Vista Analysis contributes to a new research article on port efficiency and optimal capital utilization

Vista Analysis has contributed to the new scientific publication titled "Nonparametric estimation of allocative efficiency using indirect production theory: Application to container ports in Norway". The article is published in the acknowledged Springer journal "Journal of Productivity Analysis." It sheds light on the optimal and actual capital composition in Norwegian container ports, including the composition of quay cranes, cargo handling equipment, quay length, and port areas.

“The study demonstrates Vista's solid expertise in efficiency analysis, fixed capital, and the maritime sector. We are pleased to further delve into port efficiency with solid co-authors”, says partner Rasmus Bøgh Holmen, who has represented Vista Analysis in the study.

The article is written in collaboration with Halvor Schøyen at the University of South-Eastern Norway, Kenneth Løvold Rødseth at the Institute of Transport Economics, and Timo Kuosmanen at the University of Tartu.

“The study has practical implications for Norwegian port management. Among other things, we show that port areas and quay length are limiting factors for the efficiency of Kristiansand container port but to a lesser extent for the other major Norwegian container ports”, Holmen notes.

For those technically interested, it can be mentioned that the researchers in the study use the efficiency estimation procedure “StoNED” (“Stochastic Nonparametric Envelopment of Data”), which allows both non-parametric technology front and stochastic residual. In the study, the researchers integrate new elements into the StoNED framework, including the measurement of allocative efficiency based on indirect production theory and capital services based on the literature on real capital measurement.

The article may be downloaded here.

The study is one of several conducted by researchers on port efficiency. Previously, the researchers have published an article on how market access by land and sea affects port efficiency and how market access can best be measured through instrumentation. The researchers also have an article on measurement challenges associated with the mutual dependency relationship between capital and production in port efficiency analyses in the peer review process.