ASSESSMENT OF MARITIME LOGISTICS EFFICIENCY IN COASTAL STATES THROUGH DATA ENVELOPMENT ANALYSIS

Abstract

Purpose- Coastal countries are in an advantageous position compared with landlocked countries in terms of logistics costs and transit times. However, for both the efficient functioning of global transport systems and the competitiveness of coastal countries, it is also important to consider whether this geographical advantage is being effectively exploited. Accordingly, this study analyses the relative efficiency of coastal countries in translating their logistics infrastructure and their logistics competence and service quality into maritime connectivity. Methodology- The study employs a constant returns to scale Data Envelopment Analysis (CCR-DEA) model configured for output maximization. The Infrastructure Score and the Logistics Competence and Quality Score, which are components of the Logistics Performance Index (LPI), are used as model inputs. The Liner Shipping Connectivity Index (LSCI), representing maritime connectivity, is used as the model output. Findings- The findings indicate that, within the sample, China has the highest efficiency and that East and South Asian countries exhibit higher efficiency levels compared with other regions. The relatively low maritime connectivity efficiency of the Nordic and Baltic countries can be explained by the fact that their hinterlands are very well connected to the major Northern European hubs. Moreover, deep-sea liner services avoid additional sea legs and prefer ports in the Le Havre-Hamburg range. Conclusion- The study evaluates the relative efficiency of 92 coastal countries within the framework of an output-oriented DEA model configured with LSCI as the output. East and South Asian countries exhibit higher efficiency levels compared with other countries. Sri Lanka, in particular, attains a high level of maritime connectivity despite having below-average input levels. The findings indicate that maritime connectivity is influenced by factors such as geographical location, beyond logistics infrastructure and logistics competence and service quality.