Unit2 Performance Indicators

National Sea Training Centre
APM TERMINALS
(MAGNUM 8)
DIPLOMA IN TERMINAL
MANAGEMENT
UNIT 2
Performance Indicators
AUTHOR
Professor Bernard Francou, PhD
Lloyd’s and the Lloyd’s crest are the registered trademarks of the society incorporated by the Lloyd’s Act 1871 by the name of Lloyd’s.
CONTENTS
Page No.
1. INTRODUCTION 5
1.1 Introduction ............................................................................5
1.2 Definitions ..............................................................................6
1.2.1 What is Port Performance? .............................................6
1.2.2 What is an Indicator? ....................................................7
2. PERFORMANCE INDICATORS FOR BERTHS 9
2.1 Berth Output Indicators ............................................................9
2.1.1 Definition .................................................................. 10
2.1.2 Source and Reliability of the Data ................................. 10
2.1.3 Factors Influencing the Results ..................................... 12
2.2 Berth Service Indicators ......................................................... 12
2.2.1 Definitions ................................................................. 13
2.3 Berth Utilisation Indicators ...................................................... 16
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Contents Unit 2
2.3.1 Definitions ................................................................. 17
2.4 Conclusion ............................................................................ 20
3. PERFORMANCE INDICATORS FOR HANDLING

OPERATIONS 21
3.1 Handling Output Indicators ..................................................... 21
3.1.1 Ship Output ............................................................... 21
3.1.2 The Gang Output/Crane Output .................................... 23
3.2 Utilisation Ratios of the Input .................................................. 25
3.2.1 Utilisation of the Equipment ......................................... 25
3.2.2 Utilisation of the Workers ............................................ 25
3.2.3 Source of Information and Reliability............................. 26
4. PERFORMANCE INDICATORS FOR STORAGE

OPERATIONS 28
4.1 Definition of the Ratios ........................................................... 29
4.2 Sources of Information and Reliability ...................................... 29
4.3 Factors Influencing the Results ................................................ 30
4.4 Conclusion ............................................................................ 30
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Unit 2 Contents
5. INDICATORS FOR QUALITY OF SERVICE 31
5.1 Flexibility Indicators ............................................................... 32
5.1.1 Working Hours ........................................................... 32
5.1.2 Punctuality ................................................................ 33
5.2 Reliability Indicators .............................................................. 33
5.2.1 Security .................................................................... 33
5.2.2 Commercial Climate ................................................... 34
5.2.3 Work Reliability .......................................................... 35
5.3 Conclusion ............................................................................ 36
6. ESTIMATE OF PORT CAPACITY AND PORT PLANNING 37
6.1 Berth Capacities (Length) ....................................................... 38
6.2 Storage Capacity ................................................................... 38
6.3 Equipment (STS and Yard) ...................................................... 40
6.4 Port Planning ........................................................................ 40
6.4.1 Estimate of the Time of the Congestion ......................... 41
6.4.2 Use of Indicators for Limiting or Delaying the Congestion ....... 41
7. APM TERMINALS AND KEY PERFORMANCE

INDICATORS 42
7.1 APM Terminals Key Performance Indicators (KPIs) ...................... 42
7.2 APM Terminals World Class Operations ...................................... 42
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Contents Unit 2
8. CONCLUSION 43
Further Reading .............................................................................. 44
Appendix 1 – APM Terminals Key Performance Indicators ...................... 45
Appendix 2 – APM Terminals World Class Operations Scorecard .............. 55
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1. INTRODUCTION
Learning Outcomes
After reading this section, you will:
• be aware of the relevance of measuring the efficiency

in ports and terminals; and
• be able to define what is a performance indicator.
1.1 INTRODUCTION
2-001 A port is an infrastructure serving the international trade, the domestic

trade and the general economy of the country. Whatever the level of
competition that it is submitted to, the economic impact of port operations
is high, particularly in developing countries where the export usually
consists of low value commodities.
2-002 The efficiency of a terminal is important because the cost of the ships
and the goods at ports determine a major part of the maritime transport
chain.
2-003 In many situations two-thirds of the total maritime costs can be incurred
in ports, mainly through:
• wharfage;
• handling; and
• storage operations.
2-004 However, costs not only include the port and terminal dues and the price
invoiced by agents for the operations, but also the time in ports and the
quality of services.
2-005 This means that the responsibility of the manager of the port or terminal
is to deliver:
• flexibility – to smooth operations as much as possible;
• forecasting and planning – to prepare for the future by constant

care;
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1. Introduction Unit 2
• high productivity and ensure low unit costs; and
• safety and security in the port, whether on land or on the

water.
2-006 Despite the fact that more and more ports all over the world have engaged
in a process of privatisation, the port authority (which usually, but not
always, remains a government function) is involved in the control of
efficiency because the survival of the port in a competitive market, or
in the case of the economy of a country where there is a monopoly, is
determined by this.
Efficiency is the Key Word of Port and Terminal

