Efficiency analysis and benchmarking of container ports operating in lower-middle-income countries: a DEA approach

Caleb Danladi (), Sarah Tuck, Panagiotis Tziogkidis, Lijun Tang and Chukwuneke Okorie
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Caleb Danladi: University of Plymouth
Sarah Tuck: University of Plymouth
Panagiotis Tziogkidis: University of Macedonia
Lijun Tang: University of Plymouth
Chukwuneke Okorie: Massachusetts Bristol Community College

Journal of Shipping and Trade, 2024, vol. 9, issue 1, 1-24

Abstract: Abstract Container ports play a pivotal role in international trade, facilitating the movement of goods and fostering economic development. While much attention has been given to the efficiency of ports in high-income countries, container ports in lower-middle-income (LMI) countries have received less attention. This paper addresses this research gap by assessing container ports' operational efficiency across diverse LMI countries and determining ways for their efficiency enhancement and management optimization. The cross-sectional data for the year 2012 was collected for 53 container ports in LMI countries. This research utilizes data envelopment analysis, which offers the advantage of considering multiple inputs and outputs. The results show that the overall technical inefficiencies of LMI countries' container ports are mainly due to pure technical inefficiency rather than scale inefficiencies, and the most efficient ports have a combination of large and hub ports. They also reveal that larger ports (as measured by throughput) are not necessarily more efficient than ports with a small production scale. The results of this research can provide government authorities, port authorities, terminal operators, and investors with valuable insights into resource allocation, competitive advantage, and optimization of operating performance.

Keywords: Container ports; Benchmarking; Port efficiency; Data envelopment analysis; Lower-middle-income countries; Port performance; Port productivity (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1186/s41072-024-00163-2

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