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APM TERMINALS
(MAGNUM 8)
DIPLOMA IN TERMINAL
MANAGEMENT
UNIT 2
Performance Indicators
AUTHOR
Lloyd’s and the Lloyd’s crest are the registered trademarks of the society incorporated by the Lloyd’s Act 1871 by the name of Lloyd’s.
CONTENTS
Page No.
1. INTRODUCTION 5
8. CONCLUSION 43
Learning Outcomes
1.1 INTRODUCTION
2-002 The efficiency of a terminal is important because the cost of the ships
and the goods at ports determine a major part of the maritime transport
chain.
2-003 In many situations two-thirds of the total maritime costs can be incurred
in ports, mainly through:
• wharfage;
• handling; and
• storage operations.
2-004 However, costs not only include the port and terminal dues and the price
invoiced by agents for the operations, but also the time in ports and the
quality of services.
2-005 This means that the responsibility of the manager of the port or terminal
is to deliver:
2-006 Despite the fact that more and more ports all over the world have engaged
in a process of privatisation, the port authority (which usually, but not
always, remains a government function) is involved in the control of
efficiency because the survival of the port in a competitive market, or
in the case of the economy of a country where there is a monopoly, is
determined by this.
2-007 Whatever the status of the port, the operator and/or the port authority
must have objective information on the actual situation on which to base
decisions.
2-008 For this reason, it is important to create tools to continually measure the
evolving situation at the port or terminal, to assess performance and
enable timely decisions to improve productivity, heighten service levels,
heighten safety and inform investment decisions – these tools are the
performance indicators.
1.2 DEFINITIONS
Physical Performance
Financial Performance
Quality performance
2-014 From the above, it is clear that the quality of the indicators depends on
the reliability of the information.
2-015 The description of the indicators should therefore be linked with the kind
of information we need and the problems we may meet when collecting
the data. These indicators exist for all the operations and for any kind
of cargo or yard.
2-016 Though a port is a whole, when analysing the efficiency of a port we are
obliged to separate the activities and measure their efficiency separately
to determine the strengths and the weaknesses of the port.
When a ship approaches a port, the master calls the port authority
to make them aware of the arrival time and to get a pilot. The
ship may wait for many reasons such as high tide, absence of a
pilot or no availability of berth inside the port.
Consist of handling the cargo on and off the ship with or without
quay cranes. The period when the ship is berthed is named:
- “service time”; or
- “time at berth”.
Consist of moving the cargo from the quay side to the storage
area and stacking the cargo (and vice-versa).
• Delivery Operations
2-020 Finally, as the unit is written from a global perspective covering all ports
and terminals (and major cargo types), the unit ends with a focus on
APM Terminals. Specific ports and terminals and associated port and
terminal operating companies (or just about any other company) will
have developed their own key performance indicators (KPIs) that they
use to measure and compare efficiency of operations and to maximise
efficiency, and APM Terminals is no different in this.
Section 8 Conclusion
Learning Outcomes
2-022 The berths serve the ships. The first function of a port is to receive ships
and provide them with services, such as:
• shelter;
• piloting;
• tugging; and
• mooring facilities.
2-023 The performance indicators for the berth are mainly necessary for the
planning departments and for the harbour master or in a container
terminal the berth planner who is in charge of locating the ships.
2-024 A lack of berths results in waiting time for the ships but an over-capacity of
berths is a waste of capital. Therefore, the output, service and utilisation
ratios are explained in this section from the planning and the commercial
aspects.
2-025 The berth output indicators are very useful for the terminal planner
because they show the evolution of the performance of each berth and
determine the terminal capacity.
2.1.1 Definition
2-026 The berth throughput indicator (BT) is the total number of units or tonnes
handled on one berth or per berth metre in a stated period (usually a
year). The formula of the berth throughput indicator (BT) depends on
the type of cargo:
2-027 The general statistic tables of the port are the main source. The harbour
master also gives information on the berth where the ship is operated.
It is generally available in all ports, but it is necessary to carefully check
the following difficulties that are encountered when we analyse the actual
situation:
Containers
Tonnes
2-030 Each commodity has a ratio volume/weight. The average ratio for break
bulk general cargo is 3. If the ratio of a commodity is > 3, the data is
in cubic metre (tariff advantage). If the ratio is < 3, then the data is in
tonnes. The manifest of the cargo indicates this figure.
