This paper examines the impact of restructuring and privatisation on the efficiency of Nigerian ports. The main objective of the reform was to increase efficiency in port operation, decrease cost of port services to stakeholders, decrease cost to the government for the support of the port sector and to attract private sector participation. The study compared the performance of the ports before and after the reforms. Stochastic frontier model of Cobb–Douglas and Translog production function was used to determine whether the efficiency of the ports has improved after the reforms. Results of the analysis indicate that Nigeria’s ports achieved an average annual efficiency level between 59 and 75 % and there was improvement in cargo throughput, number of vessels, berth occupancy and ship turn-around time after the reform. The port specific measures indicate consistent rise in technical efficiency throughout the period. However, in spite of the efficiency gains, there are some issues which are affecting the performance of the ports: high port charges, delay in cargo clearance, multiple taxation and development of intermodal transport. It is therefore imperative for the government to assume its regulatory role in the industry.
This is a preview of subscription content, access via your institution.
Buy single article
Instant access to the full article PDF.
Price excludes VAT (USA)
Tax calculation will be finalised during checkout.
Ashar, A. (1997). Counting the moves. Port Development International, 13(November), 25–29.
Baird, A. J. (2000). Port privatization: Objectives, extent, process, and the UK experience. International Journal of Maritime Economics, 2(3), 177–194.
Baird, A. (2002). Privatization trends at the world’s top-100 container ports. Maritime Policy and Management, 29(3), 271–284.
Barros, C. P. (2003a). Incentive regulation and efficiency of Portuguese port authorities. Maritime Economics and Logistics, 5(1), 55–69.
Barros, C. P. (2003b). The measurement of efficiency of Portuguese seaport authorities with DEA. International Journal of Transport Economics, XXX(3), 335–354.
Barros, C. (2005). Decomposing growth in Portuguese seaports: A frontier cost approach. Maritime Economics & Logistics, 7, 297–315.
Barros, C. P. (2006). A benchmark analysis of Italian seaports using data envelopment analysis. Maritime Economics and Logistics, 8, 347–365.
Barros, C. P., & Athanassiou, M. (2004). Efficiency in European seaports with DEA: Evidence from Greece and Portugal. Maritime Economics and Logistics, 6(2), 122–140.
Bendall, H., & Stent, A. (1987). On measuring cargo handling productivity. Maritime Policy and Management, 14(4), 337–343.
Bonilla, M., Casasus, T., Medal, A., & Sala, R. (2004). An efficiency analysis of the Spanish port system. International Journal of Transport Economics, XXXI(3), 379–400.
Brooks, M. R., & Cullinane, K. (Eds.). (2007). Devolution port governance and performance. London: Elsevier.
Coelli, T. (1995). Estimators and hypothesis tools for a stochastic: A Monte Carlo analysis. Journal of Productivity Analysis, 6(3), 247–268.
Coto-Millan, P., Banos-Pino, J., & Rodríguez-Alvarez, A. (2000). Economic efficiency in Spanish ports: Some empirical evidence. Maritime Policy and Management, 27(2), 169–174.
Cullinane, K., Dong-Wook, S., & Wang, T. (2005a). The application of mathematical programming approaches to estimating container port production efficiency. Journal of Productivity Analysis, 24(1), 73–92.
Cullinane, K. P. B., Ji, P., & Wang, T.-F. (2005b). The relationship between privatization and DEA estimates of efficiency in the container port industry. Journal of Economics and Business, 57(5), 433–462.
Cullinane, K. P. B., & Song, D.-W. (2001). The administrative and ownership structure of Asian container ports. International Journal of Maritime Economics, 3(2), 175–197.
Cullinane, K. P. B., & Song, D.-W. (2003). A stochastic frontier model of the productive efficiency of Korean container terminals. Applied Economics, 35(3), 251–267.
Cullinane, K. P. B., & Song, D.-W. (2006). Estimating the relative efficiency of European container ports: A stochastic frontier analysis. In K. P. B. Cullinane & W. K. Talley (Eds.), Port economics, research in transportation economics (Vol. XVI, pp. 85–115). Amsterdam: Elsevier.
Cullinane, K., & Song, D.-W. (Eds.). (2007). Asian container ports: Development competition and co-operation. Basingstoke: Palgrave Macmillan.
Cullinane, K. P. B., Song, D.-W., & Gray, R. (2002). A stochastic frontier model of the efficiency of major container terminals in Asia: Assessing the influence of administrative and ownership structures. Transportation Research A: Policy and Practice, 36, 743–762.
Cullinane, K. P. B., Wang, T.-F., Song, D.-W., & Ji, P. (2005c). A comparative analysis of DEA and SFA approaches to estimating the technical efficiency of container ports. Transportation Research A: Policy and Practice, 40(4), 354–374.
Cullinane, K., Wang, T., Song, D., & Ji, P. (2006). The technical efficiency of container ports: Comparing data envelopment analysis and stochastic frontier analysis. Transportation Research Part A, 40, 354–374.
De Monie, G. (1987). Measuring and evaluating port performance and productivity, UNCTAD Monographs on Port Management No. 6. Geneva: UNCTAD.
De Neufville, R., & Tsunokawa, K. (1981). Productivity and returns to scale of container ports. Maritime Policy and Management, 8(2), 121–129.
Estache, A., González, M., & Trujillo, L. (2002). Efficiency gains from port reform and the potential for yardstick competition: lessons from Mexico. World Development, 30(4), 545–560.
