The performance and input congestion of 19 listed port companies in China

Abstract

In the highly competitive environment of the global port industry, performance measurement is a powerful management tool for port operators, and input congestion is one key factor affecting performance. Our research offers reference information for optimizing resource allocation, reducing input congestion, and enhancing the competitiveness of Chinese port companies. We extend the basic WY-TS (Wan and Yan, 2004; Tone and Sahoo, 2004) method to a dynamic two-stage model that considers undesirable outputs, marking the first application of the stage input congestion method across multiple decision-making units. Our study yields the following findings. First, only Nanjing Port and Yantian Port are consistently efficient throughout the study period, and sustainability is currently the most significant barrier to improving overall performance for Chinese port companies. Second, input congestion is primarily observed in large enterprises. We believe that the pursuit of economies of scale does not apply to all inefficient companies. For large enterprises, scientific formulation of expansion strategies is more important. Third, port companies in Jiangsu, Guangdong, Guangxi, and Hebei experience more severe labor congestion, while those in northern provinces face more significant energy congestion. Fourth, the efficiency of Chinese port companies in transitioning from production to profitability and sustainability is low, exhibiting overcapacity. Fifth, the aggravating impact of the COVID-19 pandemic on input congestion and production efficiency in Chinese port companies showed a delay. Based on these findings, this paper presents specific recommendations for optimizing resource allocation in port companies.