The efficiency analysis of world top container ports using two-stage uncertainty DEA model and FCM
Thi Quynh Mai Pham, Gyei Kark Park, Kyoung-Hoon Choi
Abstract
Purpose The purpose of this paper is to present an integrated model to measure the operational efficiency of the top 40 container ports in the world for a five-year continuous period using a two-stage uncertainty data envelopment analysis (UDEA) combined with fuzzy C-means clustering method (FCM). Design/methodology/approach UDEA model is adopted for measuring the efficiency of container ports to overcome the limitation of the basic model, which is unable to handle uncertain data that are easy to meet in practice. FCM algorithm is implemented to find similar distribution efficiency scores of two stages and the cluster similar efficiency scores of container ports into various groups. Findings The combination of the two-stage UDEA model and the FCM algorithm provided a more comprehensive view when evaluating the performance of container ports. The UDEA results show that most of the container ports have reduced their profitability level in the second stage and most of the efficient container ports have turned into inefficient ones because of their small scale. Originality/value This paper proposes using the two-stage UDEA model to evaluate port efficiency based on two main aspects of productivity and profitability. Moreover, it combines DEA and FCM algorithms to offer a more comprehensive view when measuring the performance of container ports.