An analysis of the efficiency of italian cruise terminals

Abstract

There has recently been considerable growth in the cruise industry, with an increasingly competitive position being gained by the Mediterranean Basin, particularly the Italian area. Possible partnerships between private and public entities (cruise line companies, cruise terminals, and port authorities) play a significant role in cruise terminal operational efficiency and performance levels and investment and management decisions. This study was designed to measure Italian cruise terminals in the Mediterranean Basin in terms of technical efficiency when terminal management is undertaken by public and private entities. Production calculation with multi-outputs is used to measure cruise terminal efficiency. The authors apply distance function-based stochastic frontier analysis. The study demonstrates the positive impact that public-private partnerships (with strong private management components) have on cruise terminal technical efficiency.