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Efficiency Of Infrastructure: The Case Of Container Ports

  • Santiago Herrera
  • Gaobo Pang

This paper gauges efficiency in container ports. Using non-parametric methods, we estimate efficiency frontiers based on information from 86 ports across the world. Three attractive features of the method are: 1) it is based on an aggregated measure of efficiency despite the existence of multiple inputs; 2) it does not assume particular input-output functional relationships; and 3) it does not rely on a-priori peer selection to construct the benchmark. Results show that the most ine_cient ports use inputs in excess of 20 to 40 percent. Since infrastructure costs represent about 40 percent of total maritime transport costs, these could be reduced by 12 percent by moving from the inefficient extreme of the distribution to the efficiency one.

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Paper provided by ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics] in its series Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting] with number 124.

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Date of creation: 2006
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Handle: RePEc:anp:en2006:124
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  1. Limao, Nuno & Venables, Anthony J., 1999. "Infrastructure, geographical disadvantage, and transport costs," Policy Research Working Paper Series 2257, The World Bank.
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  18. Beatrice Tovar & Sergio Jara-Diaz & Lourdes Trujillo, 2003. "Production and cost functions and their application to the port sector : a literature survey," Policy Research Working Paper Series 3123, The World Bank.
  19. Cazals, Catherine & Florens, Jean-Pierre & Simar, Leopold, 2002. "Nonparametric frontier estimation: a robust approach," Journal of Econometrics, Elsevier, vol. 106(1), pages 1-25, January.
  20. 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.
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