Efficiency Container Ports In Brazil: A DEA And FDH Approach

Aim: This study aims to evaluate the technical efficiency of 44 Brazilian port terminals that handled containers in 2016. The evaluation will first proceed by identifying the main benchmarks. It will then provide an analysis of variables that may have an effect on technical efficiency as well as the nature of their relationship with the latter--namely: container movement and specialized terminals. Design / Research methods: In this work we apply the techniques of Data Envelopment Analysis and Free Disposal Hull. Output-oriented models were constructed, using three inputs - berth depth, berth length and number of berths, and three outputs - number of containers handled, medium board measured in container handled per hour of mooring, and medium consignment rate measured in container throughput per ship. Conclusions / findings: The main results show that half of the terminals have an inefficient infrastructure, with capacity larger than necessary to meet current demand for transportation of containers. In addition, there is a strong relationship between the efficiency and size of a terminal port and between the efficiency and degree of specialization. Moreover, the private use terminal of (TUP) Itacal and public quay OCRIM can serve as benchmarks for most of the terminals. Originality / value of the article: Relatively few works in the literature tried to measure technical efficiency for developing countries. Besides that, none of the works found regarding Brazilian ports have shown the scenario after promulgation of the Port's Law in 2013, and only a few used container cargo as focus. This article is of interest for scientists of the sector, exporters/importers, and Brazilian Government officers interested in observing the effects of public policies aimed at the sector. We also suggest future work concerning the sector's improvements which can follow from our findings.