A two-stage parallel network DEA model for analyzing the operational capability of container terminals

This study proposes a systematical approach to evaluate the operational capability of container terminals and discusses the effect of resource usages on operational performances. Two inter-dependent processes (i.e. the loading-discharging (L&D) and the delivery-receiving (D&R) operational processes) with shared/non-shared resources and common/separate productions are examined and characterized as a two-stage parallel network. An evaluation model is developed upon the principles of data envelopment analysis (DEA) to assess the operational capability of the terminals. Using the real-world dataset of 9 container terminals at Port of Busan, comparative performance results are obtained for 5 years spanning across 2014-2018. The proposed model demonstrates a much stronger discriminative power compared to the traditional CCR model in its estimations of performance in the decision-making units (DMUs). It can also be inferred from the results that efficiency in operations is a key qualifier for container volume while the market aggressiveness lends a competitive edge and reinforces a positive outcome on the performance of a container terminal. The study further examines the influence of management directive on a terminal performance and confirms that alignment of management directive with the operational capability of L&D and D&R processes is important in maximizing terminal throughout.

Automated summary

This study proposes a systematic approach to evaluate the operational capability of container terminals and examines the impact of resource usages on operational performances. Using a real-world dataset, the study demonstrates that operational efficiency and market aggressiveness significantly influence the performance of container terminals. It also confirms that aligning management directive with operational capability maximizes terminal throughput.