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Analysis of port authority efficiency using data envelopment analysis

Author

Listed:
  • Shaher Z Zahran

    (Civil Engineering Department, King Abdulaziz University)

  • Jobair Bin Alam

    (Civil Engineering Department, King Abdulaziz University)

  • Abdulrahem H Al-Zahrani

    (Civil Engineering Department, King Abdulaziz University)

  • Yiannis Smirlis

    (Department of Maritime Studies, University of Piraeus)

  • Stratos Papadimitriou

    (Department of Maritime Studies, University of Piraeus)

  • Vangelis Tsioumas

    (Department of Maritime Studies, University of Piraeus)

Abstract

Port authorities (PAs) generate revenues by guiding, coordinating and exploiting their resources, facilities and infrastructure of their ports. In this article, using Data Envelopment Analysis (DEA), we assess and analyze the efficiency of PAs in generating revenues. Despite the plethora of studies on port efficiency, there has been no study to focus on PAs and compare, in terms of efficiency, their revenue generation mechanism. For that purpose, we present two different modeling approaches: one that relates revenues to the basic throughput and activity of the port and another that takes into consideration land, infrastructure and labor indicators. For the implementation of this approach we use a sample set of international landlord, multi-activity ports. The analysis first discriminates between efficient and non-efficient ports and for the latter it identifies their benchmarks and provides target values for their revenues. Furthermore, in a post-DEA stage the article examines the relation between efficiency and the size of a port.

Suggested Citation

  • Shaher Z Zahran & Jobair Bin Alam & Abdulrahem H Al-Zahrani & Yiannis Smirlis & Stratos Papadimitriou & Vangelis Tsioumas, 2017. "Analysis of port authority efficiency using data envelopment analysis," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 19(3), pages 518-537, August.
    • Handle: RePEc:pal:marecl:v:19:y:2017:i:3:d:10.1057_mel.2015.33
    DOI: 10.1057/mel.2015.33
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    References listed on IDEAS

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    1. William W. Cooper & Lawrence M. Seiford & Joe Zhu (ed.), 2011. "Handbook on Data Envelopment Analysis," International Series in Operations Research and Management Science, Springer, number 978-1-4419-6151-8, December.
    2. 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.
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    4. William W. Cooper & Lawrence M. Seiford & Joe Zhu, 2011. "Data Envelopment Analysis: History, Models, and Interpretations," International Series in Operations Research & Management Science, in: William W. Cooper & Lawrence M. Seiford & Joe Zhu (ed.), Handbook on Data Envelopment Analysis, chapter 0, pages 1-39, Springer.
    5. Hidalgo, Soraya & Núñez-Sánchez, Ramón, 2012. "Estimating allocative efficiency in port authorities with demand uncertainty," MPRA Paper 38136, University Library of Munich, Germany.
    6. 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.
    7. 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.
    8. 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.
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    Cited by:

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    2. Tsakiridis, Andreas & Mateo-Mantecón, Ingrid & O'Connor, Eamonn & Hynes, Stephen & O'Donoghue, Cathal, 2021. "Efficiency benchmarking of Irish and North Atlantic Spanish ports: Implications for blue growth," Utilities Policy, Elsevier, vol. 72(C).
    3. Bor-Hong Lin & Hsuan-Shih Lee & Cheng-Chi Chung, 2020. "The Construction and Implication of Group Scale Efficiency Evaluation Model for Bulk Shipping Corporations," Mathematics, MDPI, vol. 8(5), pages 1-13, May.
    4. Odeck, James & Schøyen, Halvor, 2020. "Productivity and convergence in Norwegian container seaports: An SFA-based Malmquist productivity index approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 137(C), pages 222-239.
    5. da Costa, Denielle Soares & de Assis Carvalho, Marcus Vinicius Guerra Seraphico & de Figueiredo, Nélio Moura & de Moraes, Hito Braga & Ferreira, Regina Célia Brabo, 2021. "The efficiency of container terminals in the northern region of Brazil," Utilities Policy, Elsevier, vol. 72(C).
    6. Stephen Hynes & Ingrid Mateo-Mantecón & Eamonn O’Connor & Andreas Tsakiridis, 2020. "Relative size and technical efficiency in peripheral port markets: evidence from Irish and North Atlantic Spanish ports," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(3), pages 383-402, September.
    7. Hynes, S. & Mateo-Mantecón, I. & O’Connor, E. & Tsakiridis, A., 2019. "Examining the relationship between relative size and technical efficiency in peripheral port markets: Evidence from Irish and North Atlantic Spanish ports," Working Papers 309603, National University of Ireland, Galway, Socio-Economic Marine Research Unit.

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