Abstract
Maritime transportation for Taiwan plays an important role in trade exchange with other countries, especially in the container cargoes. The performance and efficiency of container ports is a critical factor for handling containers on the international market in maritime. However, how to raise operation efficiency and reduce operation cost is a very important issue. Evaluating operation efficiency of ports can reflect theirs status quo and reveal their advantages and disadvantages in the competitive environment. In this study, we are going to apply a new procedure based on DEA (Data Envelopment Analysis) called RDEA (Recursive Data Envelopment Analysis) to rank selected container ports in Asia Pacific region. DEA is a mathematical programming skill for measuring the relative performance of decision making units (DMUs). Basically, DEA is a nonparametric approach that does not require any assumption about the function from of the production function. However, it is controversy to rank DMUs based on their relative efficiencies, especially when their efficiencies are less than one. In this study, we will compare the ranks of ports obtained by DEA and RDEA respectively and drill down the result to unveil tactical moves needed to improve their efficiencies.
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