Application of DEA to the efficiency evaluation of major container terminals in China

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Application of DEA to the efficiency evaluation of major container terminals in China

 

Author: Lin, Yu
Title: Application of DEA to the efficiency evaluation of major container terminals in China
Degree: M.Sc.
Year: 2009
Subject: Hong Kong Polytechnic University -- Dissertations
Data envelopment analysis
Container terminals -- China -- Evaluation
Department: Graduate School of Business
Pages: 40 leaves : ill. ; 31 cm.
InnoPac Record: http://library.polyu.edu.hk/record=b2355996
URI: http://theses.lib.polyu.edu.hk/handle/200/5784
Abstract: Global trade would not exist without ports. As a linking point, ports connects the ocean transportation and land transportation. Globalization enhances the competition of nations all over the world. Also, competition amongst ports is becoming much more intense than previously. Therefore, it is crucial for ports to improve the operation efficiency. Many researches with DEA have been made to evaluate the efficiency of container ports or terminals. DEA is the common technical tool to conduct the efficiency evaluation. In this paper, we will evaluate the efficiency of major container terminals in mainland China using a newly introduced output variable to construct a new concept for evaluation in DEA models. This new output variable introduced is defined as Unit TEU per dollar, and it is a ratio between TEU throughput and total trading value of hinterlands. With aids of this newly-established variable, we attempt to weaken and reduce the impact of hinterland's economy development over the production of container throughput in order to provide a more impartial comparison in the model to reveal their efficiency evaluation. We find that the major container terminals in mainland China examined display relatively low efficiency even inefficiency, even though some of them have high TEU throughput. Thus we probably cannot determine the efficiency of a port or terminal upon its relative size (in terms of TEU throughput).

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