Vehicles
Berth
2-032 The berth must be identified. The simple case is one ship for one berth
but there are many other cases, such as:
• Ports are not homogeneous. There are berths of 50, 100, 150, 200,
250 or 350 metres or other lengths according to the traffic they
are dedicated to or according to the date of their construction.
Double Counting
• shifting from one hold to the other (via the quay only) is counted
twice.
Or
2-036 The service indicators are useful for the shipowners and the shippers
because the turn-around time ships spend in ports is paid by the ship
owner and also by the shipper (especially in the case of chartered ships
because he has to pay demurrage).
2.2.1 Definitions
2-037 The turnaround time, or also named “time in port”, is the time spent in
the port by all the vessels calling in a specific period.
2-038 Figure 1 below shows the different components of the turnaround time
manoeuvring.
Figure 1
2-039 The delay between the ship’s arrival in port (usually at the entrance buoy)
and the start of the manoeuvring to the berth.
2-040 The delay for manoeuvring the ship between the entrance and the tying
operation at the berth.
2-041 The time the ship stays berthed (between the berthing and the departure
time).
2-042 During the stay of the ship along the berth, handling operations might
be interrupted for many reasons such as an equipment failure, weather
conditions, lunch break, lack of co-ordination between land and ship operations
or because the working hours exclude night hours. Usually, larger container
terminals work 24 hours a day, seven days a week. This is not the case in
small terminals or ports or in general cargo terminals. For this reason, service
time is often long as, when handling big shiploads that take more than 12 or
15 hours, ships are obliged to stay at least one night.
2-043 The period when the ship is not operated is named “idle time”. Therefore,
the service time consists of worked or productive time and idle time.
Idle
Productive
Hours
Hours
Figure 2
∑ Productive hours
Average productive ratio % = x 100
∑ Service hours
2-045 The time that the ship spends in the port from arrival to departure after
leaving the borders of the port:
WT + MT + ST
Average PT =
Total number of ships
∑ WT
Average grade of waiting % = x 100
∑ ST
2-047 Indeed, the comparison of the waiting time with the service time provides
good information about what is acceptable for the shipowners. For ro-
ro and container vessels, shipowners usually do not accept any waiting
time because the daily operating cost of their ship is very high and they
do not want to loose time in ports. For bulk and general cargo vessels
they will usually accept a 10% rate. Beyond this rate, they consider the
port as a low quality one. It is the same for idle time that hinders the
total service time. Too high idle time results in long service time, which
means low efficiency of ports.
2-048 It can be calculated for a specific berth or terminal or calculated for the
whole port or for a type of vessels as well.
2-049 The sources of information for calculating such indicators are generally
the office of the harbour master. This office registers:
• the date, hour and minute of the arrival of the ships to where the
pilot is awaiting;
• the date and time when the ship leaves the berth;
2-050 When looking at the data, you will have to be aware of some difficulties
that you will encounter often:
• Berth
• Time
The best and easiest way to correctly register the types and sizes
of the ships is to link the database of the port with the database
of the Lloyd’s Marine Intelligence Unit.
• estuary port;
• tide time;
• locks; and
• weather.
• port congestion;
• unavailability of berths;
2-052 Berth utilisation indicators indicate the actual intensity of the use of the
berths.
2.3.1 Definitions
2-054 Berth occupancy shows the level of demand for services and is described,
defined and calculated in two different ways depending on the types of
terminals/cargo
Container Terminals
2-055 Berth occupancy ratio figures give an indication of available berth metres
with present shipping lines calling at the terminal. The figure gives a
possibility to compare terminals and can describe how important the
different schedules are for the berth utilisation. It should be noted
that berth occupancy cannot be used as a decision base for adding new
customers or changing services, but the actual schedule has to be studied
before any changes to the present schedule can be considered.
Definition
Where:
Berth metres service hours is the sum of all the berth metre hours for all
vessel calls during the given time period (one year, one month, one week).
Berth metre service hours for a given vessel call is calculated as:
Calculation
Multipurpose Quays
2-057 The problem is different for multipurpose quays because the arrivals of
trampers and general cargo are more irregular; the schedule is more
flexible and it is difficult to manage such quays with a tight schedule.
Description
2-058 The berth occupancy ratio shows the level of demand for services,
compare with the availability of the infrastructure (supply).
