A comprehensive review of data envelopment analysis (DEA) methodology in port efficiency evaluation

Today, the concept of “smart ports”, which are designed to enhance operational efficiency and competitiveness, has emerged as a key paradigm in the port and maritime industry. As an integral component of maritime transportation networks, container terminals in ports play a crucial role in facilitating international trade and stimulating economic growth. Accordingly, the Korean government has steadily pursued policies and investments to improve the technological capabilities of ports, focusing on container terminals. However, there is still a lack of comprehensive research that thoroughly analyzes the operational efficiency of container terminals in domestic ports undergoing smart port technology implementation. Therefore, this study analyzes the operational efficiency of 20 container terminals across five major domestic ports, which are forerunners in smart port transformation, as declared by the Korean government. This study employs a Principal Component Analysis (PCA)–Data Envelopment Analysis (DEA) approach to increase the effectiveness of the analysis and addresses efficiency in two aspects: static and dynamic. The findings indicate that container terminals under Ulsan Port and Busan Port (New) have the best operational efficiency. In particular, Ulsan Port demonstrates significant improvement in terms of efficiency changes. The conclusion emphasizes the pivotal role of technological progress in achieving higher efficiency among container terminals. In addition to providing policymakers and port managers with useful insights into smart port transformation, this study is expected to make theoretical contributions to expanding the perspectives of port efficiency research by simultaneously encompassing static and dynamic analyses.

Section: Port Efficiency Evaluation Methodsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

A Comprehensive Study on Static and Dynamic Operational Efficiency in Major Korean Container Terminals Amid the Smart Port Development Context

Zhou,

Suh

2024

“…As the preferred technique for evaluating the relative performance of container ports, DEA was justified and applied to industrial panel data in several configurations. Likewise, to the usage of cross-sectional data, the DEA-CCR and DEA-BCC were adapted to estimate port efficiency [21].…”

Section: Theoretical Backgroundmentioning

confidence: 99%

A Frontier Approach to Eco-Efficiency Assessment in the World’s Busiest Sea Ports

Bulak

2024

The maritime economy is at the forefront of unprecedented sustainability challenges. Addressing ecological externalities in port operations supports the decarbonization goals of the United Nations (UN) Climate Action program and port city transition towards resilient and sustainable urban units. This research brings out an empirical assessment of seaport performance from an eco–environmental point of sustainability with a non-parametric analysis. Most common indicators from the cross-sectoral Global Reporting Initiative (GRI) database for the 21 world’s busiest seaports are used for the analysis. This research integrates four different models with the inputs CO2 emission, electricity consumption, waste, and water consumption; and the outputs employees, revenue, and container throughput. Projection pathways are established for inefficient seaports to improve sustainability performance. The analysis shows that the seaports of Qingdao and Cartagena are the most sustainably performing seaports under the selected maritime sustainability indicators. This research supports port managers in understanding the strengths and weaknesses of their operations and helps frame strategic policies toward achieving overall sustainability in the maritime industry across SDG 14 (marine ecosystem) and SDG 13 (climate mitigation) goals of the 2030 Urban Agenda.

“…Similarly, Cullinane and Wang [46] assessed the relative efficiency of 69 European container terminals, concluding that larger terminals were more likely to exhibit higher efficiency. Based on previous research, Krmac and Mansouri [47] conducted a systematic review, affirming DEA as a good assessment tool for scrutinizing port performance and proposing future applications.…”

Section: Data Envelopment Analysis Modelmentioning

confidence: 99%

The Spatial Value and Efficiency of Inland Ports with Different Development Models: A Case Study in China

Zhuang,

Li,

2023

Inland ports have become elements of the modern transport and logistics infrastructure hub and play an important role in shaping urban spatial texture. However, the spatial dimensions of their development have received little attention in the existing literature. This paper explores the spatial value concept for inland ports, i.e., the node and place values, by using a node-place model that was adopted for passenger terminals such as metro stations or train terminals. After measuring the node and place values, our research further evaluates the efficiency of node value’s impact in improving place value, which indicates the effects of node value on regional development. This paper examines the impact of inland port activities on regional development, studying 12 Chinese inland ports with various models. The results show that half of the inland ports are balanced in terms of node value and place value. Only 50% of the inland ports are efficient, in terms of the contribution of node value to place value, in promoting the regional economy. Inland ports in a balanced position are usually more efficient. This study provides new evidence of inland ports promoting regional development, as well as a basis for policy-making for future inland ports.