Seaport efficiency and competitiveness in European seaports

Abstract

The measurement and assessment of seaport efficiency and competitiveness have been the subject of many academic works in port economics. This study aimed to benchmark and measure the efficiency and competitiveness of the largest 30 container ports in Europe over the period 2005–2018. The technical efficiency of the sample container ports was estimated by the DEA (Data Envelopment Analysis) window analysis. Then, the obtained efficiency scores were introduced as explanatory variables with 8 other variables to explain the competitiveness of these ports using the Principal Component Analysis (PCA). Our findings suggest that handling costs is considered to be the most influential factor for competitiveness. Moreover, our estimates showed that efficiency is negatively correlated with the third axis of competitiveness which strengthens the fact that the Northern European seaports are found to be more competitive and less efficient. This may explain the over-investment and excessive use of inputs phenomena in order to provide customers with a higher quality of service.