Comparative analysis of seaports performance using data envelopment analysis

Wamuziri, Sam and Umar, Tariq (2015) Comparative analysis of seaports performance using data envelopment analysis. In: Ports in Oman : business potentials, opportunities and challenges; 05 - 06 May, 2015, Oman.


Measures of seaport efficiency or performance indicators use a diverse range of techniques for assessment and analysis, but although many analytical tools and instruments exist, problems arise when one tries to apply them to a range of different seaports. Data envelopment analysis (DEA) is a technique for comparing the efficiency of organizations which have a number of different inputs and outputs. DEA enables relative efficiency ratings to be derived within a set of analyzed units. Thus it does not require the development of ‘standards’ 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. In this paper it is demonstrated that data envelopment analysis (DEA) can augment the traditional ratio analysis of seaports combining operational and financial variables. DEA can provide a consistent and reliable measure of managerial or operational efficiency of a seaport. The paper also evaluates how close the Omani seaports are to the frontier of best practice. The DEA efficiency ratings can be useful tool for port managers and for researchers, providing a deeper insight into port performance. Weaknesses can be detected, leading the way to potential improvements.

Actions (Repository Editors)

Item Control Page Item Control Page