In the light of the circumstances in the contemporary world of privatization, this research aims to study the effect of the privatization on the technical efficiency of container terminal using Stochastic Frontier Analysis, the study has applied on t
he most important Mediterranean container terminals. The results concluded that the technical efficiency rate was 76.17%. The full private ownership of container terminals does not reflect the high levels of technical efficiency. The full public ownership of container terminals also did not reflect the high levels of technical efficiency, but it is the best of the private sector. However, the technical efficiency of public container terminal can be improved with participation of the private sector, and advised partnership between the public sector and the private sector with rate of 38.5% according to the results of research.
Container terminals are different in the degree of service for container ships, which
increased recently and especially in the Mediterranean, also differ in use of the amount of
inputs required for operational process, which create the problem of d
eclining technical
efficiency of container terminals Mediterranean. Therefore, the researcher measured the
efficiency (12) a major container terminal in the Mediterranean in 2010, using the Data
Envelopment Analysis (DEA). Where the inputs: Number of quay cranes, and space of
terminal, and the output was the annual throughput of containers. The practical results
showed that the rate of technical efficiency – (CRS) was 49%, while the rate of technical
efficiency – (VRS) 69.3%. Tangier container terminal achieved the best level of technical
and scale efficiency, While Mersin, Algeciras, and Tartous achieved the technical
efficiency only, while remaining terminals did not achieve any efficiency, Therefore
advisable to reconsider in their used inputs to improve their efficiency.