A Study of the Efficiency of Mediterranean Container Ports: A Data Envelopment Analysis Approach

Abstract

The current paper presents the results of a study that analyzed and evaluated the efficiency of the largest container ports in the wider area of the Mediterranean Basin. The research question that this paper seeks to respond to is how the resources (inputs) of a container port reflect its level of activity and efficiency. In particular, what is the relationship between ports’ infrastructures, equipment and their productivity and the ports’ ability to attract economic activities as well as the extent of their effect on a port’s efficiency? The methodology uses the data envelopment analysis (DEA) output-oriented model following a cross-sectional approach. The research conducts two modeling approaches, the CCR and the BCC model. The analysis goes deeper and compares port efficiency estimates in relation to medium-sized and large ports’ classification and their total market share. The main findings indicated an average efficiency of 0.88 and 0.89 assuming constant and variable returns of scale, respectively, implying that the ports can increase their output levels up to approximately 1.2 times without any change in their inputs.