PRODUCTIVITY AND EFFICIENCY ANALYSIS OF PORTS AND TERMINALS OF PAKISTAN

Abstract

PURPOSE: This research study evaluated the effects of selected input factors responsible for the productivity of terminals and ports of Pakistan. The efficiency will also be measured. Due to the growth of the sea borne trade, the shipping & terminal industry has been evolving. Therefore on the sea side shipping companies are making alliances and on the terminal side, various technologies are being introduced to increase the output. Therefore, we must calculate contribution played by berth length, total terminal area gantry cranes etc, which will affect the efficiency of the ports. The economy of Pakistan is well dependent on the sea borne trade due to inter connectivity of 21 century. The dependence and interdependence of Pakistan cannot be over ruled. PAKISTAN is located at the geographical location that can be used as competitive advantage for the economic prosperity. Keeping in view the economic situation of Pakistan, we need to improve the efficiency of all of the ports of the Pakistan METHODOLOGY: The factors effecting efficiency and technical efficiency index of the KICT, PICT Karachi port, and port QASIM will be compared by regression analysis. Cob-Douglas production function has been used. However, it has been found that berth length has been contributing the maximum output in the productivity of Pakistani ports and terminals of Pakistan. While comparing the technical efficiency it came in to notice that almost all the ports are working at optimum level. FINDING: it has been observed that the berth length is the main driver for the productivity of port and terminals of Pakistan. The berth length has been declared as main driver of when compared with gantry cranes, total terminal area, and total storage area. Bench marking of the Pakistani ports and terminal have been done first time in Pakistan which reveals that port Qasim is most efficient terminal for the Pakistan. PRACTICAL IMPLICATIONS: This research is helpful for the decision making for giving importance to the weak factors and to compare industry with the market. It is also useful for the future research regarding ports and terminals of Pakistan.