The Pandemic Effect on the Transportation Industry
The Coronavirus Pandemic indeed is the defining global health crisis of our time. Much more than a health crisis, the pandemic has created devastating, economic and political crises that will leave deep scars. The transportation industries around the world haven’t been spared in the scourge of the novel virus as countries are racing to slow the spread through a number of measures including the restriction on travels and movements generally. This development is traceable to the discovery that the pandemic spreads in a ‘local-global-local’ transportation pattern, first with physical interaction in cities and towns through local transport networks then globally through international air travel and then again locally on the other end.
The Federal government of Nigeria has also responded through the COVID-19 Regulations, made pursuant to the provisions of Section 305 of the Nigerian 1999 Constitution as amended and Section 2, 3 and 4 of the Quarantine Act. To this effect, the cessation of movement has been directed specifically in the federal capital territory, Lagos and Ogun state. A ban has been placed on Inter-state travel however to the exclusion of the conveyance of ‘essential goods’. The suspension of passenger aircraft both commercial and private, also to the exclusion of Aircraft on special permits on need basis. All seaports in Lagos are operational only to facilitate the conveyance of essential Cargoes. Respective states in the country have also replicated these measures by directing the cessation of movement with an exception to the movements necessary for the procurement of ‘essential services’.
These measures altogether have successfully launched an attack on the Nigerian Transportation Industry (‘the industry’) as Movement; the major driver of the industry has been significantly limited. Soon enough, the subsectors of the industry began to bear the brunt. The Nigerian Railway Service has shut down train operations. Public buses have been banned from operations especially in Lagos, Ogun and the Federal Capital Territory and so on.
The benefits provided by the transportation industry can never be overemphasized and can be viewed from two broad perspectives; the satisfaction of the immediate needs of the people and the generation of revenue for the government. However, it is important to note that these two are inextricably interwoven as they both significantly affect economic development. Thus, the clear understanding of these perspectives is expedient, in order to effectively assess the extent to which the pandemic has challenged the transportation Industry.
Transportation is considered as the basis for physical social and economic interaction. It enables large proportions of urban and rural dwellers to gain access to social and economic activities. It achieves the latter by bridging the gap between production and consumption. However, the COVID-19 pandemic has not only affected social interaction in this wise, but it has also significantly clogged the process of economic activities as every means of transportation currently operates to either convey ‘essential Freights’ or essential workers, thus limiting the capacity of the industry to cater for the circulation of goods and the mobility of labour.
It is unarguable that the transportation industry utilizes a sizeable number of the nation’s labour force. The transportation sector accounted for at least 0.84 percent on the average of annual employment of 49,522,028 Nigerians between 2003 and 2007, and the real growth rates of employment in the sector at constant 1999 level were 13.28%, 7.65%, 5.39%, 6.75% and 27.6% respectively for 2001, 2002, 2003, 2004 and 2005. This clearly depicts the potentials of the Industry to create even more employment, if properly managed; this has in fact been actualized either directly or indirectly. However, the outbreak of the pandemic hasn’t only caused the rate of direct and indirect employment in the Industry to plummet. It has also put its prospects in great doubt as the subsectors of the industry have mostly ceased operations, including the ongoing constructions in the rail sub-sector. Furthermore, in the first two months since the global lockdown went into effect, the Nigerian travel industry lost more than N180 billion and thousands of jobs. In Nigeria, some 24,000 jobs have been cut, while employees have ceased payments for those who still have jobs until business situations improve.
Transport exerts considerable influence upon the stabilization of the prices of several commodities by moving commodities from surplus to deficit areas. This equalizes the supply and demand factors and makes the prices of commodities stable as well as equal. However, since the issuance of the COVID-19 regulations in Nigeria, prices of goods have rapidly inflated not because demand suddenly increased but because Supply flow, originally guaranteed by the transportation Industry has been significantly disrupted. Hence, this does not only negatively impact the industry; it also limits its capacity to improve the standard of living of the people who depend on it.
China has become the central manufacturing hub of many global business operations. Any disruption of China’s output is expected to have repercussions elsewhere through regional and global value chains. Although cargoes are still received from China and other European countries, the sustenance of this Manufacturing sites is almost unattainable due to the unavailability of Manpower for manual maintenance. This development significantly impairs the completion of the Lagos-Ibadan standard gauge rail line, in particular, one of the major projects being executed by Chinese contractors in Nigeria. This is due majorly to the interruption in the supply of equipment’s needed for the construction. More so, the Industry is also confronted with the unavailability of these Chinese contractors. The minister of Transportation recently in an interview, lamented over this dilemma; ”If not for Coronavirus we could have completed the Lagos-Ibadan rail project because the Chinese handling the project travelled but their government didn’t allow them to return to Nigeria.” These will and in fact already has a rebound on the ability of the Industry to generate revenue for the government. Also, the federal government may record significant loss from the funds already disbursed for the project.
The existing gaps in our nation’s transportation systems before the coronavirus pandemic has further widened because of the pandemic. Thus, the following recommendations will not only help the Industry stay afloat in the period of the COVID-19 pandemic but will also improve its operations after the pandemic. These recommendations are in two phases; the strategies to help the Industry cope in the pandemic period and the opportunity to reposition the growth of the industry for the post-pandemic period.
The Intelligent Transport System
The ITS is one of the fundamental structures smart cities are using to improve the lives of its citizens and achieving sustainability. It includes tracking high pedestrian areas, traffic patterns, Bus stations and coordinating bus times. It creates general awareness of situations and has the capacity to share information swiftly, including creating alertness in periods of medical emergencies. Much more, the Intelligent Transport System can help with the detection and quick report of those infected with the COVID 19. The effective management of this system will not only help the Transportation Industry adapt to in these trying times, but it will also help it soar when the pandemic is finally contained.
Keeping a Verifiable Manifest For Contact Tracing
To improve the efficiency of the aforementioned system, it is expedient that a verifiable manifest is kept by every transport company for contact tracing. If these measures are unattainable, however, for the time being, transport companies should be mandated to provide Face masks and every other sanitary material to prevent the spread, to achieve these laws should be put in place to prosecute defaulters.
The Establishment Of A Covid 19 And Transportation Sub-Committee
The Nigeria Center for Disease Control (NCDC) with the Presidential Committee on COVID19 should set up a transport sub-committee to examine, monitor and report on transport-related management of COVID19.
The Development of an Efficient Private Courier Service
With the movement of persons under significant restrictions, this might be the time to look this direction; this will not only generate considerable funds for the Industry but will also help it meet the needs of the people who depend on its services.
Repositioning the Growth of the Sector
- Collaboration and partnership with more advanced transport nations and the encouragement of Foreign Direct Investment in the Nigerian Transportation Industry.
- There is a need for more Professionalism in the Industry. The Federal government should revolutionize the N.U.R.T.W, the Union that has been turned into an organisation of extorting money from passengers, oppressing passengers and also other genuine investors.
- FOR PROPER ROAD MAINTENANCE: Road weight standards need to be set and enforced, and the costs of road maintenance should be borne by those causing the most wear and tear on the roads. Wear and tear on roads varies by the fourth power of axle weight, so most road maintenance costs are attributable to heavy truck traffic.
- More resources should be committed to research and demonstration Better traffic management, infrastructure etc.
JOHN OPEYEMI ODUOYE has an L.L.B degree from the University of Lagos and currently attends the Nigerian Law School for his B.L certificate. He has a keen interest in the areas of International Arbitration, Oil and Gas Law, Public International Law and Diplomacy.
Brilliant!