Principles of Port Performance Monitoring

The terminal will be built in a relatively small port that also handles bulk and breakbulk cargoes. As the terminal operator will hold a monopoly position for the foreseeable future, the government of Haiti will impose minimum performance standards within the concession contract to ensure a reasonable level of service and productivity in the terminal. APN is interested in monitoring other dimensions of operations not under the terminal operator's control or not necessarily addressed within the contract's performance provisions. Such monitoring can be used for benchmarking against prior years' performance or against rival or best practice operators in other ports, or for planning purposes to prepare for capacity expansion. The APN may have audit authority to validate the data the terminal operator provides. Indicators are generally derived from the various activities that occur between the port's entrance buoy and the port (or terminal) gate, constituting the port logistics chain. The port logistics chain includes a range of basic services, such as navigation, pilotage, tug assist, and line handling, which are generally charged to the shipper or carrier. Terminal operators usually employ Terminal Operation Systems (TOSs) to ensure equipment readiness and real-time tracking of each container's position in the terminal and stage of customs processing. Effective resource allocation is the rallying cry for modernized port authorities and stakeholders. Port authorities have an interest in understanding the performance of their terminals, but it is also in their interest to ensure they perform their port administration responsibilities effectively. A vessel pilot boards the vessel and guides the vessel's captain through the port's entrance channel. If no berth is available, the vessel is assigned to an anchorage area. Tugs then help maneuver the vessel to the berth. Line handlers then tie two lines to the berth. Once the vessel is secured to the berth, the port authority or terminal operator may apply a berthage charge, essentially a "parking" fee usually calculated on the basis of time and vessel size (length). The berthage charge stops when the last line is untied from the ship as it leaves the berth. The charge is applied to the vessel. In some cases, line handling may be incorporated into the berthage charge. Inspection authorities may board the ship, and cargo is not loaded or unloaded until the authorities have completed their inspections. Longshoremen load or unload cargo using a crane. Containers are "lashed" (secured to the crane) and moved from the ship to the "apron," the area at the berth set aside for loading and unloading. If a terminal operator's crane is used, then a charge for crane use is applied to the ship. The port authority may impose a "wharfage" charge, which is intended to cover the use of the apron and other areas of the terminal where the container is moved to or from storage. Wharfage is charged to the shipper (i.e., importer or exporter). The container seal is inspected and a fee may apply, in which it is charged to the shipper. The container is moved to or from an assigned slot in the "yard." Container storage operations occur in the yard. This area as a whole constitutes "dispatch," where the container is moved to or from an assigned slot (a space in the yard). Dispatch fees are charged to the shipper. Some ports, particularly smaller ones, may not have a true storage area, but instead have a small area that serves as a buffer between the berth operation and the area behind the berth. APN is interested in monitoring port performance indicators, such as berth productivity, crane productivity, and gate productivity. These indicators can be used to evaluate the performance of the terminal operator and to identify areas for improvement. APN may also be interested in monitoring other indicators, such as the level of service, the time spent by vessels in the port, and the number of containers handled. The APN may have a provision in the concession contract that requires the operator to provide the needed data to APN. And APN may have audit authority to validate the data the terminal operator provides. The APN may also use data from the TOS to monitor the performance of the terminal operator and to identify areas for improvement.