Title: Using data envelopment analysis to measure ports efficiency
Authors: Chafik Abid; Lotfi Tadj
Addresses: Department of Management, School of Business Administration, American University in Dubai, Dubai 28282, UAE. ' Department of Finance, Information Systems and Management Science, Sobey School of Business, Saint Mary's University, Halifax, NS B3H 3C3, Canada; Faculty of Management, School of Business Administration, Dalhousie University, Halifax NS B3H 3J5, Canada
Abstract: The main purpose of this study is to find solutions to measure and improve the efficiency of DP-World ports. Data Envelopment Analysis (DEA) is a well-known technique that has been used to serve as an effective tool for such purposes. On one hand, it helps in cutting down costs which are incurred by the ports in the form of investment in the inputs. On the other hand, it facilitates the increase in outputs. One of the major advantages of using this technique is that it takes into account multiple inputs and multiple outputs to calculate the efficiency scores without pre-defined weights. We have studied 50 ports which are part of the DP-World and found that 21 of them are relatively efficient. Also, we have been able with the optimal input-output mix to help the inefficient ports to attain higher efficiency. Use of DEA has proved to be an effective technique in several other sectors as well, such as mutual funds (hedging), transportation, banking, etc.
Keywords: Malmquist DEA; data envelopment analysis; performance assessment; performance indicators; DP World; Dubai Ports Authority; Dubai Ports International; efficiency measurement; efficiency improvement; cost reduction; investment; increased outputs; multiple inputs; multiple outputs; efficiency scores; pre-defined weights; input-output mix; inefficient ports; higher efficiency; mutual funds; hedging; transportation; banking; banks; business performance; performance management; efficiency management; service sector organisations.
International Journal of Business Performance Management, 2012 Vol.13 No.3/4, pp.257 - 273
Published online: 20 Aug 2014 *Full-text access for editors Access for subscribers Purchase this article Comment on this article