Efficiency measurement of 6 major container ports in West Africa with Data Envelopment Analysis and Stochastic Frontier Analysis
KeywordsData Envelopment Analysis (DEA) ; Stochastic Frontier Analysis (SFA) ; Port efficiency ; West-Africa ; Window analysis
The aim of this dissertation is to apply the DEA and SFA methods to evaluate efficiencies of 6 major ports out of 12 in total, in West Africa and to understand if these ports can become the main hubs of container transport to African inland in the future and how they can evolve through the time. The selection of 6 West African ports based on their container throughput levels which is over 100,000 TEU’s per year. The DEA and SFA methods were used to determine their relative efficiencies and their efficiencies over time through window analysis for the period 2006- 2012.The DEA and SFA methods were applied to a number of inputs such as total quay length, total terminal area, number of quayside cranes, number of gantry cranes and number of reach stackers and a single output which is the total TEU’s throughput. It was determined via DEA method that the Port of Tema in Ghana with the Port of Lomé in Togo was the most efficient West African ports under study. On the Contrary the Port of Cotonou in Benin was found to be the least efficient port obtaining the lowest average efficiency rating over the period 2006-2012 via DEA method.In most cases, West African ports could be said to exhibit high levels of efficiency considering that four out of six ports had an average efficiency score of 76% or higher for the period under study. Through SFA method the results were much different from DEA, as only three ports had average efficiency scores over 76%. Port of Dakar was the most efficient of West African ports and Port of Lagos was determined as the most inefficient port.