Operational performance evaluation of major container ports in the Asia-Pacific region

Abstract

If international container ports are to gain a proper appreciation of their various advantages, disadvantages and potential opportunities in a globally competitive environment, it is essential that they conduct effective evaluation of their operational performance. The present study applies five models of data envelopment analysis (DEA) to acquire a variety of complementary information about the operational efficiency of major container ports in the Asia-Pacific region and to identify trends in port efficiency. The study first establishes the causes of inefficiency on the basis of efficiency value analysis. Slack variable analysis is then used to identify potential areas of improvement for inefficient ports. This is followed by the utilization of return to scale analysis to assess whether each port is in a state of increasing, decreasing, or constant return to scale. Finally, a sensitivity analysis is conducted to identify which input or output variables have larger weights in terms of efficiency. The results provide valuable information for port managements in their attempts to establish competitive strategies for the future and to improve their resource utilization for ongoing improvements in operational efficiency.