Efficiency measurement of selected international ports using aggregated performance index

Abstract

In this paper, we propose the Aggregated Performance Index method. This study applies Aggregated Performance Index to provide an efficiency measurement for international ports. The Aggregated Performance Index technique is powerful in resolving the measurement of port efficiency and ranking of port, because Aggregated Performance Index has been applied to analyze the relative efficiency of decision-making units (DMUs) in a set of multiple inputs and multiple outputs, and don't require an explicit a priori determination of relationships between outputs and inputs. Using multidimensional scaling (MDS) process, we adjustment and present an alternative that is theoretically and practically superior to the most common methods proposed in the past papers, especially in the DMUs measure field. This method overcomes the problem of Data Envelopment Analysis method which can neither rank efficiency of ports nor show the real efficiency distance of DMUs. Thus, the Aggregated Performance Index method is useful in wide array of Australian and other international ports' ranking.Finally this Aggregated Performance Index method is applied to the ranking of 16 international ports. As a result, five ports, the port of Melbourne, the port of Osaka, the port of Zeebrugge, the port of Brisbane, and the port of Fremantle are found to be the most inefficient ports. Six other international ports, the port of Tanjung Priok, the port of Hamburg, the port of Sydney, the port of Tilbury, the port of Yokohama, and the port of La Spezia, which are found to be efficient ports. The port of Singapore, the port of Hong Kong, the port of Felixstowe, the port of Rotterdam, and the port of Keelung are found to be the most efficient ports.