Calculation
Where:
∑ Service time is the sum of ship hours spent at berth for all the calls
during a given period.
2-059 It can be calculated for a specific berth or terminal or calculated for the
whole port or for type of vessels as well. The use is to calculate the
berth occupancy ratio per terminal.
2-060 We can see that the method of calculation is different because the capacity
of container terminals is calculated per metre length. The regularity and
respect of the schedules enable tight use of the terminal. The regularity
of arrivals minimises the probability to have a space at berth occupied
when a ship arrives. On the opposite, in multipurpose, multi users quays,
the irregularity of ship arrivals results in uncertainty, and maximises the
probability to find a berth occupied when a new ship arrives. It is one
major reason to calculate the occupancy per berth and not per metre as
for the container terminals.
2-061 This shows the number of hours that the ships are effectively operated.
It gives an indication about the quality of services to ships. The formula
is:
∑ Productive hours
Berth productive time ratio % = x 100
∑ Service hours
2-062 It shows whether there is a high idle time or not during the operations.
Remember that idle time may have various causes such as bad weather
conditions, non-working hours, break down of equipment, insufficient
equipment etc.
2-063 Some of the problems are dependant on human errors and can be solved
while others cannot. Efficient management will limit human errors in
order to reduce the idle time and thus the service time.
2-064 The latter ratio is often associated with the following working hours per
day that indicates the daily working (or opening) hours.
2-065 For example, a working time of 50% means that the port operates only
for 12 hours.
2-066 This information is provided from the timesheets. Some difficulties exist
for collecting this information:
2-067 Other difficulties arise because the operators do not indicate the effective
reason of the idle time not to show the weaknesses of their work
organisation.
• The weather.
2.4 CONCLUSION
2-069 The berth related ratios mainly concern the services for ships: they
measure the maximum capacity of the port, the level of services supplied
by the infrastructures and are used by planners for translating the
forecasted demand in requirements for new berths or new terminals.
2-070 But berth operations are not independent from the other activities in
the port and the time in ports depends mainly on the productivity of the
handling operations between ship and shore, on one hand, and the quay
transfer operations, on the other hand.
Learning Outcomes
2-071 When analysing the berth indicators, only the infrastructure is concerned.
As to the handling operations, they mobilise:
2-073 We analyse first the efficiency ratios when serving the ships and then
the efficiency ratios of the input mobilised for performing the handling
tasks.
2-074 The major commercial argument for a port is the ship output because
the shipowner requires short calls. A shipowner wants to know what is
the number of containers or the tonnage that the port can handle per
hour and can they guarantee it. The more the port is able to reduce the
time spent in the port, the more satisfied the shipowners are.
2-075 All the indicators, which show the exact situation and the evolution of
the call duration are, therefore, very relevant.
Definitions
2-076 Ship output indicators measure the rate at which cargo is handled to and
from a vessel. They are clear indicators of how good the cargo handling
operations are. There are three ship output (SO) indicators:
∑ Containers handled
1. WSO – Containers per productive hour =
∑ Productive hours*
∑ Containers handled
2. BSO – Containers per ship at berth =
∑ Berth hours*
∑ Containers handled
3. PSO – Containers per ship hour in port =
∑ Hours in port
* Note that:
2-077 As far as the bulk or break bulk cargo handling is concerned, the formula
of the three ratios are modified. Instead of total containers handled, the
numerator in the formula is replaced by “total number of tonnes”.
2-078 Indeed, though idle time should be minimised, there are sometimes idle
times and non-operational times under some circumstances when the
ship is berthed and is in the port.
2-079 The main source of data to be collected for calculating the ratios is the
timesheet form filled in by the handling supervisor.
2-080 The same as for the ship time in port survey, some difficulties exist in
collecting this information:
2-081 In many ports, the ship output is given in number of boxes per hour. Such
a calculation does not take into account the size mix of the containers.
2-082 Other difficulties arise because the operators do not always indicate the
effective reason of the idle time, in order not to show the weaknesses
of their work organisation.
2-083 The ship output obviously depends on the handling methods at the quay
and, therefore, the means mobilised for the handling labour force (number
of gangs and equipment).
2-084 It is the reason why we set up ratios related to the gang output and the
equipment utilisation.
