A Stochastic Frontier Model for Container Terminal Efficiency Measurement in the Yangtze River Delta Region of China

Container ports are critical components in the global supply chain, and enhancing their efficiency is of paramount importance to relevant stakeholders. The Yangtze River Delta port cluster is the most significant container port cluster in China. This study examines the technical efficiency levels of 14 major container terminals in the Yangtze River Delta region from 2012 to 2021. The stochastic frontier model is employed to gauge the efficiency levels of these container terminals, meanwhile exploring the exogenous factors that affect terminal efficiency. Empirical results reveal that terminal scale plays the most significant role in its technical efficiency; larger terminals tend to demonstrate relatively higher technical efficiency. The technical efficiency of container terminals in the Yangtze River Delta region exhibits certain fluctuations but maintains an overall upward trend. These findings may assist stakeholders in enhancing resource allocation and collaboration within a container terminal cluster to boost both its technical and investment efficiency.