Advertisement

Journal of Productivity Analysis

, Volume 24, Issue 1, pp 73–92 | Cite as

The Application of Mathematical Programming Approaches to Estimating Container Port Production Efficiency

  • Kevin CullinaneEmail author
  • Dong-Wook Song
  • Tengfei Wang
Article

Abstract

Container terminal production is both an important and complicated element in the contemporary global economy. This paper aims to evaluate the efficiency of the world’s most important container ports and terminals using the two alternative techniques of Data Envelopment Analysis (DEA) and the Free Disposal Hull (FDH) model. The results give an insight into the current efficiency ranking of the world’s major container ports and terminals. They also confirm expectations that the available mathematical programming methodologies lead to different results and that appropriate variable definition of input and output factors is a crucial element in meaningful applications of DEA and FDH. It is also concluded that the availability of panel data, rather than cross-sectional data would greatly improve the validity of the efficiency estimates derived from all the mathematical programming techniques applied.

Keywords

Data Envelopment Analysis (DEA) Free Disposal Hull (FDH) container terminals ports efficiency production 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Ali, A. I., Seiford, L. M. 1993“The Mathematical Programming Approach to Efficiency Analysis”Fried, H.Lovell, C. A. K.Schmidt, S. eds. The Measurement of Productive Efficiency: Techniques and ApplicationsOxford University PressOxford160194Google Scholar
  2. Allen, R., Athanassopoulos, A., Dyson, R. G., Thanassoulis, E. 1997“Weights Restrictions and Value Judgements in Data Envelopment Analysis: Evolution, Development and Future Directions”Annals of Operational Research731334CrossRefGoogle Scholar
  3. Banker, R. D., Charnes, A., Cooper, W. W. 1984“Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis”Management Science3010781092Google Scholar
  4. Brooks, M. (2002). “Issues in Measuring the Performance of Devolution Programsℍ. Comparative Corporate Governance in The Port Sector, Second Meeting of the Port Performance Research Network, Panama, 12 November.Google Scholar
  5. Chang, S. 1978“Production Function, Productivities and Capacity Utilisation of the Port of Mobile”Maritime Policy and Management5297305Google Scholar
  6. Charnes, A., Cooper, W. W., Rhodes, E. 1978“Measuring the Efficiency of Decision Making Units”European Journal of Operational Research2429444CrossRefGoogle Scholar
  7. Cooper, W. W., Seiford, L. M., Tone, K. 2000Data Envelopment Analysis: A Comprehensive Text with Models, Applications, References and DEA-Solver SoftwareKluwer Academic PublishersBostonGoogle Scholar
  8. Cullinane, K. P. B. 2003“The Productivity and Efficiency of Ports and Terminals: Methods and Applications”Grammenos, C. T. eds. The Handbook of Maritime Economics and BusinessLLPLondonGoogle Scholar
  9. Cullinane, K. P. B., Song, D-W. 2002“A Stochastic Frontier Model of the Productive Efficiency of Korean Container Terminals”Applied Economics35251267CrossRefGoogle Scholar
  10. Cullinane, K. P. B., Song, D. W., Gray, R. 2002“A Stochastic Frontier Model of the Efficiency of Major Container Terminals in Asia: Assessing the Influence of Administrative and Ownership Structures”Transportation Research A36743762Google Scholar
  11. Borger, B., Kerstens, K., Costa, A. 2002“Public Transit Performance: What does One Learn from Frontier Studies”Transport Reviews22138CrossRefGoogle Scholar
  12. Deprins, D., Simar, L., Tulkens, H. 1984“Measuring Labour-Efficiency in Post Offices”Marchand, M.Pestieau, P.Tulkens, H. eds. The Performance of Public Enterprises: Concepts and MeasurementNorth-Holland Publishing companyAmsterdamGoogle Scholar
