Description
The study looked at assessing cargo operation at Tema port, the assessment was carried out using Data Envelopment Analysis (DEA) to determine and analyze the efficiency changes using panel data from 2015-2018. The DEA model has commonly been used in the port sector. DEA window analysis is used to determine the efficiency of ports and to observe the possibility of changes in the port efficiency over time. Labour, forklifts, reach stackers, trucks, and the terminal storage area were employed as input variables and container throughput as an output variable. On the other hand, Tema Container terminal found to be the least efficient port obtaining the lowest average efficiency rating over the period under study. Findings from this study showed that some terminals had excess equipment as well as excess labour. And for these terminals to maintain constant and improving efficiency, there would need to cut down some labour and also lease out unused equipment.
TABLE OF CONTENTS
COVER PAGE
TITLE PAGE
APPROVAL PAGE
DEDICATION
ACKNOWLEDGEMENT
ABSTRACT
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of study
1.3 Statement of the Problem
1.4 aim and objectives of the study
1.4 Significance of study
1.5 Scope of study
CHAPTER TWO
REVIEW OF LITERATURE
2.1 Container Terminal
2.2 Container Terminal Operations
2.3 Port Efficiency
2.4 Operational Efficiency
2.5 Container terminal efficiency
2.6 Efficiency Measurement of Container Terminals
2.7 Data Envelopment Analysis (DEA)
2.8 Operations at Ghana’s Tema Sea Port
CHAPTER THREE
METHODOLOGY
3.1 Research Design/Instrument Used
3.2 Sample population and variables
CHAPTER FOUR
DATA ANALYSIS AND INTERPRETATION OF RESULTS
4.1 Data and analysis
CHAPTER FIVE
CONCLUSION AND RECOMMENDATIONS
5.1 Conclusion
5.2 Recommendations
References
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the study
Ports have played a central role in the economic and social development of countries. More than 80 percent of global merchandise trade (by volume) is transported via sea routes. A considerable and increasing proportion of this volume, accounting for about 35 percent of total volumes and over 60 percent of commercial value, is carried in containers. Container ports are essential nodes in global supply chains and are crucial to the growth strategies of many emerging economies.
In recent years, countries find themselves putting measures in place to ensure the growth of their ports to international standards since this will have a huge impact on the economies of these countries. According to UNCTAD (2017), about 80% of global trade is made by sea and about 70% is a value carried onboard vessels and transported to seaports worldwide making it impossible to underemphasize the importance of maritime transportation of trade and development. Changes in world trade and the shipping environment have created an ever-increasing competition among ports all over the world to serve as the hubs to and from their respective regional areas and to have the due advantages as the bigger and better ports.
The port of Tema is the largest in Ghana. Situated on the eastern coast of the country, it stretches over a 3.9 million square meters of land area. The port receives an average of over 1650 vessel calls per year. These comprise container vessels, general cargo vessels, tankers, Ro-Ro and cruise vessels amongst many others. 85% of Ghana’s trade is done through the ports with shipping routes and vessel calls to and from all continents through both direct and transhipment service. Set within the industrial city of Tema and 30km from the capital of Ghana, the port environs serve as a logistic point for activities of inland clearance depot(ICD), warehouses, transport and haulage companies, freight forwarders, factories and related service centres (GPHA, 2016).
One reason for the advancement of the port is the container terminal. These terminals enable the movement of more goods into the country and also a suitable transit point for neighbouring cities. The container as an essential part of the unit-load concept has achieved undoubted importance in international sea freight transportation.
Efficient port infrastructure has also been identified as a key contributor to overall port competitiveness and international trade costs. Unfortunately, ports and terminals, particularly for containers, are too often main sources of shipment delays, supply chain disruptions, additional costs, and reduced competitiveness. The result far too often is that instead of facilitating trade, the port increases the cost of imports and exports, reduces competitiveness, and inhibits economic growth and poverty reduction. The effect on a country or the countries served by the port can be severe. Inefficient ports can slow the circular system of container shipping, thereby reducing capacity, and reducing costs. Ships have to wait unnecessarily incurring additional fuel costs, additional emissions, and additional costs.
Improving container port performance lowers the cost of trade, contributes to food security, improves resilience, and reduces unnecessary emissions from vessels.
Ports around the world have encountered various stages of evolution of cargo packaging from the times of general cargo transported in sacks and on pallets to the modern method of containerization through standardization and mass-application of the shipping container in global transportation services. With the development of international trade, container terminals play a more and more important role within the global supply chains in general and the worldwide sea cargo transportation system in particular (Song & Cui, 2011). With growing international sea traffic and changing technology in the maritime transport industry (containerization, integrated logistics services, etc.), seaports are coping with mounting pressures to upgrade and provide cutting-edge technology (Dang, 2012). Due to various advancements, these terminals one way or the other might have gotten their works cut out or improved. This study, therefore, seeks to assess cargo operation as a factor of defining efficiency at the TEMA port.
1.2 Statement of the problem
Seaports play fundamental roles in the transportation of goods and services as well as the growth of world trade and the maritime industry. They are also very strategic to economic growth, connecting global economies as well as facilitating trade and production. Measuring or determining the efficiency of TEMA becomes a challenge because of indicators used.
