Performance Measure of Malaysian Seaports using Data Envelopment Analysis (DEA)

Abstract

As shipping medium has been the primary choice of many international companies to transport imported and exported goods, seaports play important role in providing the commercial facilities for the ships to load and discharge cargo. Service efficiency of ports in Malaysia needs to be evaluated in order to know their status and position for business survival. The efficiency will reflect the input utilization of resource in relation to the output service. The main objective of this research is to measure the service efficiency of five selected ports in Malaysia. The other objective is to rank the ports based on their efficiency level. Finally, this research aimed to propose some improvement strategies to maximize the service efficiency of the selected ports in Malaysia. The performance of the ports is measured using the method of Data Envelopment Analysis (DEA) and solved using QM For Windows software. Basically, DEA is chosen because it is a non-parametric method that can measure the efficiency with the use of multiple inputs and multiple outputs. The finding of the research shows that the efficiency of all five ports is above 90%, in which Port P3 has the lowest efficiency which is only 92.42%.