Operational Efficiency Evaluation of Iron Ore Logistics at the Ports of Bohai Bay in China: Based on the PCA-DEA Model

Operational efficiency is significant for the comprehensive competitiveness of a port. In this study, we use a principal component analysis-data envelopment analysis (PCA-DEA) integrated model to evaluate the operational efficiency of iron ore logistics at the ports of Bohai Bay, China. The key indicators and systematic framework are established for logistics efficiency research. We consider the PCA-DEA integrated model as a practical tool for evaluating and analyzing the relative efficiency of the iron ore logistics of each port in that area. The proposed method consists of a two-stage research and analysis that begins with PCA. In the first stage, we use PCA to obtain 6 synthetic indicators, including 4 input indicators and 2 output indicators, from 15 original indicators. In the second stage, the standard DEA approach is used with the specific synthetic indicators. The evaluation results of the selected ports from the integrated PCA-DEA model are compared and discussed. The comparison of the evaluation results indicates that the PCA-DEA model provides a practical and powerful tool for the investigation of the port logistics problem. With this integrated model, a comparison analysis and further research into the iron ore logistics efficiency of different ports in the area are presented. Finally, discussions and suggestions are provided.