Evaluate and Analysis Efficiency of Safaga Port Using DEA-CCR, BCC and SBM Models–Comparison with DP World Sokhna

Abstract

The competition among maritime ports is increasing continuously; the main purpose of Safaga port is to become the best option for companies to carry out their trading activities, particularly importing and exporting The main objective of this research is to evaluate and analyze factors that may significantly affect the levels of Safaga port efficiency in Egypt (particularly the infrastructural capacity). The assessment of such efficiency is a task that must play an important role in the management of Safaga port in order to improve the possibility of development and success in commercial activities. Drawing on Data Envelopment Analysis(DEA)models, this paper develops a manner of assessing the comparative efficiency of Safaga port in Egypt during the study period 2004-2013. Previous research for port efficiencies measurement usually using radial DEA models (DEA-CCR), (DEA-BCC), but not using non radial DEA model. The research applying radial - output oriented (DEA-CCR), (DEA-BCC) and non-radial (DEA-SBM) model with ten inputs and four outputs. The results were obtained from the analysis input and output variables based on DEA-CCR, DEA-BCC and SBM models, by software Max DEA Pro 6.3. DP World Sokhna port higher efficiency for all outputs were compared to Safaga port. DP World Sokhna position is below the southern entrance to the Suez Canal, on the Red Sea, Egypt, makes it strategically located to handle cargo transiting through one of the world's busiest commercial waterways.