Abstract

This study presents an evaluation of the relative efficiency of sixteen container ports in Sub-Sahara Africa using three DEA models namely CCR, BCC and Super-Efficiency over the year 2012. The CCR and BCC models are used to estimate the technical and scale efficiency while the super-efficiency technique provides a ranking of efficient ports. The efficiency results indicate that on average the inefficiency observed in the container ports under evaluation is due to scale rather than technical inefficiency. Further, by investigating the nature of the returns to scale, the study concludes that the majority of the container ports exhibit variable returns to scale while fewer experience constant returns to scale in their operations. In order to improve their overall efficiency, the ports showing increasing and decreasing returns to scale need to increase and decrease their size, respectively. Consequently, for container ports to survive in the competitive environment, port authorities should examine their operational scale to identify whether the production size is appropriate or not before making investment decision in terms of inputs resources enhancement or capacity expansion.

Highlights

  • Standing at the interface of sea and inland transportation, seaport represents major gateway for international trade in Sub-Saharan African (SSA) international trade. 90% of SSA total imports and exports volume is conducted by way of maritime transportation [1]

  • For container ports to survive in the competitive environment, port authorities should examine their operational scale to identify whether the production size is appropriate or not before making investment decision in terms of inputs resources enhancement or capacity expansion

  • The study used CCR and BCC Data Envelopment Analysis (DEA) models under the assumption of output maximization to estimate the overall technical efficiency, pure technical efficiency, scale efficiency and the nature of returns to scale for sixteen container ports

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Summary

Introduction

Standing at the interface of sea and inland transportation, seaport represents major gateway for international trade in Sub-Saharan African (SSA) international trade. 90% of SSA total imports and exports volume is conducted by way of maritime transportation [1]. (2015) Analyzing the Operational Efficiency of Container Ports in Sub-Saharan Africa. F. Carine crease the growth of throughput in many container terminals in Sub-Saharan Africa, many seaports on this part of the continent are by global standard the least productive in the world [2]. The ports suffer from lack of adequate facilities and investment, long delays and dwell time causing congestion affecting import prices and export competitiveness. In order to improve the possibilities of development of SSA ports in the competitive environment, it seems important to examine their relative performance to identify whether they are operating efficiently in the utilization of resources in terms of people, equipment and management process. This paper aims to analyze the relative efficiency of the ports in Sub-Saharan Africa

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