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Productivity change in Nigerian seaports after reform: a Malmquist productivity index decomposition approach

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  • Felicia O. Nwanosike
  • Nicoleta S. Tipi
  • David Warnock-Smith

Abstract

During the 1990s, Nigerian seaports were considered inefficient, unsafe due to massive cargo theft (wharf rat phenomenon) and one of the most expensive port systems in the world. This resulted in long turnaround times for ships and increased container dwell times. As a result, port operations were transferred to the private sector through concession contracts. This paper employs a Malmquist productivity index (MPI) technique to benchmark pre-and post-reform total factor productivity growth of the six major Nigeria seaports (Apapa, Calabar, Onne, Port Harcourt, TinCan Island and Warri) for the period 2000–2011 which represents six years before (2000–2005) and six years after (2006–2011) the reform. The results indicate progress in technical efficiency of the ports after reform but deterioration in technological progress. Overall productivity growth was higher in the pre-concession period compared to the post-concession period. The source of pre-concession period productivity growth was technological progress while the change in productivity of the post-concession period is generated by an increase in scale efficiency. This suggests that concessionaires have not brought in the much anticipated investment in modern technology to drive port efficiency. The ports of Calabar and Apapa experienced the highest productivity growth while lowest result was Onne.

Suggested Citation

  • Felicia O. Nwanosike & Nicoleta S. Tipi & David Warnock-Smith, 2016. "Productivity change in Nigerian seaports after reform: a Malmquist productivity index decomposition approach," Maritime Policy & Management, Taylor & Francis Journals, vol. 43(7), pages 798-811, October.
    • Handle: RePEc:taf:marpmg:v:43:y:2016:i:7:p:798-811
    DOI: 10.1080/03088839.2016.1183827
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    References listed on IDEAS

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    1. Cheon, SangHyun, 2007. "World Port Institutions and Productivity: Roles of Ownership, Corporate Structure, and Inter-port Competition," University of California Transportation Center, Working Papers qt7t64h5wr, University of California Transportation Center.
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    Cited by:

    1. Monday, E. I. & Emenike, G. C. & Ibe C. C., 2021. "Assessment of Vessel Turnaround Time in Eastern Nigerian Ports," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(6), pages 71-74, June.
    2. Houyem Zrelli & Abdullah H. Alsharif & Iskander Tlili, 2020. "Malmquist Indexes of Productivity Change in Tunisian Manufacturing Industries," Sustainability, MDPI, vol. 12(4), pages 1-20, February.
    3. Zhou, Yutao & Li, Zhenfu & Duan, Wei & Deng, Zhao, 2023. "The impact of provincial port integration on port efficiency: Empirical evidence from China's Coastal Provinces," Journal of Transport Geography, Elsevier, vol. 108(C).
    4. Chang, Víctor & Tovar, Beatriz, 2017. "Metafrontier analysis on productivity for West Coast of South Pacific terminals," Transportation Research Part A: Policy and Practice, Elsevier, vol. 103(C), pages 118-134.

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