Management
2-007 Whatever the status of the port, the operator and/or the port authority
must have objective information on the actual situation on which to base
decisions.
2-008 For this reason, it is important to create tools to continually measure the
evolving situation at the port or terminal, to assess performance and
enable timely decisions to improve productivity, heighten service levels,
heighten safety and inform investment decisions – these tools are the
performance indicators.
Performance Indicators Measure Efficiency
2-009 Such a control instrument, or better a management information system,

is nowadays an absolute necessity for port management due to the
complexity and large variety of different activities in the port industry.
1.2 DEFINITIONS
1.2.1 What is Port Performance?
Physical Performance
2-010 Physical performance is the output of the existing facilities. We can

calculate the performance of the port as a whole or the performance
for each kind of facility (berth, specialised berth, yard, crane, shed,
storehouse, labour force, accident rates etc).
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Unit 2 1. Introduction
Financial Performance
2-011 Financial performance is the contribution of each category of services

provided.
Quality performance
2-012 Quality performance is becoming a more important factor of competition

than just price. Reliability, flexibility, application of rules, time spent
resolving conflicts and arguments are included in the quality of service,
as well as the handling capacity. Quality performance denotes the ability
to solve problems.
1.2.2 What is an Indicator?
2-013 An indicator is a tool of measurement of performance. The indicators

should be quantified as mathematical formulas in order to be objective
and ensure they are calculated in a harmonised way.
2-014 From the above, it is clear that the quality of the indicators depends on
the reliability of the information.
2-015 The description of the indicators should therefore be linked with the kind
of information we need and the problems we may meet when collecting
the data. These indicators exist for all the operations and for any kind
of cargo or yard.
2-016 Though a port is a whole, when analysing the efficiency of a port we are
obliged to separate the activities and measure their efficiency separately
to determine the strengths and the weaknesses of the port.
2-017 It is common to classify port operations into four phases:
• Nautical or Marine Operations
They consist of serving the ships when arriving at a port: pilotage,

tugging, mooring, manoeuvring, from the entrance buoy to the
berth.
When a ship approaches a port, the master calls the port authority
to make them aware of the arrival time and to get a pilot. The
ship may wait for many reasons such as high tide, absence of a
pilot or no availability of berth inside the port.
• Quay and Handling Operations
Consist of handling the cargo on and off the ship with or without
quay cranes. The period when the ship is berthed is named:
- “service time”; or
- “time at berth”.
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1. Introduction Unit 2
• Transfer and Storage Operations
Consist of moving the cargo from the quay side to the storage
area and stacking the cargo (and vice-versa).
• Delivery Operations
Consist of receiving and delivering the cargo from/to the land

transport mode and thus the cargo-owners. A control is performed
at the entrance gate of the port.
2-018 Consequently, this unit is divided into the following sections:
Section 2 Performance Indicators for Berths
Section 3 Performance Indicators for Handling Operations
Section 4 Performance Indicators for Storage Operations
Section 5 Indicators for Quality of Service
2-019 The analysis of the indicators is followed by an outline methodology for

estimating the maximum capacity of the port facilities and the means of
upgrading them as a result of using the port performance indicators.
2-020 Finally, as the unit is written from a global perspective covering all ports
and terminals (and major cargo types), the unit ends with a focus on
APM Terminals. Specific ports and terminals and associated port and
terminal operating companies (or just about any other company) will
have developed their own key performance indicators (KPIs) that they
use to measure and compare efficiency of operations and to maximise
efficiency, and APM Terminals is no different in this.
2-021 Consequently, the unit concludes with:
Section 6 Estimate of Port Capacity and Port Planning
Section 7 APM Terminals and Key Performance Indicators
Section 8 Conclusion
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2. PERFORMANCE INDICATORS FOR
BERTHS
Learning Outcomes
After reading this section, you will:
• know what is the turnaround time in ports and its

components;
• be able to calculate the main indicators for the berth;
• create your own indicators;
• be able to estimate their use and reliability; and
• estimate the efficiency of berths.
2-022 The berths serve the ships. The first function of a port is to receive ships
and provide them with services, such as:
• shelter;
• piloting;
• tugging; and
• mooring facilities.
2-023 The performance indicators for the berth are mainly necessary for the
planning departments and for the harbour master or in a container
terminal the berth planner who is in charge of locating the ships.
2-024 A lack of berths results in waiting time for the ships but an over-capacity of
berths is a waste of capital. Therefore, the output, service and utilisation
ratios are explained in this section from the planning and the commercial
aspects.
2.1 BERTH OUTPUT INDICATORS
2-025 The berth output indicators are very useful for the terminal planner
because they show the evolution of the performance of each berth and
determine the terminal capacity.
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2. Performance Indicators for Berths Unit 2
2.1.1 Definition
2-026 The berth throughput indicator (BT) is the total number of units or tonnes
handled on one berth or per berth metre in a stated period (usually a
year). The formula of the berth throughput indicator (BT) depends on
the type of cargo:
For containers = BT = total number of TEU/berth

