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On balancing supply chain efficiency and environmental impacts: An eco-DEA model applied to the dry port sector of India

Author

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  • Hercules Haralambides

    (Centre for Maritime Economics and Logistics, Erasmus University Rotterdam, the Netherlands.)

  • Girish Gujar

    (Centre for Maritime Economics and Logistics, Erasmus University Rotterdam, the Netherlands.)

Abstract

Indian dry ports (inland cargo-consolidation and distribution centres) are expected to play a pivotal role in connecting the North Indian heartland with the gateway seaports of Mundra, JNPT and Chennai. However, in this process, dry ports contribute considerably to the vexing problem of atmospheric pollution because of the ensuing road and rail transportation. There is a considerable body of research on the socially undesirable side effects of production, for instance in sectors such as manufacturing and transport. In spite of this, the standard methods so far employed in the analysis of port efficiency and productivity, notably data envelopment analysis (DEA), have failed to address and internalize the economic ramifications of transport externalities. In this article, a comparative study of the typical DEA models is undertaken, in an effort to illustrate the problem at hand. A new eco-DEA model is proposed that simultaneously evaluates both the undesirable and the desirable outputs of port service production. The model is applied to evaluate dry port efficiency, while taking into account the CO2 emissions caused by the transport of containers from dry ports, located in the North Capital Region of India, to the various gateway (coastal) ports. The results reveal that efficiency evaluations are significantly altered once environmental aspects are factored in to the model. The methodology proposed here can be easily transferred to any other industrial sector where environmental concerns are becoming an issue.

Suggested Citation

  • Hercules Haralambides & Girish Gujar, 2012. "On balancing supply chain efficiency and environmental impacts: An eco-DEA model applied to the dry port sector of India," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 14(1), pages 122-137, March.
    • Handle: RePEc:pal:marecl:v:14:y:2012:i:1:p:122-137
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    Citations

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    Cited by:

    1. Sueyoshi, Toshiyuki & Yuan, Yan & Goto, Mika, 2017. "A literature study for DEA applied to energy and environment," Energy Economics, Elsevier, vol. 62(C), pages 104-124.
    2. Kangsik Choi & Seonyoung Lim, 2018. "Tariff protection and port privatization: An import-competing approach," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 20(2), pages 228-252, June.
    3. Behzad Behdani & Bart Wiegmans & Violeta Roso & Hercules Haralambides, 2020. "Port-hinterland transport and logistics: emerging trends and frontier research," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(1), pages 1-25, March.
    4. Chang, Zheng & Yang, Dong & Wan, Yulai & Han, Tingting, 2019. "Analysis on the features of Chinese dry ports: Ownership, customs service, rail service and regional competition," Transport Policy, Elsevier, vol. 82(C), pages 107-116.
    5. de Almeida Rodrigues, Thiago & Maria de Miranda Mota, Caroline & Manuele dos Santos, Inez, 2021. "Determining dry port criteria that support decision making," Research in Transportation Economics, Elsevier, vol. 88(C).
    6. Yang Lin & Longzhong Yan & Ying-Ming Wang, 2019. "Performance Evaluation and Investment Analysis for Container Port Sustainable Development in China: An Inverse DEA Approach," Sustainability, MDPI, vol. 11(17), pages 1-13, August.
    7. Jagan Jeevan & Shu-Ling Chen & Stephen Cahoon, 2018. "Determining the influential factors of dry port operations: worldwide experiences and empirical evidence from Malaysia," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 20(3), pages 476-494, September.
    8. Wan, Shulin & Luan, Weixin & Chen, Yuying & Lin, Qiaoqiao, 2022. "Influence of dry ports construction on seaport growth: Case of Ningbo Zhoushan Port," Transport Policy, Elsevier, vol. 117(C), pages 40-47.
    9. Samet Güner, 2018. "Incorporating value judgments into port efficiency measurement models: insights from Turkish ports," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 20(4), pages 569-586, December.
    10. Sun, Jiasen & Yuan, Yang & Yang, Rui & Ji, Xiang & Wu, Jie, 2017. "Performance evaluation of Chinese port enterprises under significant environmental concerns: An extended DEA-based analysis," Transport Policy, Elsevier, vol. 60(C), pages 75-86.
    11. Congcong Yang & Alfred Taudes & Guozhi Dong, 2017. "Efficiency analysis of European Freight Villages: three peers for benchmarking," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 25(1), pages 91-122, March.
    12. Felix Kin Peng Hui & Lu Aye & Colin F. Duffield, 2019. "Engaging Employees with Good Sustainability: Key Performance Indicators for Dry Ports," Sustainability, MDPI, vol. 11(10), pages 1-11, May.
    13. Song, Yao-yao & Li, Jing-jing & Wang, Jin-li & Yang, Guo-liang & Chen, Zhenling, 2022. "Eco-efficiency of Chinese transportation industry: A DEA approach with non-discretionary input," Socio-Economic Planning Sciences, Elsevier, vol. 84(C).
    14. Haralambides, Hercules & Gujar, Girish, 2011. "The Indian dry ports sector, pricing policies and opportunities for public-private partnerships," Research in Transportation Economics, Elsevier, vol. 33(1), pages 51-58.
    15. Jie Liu & Chunhui Yuan & Xiaolong Li, 2019. "The Environmental Assessment on Chinese Logistics Enterprises Based on Non-Radial DEA," Energies, MDPI, vol. 12(24), pages 1-18, December.
    16. Alena Khaslavskaya & Violeta Roso, 2020. "Dry ports: research outcomes, trends, and future implications," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(2), pages 265-292, June.
    17. Qiang Cui, 2017. "Environmental efficiency measures for ports: an application of RAM-Tobit-RAM with undesirable outputs," Maritime Policy & Management, Taylor & Francis Journals, vol. 44(5), pages 551-564, July.
    18. Longaray, André Andrade & Ensslin, Leonardo & Dutra, Ademar & Ensslin, Sandra & Brasil, Ricardo & Munhoz, Paulo, 2019. "Using MCDA-C to assess the organizational performance of industries operating at Brazilian maritime port terminals," Operations Research Perspectives, Elsevier, vol. 6(C).
    19. Alena Khaslavskaya & Violeta Roso, 2019. "Outcome-Driven Supply Chain Perspective on Dry Ports," Sustainability, MDPI, vol. 11(5), pages 1-14, March.

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