Port productivity analysis by using DEA: A case study in Malaysia

Abstract

Recent trends in containerized trade have led to the importance of measuring the performance of container ports. In Malaysia, container ports are mostly situated along the Straits of Malacca, one of the most important shipping lanes in the world. Two of its ports, Port Klang and Port of Tanjung Pelepas (PTP) are ranked amongst the top 20 container ports in the world. In particular, PTP is ranked 16 in 2004, even though it is just a young port which started its operations in October 1999. This paper aims to quantitatively measure the productivity of Malaysian container ports. A cross-sectional performance measurement is carried out, using a DEA approach. To further assess the productivity of the ports over time, a set of panel data is analyzed. In order to compare the productivity of the Malaysian ports with world standards, Port of Singapore is added as a reference.