Indicators traditionally used to measure terminal operations efficiency (productivity) include berth occupancy, revenue per ton of cargo, capital equipment expenditure per ton of cargo, turnaround time, and the number of gangs employed to facilitate cargo operations. Efficient performance encompasses several factors, such as the port’s efficiency itself, the availability of sufficient draught, quay, and dock facilities, the quality of road and rail connections, the competitiveness of these services, and the effectiveness of the procedures utilized by public agencies for container clearance. Any inefficiencies or non-tariff barriers will result in higher costs, reduced competitiveness, and lower trade volumes. In other to make this easier, the assessment was carried out using Data Envelopment Analysis (DEA) to determine and analyze the efficiency changes.
1.3 Aim and objectives of the study
The main aim of this work is to assess cargo operation as a factor of defining efficiency at the TEMA port.
The objectives of the study are:
i. To determine seaport cargo operations
ii. To assess cargo operation which determines its efficiency at the TEMA port.
iii. To make a recommendation that will improve the performance of cargo operation.
1,4 Significance of the study
This study will serve as a means of identifying the level of operation of a Port. The study will also serve as a means of contributing to boosting operations at ports.
This study will also serve as a means of making recommendation that will improve the performance of cargo operation.
1.5 Scope of the study
The scope of this work covers assessing cargo operation at Tema port, the assessment was carried out using Data Envelopment Analysis (DEA) to determine and analyze the efficiency changes using panel data from 2015-2018
CHAPTER FIVE
5.1 Conclusion
From the analysis of the average efficiency, one of the off-dock terminals (APMT) had the highest efficiency equal to 100%, the highest value of average efficiency (1.00). The average efficiencies for the other terminals are lower than the average efficiency for APMT. Apart from APMT which had the least number of labour, all other terminals recorded more than 50 labourers in all the selected years. It was quite important to reduce the number of labourers (input) concerning their throughput. Terminals such as APMT, ACS, TCT had a higher number of trucks; these terminals by way of maintaining constant efficiency and increasing efficiency could rent some idle equipment to other companies in the industry. TBT, which had the lowest of throughput throughout the selected years, could increase that by making sales(marketing), convincing importers and exporters in bringing their containers to their terminals, not forgetting the competition between these terminals. These terminals could improve their operations if they convince the shipping lines enough on how credible they are at delivering their services. Promotions and making sure they use of inputs is equal or proportional to the achieved outputs in these terminals is achieved.
This study which set out to establish the efficiency of cargo terminals at the port of Tema was necessitated by the fact that no work has been done on the subject matter in Ghana.
The main aim of this research was to evaluate the efficiency of cargo terminals at Tema port. A mathematical methodology was used to determine the efficiency as DEA is known for such. This study used four terminals outside the port with the proximity of 2km. This study employing using the DEA methodology employed two significant variables, namely the input and output variable. Several variables such as the labour, forklifts, reach stackers, trucks, empty handlers and terminal storage area were used and container throughput as an output variable. Four terminals were used, using panel data from 2015-2016. Based on the results realized from the DEA windows analysis, APMT obtained an overall efficiency score of 100%, followed closely by TBT with an efficiency score of 99%. ACS obtained an efficiency score of 98% and finally, TCT obtained an efficiency score of 94%. Findings from this study showed that some terminals had excess equipment and if this equipment were leased out it would in a way bring more revenue to these terminals. Some terminals could also increase their throughput by making more sales(marketing), convincing both importers and exporters in bringing their containers, taking into consideration the competitions between these terminals. The performance of TCT adds to the literature that places doubt on the opinion that larger ports or terminals are more efficient.
Terminal Operators for APMT, TCT and ACS should improve the development and maintenance of equipment to lease them to other companies. Which also means apart from the fact that the equipment would be put to use, it would bring move revenue to the terminals.
Terminal Operators for TCT could increase efficiency by promotion and terminal developments, making sales (marketing) and promotion to customers, in turn, increasing their throughput, Convincing the shipping lines enough on how credible they are at delivering their services. These terminals should convince importers and exporters in bringing their containers to their terminals and also, making sure they use of their inputs is proportional to their outputs.
From the study, it was realized some terminals had excess labour, particularly for tasks a few numbers of people can do and achieve the same result. It would be of importance if some of these labour is laid off.
5.2 Recommendation
Attaining a competitive port system seems high on the agenda of most governments in Ghana. However, to achieve the goal of an efficient and a highly competitive port, especially with the pro-business stance of the current government, a lot more needs to be done. Here are a few recommendations.
- Strengthen accountability by publishing information on efficiency indicators (such as those discussed above). An online performance monitoring tool will increase stakeholder engagement. By engaging more stakeholders in the conversation, problem areas can easily be identified and more viable and sustainable solutions can be found.
- Cargos that have met all the items on the check list for clearing should not be allowed to stay within the ports. Defaulters must be charged higher penalties to discourage such practices.
- The port authorities must seriously consider changing the berthing strategy to a more efficient one (like the fixed berthing window). Any identified challenges must be quickly addressed to meet this objective.
- Regular expansion and upgrade of existing infrastructure will also be necessary to prevent breakdowns. This will help increase berth productivity and the ship turnaround time.
