Effeciency Changes at Major Container Ports in Japan: A Window Application of Data Envelopment Analysis

Abstract

Container ports in Japan are not experiencing rapid cargo handling growth. Recently, however, a reorganization of port use is taking place due to a variety of factors like growing container ship size, diversified Asian shipping routes, increasing import cargo and the Great Hanshin earthquake in Kobe in 1995. This paper analyzes the operational efficiency of eight major international container ports using a “window” application of data envelopment analysis for the period between 1990 and 1999. The paper shows a distinction between ports with timely development and sound demand growth and those with deferred re–planning and slow demand recovery. The Port of Tokyo has successfully redeveloped to receive large–sized container vessels and is observing increased and well–balanced incoming and outgoing traffic, and hence remains DEA efficient in our analysis. The Port of Kobe still needs to implement further measures to attract new users and previous users due to the Great Hanshin earthquake. The BCC model of the DEA takes into account small–scale operations of Yokkaichi and Shimizu Ports, and appraises their recent increasing demand for Asian routes. The appropriate design of window length is also proposed in the study.