Evaluation of the Efficiency of Maritime Transport Using a Network Slacks-Based Measure (SBM) Approach: A Case Study on the Korean Coastal Ferry Market

Joohwan Kim,Hwayoung Kim

doi:10.3390/su13116094

Abstract

Safety is a key performance indicator for the sustainable management of a coastal ferry service business. An efficiency strategy that balances safety and transport performance should be considered. The purpose of this study is to evaluate the relative transport efficiency of coastal ferry operators through undesirable safety-related output. Coastal ferry operators create added value through logistics activities such as cargo and passenger transport. Accordingly, this study designed a three-stage network-slacks-based measure (SBM) model that delineated production through ferry transport services such as service generation, service execution, and transport value creation. Detention records and marine accidents caused by human errors or technical faults were considered undesirable safety-related outputs. Moreover, the relative transport efficiency of 23 Korean firms that have continuously managed a coastal ferry transport business from 2015 to 2018 was analyzed. The results showed that the differentiation of transport efficiency of firms improved when applying the three-stage network SBM model compared to applying the SBM model that did not consider the internal production stage. This fact suggests that it is more desirable to apply the three-stage network SBM model proposed in this study when a more stringent comparison of transport performance is needed in terms of service quality.

Highlights

A coastal ferry service provides an effective means of transport for island residents to travel inland when the areas are not connected by a bridge or aviation services are not available
This study evaluated whether coastal ferry operators have achieved reasonable production with maximized transport performance and minimized safety defects in sailing compared to other companies while providing an adequate scale of transport services to customers on their licensed routes
The results of the transport efficiency analysis using the network slacks-based measure (SBM) model show that one decision-making units (DMUs) was efficient (DMU 8), scoring 1 in overall efficiency

Summary

Introduction

A coastal ferry service provides an effective means of transport for island residents to travel inland when the areas are not connected by a bridge or aviation services are not available. In the service industry where production and consumption occur at the same time, such as ferry transport, customer-oriented management is required [3]. It is argued that customers place a priority on the quality of services such as safety, travel time, comfort, and cleanness over fare changes when selecting means of transportation [4]. Safety is considered as a criterion for customers to judge the reliability of transportation service [5]. It is regarded as an important indicator representing the quality of service. In the case of the Korean government, the ferry service satisfaction

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