2-085 The ship output depends, among other things, on the number of gangs
used for the handling and the efficiency of those gangs. Except in very
small old-fashioned ports, the gang includes not only workers but also
the handling equipment for ship to shore operations and quay transfer
operations. Therefore, the gang output (or crane output) can vary with
the type, capacity and efficiency of the equipment provided.
Definitions
∑ Boxes handled
Average gross productivity per crane =
∑ (Gang x gross hours)
Where:
2-087 The ratio can be calculated for a day or for a shift or for an hour. It is
not recommended to calculate it for a year because it is often necessary
to fine-tune the analysis and take into account the problems related to
the peak phenomenon.
2-088 Sometimes, in some ports, the average output is calculated per man x
hour. Additionally, the method of calculation depends on the information
provided in the timesheets.
2-089 In the majority of cases, the gang output is similar to the crane or gantry
crane output because each gang uses a crane or gantry crane.
2-090 For gantry cranes, we usually speak of “moves per hour” (it is then easier
to compare the performances of the different ports because every port
has its own mix of 40 ft and 20 ft containers).
2-091 As far as bulk and break bulk cargo are concerned, the gang output is
measured by the following ratio:
Tonnage handled
GO ratio (average output per gang per hour) =
∑ Gang x productive hours
2-092 It is also relevant to evaluate the mobilisation of the labour force capacities
in the port. The number of gangs mobilised for operating one ship is a
good indicator of the efforts for accelerating the operation.
2-093 The difficulties for estimating the gang output are the same as the ones
for the ship output because the source of information is the “timesheet”
as well.
2-094 The gang production depends more on the quality and capacities of the
equipment used than on the number of workers.
2-096 Equipment and labour force are the two physical inputs.
2-097 For the purpose of estimating the capacity and the degree of mobilisation
of a port, or to evaluate the capacity remaining for additional traffic as
well, it is necessary to know the time of utilisation.
Where, available crane hours are total hours (720 per month or 8,760
per year) minus crane breakdown and maintenance time.
The average rate can be calculated per day or per month or per year.
The average rate can be calculated per day or per month or per year.
2-100 This ratio is very important because it is always the basis for discussion
between workers and employers when they determine the level of
employment required in the port.
2-101 The source of information is the timesheet with all the difficulties that
we have already explained:
• When the port is only a landowner port, only the private operator
is interested by the ratio and does not provide the port authority
with the information.
2-102 The main factors influencing the ratio with regard to quay equipment are
explained in the following paragraphs.
2-103 Any port in the world has experienced irregular daily traffic. One day,
four ships are berthed while only two are berthed another day and traffic
is sometimes higher in seasonal periods such as October in Europe and
USA due to the import of Christmas gifts, or in winter when tropical fruit
are exported etc.
2-104 The peak factor is the excess of traffic compared with the average monthly
traffic.
Peak hours are also registered every day, namely in the delivery area.
Where total hours are 30 days x 24 hours = 720 hours per month or
8,760 hours per year.
∑ Operational time
Equipment reliability = x 100
∑ (Operational + crane
down time)
2-107 The main factors influencing the ratio with regard to labour force are:
Learning Outcomes
2-110 However, such facilities have a cost for building, maintaining and operating
them.
2-111 To determine the needs in square metres of sheds or open storage facilities
is difficult because the surface depends not only on the type and volume
of cargo but also on the time that the cargo stays in the port.
2-112 The commercial policy of the port depends also on the availability of space
and possible extension. If the port area and storage facilities are large,
the commercial policy might consist in attracting cargo by a low tariff.
On the other hand, if the port is surrounded by a city and cannot enlarge
the space available, the terminal policy will be to accelerate the delivery
time and reduce the transit time by increasing dues on storage.
2-113 Therefore, the ratios mainly concern the utilisation factors of the storage
facilities. They are the key of the policy.
2-115 It is obvious that any reduction of the time spent in the yard or shed will
result in the reduction of space requirements.
2-116 Later, we will show the calculation of the capacity of the port facilities by
using these different ratios.
2-117 In the transit slots, the information comes from the register book where all
the cargoes are consigned. The date, hour of the in and out movements
are also registered.
