Established Slack-Based Measure in Container Terminal for Risk Assessment

Abstract

Container terminal is a dynamic interface worldwide. It portrays national capability in trading with outsider via seaborne. This research aims at measuring operational risk within container terminal besides its efficiency. By means of identify and apply DEA technique towards operationalisation of supply chain and risk, this research is providing final outcome with no adjusted risk rank order of decision-making unit (DMU). A panel data from 6 container terminals in Peninsular Malaysia are retrieved from 2003 until 2010. In turn, 8 years of data with 6 terminals resulting 48 container terminal DMUs. Slacks-Based Measure (SBM) and Super Slacks-Based Measure (SSBM) are used for risk solution. The findings of the research express efficiency based on the allocation of resources must be optimised to achieve optimum outcome. SBM and SSBM findings indicate that no adjusted risks are significantly related with size, planning, equipment and volume of cargoes. This is critical as container segments give a significant contribution to terminal operators. In addition, container terminal is competitive industry, as Malaysia is competing not only with neighbouring countries but also with Asian countries in particular and the world in general.