Regional Maritime University: Port Performance Indicators

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REGIONAL MARITIME

UNIVERSITY

PORT PERFORMANCE
INDICATORS

NII NIKOI
WHAT IS
TRANSPORTAT
ION ?
THE IMPORTANCE
OF TRANSPORTATION

•Transportation represents one of the most important


human activities worldwide.
• It is an indispensable component of the economy and
plays a major role in spatial relations between
locations. Transport creates valuable links between
regions and economic activities, between people and
the rest of the world. Transport is a multidimensional
activity whose importance is: Historical, Social,
Political, Economic and Environmental.
HISTORY

• Transport modes have played several


different historical roles in the rise of
civilizations, namely, Egypt, Rome and
China, in the development of societies, of
social structures, and also in national
defense, Roman Empire, American road
network
SOCIAL

Transport modes facilitate access to


healthcare, welfare and cultural or artistic
events, thus performing a social service.
Transportation thus supports and may even
shape social structures.
POLITICAL

Governments play a critical role in transport


as sources of investment, and as regulators.
The political role of transportation is
evident in the construction of roads and
highways, building of seaports, airports
among others.
ECONOMIC

The transport sector is also an economic factor in


the production of goods and services. It
contributes to the value addition of economic
activity, facilitates economies of scale, influences
land (real estate) value, and the geographic
specialization regions. Transport is both a factor
shaping economic activity, and it is itself shaped
by it.
ENVIRONMENTAL

Transport is a dominant factor in


contemporary environmental issues.
THE DIFFERENT MODES OF
TRANSPORT

1. MAN, AND ANIMALS


2. ROAD
3. AIR
4. SEA/WATER
5. RAIL
6. PIPE
FOUR ESSENTIAL REQUIREMENTS
OF ANY MODE OF TRANSPORT

1. The unit of conveyance, Head, /Body, Vehicle, Airplane, Rail stock,


Ship, Pipeline
2. Motive power: (Means of propulsion, what enables it to move).
3. The Way: (The route or track on which it moves; land for
man/animals, vehicles and rail, air for airplanes and water/sea for
ships)
4. Terminal (The point at which motion ends, bus stop, seaports,
airports, train station)
STATISTICS AND
INDICATORS
HOW TO ACHIEVE
TRUSTWORTHY
AND RELIABLE STATISTICS

(a)Methodically
(b)Timely
(c)Relevant
(d)Ethically.
WHAT PURPOSES DO PORT
STATISTICS SERVE?
WHAT ARE PORT
PERFORMANCE INDICATORS?
THE FOUR MAIN PORT
PERFORMANCE INDICATORS.

(a)The ship turnaround time indicator


(b)The berth occupancy indicator
(c)Berth, warehouse and other throughput
indicators
(d)Ship, berth and warehouse productivity
indicators.
SHIP
TURNAROUND
TIME INDICATOR
BERTH, WAREHOUSE
AND OTHER THROUHGPUT INDICATORS

The complement to the berth occupancy indicator is the


tonnage flowing through the berth during a given period.
SHIP, BERTH AND WAREHOUSE
PRODUCTIVITY INDICATORS.
FINANCIAL
STATISTICS
DATA COLLECTING
AND PROCESSING
PRESENTING
STATISTICS
Presenting statistics is a demanding task that requires reflection and care. The aim
must be to simplify the interpretation of the statistics by the user who will rely on
the data for decision making.

The two basic methods used to publish statistics are tables and charts.
•A table is an arrangement of data in ROWs and COLUMNS. The intersection of a
row and column is called a Cell.
•The elements of a table may be grouped, Segmented or arranged in many different
ways.
CHARTS OR GRAPHS
They are used to present figures and in a more visual and pleasant way than tables.
Charts or graphs can represent time series data (in absolute or relative values) frequency
distributions, or data by sector. The drawback of the chart or graph is that they do not
always suit the needs of a more precise analysis. The main types of graphs are:

