Drivers explaining the inefficiency of Peruvian and Chilean ports terminals

•Increased agility in the process of reforms implemented in Chile compared to Peru.•The reform process led to the firms becoming more efficient.•On average Chilean terminals were more efficient than Peruvians.•A bigger bulk rate, containerization index and occupancy rate decrease inefficiency.•Private administration also decrease inefficiency.

We measure technical efficiency of port terminals in Peru and Chile to evaluate the influence of certain specific explanatory variables that may contribute to reducing inefficiency; one of them is the structural reform that was implemented in the 1990s in both countries. Chilean terminals were more efficient than the Peruvian ones mainly due to greater agility in the implementation of the reform process. Furthermore, the higher the containerization index, the greater the occupancy rate and the bigger the bulk rate, then the lower the inefficiency in terminals is. Also, the inefficiency is lower when the terminal is under private administration.