Abstract

The assessment of port efficiency through Data Envelopment Analysis (DEA) is a valuable tool for ensuring accurate investment decisions in this capital-intensive industry. This study analyses the application of DEA on container ports. It assesses the efficiency of Brazilian container ports by proposing the inclusion of an intangible input related to the management practices of the terminals. In order to verify the effects of this input inclusion, the efficiency of 13 terminals is evaluated through the application of an IDEA-CRS model, which enables an appropriate handling of qualitative variables, with an orientation to the maximization of a single output, the annual container throughput, and inputs related to infrastructure, superstructure, and management unchanged. Model findings stress out the relevance of this intangible variable and the result that only three terminals are assessed as efficient, wherein the ones with the most robust management structure were not necessarily the most efficient.

Highlights

  • Port activity is of fundamental importance for Brazilian international trade, and efficiently planning investments in this sector is essential for developing it in a national perspective, maximizing results without wasting resources

  • Container throughput in Brazilian ports, which accounted for approximately 9.3 million TEUs in 2017, according to the National Agency for Waterway Transportation yearly database (ANTAQ, 2018), is expected to reach approximately 20 million TEUs in 2060, as stated in the Brazilian National Ports and Logistics Master Plan (PNLP) released in 2017, revealing a huge investment need and potential in the upcoming years

  • Considering the exposed scenario, this study aims to contribute for broadening the container port efficiency assessment methodology spectrum, by proposing the inclusion of a managerial related intangible input in the Data Envelopment Analysis (DEA) in the evaluation

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Summary

INTRODUCTION

Port activity is of fundamental importance for Brazilian international trade, and efficiently planning investments in this sector is essential for developing it in a national perspective, maximizing results without wasting resources. Given the economic importance of container terminals and the increase in competitiveness between them, the evaluation of efficiency is an essential element for terminals management, port operators, shipping lines, and port planning at the regional and national level (CULLINANE; WANG, 2010). Considering the exposed scenario, this study aims to contribute for broadening the container port efficiency assessment methodology spectrum, by proposing the inclusion of a managerial related intangible input in the Data Envelopment Analysis (DEA) in the evaluation. For this purpose, the efficiency of 13 Brazilian container terminals is assessed through the application of Imprecise Data Envelopment Analysis (IDEA) model using, among other variables, an intangible input related to management practices of the terminals. The sequence of this study is organized as follows: in section 2 different approaches for assessing efficiency in the port industry are presented and compared; in section 3 the steps for modelling the solution, collecting the data and solving the model are discussed; in section 4 the results of the model are analyzed; and in section 5 some final considerations are made as well as some suggestions for further researches are listed

PORT EFFICIENCY
DEA models
Model orientation
Target and benchmarks
Comparison with other methods
Tangible and intangible variables
MODELLING AND SOLVING THE PROBLEM
Data collection
Data treatment and model solution
RESULTS AND ANALYSIS
FINAL CONSIDERATIONS
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