The efficiency effects of port infrastructure and superstructure: a comparative analysis of the performance of Tanzania and other seaports in the world

The past decade has witnessed increased interest by researchers in the port sector to attempt the use of formal measures of Efficiency for improvement. However, most of them have concentrated on the efficiency with which ports and terminals use the inputs of labour and capital. No researcher, so far, has made a dedicated treatment of the ‘capital’ component of the economic factors. Besides, all the studies made have covered the ports of the developed world. No single study has been done in Tanzania to measure efficiency of ports. This study attempts to contribute toward filling these gaps. By using the Stochastic Production Frontier Function, we have estimated the mean technical efficiency of ports in Tanzania, Africa and other countries in the world and measured the efficiency of individual ports in the utilisation of existing port physical facilities. Consequently, a ranking of the ports in terms of efficiency was made. We have also estimated the impacts of productivity, size and location of ports on efficiency. Generally, efficiency is low (average of 6.5%). The ports of Asia have much better performance than those of Africa. However, the performance of Africa ports, including those of Tanzania, is fairly good when compared to other ports. The size of ports has a significant influence on efficiency. More work is needed to identify appropriate measures of inputs and outputs for application of standard measurement methodologies in the African context.