Wednesday, 17 November 2010

KPIs for Ports and Terminals

It is really necessary to set up KPIs in order to ensure an efficient and profitable terminal operation, although handling too many in order to screen performance might be counter-productive.
KPI's for Ports and Port Terminals are absolutely necessary and required to satisfy all ports Stakeholders specifically for the Environmental , Health , Safety and Security considerations , Operational , Efficiency and Financial / Economical / Legal , Legislative considerations.


All processes should be made measurable in Quality , Time and Cost / Revenu/
There are many KPIs used:
* In operations on vessel handling time (measures how shipping lines' contracts are met)
* Crane productivity (measures how shipping lines' contracts are met)
* Dwell times
* Cost per cargo handled, mainly labour, maintenance, energy (measures internal efficiency performance)
* Equipment technical/maintenance
* Mean time between failure (MTBF)
* Reliability/availability of equipment
* Kilometer/moves per equipment (measures technical state and maintenance needs)
* Health, Safety like lost time injuries
* Security - ISPS breaches
* Minimum teus per FTE (full time equivalent) employee i.e. we never want the teus per FTE to fall below this level
* Maximum cost per TEU
* Average crane rate
* Truck turn time
* Yard occupancy

They may overlap or measure the same in a different manner. All operators measure them most likely slightly differently.
There is no standard way of measuring crane rate. Some terminals measure it using time of first lift to time of last lift; another might use start of shift to end of shift; a third might use either of the above but deduct breakdowns, and so on. You cannot look at the quoted rate from one terminal and be certain it's been calculated the same way as the quoted rate from another.
From a Security point of view, in a port operations environment, KPI's are fundamental in measuring, and most importantly managing, compliance, costs, performance, and continual improvement. At DP World they have embraced and implemented an international security management standard (ISO 28000) that allows to do this.
Example of KPI for the third parties:
Jacobs Engineering Ireland Ltd. uses KPIs in terms of gauging their support to Port clients. Client identifies desired performance indicators, Jacobs tracks adherence to same.

A.O. Chepok
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