The Development of a Port Performance Measurement System: With Reference to Damietta Port, Egypt

Ports compete through providing high quality services at the right price. Ports require reliable performance measurement systems so that their daily operations can be effectively managed, their port assets efficiently utilised, and cargo dwell and standing times minimised. Port performance studies have been approached from strategic, operational, functional, financial and managerial perspectives. Findings in the literature have concluded that the measurement systems currently used are limited because the focus is on measuring efficiency, especially for containerised cargo and terminals. Often, key variables have been ignored and there is focus on improving productivity rather than performance. This research addresses the issue of how current performance measurement systems can be developed to measure the performance of ports more effectively.

The research has been designed to contribute to knowledge through conceptualising the needs of developing effective measurement systems in ports by using relevant measures and quantifying those key predictors that influence a port’s performance. Quantitative methods are traditionally used for assessing port performance. This research commences with a discussion of supply chain performance measurement systems in relation to ports. It investigates different supply chain measurement designs, categories and characteristics within each category and examines the effectiveness of the current measurement system applied in Damietta port, Egypt. Findings show that Damietta port currently has no formal measurement system and would benefit from the implementation of a performance measurement system. Data have been collected according to the four types of handled cargoes in Damietta port, namely general cargo, dry bulk, liquid bulk and containers. Data have been collected on a monthly basis. For each type of cargo, data have been edited and keyed and a categorisation scheme has been set up to cover those operations at terminals. The Damietta Port Performance Measurement System (DAPEMS) has been developed using three measures, including: time, revenue and flexibility measures. Initially the system was developed using time measures, where key determinants were discussed and multiple regression analyses applied. Relevant predictor variables were selected and incorporated into the regression models with varying degrees of significance. Following this, DAPEMS has been extended using revenue measures, where revenues resulted from operations time, clearance time and the time a ship stays in a port. The final measure considered was flexibility. This helps to cope with the complexity of operations and uncertainty at ports. DAPEMS has been tested for two months in Damietta Port. In addition, the system’s features, including: reliability, applicability and flexibility have been analysed. The system was tested for two months at Damietta port. The port managers reported the benefits of using DAPEMS as there is no system currently applied in the port. Using additional variables, understanding the relationship between variables, providing information about port revenue and providing managers with estimated future performance were appreciated by the port director and a top manager as this helps them and the port planners in a decision-making process. It is concluded that applying DAPEMS was highly appreciated for providing useful visibility about the port's performance. However, some limitations are addressed and suggestions are proposed to be carried out for future research.