The impact of port performance and trade: the case of selected african states

Abstract

Maritime transport remains the main gateway to the global marketplace. Maritime transportation is the main support of global trade, with its ability to move large quantities of cargo over long distances. For maritime transport to thrive, there must be efficient ports. Ports are one of the primary components of the general transportation sector and are nowadays linked to the expanding world economy. Ports are basically a means of integration into the global economic system. Efficient and well-connected container ports enabled by frequent and regular shipping services are key to minimizing trade costs, including transport costs, linking supply chains and supporting international trade. Thus, port performance is a critical factor that can shape countries’ trade competitiveness. However, for Africa, the ports are dilapidated, lack essential infrastructure, are congested and perform poorly. Africa’s shipping and ports do not always match global trends and standards. In light of this, this study seeks to assess Africa’s current port performance and test the relationship between Africa’s port performance and trade competitiveness. The study used panel data that covering the period 2010 to 2018. A system GMM panel technique was used for estimation purposes. Results showed that port performance positively affect trade.