• BAR CHARTS, which can be used for time series on a single variable or to show the
importance of different variables in absolute values
•HISTROGRAM, which are used to show different frequencies of one variable.
•PIE OR SECTOR CHARTS, they are the best way to visualize proportions or shares.
•LINE GRAPHS, they are used to show the relationship between two or more
variables.
BAR CHART
HISTOGRAM
PIE CHARTS
LINE GRAPH
DIGITALIZATION
IN PORTS.
Information Communications Technology (ICT) , is an extensional term for
Information Technology(IT) that stresses the role of unified communications(telephone
lines and wireless signals) and computers , as well as necessary enterprise software,
middleware, storage and audiovisual , that enables users to access, store , transmit,
understand and manipulate information.
The Concepts, Methods, and Applications involved in ICT are constantly evolving on
an almost daily basis making it difficult to keep up.
In the light of the above dilemma, a good way to describe and determine ICT is to consider all
devices, tools, applications, systems and networking components, that collectively to allow
individuals, businesses and organizations to interact in the digital world.
Thus, ICT covers any product that will process, register, store, retrieve, transmit, or receive
information electronically in a digital form.
Applications such as Terminal Operating systems (TOS), Port Management Systems, (PMS)
and Enterprise Resource Planning (ERP), have become everyday tools for efficient port
management.
Two key transformations need to be considered in digital transformation process. These are
•Customer experience
•Operational processes.
The above two transformations have produced four (4) phases in the digital transformation
process of Ports.
 1st PHASE. THE ISOLATED PORT. In this phase the port and its stakeholders embark
digitization seeking to maximize the benefits of ICT with a SILO. Mentality The
emphasis is on making internal processes of each component as efficient as possible, with
little or no regard for the other stakeholders.
• 2nd PHASE. THE COMMUNICATED PORT. At this juncture, the digitization process
goes beyond the scope of internal processes of the individual companies the port for
example opens itself to other authorities and agencies operating in the maritime space,
through online sites. This phase looks at the integration of port systems into national single
windows to facilitate the flow of vessels and cargo.
• 3rd PHASE. THE CONNECTED PORT PHASE. This is an improvement on the
Communicated port phase. In this phase, alliances are created by the introduction of nodes,
and this results in a Port Community System (PCS). A port community system is able to
share information in a timely manner among all port participants. The PCs, is constituted
as a Neutral and trusted IT operator delivering information to supply chains that manage
an Electronic Data Interchange (EDI) system providing Data storage, Control, Security
and Distribution, integrating the functions of all port, members and the different systems
operated by the port community members. The PCS is able to reach benefits that
individual systems the companies are unable to reach and thereby create a paperless
environment.
 4th PHASE THE FULLY CONNECTED PORT. This is the highest level in the port
digitization transformation process. In this phase
 People
 Organizations
 Objects
Interconnect to leverage the main benefits offered by ICT, namely
(a) Dematerialization; All the individual systems become subsumed under one system. “One
for all, All for One’
(b) Immediacy; Seen or observed in Real time, as the action or event is occurring.
(c) Mobility; flexible enough to cope with an emergency situation.
(d) Interactivity; Requiring people (things) to talk with each other.
(e) Automation; Operation of an apparatus, process or system by mechanic or electronic
devices that take away the human labour.
COLLABORATIVE SYSTEMS IN
PORTS.
1. SINGLE WINDOWS. A single window is a facility that allows parties involved in trade
and transport to lodge standardized information and documents with a single-entry point to
fulfil all import, export and transit related regulatory requirements. If the information is
electronic, then individual data elements should be submitted only once. A single window has
five elements. (a) It is exclusive to a country (b) Information and documents submitted are
standardized (c) Has a government mandate, to be a single-entry point (d) covering the
regulatory processes and requirements € providing a one –time submission of individual
elements. More than one Single window can co-exist in the same country as long as each
window targets a different type of economic operator and has all the five elements listed
above. For example, single window for trade (import, export, a window for maritime carriers,
financial window.
2. SINGLE SUBMISSION PORTALS. These kinds of collaborative systems allow traders,
logistics providers, transport and/port operators to submit all the information related to a specific
activity in a single platform. This platform, then, redistributes the information to all participants
within that portal. A single Submission Portal differs from a Single Window, in that a Single
Submission Portal does not necessarily handle regulatory procedures and it may or may not be
the only portal within a market. Accordingly, we can find a variety of Single Submission Portals,
associated with Trade, Logistics, Transport and Port activities. Some examples of these portals
include, Online Shops Business to Business, (B2B), transactions. A single company operates
them.
Sectorial portals, e-market places, or service aggregators.
Single Submission Portals, associated to pure Business to Business(B2) transactions. Multiple
companies operate these transactions. Virtual offices of e-Government services. Single
submission portals associated to pure Business to Government(B2G) transactions. A single
competent public body operates the portal to meet regulations.
•  
THE DIGITAL STRATEGY AND
DIGITAL ARCHITECTURE.

