ABSTRACT

This chapter aims to empirically estimate the productive efficiency of a sample set of container terminals in Korea and the UK. It examines the efficiency of the terminal operating companies based on both cross-sectional data and panel data based on the econometric frontier model. A conceptual or theoretical model is required to be transformed into a more realistic model for the purpose of empirical analysis. The procedure of operationalisation involves the final step of preparing and processing the data needed to undertake the empirical analysis together with the final specification of the model and the assumptions upon which it is based. The data used in this research has been extracted from the annual reports and financial accounts published by each container terminal. The cross-sectional and panel observations on outputs and inputs for each terminal are established in terms of various terminal attributes.