Physical infrastructure and shipment consolidation efficiency drivers in Brazilian ports: A two-stage network-DEA approach

• In this paper, efficiency in Brazilian ports is measured using a two-stage DEA model.
• Results indicate that efficiency drivers impact these productive stages differently.
• Private administration exerts positive impact on physical infrastructure efficiency.
• Hinterland size and cargo diversity have positive impact on consolidation efficiency.

Port efficiency has been widely studied using standard DEA (Data Envelopment Analysis) models and its variations. As a matter of fact, these models do not account for the internal structure relative to measures characterizing port operations performance. In this paper, efficiency in Brazilian ports is measured using a two-stage process. In the first stage, called physical infrastructure efficiency, assets (number of berths, warehousing area, and yard area) are used to accomplish a certain shipment frequency per year. In the second stage, called shipment consolidation efficiency, these movements allow solid bulk and containerized cargoes to be handled. The network-DEA centralized efficiency model is adopted here to optimize both stages simultaneously. Results indicate that a private administration exerts a positive impact on physical infrastructure efficiency levels, while the hinterland size and the operation of both types of cargoes have a positive impact on shipment consolidation efficiency levels. Policy implications for the new regulatory framework on the Brazilian port sector are also derived.