The digital strategy of a Port should be aligned with the overall Long term strategic plan of
the port. Both plans, It and Corporate, should complement each other.
Modern port management demands that, the managers of the port should the mission and
vision of the different stakeholders in the port community.

Unlike the typical strategic plan which looks five years ahead, in the minimum, the IT
strategy should not look beyond 12-18months. The reason for this comparatively short “life
span” of IT strategy is because of the dynamic nature of ICT, which evolves literally
minute.

Due to the existence of different port models, such as public, tool service landlord and
private, different digital strategies will emerge for the different organizations involved.
ENTERPRISE
ARCHITECTURE

Enterprise architecture is the design, planning and implementation practice that applies the
Its architecture principles to guide the organization through the business, information
process, and technology changes necessary to execute its strategy. The enterprise
architecture seeks to integrate business processes and the IT infrastructure so they comply
with the business operation model, consisting of the business process integration and
business process standardization.
The enterprise architecture brings together the business processes and the information and
business performance of the organization with the digital architecture
WHAT IS THE NATURE OF THE
DIGITAL ARCHITECTURE?

It comprises of
• The application
• The technology
• The data architectures
• The data architecture defines the logical and physical data assets of the organization as
well as the management resources, such as information flow, data bases and entities.
• The infrastructure architecture specifies the logical software, hardware and digital
capabilities that are required to support the deployment of business, data and the
application services. The infrastructure architecture includes data centers and cloud
facilities, middleware, networks, communications, devices, sensors, cyber physical
systems, personal computers, PDAs, Tablets, or any other digital asset.  
• Finally, the application architecture comprises the various applications deployed in the
organization and their relationships with the core business processes. These applications
also need to be connected to the outside world. The integration of applications can be
achieved using Service Oriented Architectures (SOA) and Enterprise Application
Integration (EAI) strategies’ EAI is simply the collection of technologies and services
that form a MIDDLEWARE framework to enable the integration of systems and
applications throughout an enterprise.
 

ELECTRONIC DATA
INTERCHANGE
(EDI)
Electronic Data Interchange, commonly referred to as EDI, is an electronic
communication method that provides standards to exchange data via any electronic
means. EDI has been used by the Maritime transport industry for more than thirty years
and its use will continue to the future.

There are several EDI standards, as to be expected. But what is used extensively in the
Maritime Industry is UN/EDIFACT standard.
UN/EDIFACT is an abbreviation for:
United
Nations
Electronic
Data
Interchange for
Administration,
Commerce and
Transport
•UN/EDIFACT is an international standard by the UN center for Trade Facilitation and
E-Commerce. Government bodies and big industries have used this standard for many
years. Now a day, XML, messages have become popular.
•XML (Extensible Markup Language) is a flexible way to create information formats
and electronically share structured data via the public internet, as well as via corporate
networks.
MOST USED UN/EDIFACT
MESSAGES IN THE MARITIME
INDUSTRY.

 BAPLIE: Bay plan/stowage plan. It is a messaging format used to transmit information


about equipment, usually containers and goods on board a vessel. The Baplie indicates
the exact location on board the vessel
 MOVINS: Stowage Instructions. It gives information on activities like discharging,
shifting, re-stowing and loading.
 COPARN: Container Announcement message. A coparn information contains message
to Release, Accept or the Arrival of container(s). It can also be used for release of empty
containers and for the authorization of on/off hire transactions.
 COREOR: Container Release Order. The message contains an order to release containers and
giving permission for them to be picked up by or on behalf of a specified party. The
COREOR message is used to release full containers. Can

 CODECO: Container Gate in/Gate –out Report. A message by which a terminal, depot, etc.
confirms that the containers specified have been delivered or picked up by the inland carrier,
it could be road rail or barge (in land water way). This message can also be used to report
internal terminal container movements, this excludes loading and discharging the vessel

 COPBAR: Container discharge/loading Order. A message to order the container terminal that
the containers specified have to be discharged from a sea going vessel or have to be loaded
into a seagoing vessel
 COARRI: Container discharge/loading Report. A message by which the container
terminal reports that the containers specified have been discharged from a sea going
vessel (discharged as ordered, overlanded or short landed) or have been loaded into
a sea going vessel.