Estrin, S., & Perontin, V. (1991). Does ownership always matter? International Journal of Industrial Organization, 9(1), 55–72.
Gonzalez, M. M., & Trujillo, L. (2008). Reforms and infrastructure efficiency in Spain’s container ports. Transportation Research Part A, 42, 243–257.
Hartley, K., Parker, D., & Martin, S. (1991). Organizational status, ownership and productivity. Fiscal Studies, 12(2), 46–60.
Iwori, J. (2011). ‘Concessionaires Invest $822m in Nigerian ports’ (Thisday), 19 August.
Juhel, M. (1997). Government regulation of port activities: What balance between public and private sectors? International course on privatization and regulation of transport services. Washington DC: World Bank.
Kodde, D. A., & Palm, F. C. (1986). Wald criteria for jointly testing equality and inequality restrictions. Econometrica, 54(5), 1243–1248.
Lin, L., & Tseng, L. (2005). Application of DEA and SFA on the measurement of operating efficiencies for 27 international container ports. Proceedings of the Eastern Asia Society for Transportation Studies, 5, 592–607.
Liu, Z. (1995). The comparative performance of public and private enterprises. Journal of Transportation Economics and Policy, 29(3), 263–274.
Liu, Q. (2010). Efficiency analysis of container ports and terminals. Unpublished thesis, centre for transport studies, Department of Civil Environmental and Geomatic Engineering, University College London.
Martinez-Budrıa, E., Diaz-Armas, R., Navarro-Ibanez, M., & Ravelo-Mesa, T. (1999). A study of the efficiency of Spanish port authorities using data envelopment analysis. International Journal of Transport Economics, 26(2), 237–253.
Merk, O., & Dang, T. (2012). Efficiency of world ports in container and bulk cargo (oil, coal, ores and grain). OECD regional development working papers, 2012/09.
Ndikom, O. B. (2005). A critical appraisal of port terminal operations and cargo security management in conformity to legal and commercial viability of a containerized concept. Workshop paper presented at Nigerian Institute of Shipping Mandatory Professional Training Programme held at Lagos State, Nigeria.
Nigerian Ports Authority (2005). Abstract of Port Statistics.
Nigerian Ports Authority (2012). Abstract of Port Statistics.
Notteboom, T., Coeck, C., & Van Den Broeck, J. (2000). Measuring and explaining the relative efficiency of container terminals by means of Bayesian stochastic frontier models. International Journal of Maritime Economics, 2(2), 83–106.
Oliveira, G. F., & De Cariou, P. (2011). A DEA study of the efficiency of 122 iron ore and coal ports and of 15/17 countries in 2005. Maritime Policy & Management, 38(1), 727–743.
Pálsson, G., Harding, A., & Raballand, G. (2007). Port and maritime transport challenges in West and Central Africa. Sub-Saharan Africa transport policy program working paper no. 84.
Park, R. K., & De, P. (2004). An alternative approach to efficiency measurement of seaports. Journal of Maritime Economics and Logistics, 6(1), 53–69.
Parker, D. (1994). Nationalization, privatization and agency status within government: testing for the importance of ownership. In P. Jackson & C. Price (Eds.), Privatization and regulation: A review of the issues (pp. 149–169). Essex: Longman.
Rodriguez-Alvarez, A., Tovar, B., & Trujillo, L. (2007). Firm and time varying technical and allocative efficiency: An application to port Cargo handling firms. International Journal of Production Economics, 109(1), 149–161.
Roll, Y., & Hayuth, Y. (1993). Port performance comparison applying data envelopment analysis (DEA). Maritime Policy and Management, 20(2), 153–161.
Serebrisky, T., & Trujillo, L. (2005). An assessment of port reform in Argentina: outcome and challenges ahead. Maritime Policy and Management, 32(3), 191–207.
Sun, X., Yan, Y., & Liu, J. (2006). Econometric analysis of technical efficiency of global container operators, In: Proceedings of the 11th international conference of Hong Kong society for transportation studies: Sustainable transportation, pp. 667–676.
Talley, W. K. (1994). Performance indicators and port performance evaluation. The Logistics and Transportation Review, 30(4), 339–352.
Talley, W. K. (1998). Optimum throughput and performance evaluation of marine terminals. Maritime Policy and Management, 15(4), 327–331.
Tongzon, J. (1995). Systematising international benchmarking for ports. Maritime Policy and Management, 22(2), 171–177.
Tongzon, J. L. (2001). Efficiency measurement of selected Australian and other international ports using data envelopment analysis. Transportation Research A: Policy and Practice, 35(2), 113–128.
Tongzon, J., & Heng, W. (2005). Port privatization, efficiency and competitiveness: Some empirical evidence from container ports (terminals). Transportation Research A: Policy and Practice, 39(5), 405–424.
Trujillo, L., & Nombela, G. (1999). Privatization and regulation of the seaport industry. World Bank, working paper, 2181.
Trujillo, L., & Tovar, B. (2007). The European port industry: An analysis of its economic efficiency. Maritime Economics and Logistics, 9(2), 148–171.
Valentine, V. F., & Gray, R. (2001). The measurement of port efficiency using data envelopment analysis. In: Proceedings of the 9th world conference on transport research, 22–27 July, Seoul, South Korea.
Wang, J. J., Ng, A. K. Y., & Olivier, D. (2004). Port governance in China: a review of policies in an era of internationalizing port management practices. Transport Policy, 11(3), 237–250.