A Study on the Efficiency of Container Terminals in Korea and China

Abstract

The objective of this study is to derive implications required for efficiency improvement and management level enhancement by selecting container terminals within major large ports of Korea and China as comparison units, evaluating their relative efficiencies and analyzing the trend of changes in their efficiencies. Since the scope of comparison subjects has been narrowed down to container terminals unlike previous studies, it is expected that the study results would have significant meaning due to the fact that it would be possible to compare and analyze in more detail. To achieve the objective, 30 major container terminals in both countries are selected, input and output variables are defined for each terminal and the DEA (data envelopment analysis) model is used to conduct an analysis. The results show that the efficiency of major terminals in Korea (CCR: 0.815, BCC: 0.886) showed similar efficiency with China's terminals (CCR: 0.817, BCC: 0.887). While previous studies conclude that the efficiency of ports in Korea is far lower than that of ports in China.

Keywords

• Container Terminal
• Efficiency Evaluation
• DEA-CCR
• DEA-BCC