 VERMAS: Verified Gross Mass. The verified Gross Mass, permits to submit the
VERMAS of packed container and supporting information as legally required by
the SOLAS Convention Chapter VI, Part A, Regulation 2.
• The messages listed above, represent the core communications between the
shipping line and the container terminals for handling containers. These messages
are supported by practically all the applications for managing terminal operations
and by most port community systems
APPLICATION PORTOFOLIOS
TYPICALLY USED IN PORTS.

• HRMS: The Human Resources Management System.

• The Human Resources Management System is part of the back-end system The HRMS
is used in the management of personnel records and incorporates information on Pay
roll, Recruitment, employee bio data, Attendance Records, Performance evaluation,
Benefits administration Learning (Training). Salary and Pensions.
FINANCIALS
AND
ACCOUNTING.
Financials are a set of applications for collecting, storing processing financial and accounting
data. As part of back-end system, financials and accounting application is used to automate
and streamline the financial processes of the organization (Port), with tools and controls to
support legislative requirements and create value through timely financial monitoring
including

 Accounts Receivable
 Lock box
 Credit and
 Collection management.
 Accounts payable, electronic funds transfer, automated order matching
 General ledger, allocations, consolidations and eliminations
 Cash management, bank reconciliation and statement interfaces
 Pay roll, Fixed assets and Tax Management
 Budgeting Forecasting and Planning
 Financial auditing and Reporting
 Generation of tax records.
Financial management needs a centralized financial information system and visibility to improve
financial governance, even in complex environments where companies need to manage multiple
business entities. The financial and accounting system needs to be integrated and linked with any
business function that generates a financial transaction to automate and guarantee the recording
of all these transactions. It should also produce value through tighter control measures, reduced
operational costs and financial consolidation for enterprise viability.
ASSET MANAGEMENT

Is a set of applications for managing the entire life cycle of the port infrastructure such quays,
roads, breakwaters, Structures like Buildings, Lightings, hydrants, Super structure like
cranes, Trucks, Forklifts Cars, Networks (electricity, water, communications, and Digital
assets like, IT equipment, Cyber physical systems, sensors, cameras, actuators, computers,
and data processing devises, databases and electronic data and media content.

Asset management is part of the back end system and it consists of the combination of
financial, economic, engineering and other practices applied to tangible and intangible assets
with the objective of providing the required level of service in the most cost-effective
manner. An asset’s life-cycle may include design, construction or development,
commissioning, operation, maintenance, repairing, modifying, replacing and
decommissioning/disposal.
BUSINESS
INTERLLIGENCE
(BI)
BI comprises of a set of Strategies, Processes, applications and Technologies used by
enterprises for the analysis of data accumulated by the business through its operations
BI technologies provide historical, current and predictive views of business operations.
Common functions of BI technologies include Reporting, Online analytics, data
mining, process mining, complex event processing, business performance management,
bench marking, text mining, predictive analytics and prescriptive analytics.
BI technologies can handle large amounts of structured and sometimes unstructured
data to help identify, develop and otherwise create new strategic business opportunities.
TRAFFIC
FORECASTING
(TRAFFIC DEMAND
FORECASTING)
Successful management of any seaport depends primarily on the harmonization of
transport supply and demand, in-comp ability leads to a number of problems.
Higher supply of port infrastructure and superstructure than demand leads to a failure in
the utilization, and the lack of cost effectiveness. On the other hand, where demand
exceeds the supply of port facilities, the result is congestion.
Both scenarios, under- utilization and congestion, are not desirable situations for any
port.
A port manager is in a dilemma, because traffic capacity is not flexible and its
construction and development require substantial financial resources and time.
WHAT IS TRAFFIC FORECASTING?

Traffic forecasting is the process of developing predictive models of what the future
will look like. The future could be as short as one month all the way to five years.

The main purpose of forecasting is to plan for the resources needed by a port to handle
ships and cargo in the future. The rationale of forecasting is to narrow the gap between
supply and demand to nearly zero.
GENERAL FORCASTING TECHNIQUES.

In virtually every decision Business Executives make, some form of forecasting is


factored into it. This is so because it is impossible to have all the facts especially when
planning for the future. Port managers are no different in this regard.
Sound predictions of demands and trends are no luxury items, but a necessity in order
to cope with the seasonality and volatility or large swings of the economy.

There are three (3) basic types of forecasting techniques namely


 Qualitative models
 Time series analysis
 Casual models
QUALITATIVE MODEL.

It uses qualitative data, such as Expert human judgement combined with a rating
scale, instead of on hard (measure able and verifiable) data and may or may not take
the past into consideration.
 
