World container volumes have expanded rapidly in recent decades, and continued to grow. In particular, the soaring of china’s economy has lead to a sharp increase in the container cargo handling abilities of ports and terminals in China.
In this paper, by employing the DEA-CCR model and DEA-BCC model, a comparative efficiency of China’s major container terminals is investigated. The selection of container terminals to be examined is based on the following way: 21 container terminals are selected among China’s top 10 ports in terms of container handling throughput in 2005, and 4 more are chosen from the remaining ports to make the total number being 25.
This paper presents an approach to the measurement of efficiency. Data Envelopment Analysis(DEA) has particular applicability in the service sector. Applying mathematical programming techniques, DEA enables relative efficiency ratings to be derived within a set of analysed units. Thus it does not require the development of 'standard' against which efficiency is measured. although such standards can be incorporated in the DEA analysis. The efficiency of units is compared with an 'efficiency envelope' that contains the most efficient units in the group. The DEA efficient ratings can be a useful tool for port managers and for researchers, providing a deeper insight into port performance.
The research on the efficiency of terminals in this paper will not only show us the comparative efficiency of container terminals, but also provide an opportunity to compare terminal efficiency among the different types of container terminal management. Therefore, this paper is of some value for the future development and management of ports and terminals, and also help the container terminal operating companies to develop their terminal management policies.