Determination of the Efficiency of Port Performance and Productivity Based on Data Envelopment Analysis in the West Africa Sub-region

Abstract

Background: Ports are one of the assets of every country and one way to achieve efficiency is by maximizing productivity amid limited resources. Despite the increase in the number of studies on the efficiency of container terminals, their focus has been channeled on advanced markets. Researchers conduct limited studies on container terminals in developing countries such as those of the West African region, which are located in a critical geographic place in the international maritime route between these areas and the World. Information on their potential for development relative to other terminals worldwide is therefore not readily available hence, this study seeks to provide answers to critical productivity indicators of ports in the West Africa sub-region. Methods : We evaluate the technical efficiency of the 5 major container terminals in the West African region. The Data Envelopment Analysis (DEA) approach is used to measure technical efficiency and slack variable analysis which identifies potential areas of improvement for inefficient terminals. Moreover, DEA can handle multiple inputs and outputs, which makes it applicable to the port analysis. Findings: The results indicate that the Tema port is the most efficient port among the sample, with an average efficiency of 100% in the nine years and the Port of Cotonou is the least efficient with an average efficiency of 44% and exhibits substantial waste in production throughout the nine-year analysis. Novelty: This is the first time that the current data from 2010-2018 has been used to determine port efficiency and the efficiency scores are necessary indicators for terminal managers to adopt and sustain all the necessary alignments to structures and strategies.