  13. Dowd, T. J., Leschine, T. M. 1990“Container Terminal Productivity: A Perspective”Maritime Policy and Management17107112Google Scholar
  14. Epstein, M. K., Henderson, J. C. 1989“Data Envelopment Analysis for Managerial Control and Diagnosis”Decision Sciences2090119Google Scholar
  15. Leibenstein, H. 1966“Allocative efficiency vs. “X-efficiency”American Economic Review56392415Google Scholar
  16. C. Lovell and P. van den Eeckaut. (1993). “Frontier Tales: DEA and FDH”. In Mathematical Modelling in Economics : Essays in Honor of Wolfgang Eichhorn, Berlin, New York: Springer-Verlag, 446–457.Google Scholar
  17. Marlow P. and A. C. Paixão. (2002). “Measuring Lean Ports Performance”. In Proceedings of the International Association of Maritime Economists Conference, November, Panama, 13–15.Google Scholar
  18. Martinez-Budria, , Diaz-Armas, E. R., Navarro-Ibanez, M., Ravelo-Mesa, T. 1999“A Study of the Efficiency of Spanish Port Authorities Using Data Envelopment Analysis”International Journal of Transport EconomicsXXVI237253Google Scholar
  19. Notteboom, T, Coeck, C., Broeck, J. 2000“Measuring and Explaining the Relative Efficiency of Container Terminals by Means of Bayesian Stochastic Frontier Models”International Journal of Maritime Economics283106Google Scholar
  20. Roll, Y., Hayuth, Y. 1993“Port Performance Comparison Applying Data Envelopment Analysis (DEA)”Maritime Policy and Management20153161Google Scholar
  21. Seiford, L. M., Thrall, R. 1990“Recent Development in DEA: the Mathematical Programming Approach to Frontier Analysis”Journal of Econometrics46738(October/November).CrossRefGoogle Scholar
  22. Talley, W. K. 1994“Performance Indicators and Port Performance Evaluation”The Logistics and Transportation Review30339352Google Scholar
  23. Tongzon, J. L. 1995“Determinants of Port Performance and Efficiency”Transport Research A29245352Google Scholar
  24. Tongzon, J. 2001“Efficiency Measurement of Selected Australian and Other International Ports Using Data Envelopment Analysis”Transportation Research A: Policy and Practice35113128Google Scholar
  25. Tulkens, H. 1993“On FDH Efficiency Analysis: Some Methodological Issues and Applications to Retail Banking, Courts and Urban Transit”Journal of Productivity Analysis4183210CrossRefGoogle Scholar
  26. UNCTAD. (1976). Port performance indicators TD/B/ C.4/131/Supp.1/Rev.1, New York, U.S.: United Nations Conference on Trade and Development.Google Scholar
  27. Valentine, V. F. and R. Gray. (2001). “The Measurement of Port Efficiency Using Data Envelopment Analysis”. In Proceedings of the 9th World Conference on Transport Research, 22–27 July, Seoul: South Korea.Google Scholar
  28. Eeckaut, P., Tulkens, H., Jamar, M. A. 1993“Cost Efficiency in Belgian Municipalities”Fried, H.O.Lovell, C. A. K.Schmidt, S. S. eds. The Measurement of Productive EfficiencyOxford University PressNew YorkGoogle Scholar
  29. Wang, T., D-W. Song and K. Cullinane. (2002). “The Applicability of Data Envelopment Analysis to Efficiency Measurement of Container Ports”. Proceedings of the International Association of Maritime Economists Conference, 13–15 November, Panama.Google Scholar

Copyright information

© Springer Science+Business Media, Inc. 2005

Authors and Affiliations

  1. 1.School of Marine Science & Technology, Armstrong BuildingUniversity of NewcastleNewcastle-upon-TyneUK
  2. 2.Centre of Urban Planning and Environmental ManagementThe University of Hong KongHong Kong
  3. 3.Centre for International Shipping and Logistics, Plymouth Business SchoolUniversity of PlymouthPlymouthUK

Personalised recommendations