• Journal of Korea Port Economic Association
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• v.25 no.3
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• pp.139-164
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• 2009

The purpose of this paper is to investigate the value chain efficiency of Korean port investment by using the newly developed multi-year and multi-stage value chain efficiency model of DEA(Data Envelopment Analysis). Inputs[port investment amount, cargo handling capacity, and berthing capacity], and outputs[cargo handling amount, number of ship calls, revenue, and score of customer service satisfaction] are used during 14 years(1994-2007) for 20 Korean seaports by using two kinds of DEA models. Empirical main results are as follows: First, Model 1 shows that the ranking order of multi-stage value chain efficiency is Stage 2, Stage 3-1, Stage 1, and Stage 3-2. And according to the value chain average efficiency scores, ranking order is stages 2, 1, 3-1, and 3-2. In Model 2, 3(Incheon, Mogpo, and Jeju) out of 9 ports show the ranking order of Stages 2, 3-2, 3-1, and 1. And value chain average efficiency scores rank in order of Stages 2, 3-2, 3-1, and 1. Second, the difference among the value chain efficiency scores of each stage comes from the efficiency deterioration of all ports except Stages 2 and 1 in Model 1. In Model 2, value chain efficiency scores among the Stages 3-1, 3-2 compared to Stage 1 were deteriorated. The main policy implication based on the findings of this study is that the manager of port investment and management of Ministry of Land, Transport and Maritime Affairs in Korea should introduce the multi-year, multi-stage value chain efficiency method for deciding the port investment amount and evaluating the effect of port investment after considering the empirical results of this paper carefully.