2-119 However, the problem is complicated by the fact that, in most ports,
a grace delay exists during which the storage is free. The financial
department consequently knows only the cargo staying more than the
grace delay in the shed or on the yard. Usually, the grace delay is 10
days and it is difficult to know something about the cargo staying less
than 10 days. Two solutions for solving the problem are to:
2-121 In most of the big ports, monitoring systems exist and it is easy to
get the information. In other ports, only the “handcraft” system of
collection of information is possible (such methods may be in place in
small multipurpose ports that handle only few containers, i.e. less then
10,000 per year).
2-123 The level of the ratios often depends on the following elements:
4.4 CONCLUSION
2-124 Storage is often a problem in ports because of changes in the lay out
design as a consequence of technological development in ships and
handling methods.
2-125 The dwell time determines the space required. Performance indicators are
consequently required to improve the efficiency of the port. Monitoring
is progressively introduced into terminal management and is the only
way to calculate these indicators.
Learning Outcomes
2-126 The quality of service is nowadays the first requirement from the shipper’s
logistician.
2-127 Many factors determine the quality of the services in ports: some are
quantifiable while others are not. In the framework of our course about
the performance indicators we deal only with the quantifiable ones but
we cannot ignore the others.
• waiting time;
2-129 But other non-physical indicators show the other aspects of the terminal
because, as you know, a port is not only an infrastructure but also the
combination of many services gathered for serving the ships and the
goods.
2-130 Experience shows that shippers and shipowners are very concerned by
the social climate, reliability, the welcome in the port and many other
services provided to the crews or to the shippers.
2-131 The ISO 9000 family of standards process for gaining quality assurance
accreditation is spreading in the port field. More and more ports are
engaged in this process.
• http://www.iso.org/iso/en/iso9000-14000/index.html
2-132 But there is not yet a well-defined list of indicators or an objective way
to measure quality.
2-133 In this section we point out some indicators which could be used by ports
for surveying the evolution of the quality of the services.
2-134 Flexibility measures the ability of the port services to adapt to the
requirements of the shippers and shipowners.
Example
Number of
Opening
Service Non-co-ordinated
Hours
Hours
Tugging/pilotage 6 – 22 8 hours
Handling 0 – 24 0
Delivery/receipt 6 – 20 10 hours
2-137 This means that the port is opened 24 hours a day only for the handling
and that other services do not organise 24 hour services.
5.1.2 Punctuality
2-138 Shipowners and shippers are very concerned by the capacity of the
port to respect the forecasted time schedule (particularly for ferries, or
containerships).
2-140 According to the purpose of the analysis and the type of sailing, we may
take into account only the delays superior to a certain time (for example
one hour or more).
2-141 Of course, terminals are just as interested in punctuality of the ships and
may measure the ratio for lines as well.
5.2.1 Security
2-142 Security for ships and cargo are essential for shipowners and shippers.
2-143 A port is never 100% safe and secure and there are sometimes acts of
pilferage or accidents. Some ports have developed a marketing policy
by promising the shippers “a zero mistake target” in the port.
2-144 It is, therefore, relevant to determine indicators for measuring the grade
of success of such a policy.
∑ Number of pilferage
(or robbery or other) cases
Indicator of security =
∑ Number of BL (or manifests)
2-145 The time unit of registration can be the month or the year.
2-146 In addition, the indicator must show the importance of the problem in
value or in volume:
2-148 There are always arguments in all the ports in the world in case of
pilferage, robberies or loss and casualties or late delivery of the cargo
etc. Any activity leads to mistakes or accidents. But all these facts do
not lead to actions in courts. Only the big events or the high value loss
are conducted by the judges.
2-149 Many other affairs are dealt with by mutual agreement after an
investigation performed by specialists. The problem is often raised not
on the estimate of the value of the loss but on the responsibilities of the
different parties involved.
2-150 The behaviour of the parties and their aptitude to solve and indemnify
the victims of the loss are key elements of the commercial climate in the
port.
2-151 The port authority is not the only responsible party in this field, except
in the case of the ports operating all activities. In the landlord ports,
where all the operations are privatised, the port authority is responsible
only for the defects in the police management or the maintenance of
the infrastructure. The function of the port authority is, nevertheless,
to create a good climate in the port so that the victims (shipowners and
shippers or workers) are well indemnified and on a very short term.
2-152 A good indicator of the commercial climate is the number and value
of arguments in the ports and the compliance for solving the litigious
situations.
2-153 This indicator shows the importance of the effective will of the parties to
solve problems quickly.
