EFFICIENCY MEASUREMENT AND ANALYSIS OF RED SEA PORTS IN EGYPT USING DATA ENVELOPMENT ANALYSIS

Abstract

Measuring the relative efficiency of Red Sea Ports Authority data envelopment analysis has been used during 2005 – 2013. The input variables were selected for this study i.e. number of berths, berth length, number of equipment's, land area, water area, cover stores , passengers terminal and number of employees whereas output variables were container, cargo throughput, calling ships and total passengers. In this study the relative efficiency of the major ports of Red Sea Ports Authority in red sea and Aqaba Gulf were evaluated using DEA models in order to identify the current level of efficiency for each port. However the ranking of all the ports were identified under the standard oriented, radial model DEA- CCR, BCC – CRS, VRS methods, , non-oriented , non-radial DEA- SBM model under the assumption of constant returns to scale (CRS) and variable returns to scale (VRS). Based on the results from the software Max DEA Pro 6.3, the average efficiency of red sea ports authority for general cargo, containers (TEU), passengers and ships call according to models of DEA-BCC (pure technical efficiency value) were 0. 39, 0.30, 0.23 and 0.34, respectively which indicated that they need to improve their usage of input resources. Average efficiency cargo, containers passen- gers, and ships call according to models of DEA–CCR 0. 28, 0.23, 0.20 and 0.25 reflected technical inefficiency. The technical inefficiencies i.e. inefficient use of labor and inefficient operations. The efficiency values of the DP World Sokhna was estimated by DEA-BCC, DEA-CCR and SBM models for the general cargo handling, throughout containers, ships call and passengers. Efficiency curves of the DP World Sokhna were considered as frontier curves for red sea ports Authority. It was recommend to strengthen the efficiency of the red sea ports by improving the efficiency of major ports in Red Sea Ports Authority (Adabia port, Safaga port and Nuweiba Port). Key words: efficiency, Red Sea Ports Authority, DEA-BCC, DEA-CCR and SBM models