In this paper, an attempt has been made to measure the operational efficiency of major Indian ports during the period 1993-2011 by employing Data Envelopment Analysis (DEA) models. It was hypothesized that size is not a determinant factor of port efficiency. Based on the empirical results, the operational efficiency of both the bigger ports like JNPT, Mormugao and Kandla as well as of the smaller ports like, Ennore and Tuticorin was observed. Hence, the general notion that size contributes to the operational advantage gets negated as it is seen that efficiency does not depend on size. Further, about 44.13% of the ports were found exhibiting increasing returns to scale, which indicates that these ports need to increase their scale of operations via expansion or internal growth and by building alliances, while 11.73% of ports were found exhibiting decreasing returns to scale, indicating that these ports should decrease their scale of operations by giving up some of the terminal assets and operational functions to other specialized private entities in order to improve their overall efficiency.

Since a majority of the goods traded are transported through sea, seaborne transport services have drawn the attention of almost every country in the world. Seaborne trade, except for those countries which are totally bound by land on all the sides, contributes significantly to the economic development of the country. Seaborne trade is the backbone of development for many countries (Cullinane et al., 2002), as it accounts for almost 77% of the total volume of world trade, while a mere 16% of tradable goods are transported over land, 6.7% through pipeline and only 0.3% through air (Loyds, 2007). In the seaborne trade, a majority of the goods are transported through containerization and bulk cargo (Galhena, 2008). Hence, the performance of ports, more specifically in terms of container traffic, can indicate how the seaborne trade is being transacted. This calls for the assessment of the performance of the seaports. The measurement of efficiency with the help of sophisticated analytical techniques can help the authorities to identify the areas that need improvement, so that in the face of increased competition corrective steps can be taken for improved efficiency, thereby making it possible to face the competition with greater ability. Against this backdrop, the present paper attempts to measure the operational efficiency of major Indian ports during the period 1993 -2011 by employing Data Envelopment Analysis (DEA) models.

Operations Management Journal, Influence, Operational Efficiency, Major Ports of India, Data Envelopment Analysis (DEA), Decision-Making Units (DMUs).