Port evolution and performance in changing logistics environments

Abstract

In recent years there have been significant changes to the logistics environment in which ports operate, which is now focused on supply chain management, global networking and customer orientation practices. Furthermore, ports have adopted different strategies concerning their level and form of integration into supply chains, service quality and provision of value-added activities. Traditional port performance indicators focus on specific ‘efficiency’ measures, whereas contemporary indicators are expected to be inclusive of all aspects of operations and to be consistent with the strategies of the organisation. In this regard, this article analyses the changes currently taking place in the port industry and develops a port performance framework that reflects these changes. The framework was designed based on exploratory study, and the validity and reliability of the framework were confirmed using Confirmatory Factor Analysis. It is concluded that port performance is multifaceted, not limited to internal processes and also related to external service aspects such as service quality and logistical elements such as value-added services. In addition, it is shown that port operating companies and port authorities should strive to maintain a balanced focus on both effectiveness and efficiency aspects of performance management and improvement, aiming to meet the requirements of customers and other supply chain actors.