2-154 In some ports, the litigation indicator is very low but it does not mean
that there are few accidents or pilferage and the port is safe. In fact,
if the rate of agreements is low and the delay indicator is low as well,
it may indicate that the victims have decided not to pursue litigation as
they are not indemnified, nor desire spending money and time for no
result.
2-155 This example shows that the indicators must be read and analysed
carefully by the analysts before giving a diagnosis about the situation.
2-157 All logistic chains are nowadays organised for reducing delays, transit time
and limiting the stock levels thanks to a good transportation policy.
2-158 The port is an element of this chain and any stoppage of its activity
results in problems all along the logistic chain and finally on the cost and
reputation of the products.
5.3 CONCLUSION
2-161 There are many different situations and plenty of different types of
economic, sociologic and political environments. The indicators for
quality are, therefore, only partial and must be adapted to the different
situations.
2-162 The indicators shown above are probably applicable in most ports because
they concern most of the problems met in most ports.
Learning Outcomes
2-165 The second target is to enable the planners to estimate the limits of the
capacity of the port and the time when new facilities will be required
according to the traffic forecasts.
2-166 Finally, the information about the port’s or terminal’s performance gives
the manager a good base for fixing the improvements objectives as far
as performance is concerned.
2-168 The physical limiting factors of performance are the number of berths,
the sheds, the open storage areas (for example the container yard), the
handling capacity and the gate.
2-169 It is clear that each facility influences the performance of the others:
• The capacity of the yard and the design of the lay out influence
the handling productivity.
2-170 It is clear that any element influences the other elements of the chain
in the port area. Nevertheless, we should analyse the capacity of each
of the elements, independently one from another. In spite of that, we
successively analyse:
2-172 Finally, the planners will be able to propose solutions for coping with the
traffic forecast over the short and long term (maybe up to 15 next years,
especially if signing a long-term concession agreement.)
2-173 The past performance indicators in handling operations are the way to
estimate the port capacities.
2-175 Storage capacity is very often limited by the cities surrounding the ports
or by the topographic elements (hills, mountains, rivers etc). Anyway,
the land area is expensive and it is economically justified to limit the area
dedicated to storage and using the land for operations. As you know,
the handling and quay transfer operations need more and more space
to be efficient.
2-176 Nevertheless, the planners must know the capacity of the storage facilities
(covered and open) for estimating the capacity of the port to cope with
the traffic in the next 10 years.
• Dwell Time
2-178 Therefore, the number of square metres occupied by one tonne of cargo
depends on the type of cargo. This characteristic is named the stowage
factor. The stowage factor is the surface occupied by one tonne of
goods.
2-179 Concerning containers, the stowage factor is effectively the “slot” that
the area occupied by one 20 ft container (20 ft x 6 ft).
2-180 The mathematic formula for calculating the number of slots for storage
is as following for containers:
∑ Terminal slots
Number of ground slots =
Allowed peak stacking height
Where:
Throughput (moves)
Yearly container visits =
(1 + transhipment ratio)
2-181 For RTG, the allowed peak stacking height is considered as 75% of the
maximum operational stacking (maximum operational stacking of a block
is width x height minus 1).
2-182 For straddle carriers, the allowed peak stacking height is considered as 75%
of maximum operational stacking (one over two high = three high).
2-183 Transhipment ratio is to be considered, as two moves over the quay for
a transhipment container would only require one slot in the yard.
Surface Requirement
2-184 Once the number of slots is determined as well as the ground slots, the
total surface of the storage yard depends on the lay out of the platform
and the storage equipment used.
2-186 The capacity of each block depends on the choice of equipment used
leading to different circulation systems on the yard.
2-187 We say that the effective footprint per TEU varies with the type of
equipment.
2-188 Straddle carriers need bigger footprints than RTG but less than reach
stackers.
The formula shows that the higher the dwelling time is the lower the
storage capacity is.
2-190 The requirements and capacities are calculated for each type of containers
(dry, empty and reefer and so on) because the respective storage yards
are not mixed on the platform.
2-191 Consistency between STS and yard equipment are essential. The
principle is that the performance of yard equipment in moves per hour
be compatible with the performance of the STS cranes. For example, if
the crane can handle 27 containers per hour, the overall equipment used
to transfer the containers to the yard should be able to carry at least 27
containers per hour wherever the containers are located on the yard.
