For all these reasons, it is vital that port/terminal managers
measure its performance, set performance targets, and then
regularly assess its performance against those targets.
1. MEASURING PORT PERFORMANCE
Understanding performance is a concept fundamental to
any business, whether it is the measuring of achievements against
set goals and objectives or, against the competition. Ports are no
exception and it is only by comparison that performance can be
evaluated. Ports are, however, a complex business with many
different sources of inputs and outputs which make direct
comparison among apparently homogeneous ports seem difficult
(Valentine and Gray, 2002).
The port industry like any other industry measures its
performance. Such measurement has been focused on productivity
indicators. Performance appraisal is a requirement for the
development of any economic activity and the literature offers
different definitions of performance (Marlow and Casaca, 2003).
Mentzer and Konrad (1991) define performance as an investigation
of effectiveness and efficiency in the accomplishment of a given
activity and where the assessment is carried out in relation to how
well the objectives have been met.
UNCTAD (1999) suggests two categories of port
performance indicators: macro performance indicators quantifying
aggregate port impacts on economic activity, and micro
performance indicators evaluating input/output ratio measurements
of port operations (Bichou and Gray, 2004).
For all these reasons, it is vital that port/terminal managers measure its performance, set performance targets, and then regularly assess its performance against those targets. 1. MEASURING PORT PERFORMANCE Understanding performance is a concept fundamental to any business, whether it is the measuring of achievements against set goals and objectives or, against the competition. Ports are no exception and it is only by comparison that performance can be evaluated. Ports are, however, a complex business with many different sources of inputs and outputs which make direct comparison among apparently homogeneous ports seem difficult (Valentine and Gray, 2002). The port industry like any other industry measures its performance. Such measurement has been focused on productivity indicators. Performance appraisal is a requirement for the development of any economic activity and the literature offers different definitions of performance (Marlow and Casaca, 2003). Mentzer and Konrad (1991) define performance as an investigation of effectiveness and efficiency in the accomplishment of a given activity and where the assessment is carried out in relation to how well the objectives have been met. UNCTAD (1999) suggests two categories of port performance indicators: macro performance indicators quantifying aggregate port impacts on economic activity, and micro performance indicators evaluating input/output ratio measurements of port operations (Bichou and Gray, 2004).
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