A Study of Efficiency of Container Terminals: A Case Study of Ports in Tanzania

Adam Ali, I. G. N. Sumanta Buana, I. Ketut Suastika

2019

Abstract

The objective of this study is to evaluate efficiency of container terminals in Tanzania. Relative efficiencies between terminals are imperative to identify the potential areas of improvement for the inefficient terminals. Tanzania is often excluded from literature about port operation and performance since many studies focused on Asia and Europe. In order to enhance understanding about Tanzanian port efficiency, the present study is highly demanded. However, traditional studies on container terminal efficiency tend to focus on partial productivity measures such as TEUs per crane. These instruments do not assess the overall efficiency of terminal operations, as they are focusing only at specific aspects of the terminal operation process. This study uses a measurement of container terminal efficiency based on Stochastic Frontier Analysis (SFA). It is found that the lowest score is 0.430, and the highest score is 0.997 of technical efficiency among container terminals. On average, a typical container terminal in the sample during the study periods has an efficiency level around 0.821, meaning that the terminal operating at 82.1%, of efficiency, which is below the maximum potential output on the frontiers. However, there is a possibility for terminals to increase efficiency by 17.9%. The most efficient terminal ever found is at Zanzibar, and the least is at Mtwara. The urgency of automation to reduce inefficiency level is required to fulfil the timely submission, timely delivery, and higher quality services.

Paper Citation

in Harvard Style

Ali A., Buana I. and Suastika I. (2019). A Study of Efficiency of Container Terminals: A Case Study of Ports in Tanzania. In Proceedings of the 4th International Conference on Marine Technology - Volume 1: senta, ISBN 978-989-758-557-9, pages 53-62. DOI: 10.5220/0010853800003261

in Bibtex Style

@conference{senta19,
author={Adam Ali and I. G. N. Sumanta Buana and I. Ketut Suastika},
title={A Study of Efficiency of Container Terminals: A Case Study of Ports in Tanzania},
booktitle={Proceedings of the 4th International Conference on Marine Technology - Volume 1: senta,},
year={2019},
pages={53-62},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010853800003261},
isbn={978-989-758-557-9},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 4th International Conference on Marine Technology - Volume 1: senta,
TI - A Study of Efficiency of Container Terminals: A Case Study of Ports in Tanzania
SN - 978-989-758-557-9
AU - Ali A.
AU - Buana I.
AU - Suastika I.
PY - 2019
SP - 53
EP - 62
DO - 10.5220/0010853800003261