Since the logistics industry involves many stakeholders in locally and globally it is exposing forrnmany challenges the challenge is worth and different especially for those countries that have norntheir own direct port access. Since the independency of Eritrea in 1991, Ethiopia becamernlandlocked. As a result, the country has been compelled to use neighbor countries for its importsrnand exports. In order to reduce some of the problems related with transit, Ethiopia has beenrnconstructed the first dry port in Modjo. To reap the maximum benefit from Modjo dry port, thernefficiency of the dry ports is very crucial and to do that it is important to identify factors thatrninfluence the efficiency of dry ports. Currently, many factor influences Modjo dry ports containerrnterminal efficiency. This study revealed that factors such as port machineries, container holdingrntrucks, warehouse operation, custom operation, and size of the dry port directly influencingrncontainer terminal efficiency. The research findings thoroughly explained these factors andrndiscussed how they influence container terminal efficiency of Modjo dry port container terminal.rnThe primary objective of this study was to analyze factors influencing container terminalsrnefficiency with a case study of the Modjo dry port container terminal. The target population ofrnthe study was approximately 500 people, which included terminal operators, Modjo dry portrnstaff, freight forwarders, and transporters. Questionnaire was the major instrument used tornobtain primary data from the respondents, while the secondary data obtained from existingrnempirical literature relevant to the study. The study employed an exploratory approach using arndescriptive survey design. The questionnaire was designed using Likert scale type. Samples of 80rnrespondents obtained through a stratified sampling technique of which 56 of the respondentsrnparticipated in the survey. The data analyzed using the Statistical Package for Social Sciencesrn(SPSS) and Microsoft Excel 2013. The result of the analysis indicated that, port machineries,rncontainer holding truck, warehouse operation, customs operations, size of dry port, found to berninfluential factors in determining the efficiency of Modjo dry port. Recommendation has beenrnproduced on investment in port machineries and heavy trucks, improvement in efficiency ofrnwarehouse operation, customs operations, expansion of port area, arranging local andrninternational training for machinery operators and workshop maintenance technicians andrnimprovement of poor management and overall working environment are recommended to get duernattention by Ethiopian Shipping and Logistics Service Enterprise (ELSE).