Since the terrorist attacks in the USA in September 2001, several regulations have been
introduced with a special emphasis on the security of containerised port operations.
Global security measures specifically targeting container-port operations include the
International Ship and Port Facility Security (ISPS) code, the Container Security
Initiative (CSI), and the 24-hour Advance Vessel Manifest Rule (the 24-hour rule).
Nevertheless, no attempt has been made to-date to investigate the ex-post impacts of
security on the operational efficiency of container ports and terminals. This PhD
research seeks to adopt an approach that incorporates within an analytical framework
the association of security with operational efficiency, tools for modelling procedural
security, and techniques for benchmarking container-port efficiency. A panel data set of
39 ports and 60 container terminals from 2000 until 2006 is used resulting into 420
container-terminal decision-making units (DMUs).
In order to account equally for container terminal operational configurations and the
multi-input/ multi-output nature of container port production, we apply both process
modelling and analytical benchmarking techniques. These are the Integrated Computer
Aided Manufacturing Definition (IDEF0) for operational and security modelling, and
Data Envelopment Analysis (DEA) for efficiency measurement and benchmarking.
Based on the results of IDEF0 modelling, we disaggregate container-port operations by
terminal sites (quay, yard and gate) and spatial scope of security and apply alternative
DEA models to analyse (i) the operational impact of individual and aggregate security
regulations and (ii) the influence of operating and exogenous factors on port efficiency.
We then estimate a Malmquist productivity index (MPI) to measure and decompose
productivity changes following the introduction of new security measures.
The results of the research confirm that both handling configurations and operating
procedures have a direct effect on container terminal’s productive efficiency. The
analysis of the impact of security on operational efficiency shows that the latter varies
greatly by security regulation and terminal group but there is evidence of generalised
productivity gains from the technological progress prompted by investments in the new
security technology. More importantly, the implementation of the new port security
measures revealed several inherent logistical inefficiencies especially in the way
terminal policies and work procedures are being designed, operated, and managed.