The Efficiency of Norwegian Ferries in Providing Public Transport Services

The authors use a data envelopment analysis (DEA) model, applicable to all forms of land transportation, to demonstrate the performance evaluation and improvement of ferries serving the road network in Norway. A fairly high efficiency improvement potential is indicated for the sector, since efficiency improvement potential for the average Norwegian ferry is about 25 percent. Study findings have policy implications since they allow decision makers to grasp the magnitude of potential sector efficiency gains, important since a move towards tendering currently is being considered by the Norwegian government. Reducing government spending should be a key aim, since the government subsidized all Norwegian ferries studied. Key conditions and factors (variables) that cause inefficiency, as well as ways to deal with them, can be identified after communicating DEA analysis results to ferry subsidizers and operators. In a second DEA assessment round, such factors could be included once identified. Conducting a DEA assessment where the actual production process - the inputs and outputs - are agreed on by all involved parties is the ultimate aim then.