The purpose of this study is to analyse the relative efficiencies of the container terminal operation in the port of Busan and Gwangyang using Data Envelopment Analysis(DEA). 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. 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.
This paper investigates the efficiency employing DEA-CCR model and DEA-BCC model on data for 15 container terminals covering 1998~2005 in Korea. It also investigates the change in productivity for 8 years.
The results of this study show terminals in Busan were evaluated more efficient compared with terminals in Gwangyang. The Korea Express Terminal located in Gwangyang was identified as more efficient terminal among terminals in Gwangyang.