metre/one year
Or
BT = total number of containers/berth
metre/one year
For general cargo = BT = total tonnes/one year on the

berth concerned
For ro-ro = BT = total vehicles or rolls/one year

on the ro-ro berth
For bulk = BT = total tonnes/one year on the

berth concerned
2.1.2 Source and Reliability of the Data
2-027 The general statistic tables of the port are the main source. The harbour
master also gives information on the berth where the ship is operated.
It is generally available in all ports, but it is necessary to carefully check
the following difficulties that are encountered when we analyse the actual
situation:
Containers
2-028 TEU (20 foot equivalent units):
• Conventionally, one 40 ft container is equivalent to two 20 ft.
• Total number of containers is used when calculating berth output,

however TEU is also seen in the industry. For benchmarking
purposes it would be important to know the TEU factor for the
specific terminal (The TEU factor is the percentage of 40 ft
containers in the total number of containers)
• Sometimes in multipurpose ports or terminals, when the total

tonnage handled includes the containers, the weight of the loaded
boxes includes the tares of the containers fully loaded and empty.
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Unit 2 2. Performance Indicators for Berths
Tonnes
2-029 Either long tonnes, metric tonnes, freight tonnes?
• 100 long tonne = 101,605 metric tonnes; and
• freight tonne = mix of tonnes and cubic metres according to the

advantage of the operator.
2-030 Each commodity has a ratio volume/weight. The average ratio for break
bulk general cargo is 3. If the ratio of a commodity is > 3, the data is
in cubic metre (tariff advantage). If the ratio is < 3, then the data is in
tonnes. The manifest of the cargo indicates this figure.
Vehicles
2-031 Number of vehicles – cars, trucks, buses – are considered identically.

Very often, the goods carried on ro-ro vessels are calculated in tonnes
which is not easy when calculating the productivity.
Berth
2-032 The berth must be identified. The simple case is one ship for one berth
but there are many other cases, such as:
• Ports are not homogeneous. There are berths of 50, 100, 150, 200,
250 or 350 metres or other lengths according to the traffic they
are dedicated to or according to the date of their construction.
• Consequently, two small ships can be operated on the same

berth or, inversely, one long ship can be berthed along two short
berths.
• The case of the lighterage (handling on the both sides of the

vessel) the ship is berthed along one berth but the lighters operate
on another one.
• Two ships could be double-banked along the same berth.
• In container terminals, the term quay or berth metres will often

been used, as the terminal would often not be considered divided
into different berths.
• Many other cases can be seen in ports.
Double Counting
2-033 Some operations imply a double handling of the commodities:
• the transhipment (mainly containers) are registered twice; and
• shifting from one hold to the other (via the quay only) is counted
twice.
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2.1.3 Factors Influencing the Results
2-034 Influencing factors can be as follows:
• the type of cargo and packages – non-unitised out of gauge cargo,

unitised cargo;
• the shipload tonnage handled;
• the type and age of the ships (containership, conventional,

multipurpose, mixed, ships etc);
• the route inside the port (direct or indirect delivery);
• the equipment (port or ship equipment), cranes;
• the terminal’s ability and possibility for doing twin lifts;
• the location of the goods inside the holds (especially for

containers); and various others.
2-035 Some additional indicators can be calculated separately to evaluate

the weight of each influencing factor in the present situation. For
example:
TEU/containers directly delivered

Direct delivery ratio =
Total TEU/containers handled
Total TEU/containers handled

Average shipload =
Number of ships berthed
Or
Tonnage directly delivered

Direct delivery ratio =
Total tonnage handled
Average shipload = Total tonnage handled
Number of ships berthed
2.2 BERTH SERVICE INDICATORS
2-036 The service indicators are useful for the shipowners and the shippers
because the turn-around time ships spend in ports is paid by the ship
owner and also by the shipper (especially in the case of chartered ships
because he has to pay demurrage).
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2.2.1 Definitions
2-037 The turnaround time, or also named “time in port”, is the time spent in
the port by all the vessels calling in a specific period.
2-038 Figure 1 below shows the different components of the turnaround time
manoeuvring.
Waiting Manoeuvring Manoeuvring

