland port in terms of distance from the

seaports and reduction in vehicle miles traveled (truck VMTs). A site suitability analysis would be thoroughly

conducted. First, my study would pre-screen site topographies, vegetation, numerous parcels for size and rail

line, and proximity to a fully blown sea port to limit the analysis to viable sites. Next, my analysis would

investigate key siting decision variables in greater detail. These would include space requirements for a dry

port viz-a-viz proposed location, rail line feasibility, parcel acreage, distance from schools, population density

in area, occupation and total truck VMT reduction. All data would be analyzed and transformed into scores to

sum site desirability based on an even weighting of these criteria. Data for this analysis would obtained from

multiple geographic information system (GIS) , as well as local surveys and interviews with residents around.

2) PROJECT INTERFERENCES : Risks of interference may arise from particular stakeholder interests or

lack of stakeholder’s input to project objectives . Project interference with local activities or vice-versa is also

a probable risk very much due to inadequate stakeholder identification. Unfortunately,sometimes interference

could be natural due to climate changes or natural disasters which are inevitable. These mainly affect the

execution and monitoring phases.

Risk strategies : As the project manager , I understand the first step toward effectively managing

stakeholders and using them to steer the project towards successful execution is to identify them early with

their types and create a plan, from the project owners, down to the local community groups. I would engage as

early as the initiating phase with them through interviews and questionnaires from time to time to avoid

confusions in the later stages. When they have factoring interests, I’ll visualize situations from their standpoint,

their perspectives, understand how it affects the project and manage them and their expectations. An instance

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of a case is if there is an existing cluster of kiosks and local cafeterias (buka’s) owned by old mothers adjacent

or in considerable proximity to the proposed site and the community group insists on having an advantageous

edge to the project, I would propose they relocate their kiosks either within or just outside the facility to feed

workers (during the construction process), while engaging their sons to labour on site. It’s a win-win.

3) TRANSPORTATION NETWORK : The absence of requisite transport infrastructural support such as

good road networks, functional railway system with other modern carrying units like piggy-back and double-

stacking wagons can indeed undermined the effectiveness of inland container depots and primarily, the

construction speed at planning to execution phases.

Risk Strategies : As the project manager, with good analysis study of area of site’s location, markets and sea-

ports proximity during the planning phase , they would be adequate provision of functional transport

infrastructures like properly linked railways and good road networks to aid logistics and optimal accessibility

of project construction materials/equipment’s in the execution phase/process.

4) SECURITY : A major issue that plagues storage units and other similar facilities is that providing security

for large unit projects can be risky and difficult both in execution and monitoring phases of management.

Risk strategies : Passively, the design of the port must have a standardized layout that promotes security,

while also providing sufficient space for storage. Actively, proposed site should have large high boundaries

with restricted points of entry and exit that are manned round the clock. Indulgence of favorably disposed

security like the police with posts and patrol vans on commencement of the execution phase. For the

monitoring phase, construction of facilities and units within the boundary that test for trace amounts of drugs

and other substances in empty containers would be introduced. This helps customs officials pinpoint and stop

methods of smuggling, oversee loading and unloading of containers, along with the regular inspection.

5) RURAL- URBAN MIGRATION : This a spatial process involving the movement of people from rural

areas into cities, either permanently or semi-permanently. Now, this may actively not be a ‘risk that can

threaten’ the project, but its prevention would definitely guarantee the success of this project. Affects the

monitoring/controlling phase.

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Risk Strategies: The idea behind an inland container port is transporting container goods from sea ports then

people transport from there to the market. In my idiosyncratic view, rather than people spending extra costs to

move their containers from the port to city centers to offload, if they are existing markets or businesses around

the port, it will open up that place, could lead to making estates or having specialized markets (e.g like the

spare parts market in Gate). Instead of the extra cost of moving containers from Moniya down to Gate (city

center), why not have separate markets around that locality( for people at bodija, Ojoo) to just get it. If its not

well planned, people would keep moving from villages down to the city center that is already congested. What

to do here is this would be a factor in choosing the site area in Moniya in considering situating around some

developments. Or to liaise with government to bring policies of new land uses around that area to grow

development.

6) COST MANAGEMENT: The most foreseeable of risks is Cost risk, resulting from inaccurate cost

planning, scope creep, or estimations of costs during the planning phase of the project .

Risk strategies: To mitigate cost risk, strong ,detailed, accurate planning and projections of each

elements ,resources and phases of the project would be made. In actuality, the cost profile of any project can’t

be downright feasible. In counteraction to this, I would ensure around 20 percent of the main budget as

contingency is available against the unlikely.

7). PROCUREMENT MANAGEMENT RISK: involves not having equipment on site in time to support

the schedule. Their sources are mainly lack of planning that in turn translates into (1) Not ensuring that the

correct equipment is ordered, (2) not taking equipment lead times into consideration, (3) late start of the

procurement process, and (4) customs delays. This assuredly affects the execution phase of the project.

Risk Strategies : These risks can be eliminated by fully visible equipment procurement schedules that would

be discussed in weekly meetings.

Conclusively, All aforementioned risks would be recorded and accounted in a Risk Breakdown

Structure to help qualitatively assess and prioritize identified risks in a hierarchy of significance.

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Frazier, E. M. (2014). A Site Suitability Analysis for an Inland Port to Service the Ports of Los Angeles and

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How to Identify and Manage Project Stakeholders? 23.11.2021. Available at

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Inland container depots / Dry ports April 9, 2021.Available at https://www.iinterchange.com/inland-container-

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What is Container Depot – Purpose And Design ByAjay MenonMay 25, 2021. Available at

https://www.marineinsight.com/know-more/what-is-container-depot-purpose-and-design/

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