Re-Examining the Sources of Inefficiency in Hub's European Ports

Abstract

European ports now face the challenge of handling significant international traffic. Ports need to improve their operating efficiency because of their limited logistics capacity. We employ a non-parametric approach by using the Generalised Method of Moments (GMM), based on data envelopment analysis, to evaluate and compare the performance of European ports. Data from 30 European HUB ports from 2005 to 2019 are included in our study. According to the findings, port development is essential to the prosperity of European ports because it boosts economic growth, particularly in those without container traffic, and it has a significant impact on the major economic sectors by influencing them to address port inefficiencies. By concentrating on fixing inefficiencies, ports with little container traffic can nevertheless be very important. Despite their low direct throughput, these ports can boost economic activity in other sectors with effective administration and expansion.