Stochastic Frontier Analysis of Selected Nigerian Seaports Container Throughput’s Efficiency

Abstract

This paper measures economic efficiency of container throughputs with the aid of input-output efficiency ratio of selected terminals across Nigerianseaports. Productivity of a terminal does not equal toits efficiency. Different efficiencies like allocative and technical characterized economic efficiency of a port system.Overall economic efficiency means there is no delay at the port in processing container as all ship, labour and machines are optimally utilized. This research determinedthe overall efficiencies of container throughputs Apapa, Warri, Onne, Calabal and Tin Can Island usingsecondary data (2012-2022) from Nigerian Bureau of Statistics oncontainer cargo throughputs in Nigeria. Total container outputsin (Tonnes) from different terminals with their corresponding inputs variables from number of ship per annum, cranes used and the dock workers net gang hour (ngh) were aggregated together in form of input-output ratio and arrived at each port’s level of overall economic efficiency. The analysis was executed with the aid of R using Stochastic Frontier Analysis(SFA)for each termina/seaport collected data. It was found from the results that;terminals at Onne are most efficient followed by Calabar. Tin can Island terminal efficiency was a slightly higher than that of Apapa as both had a little above average mean efficiency value. Warri terminals are the least while Rivers was not considered for unavailabilityof data. There may be other unexplained factors causing inefficiencies of mostly Apapa, Tin Can and Warri seaports not explained but can be investigated in future research.