DETERMINANT OF DRY PORT OPERATIONAL PERFORMANCE OF ETHIOPIAN SHIPPING AND LOGISTIC SERVICE ENTERPRISE (ESLSE): THE CASE MODJO AND KALITY DRY PORT BRANCHS

Abstract

Objectively the study to examines the factor affecting dry port performance efficiency of port and terminal branch in the ESLSE. The study adopted a quantitative research approach with explanatory design. Container throughput (OUTPUT) was used to measure and explain the performance of selected ESLSEs port and terminal branches from 2008-2020. The explanatory variables (IMPUT) were Terminal Tractor (TT), Terminal chancy (TC), Reach Stackers (RS), Fork Lift (FL), Terminal area (hectare) (TA). And also control variable Inflation and foreign trade was adopted to investigate their effects on dry port operation performances. Secondary data was collected in panel form for 2 purposively selected ESLSE port and terminal branch for 5 years (2008-2020). DEA and SFA models were adopted to examine the relationship between the study variables using both parametric and nonparametric approaches. Data was analyzed using descriptive statistics and inferential analysis using DEAP and Frontier 41 software. The finding generally concludes that the most important determinant of port productivity, was technical efficiency. As the Stochastic Frontier Analysis production function estimation results reveal that infrastructure inputs are important to predict the level of container throughput, but that the highest elasticity’s are associated with Terminal chancy and Richs-tracker. In addition, the control variables of inflation and foreign trade had no significant and positive coefficients in the estimations. thus, the increase of economic inflation level and value of foreign trade in the country doesn’t plays a significant role in the technical efficiency of the port and terminal operation of ESLSE. Based on the study result the researcher recommend that: both of the sample ports on the ESLSE, technical efficiency is relatively low, and port resources are wasted. it is necessary to improve the economy and technical efficiency of ports by controlling and grasping external environmental variables