The main aim of this paper is to find out the size effect and its efficiency of Indian Major Ports using DEA -Additive models. The hypothesis is tested in this paper size is not a determinant factor of port efficiency. The findings based on 1993-2011 data shows both bigger ports (Mormugao, JNPT) as well as smaller ports (Ennore, Tuticorin) had efficient port operations. This paper also found that JNPT had operated as super efficient port among the major port in India through DEA -A&P.
Keywords: Additive Models, Data Envelopment Analysis, Major ports in India.
PreludeLogistics plays an important role in the country's economic development. Logistics have an effect on productivity, distribution efficiency, interest rates, energy availability and energy costs [1]. As logistics become more and more important for a country's international competitiveness in an industry, the race for an international logistical hub is increasingly fierce. India spends about 14 percent of its GDP on logistics sector [2]. A report by the Asia Development Bank (2007) that on this current trend, 2 billion tons of cargo to be pass through the Indian Ports in the year 2015-16. This projected that, the volume of goods entering and leaving the goods, India's ports will increase significantly. It meant that the capacity as well as the efficiency of the ports not overlooked and should be made to the priority of Indian ports and its facilities. The main strategy used to decrease the international port competitiveness is the 'mega hub port'. This strategy brought down from the principle of 'economies of scale'-the faith on that a bigger port would have guaranteed for better efficiency in handling cargo and also attracts more volume of international shipment. However, some of the studies argued that the size is not a determinant factor for achieve better efficiency, because some bigger ports might actually become a source of inefficiency [3][4]. So it is necessary to study the port efficiency in respect of its efficiency.
Literature ReviewData envelopment analysis (DEA) has been applied to measure the relative efficiency of DMUs of many studies. Data envelopment analysis in their studies of port sector. US and Canadian region. From the study it is suggested that rail, roads connections improve significantly the port productivity. The study concludes that bigger ports are efficient.In the light of above literature reviews it was observed that, most of the authors have used DEA for measuring the port efficiency but there were no much studies targeting on Indian Ports and their efficiency. Hence, this study attempts to measure the relative efficiency of Indian Major Ports using DEA -Additive CRS & VRS and DEA -A & P super efficiency model.
Methodology Objective and DataThe main objective of the paper is to find out size effect of Indian Major Ports on it efficiency using DEA-Additive models. The analysis is closely relates to size and the efficiency of ports with the close input variable from land, labour and equipments. This study tested the ...