Productive Efficiency of World Container Ports: A Global Perspective

This study evaluates the productive efficiency of 140 global hub and national gateway container ports in almost all countries of the world for the years 1991 and 2004. It adopts diverse models of data envelopment analysis (DEA), including two specific cases of DEA window analysis: intertemporal and contemporaneous. The study finds that world ports have experienced inter- and intraregional efficiency gaps, which have not lessened over time. In general, the larger-scale ports are more efficient because they drive technological development and adopt better managerial practices. However, many large ports operate under decreasing returns-to-scale at each port level. This implies a potential for interport competition as a way to increase port efficiency at an aggregated regional level. In addition, port size is not the sole factor in determining port efficiency. Newly developed ports in Asia and the Middle East and small Central American ports operate efficiently. They have created strong partnerships with emerging, globally franchised terminal operators. With small hinterlands, Oceanian ports have tried to improve efficiency by reforming institutional structures and managerial practices. However, they have not fully overcome the disadvantages of the lack of economies of scale. For them, interport competition may not be an effective means to improve efficiency.