IDEAS home Printed from https://ideas.repec.org/a/eee/retrec/v17y2006i1p517-566.html
   My bibliography  Save this article

Chapter 23 Data Envelopment Analysis (DEA) and Improving Container Port Efficiency

Author

Listed:
  • Cullinane, Kevin
  • Wang, Teng-Fei

Abstract

This chapter analyses the relevance of Data Envelopment Analysis (DEA) to the estimation of productive efficiency in the container port industry. Following an exposition of the DEA methodology, the many previous applications of the technique to the port industry are reviewed and assessed. The DEA technique is illustrated through a detailed example application using sample data relating to the world's leading container ports. The different DEA models give significantly different absolute results when based on cross-sectional data. However, efficiency rankings are rather similar. The efficiency estimated by alternative approaches, therefore, exhibits the same pattern of efficiency distribution, albeit with significantly different means. An analysis of panel data reveals that container port efficiency fluctuates over time, suggesting that the results obtained from an analysis of cross-sectional data may be misleading. Overall, the results reveal that substantial waste exists in container port production. It is also found that the sample ports exhibit a mix of decreasing, increasing and constant returns to scale. The chapter concludes that the optimum efficiency levels indicated by DEA results might not be achievable in reality, because each individual port has its own specific and unique context. Consequently, more singular aspects of individual ports should be investigated to determine the reasons that explain estimated efficiency levels.

Suggested Citation

  • Cullinane, Kevin & Wang, Teng-Fei, 2006. "Chapter 23 Data Envelopment Analysis (DEA) and Improving Container Port Efficiency," Research in Transportation Economics, Elsevier, vol. 17(1), pages 517-566, January.
  • Handle: RePEc:eee:retrec:v:17:y:2006:i:1:p:517-566
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0739-8859(06)17023-7
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Carlos Pestana Barros, 2003. "Incentive Regulation and Efficiency of Portuguese Port Authorities," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 5(1), pages 55-69, March.
    2. Leopold Simar & Paul Wilson, 2000. "A general methodology for bootstrapping in non-parametric frontier models," Journal of Applied Statistics, Taylor & Francis Journals, vol. 27(6), pages 779-802.
    3. Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
    4. Koop, Gary & Osiewalski, Jacek & Steel, Mark F J, 1999. " The Components of Output Growth: A Stochastic Frontier Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(4), pages 455-487, November.
    5. Cullinane Kevin & Song Dong-Wook & Ji Ping & Wang Teng-Fei, 2004. "An Application of DEA Windows Analysis to Container Port Production Efficiency," Review of Network Economics, De Gruyter, vol. 3(2), pages 1-23, June.
    6. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    7. Subhash Ray, 2002. "William W. Cooper: A Legend in His Own Times," Journal of Productivity Analysis, Springer, vol. 17(1), pages 7-12, January.
    8. Turner, Hugh & Windle, Robert & Dresner, Martin, 2004. "North American containerport productivity: 1984-1997," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 40(4), pages 339-356, July.
    9. Tulkens, Henry & Vanden Eeckaut, Philippe, 1995. "Non-parametric efficiency, progress and regress measures for panel data: Methodological aspects," European Journal of Operational Research, Elsevier, vol. 80(3), pages 474-499, February.
    10. Léopold Simar & Paul W. Wilson, 1998. "Sensitivity Analysis of Efficiency Scores: How to Bootstrap in Nonparametric Frontier Models," Management Science, INFORMS, vol. 44(1), pages 49-61, January.
    11. Ro-Kyung Park & Prabir De, 2004. "An Alternative Approach to Efficiency Measurement of Seaports," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 6(1), pages 53-69, March.
    12. Tongzon, Jose, 2001. "Efficiency measurement of selected Australian and other international ports using data envelopment analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(2), pages 107-122, February.
    13. Seiford, Lawrence M. & Thrall, Robert M., 1990. "Recent developments in DEA : The mathematical programming approach to frontier analysis," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 7-38.
    14. Cullinane, Kevin & Ji, Ping & Wang, Teng-fei, 2005. "The relationship between privatization and DEA estimates of efficiency in the container port industry," Journal of Economics and Business, Elsevier, vol. 57(5), pages 433-462.
    15. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    16. Carlos Pestana Barros & Manolis Athanassiou, 2004. "Efficiency in European Seaports with DEA: Evidence from Greece and Portugal," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 6(2), pages 122-140, June.
    17. Stigler, George J, 1976. "The Xistence of X-Efficiency," American Economic Review, American Economic Association, vol. 66(1), pages 213-216, March.
    18. Kim, Moshe & Sachish, Arie, 1986. "The Structure of Production, Technical Change and Productivity in a Port," Journal of Industrial Economics, Wiley Blackwell, vol. 35(2), pages 209-223, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hung, Shiu-Wan & Lu, Wen-Min & Wang, Tung-Pao, 2010. "Benchmarking the operating efficiency of Asia container ports," European Journal of Operational Research, Elsevier, vol. 203(3), pages 706-713, June.
    2. repec:eee:transa:v:103:y:2017:i:c:p:264-278 is not listed on IDEAS
    3. Janda, Karel & Krska, Stepan, 2014. "Benchmarking Methods in the Regulation of Electricity Distribution System Operators," MPRA Paper 59442, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:retrec:v:17:y:2006:i:1:p:517-566. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620614/description#description .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.