Assessing port governance models: process and performance components

Abstract

This paper develops a conceptual framework that integrates various relevant port performance components in a way that can be used for a comprehensive port evaluation and adjustment of existing port governance models. The paper presents a synthesis of the literature on port governance models and port performance, arguing that the process of change is a dynamic one, and that the performance outcome of a reform process influences the next round of reforms. It also explores the potential for decomposing performance into two different, although related, port performances components, namely efficiency and effectiveness. Bringing into the analysis concepts like the need to integrate users’ satisfaction in port performance assessment, the paper explores the content of each of these components and their relationship. This discussion, along with empirical evidence provided by port authorities, leads to the conclusion that governance decisions, both at firm and government levels, are largely based on a very limited assessment of port performance. The effectiveness of port reform is largely neglected, with user perspectives not being an integral part of an effort to improve performance by the port or as feedback to assess the effectiveness of the governance model imposed by the government's port policy.