The effects of poor port performance on a country’s trade have become too obvious. According to Thomas and Monie (2000), ports and terminals must measure their performance. The measurement of port or terminal efficiency is of particular importance because they are vital to the economy of the country and to the success and welfare of its industries and citizens. There are many reasons why a port or terminal needs to measure its performance:
• First, it needs to know how effectively it is operating. How much cargo it handles every day? How many customers does it serve in a week?
• Next, it must know how efficiently it is operating. What resources (in terms of people, machines, surface area etc) does it take to carry out its activities? How much cargo does it handle per employee? How much does it cost to handle each tones of cargo?
• It needs to know how its present performance compares with past performance. Is it handling more cargo per employee or machine than last year? Is there any improvement in efficiency?
• Any business needs targets, and must compare its performance with those targets. Has the port or terminal achieved the production targets set at the beginning of the year? Has it beaten its traffic targets?
• It is important for a port or terminal to compare its performance with that of its competitors, particularly relevant with the use of benchmarking. Where is it in the league table of best in class of similar businesses? Is it climbing that table or falling behind.
• In the light of its present performance, it needs to adjust its targets for future periods. How much better in terms of effectiveness and efficiency should the company be by the end of the next trading year.
• Finally, there is the need to promote its business and to attract new customers, so it must constantly monitor how satisfied its customers are with its services and facilities.
The effects of poor port performance on a country’s trade have become too obvious. According to Thomas and Monie (2000), ports and terminals must measure their performance. The measurement of port or terminal efficiency is of particular importance because they are vital to the economy of the country and to the success and welfare of its industries and citizens. There are many reasons why a port or terminal needs to measure its performance:• First, it needs to know how effectively it is operating. How much cargo it handles every day? How many customers does it serve in a week?• Next, it must know how efficiently it is operating. What resources (in terms of people, machines, surface area etc) does it take to carry out its activities? How much cargo does it handle per employee? How much does it cost to handle each tones of cargo?• It needs to know how its present performance compares with past performance. Is it handling more cargo per employee or machine than last year? Is there any improvement in efficiency?• Any business needs targets, and must compare its performance with those targets. Has the port or terminal achieved the production targets set at the beginning of the year? Has it beaten its traffic targets?• It is important for a port or terminal to compare its performance with that of its competitors, particularly relevant with the use of benchmarking. Where is it in the league table of best in class of similar businesses? Is it climbing that table or falling behind.• In the light of its present performance, it needs to adjust its targets for future periods. How much better in terms of effectiveness and efficiency should the company be by the end of the next trading year.
• Finally, there is the need to promote its business and to attract new customers, so it must constantly monitor how satisfied its customers are with its services and facilities.
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