The Effect of Port Efficiency on Maritime Sector Performance: Evidence from Emerging Market

Abstract

This study investigated the impact of port efficiency on the performance of the maritime sector in Nigeria, focusing specifically on the effects of berthing capacity and cargo handling equipment. The study employed econometric techniques, including multiple regression analysis and co-integration tests, to examine the relationships between these variables and the maritime sector's contribution to gross domestic product. The findings of the study indicated a significant and positive correlation between cargo handling equipment capacity and maritime sector performance in Nigeria. This suggests that investments in modern and efficient cargo handling equipment can enhance the efficiency of port operations and contribute to the growth of the maritime sector. However, the study did not find a significant relationship between berthing capacity and maritime sector performance, contrary to expectations. The results of this research have important implications for policymakers in Nigeria and other emerging markets. They underscore the need for strategic investments in port infrastructure, particularly in cargo handling equipment, to improve port efficiency and competitiveness. Additionally, the study highlighted the importance of considering other factors beyond berthing capacity when assessing the impact of port infrastructure on maritime sector performance.