•This forecasting method is used:
 When data are scarce
 In new technology areas
TIME SERIES ANALYSIS
This technique focuses entirely patterns and pattern changes, and thus relies entirely on
historical data.
 
CASUAL MODELS
This approach uses highly refined and specific information about relationship between
system elements and, is powerful enough to take special events formally into account.
The past plays a crucial role in all techniques with varying degrees.
Each of the three techniques has its advantages and disadvantages, and suits certain
situations best, depending on whether the forecast is looking at the short or Medium
term.
ADVANTAGES OF QUALITATIVE FORECASTING
METHOD.

•Flexible data needs, allow for inclusion of non- numerical data.


•Ambiguous or non- complete data can be processed.
•Allows experience and judgement of senior executives and outside experts.
DISADVANTAGES

•Not always accurate 

•If the opinion of one person, whose view prevails, is in correct, the forecast is 
in- correct
 
•Difficult to eliminate the forecaster’s personal bias
DELPHI METHOD

This is essentially a group technique, in which a panel of experts is questioned


individually about their perceptions of future events. The experts do not meet as a
group, in order to reduce the possibility that consensus is reached because of dominant
personality factors. Instead, the forecasts and accompanying arguments are summarized
by an outside party and returned to the experts along with further questions. This
process continues until a consensus is reached.
ADVANTAGES.

•Quite effective for long range forecasting.


 
•Eliminates the advantage of group work
 
•There is no committee or debate
 
•The experts are not influenced by peer pressure.
DISADVANTAGES

•Low reliability
 
•Lack of consensus from the returns.
MARKET RESEARCH FORECAST
Testing hypothesis based on market trends and general economic knowledge. The best results
of this technique arise when combined with other qualitative forecasts.

PANEL CONSENSUS FORECAST 


This technique uses open meetings where all participants provide or exchange ideas. In
addition, instead of only relying on historical data, the consensus method goes one step
further. The historical data is enhanced with the current market tends and events to ensure that
demand uncertainty is reduced.
VISIONARY FORECAST

Personal insights, opinions, and facts to predict possible scenarios. This a nonscientific
method and often prone to errors with a high degree of uncertainty. Delphi method or panel
consensus are preferable alternatives. This technique is the most radical and consists of a
prophecy of the future based on personal insight, judgement, and when available, historical
analogies that can be extrapolated into possible future forecasts. Indeed, it is characterized
by subjective guesswork, and imagination and in general, the methods used are non -
scientific and non-quantitative.
HISTORICAL ANALOGY
FORECAST.

This is a forecasting method that assumes two different kinds of phenomena share the same
model of behavior. For example, one way to predict the patronage of a new service is to
choose an existing service which “looks” like the new service, to forecast the expected
demand for the new service. Hence historical analogy forecast constitutes a judgmental
technique based on identifying a history analogous to the present situation, essentially using
the past pattern to predict the future.
TIME SERIES ANALYSIS

The second subgroup of analysis is the Time Series Analysis. This technique is used when
several years’ data are available. Time Series Analysis has as its objective the following: 

• Describing data and obtain simple measures to summarize the main properties of the
time series. A simple analysis of the graph can unravel the existence of trend, seasonality,
outliers and turning points. 
• Identifying the data generating process that generates the random variable of which a
sequence of observations is available.

• Make forecast estimations of future values. This is based on the principle the behavior of
the phenomenon in the past is maintained in the
ENVIRONMENTAL
IMPACTS OF
PORTS.
EVIRONMENTAL
IMPACT OF CARGO
OPERATIONS IN
PORTS.
ENVIRONMENTAL
IMPACT OF SHIPS ON
PORTS.
FRAMEWORK POLICY
GUIDLINE FOR
MANAGING
ENVIRONMENTAL ISSUES
IN PORTS.
WHAT IS
INTERNATIONAL
MARITIME
DRANGEROUS GOODS
CODE (IMDG).
CLASSES OF
DANGEROUS
GOODS
IMPORTANCE OF
IMDG CODE FOR
SEAFARERS.
TERMINAL
PLANNING AND
OPERATIONS.
WHAT IS A MULTI-
PURPOSE
TERMINAL?
GENERAL
CARGO
HANDLING.
MAKING MULTI
PURPOSE
TERMINAL MORE
EFFICIENT.
CONTAINER
HANDLING.
CONTAINER
TERMINAL
OPERATIONAL
SYSTEMS

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