The Stochastic Frontier Model for Technical Efficiency Estimation of Interconnected Container Terminals

Nowadays, container terminals are subject to extensive technological changes and specific transformations. Changes applied tend increase their ability offer high- end personalized services the customers finally affect competitiveness. The estimation of efficiency corresponds terminals’ production with a level inputs has been topic many studies, especially those conducted on wider regional or global level. main objectives our research evaluate model, conduct sensitivity analysis, estimate technical efficiencies sample North Adriatic Ports Association (NAPA) interconnected medium-sized terminals, located in narrow geographic area, same transport corridor thus representing each other’s competition. For that purpose, we have implemented stochastic frontier approach balanced panel dataset first-order additionally introduced control input variables Cobb-Douglas trans-logarithmic functional forms. shows range NAPA from 65.24% 93.92%, average 78.49% positive trend 1.28% over observed period time. Our findings also indicate highest estimated do not necessarily need be most productive ones, vice versa.