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Using data envelopment analysis to measure ports efficiency

Author

Listed:
  • Chafik Abid
  • Lotfi Tadj

Abstract

The main purpose of this study is to find solutions to measure and improve the efficiency of DP-World ports. Data Envelopment Analysis (DEA) is a well-known technique that has been used to serve as an effective tool for such purposes. On one hand, it helps in cutting down costs which are incurred by the ports in the form of investment in the inputs. On the other hand, it facilitates the increase in outputs. One of the major advantages of using this technique is that it takes into account multiple inputs and multiple outputs to calculate the efficiency scores without pre-defined weights. We have studied 50 ports which are part of the DP-World and found that 21 of them are relatively efficient. Also, we have been able with the optimal input-output mix to help the inefficient ports to attain higher efficiency. Use of DEA has proved to be an effective technique in several other sectors as well, such as mutual funds (hedging), transportation, banking, etc.

Suggested Citation

  • Chafik Abid & Lotfi Tadj, 2012. "Using data envelopment analysis to measure ports efficiency," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 13(3/4), pages 257-273.
    • Handle: RePEc:ids:ijbpma:v:13:y:2012:i:3/4:p:257-273
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