Efficiency and Productivity Change Analysis of Major Seaports in New Zealand

Abstract

New Zealand has a geographical position as the logistics hub of Latin America, and its logistics industry is important due to its high dependence on imports and exports. As about 90% of New Zealand's shipments are made by sea, sea transport plays a large role in national distribution of cargo as well as import and export of goods. However, as supply chains between New Zealand and China have become more tighter, the Covid pandemic has caused significant disruption to New Zealand's trade. It has also caused heavier regulation and procedures of import and export, severe lack of internal and external resources and higher volatility of global supply chain. Therefore, this study evaluated comparative operational efficiencies of 11 major ports in New Zealand by using DEA and MPI. Total equity and liabilities were selected as inputs and revenue and gross profit as outputs. It examined the current state of New Zealand ports' performance operations by evaluating port operational efficiency in 2019 and 2020 and performed trend analysis on financial productivity of 11 ports for 9 years from 2012 to 2020. This study aims to enhance competitiveness of New Zealand's logistics industry and to revitalize the main ports.