2-192 If the yard is far from the ship being operated, we need more equipment
than if the yard is close to the ship. In fact, the determining element is
the time needed for performing a round trip between the crane and the
ground slot where it is stored.
2-194 The evaluation of the capacities of the different facilities gives the port
planner the time when the port will be congested. It is good information,
but it does not show how to solve the problem of the congestion.
2-195 The performance indicators are the tools for helping to solve the
problems.
2-196 The comparison of the traffic forecast and the maximum capacity of the
facilities will show the year when the congestion will happen either for
berth or for the storage.
2-197 The port planners have to take decisions after analysing all aspects of the
decisions – the consequences of the decision from the social, economic,
financial, operational and technical points of view. The performance
indicators are the tools of quantification of the consequences.
2-201 KPIs and the concept of quantitative indicators are applied both for
operational awareness and cost awareness (and control). Knowing the
cost of specific aspects of the operation, in conjunction with well defined
productivity metrics, allows good business decisions to be made while
executing the operation.
“Although these are the KPIs that need to be reported, please note that
this is not a complete list. The creation of localised, and specific process
improvement measurements, are encouraged to be developed.”
2-203 A well defined set of KPIs, that not only cover the higher level indicators
and goals of terminal operations, but also cover specific areas are
necessary. These operation specific measurements can be used for
process improvement and success measurement. In order to achieve and
sustain best practice and operate the most efficient terminal operations
in the world, APM Terminals has developed guidelines for designing and
managing operations. These are contained within the APM Terminals
“Process and Organisational Guidelines” (available from Communigate
or CENAPMTOPS), and referred to as “World Class Operations”.
2-205 For World Class Operations, APM Terminals has identified five Key KPIs
to measure, access and compare terminal operations. When combined,
and presented along with the results for the other terminals in the group,
these are referred to as the “World Class Operations Scorecard”. An
outline of how these are used is included in Appendix 2 along with an
example of the monthly scorecard.
2-206 Port performance indicators have been created for improving the ways
of analysing the diagnosis and to help the decision-makers.
2-207 Most of the indicators are related to the operations (berth, handling,
storage) because they are the main fields where improvement is
possible.
2-208 As far as the quality of the service is concerned, the indicators are to be
found and universally adopted. The actions to be decided are not simple
because they deal with the workers and human behaviour. Only a subtle
mix of indicators put together can give the planners a good estimate of
the actions to be decided.
2-209 The performance indicators are the tools but the interpretation and the
research of the right decisions to be taken is probably a subtle art.
- http://www.unctad.org/en/docs//sdtetlbmisc20043_en.pdf
that show how well the organisation’s objectives are being met. In
APM Terminals uses the World Class Operations concept (WCO) to build
In order to create world best global operational practices the focus is on key
factors that have a significant impact on safety, costs and productivity.
Five focus areas have been chosen as KPIs to define and produce a World Class
Operations scorecard for APM Terminals. These are:
Obtained by subtracting the Earning Before Interests and Taxes from the
Revenues and dividing the figure by total billable moves (Cost per move
= (Revenues – EBIT)/Total Billable Moves).
The lower the value compared to the previous year, the higher the score,
meaning that the cost per move should not increase.
- Standby for vessel (when gang ordered waits for vessel to arrive
at berth).
- Meal hours.
Berth hours excluding extra time for vessel along side due to
master’s convenience (bunkering, maintenance, repair etc).
- Berth Hours:
Impact of accidents (lost work cases) resulting in lost time per 200,000
man hours. Exposure hours are the actual hours worked per employee,
including in hired lashers/labour. All staff are included and impact is
measured with frequency.
The assessment of the World Class Operations current status provides all terminals
with insights about their current state of operation activities and planned actions
towards achieving world class operation status
• One rating for each of the five operation key performance indicators
described above (cost per move development, gross crane productivity,
berth productivity, capacity utilisation and LTA). Rating score goes from
0 to 100.
• One rating for the overall score of all measured operation processes (total
score). Some of the activities have been deemed greater importance
than others, where their weight is higher when making an aggregation
of the scores.
The weight distribution of the KPIs is shown in the table on the folllowing
page.
LTA 30%
The resulting scores rank terminals, with those gaining over 80 (above the blue
horizontal line) being awarded “World Class” status, with those between 50 and
80 (above the red line) being accorded “First Class” status.