COMPARATIVE ANALYSIS OF PETROLEUM PRODUCTS HAULAGE FROM KADUNA REFINERY, KADUNA STATE, NIGERIA.

Obasanjo, O. T. and Ubogu, A. E.

Efficient and effective logistics is a function of how well the transport system is structured, considering issues such as precision, just-in-time, frequency, distance, time and cost which contributes immensely to the growth and prosperity of a nation. This study compares the cost and time of transporting petroleum products by three modes from Kaduna refinery to selected locations in northern Nigeria. Data are obtained from both primary and secondary sources. Data were obtained from tanker drivers using systematic sampling techniques. In all, 182 respondents were sampled. The results indicate that pipeline transport is the most cost-effective mode of hauling petroleum products from the refinery to all the locations under consideration. The result further reveals that there is a statistically significant difference in the cost of petroleum haulage by paired intermodal road-pipeline, t= 4.902, p = 0.004; road-rail, t = 3.815, p = 0.012 and rail-pipeline, 4.744, p = 0.005. Similarly, the time taken to haul petroleum products from the refinery to all the location by paired intermodal rail- road; road- pipeline and rail-pipeline were also statistically significant using student t-test statistics. The adoption of pipeline transport as the major means of transporting petroleum products could save up to 95 percent of the haulage cost compared to road transport, while compared to rail transport; it is up to 40 percent. It is on the basis of this finding that the study recommends an effective improvement and adoption of pipeline transport as the major mode of transporting petroleum products in the region.

Key words: Petroleum products, Haulage, Kaduna refinery, Pipeline, road, rail.