Container Terminal Efficiency Measurement Using Data Envelopment Analysis: Comparison of Sri Lanka and South Korea

Abstract

Increasing port competition driven by the containerisation has motivated ports and terminals to focus on their performance to efficiently utilise the available resources and to make strategic decisions in port development and expansion. With both inter-port and intra-port competition increasing in the port of Colombo, this study aims to measure the efficiency of the container terminals in Colombo comparing to terminals in the port of Busan using the DEA window analysis to determine their operational efficiency and to provide suggestions for future port development activities. Multiple window analyses were conducted using CCR and BCC models with different orientations and window lengths to compare the efficiencies of 11 DMUs in both ports during the period from 2015-2019. Results revealed the largest terminal operator (PNC in Busan) to be the most efficient overall, while the second highest efficiency was recorded by one of the smallest terminal operators (SAGT in Colombo) among the sample.