Analyzing the Operational Efficiency of Container Ports in Sub-Saharan Africa

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.