Time
SERVICE TIME Time
Time
Arrival of Manoeuvre Ship Ship Ship

ship at starts moored unmoored. leaves the
entrance Ship leaves port
buoy the berth
Figure 1
Waiting Time (WT)
2-039 The delay between the ship’s arrival in port (usually at the entrance buoy)
and the start of the manoeuvring to the berth.
∑ Waiting times (in hours)

Average WT =
Total number of ships
It can be calculated for a specific berth or terminal or calculated for the

whole port or for a type of vessels as well.
Manoeuvring Time (MT)
2-040 The delay for manoeuvring the ship between the entrance and the tying
operation at the berth.
∑ Manoeuvring times (in hours)

Average MT =

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Time at Berth or Service Time (ST)
2-041 The time the ship stays berthed (between the berthing and the departure
time).
∑ Service times (in hours)

Average S =

2-042 During the stay of the ship along the berth, handling operations might
be interrupted for many reasons such as an equipment failure, weather
conditions, lunch break, lack of co-ordination between land and ship operations
or because the working hours exclude night hours. Usually, larger container
terminals work 24 hours a day, seven days a week. This is not the case in
small terminals or ports or in general cargo terminals. For this reason, service
time is often long as, when handling big shiploads that take more than 12 or
15 hours, ships are obliged to stay at least one night.
2-043 The period when the ship is not operated is named “idle time”. Therefore,
the service time consists of worked or productive time and idle time.
Service Time = Productive time + Idle time
Idle
Productive
Hours
Hours
Figure 2
2-044 We can calculate the productive ratio as following:
∑ Productive hours
Average productive ratio % = x 100
∑ Service hours
Time in Port (PT) or Turn-round Time in Port
2-045 The time that the ship spends in the port from arrival to departure after
leaving the borders of the port:
WT + MT + ST
Average PT =
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2-046 For commercial reasons, it is very frequently calculated as the following

ratio:
∑ WT
Average grade of waiting % = x 100
∑ ST
2-047 Indeed, the comparison of the waiting time with the service time provides
good information about what is acceptable for the shipowners. For ro-
ro and container vessels, shipowners usually do not accept any waiting
time because the daily operating cost of their ship is very high and they
do not want to loose time in ports. For bulk and general cargo vessels
they will usually accept a 10% rate. Beyond this rate, they consider the
port as a low quality one. It is the same for idle time that hinders the
total service time. Too high idle time results in long service time, which
means low efficiency of ports.
2-048 It can be calculated for a specific berth or terminal or calculated for the
2-049 The sources of information for calculating such indicators are generally
the office of the harbour master. This office registers:
• the date, hour and minute of the arrival of the ships to where the
pilot is awaiting;
• the date and time when the ship leaves the berth;
• the type and size of the ships;
• the time of the nautical operations; and
• the name of the berth that she is staying along.
2-050 When looking at the data, you will have to be aware of some difficulties
that you will encounter often:
• Berth
As explained above, the berth must be very well identified.

Sometimes, the ship is shifted from one berth to another. The
harbour master does not necessarily register that operation and
the calculation of the berth time is then impossible to calculate
for each berth where the ship has successively been moored.
Is a mooring buoy considered as a quay when the handling operations

are performed by lighterage (general cargo or timber sometimes in
old shallow water ports, and in some cases even containers)?
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• Time
The time in port should be calculated in hours. Any calculation

in days is definitely insufficient because many ship calls last only
10 hours and many ports are open 24 hours a day.
The calculation is usually not given directly by the database, but

must be calculated by difference between the time of departure
and the time of arrival of each ship.
• Type and Size of the Ships
The registration of this information is usually not reliable enough

because it is subject to interpretation. It is clear for tankers,
gas carriers, bulk carriers or pure container vessels, but it is not
clear for the multipurpose ships carrying containers on the upper-
deck and break bulk cargo in the holds. It is also difficult for the
conventional vessels.
The best and easiest way to correctly register the types and sizes
of the ships is to link the database of the port with the database
of the Lloyd’s Marine Intelligence Unit.
1. Topographic and geographic factors, including:
• estuary port;
• tide time;
• locks; and
• weather.
2. Operational factors, including:
• port congestion;
• unavailability of berths;
• priorities of other ships;
• unavailability of pilots or tugs;
2.3 BERTH UTILISATION INDICATORS
2-052 Berth utilisation indicators indicate the actual intensity of the use of the
berths.
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2.3.1 Definitions
2-053 Definitions are given below in the following paragraphs.
Berth Occupancy Ratio
2-054 Berth occupancy shows the level of demand for services and is described,
defined and calculated in two different ways depending on the types of
terminals/cargo
Container Terminals
2-055 Berth occupancy ratio figures give an indication of available berth metres
with present shipping lines calling at the terminal. The figure gives a
possibility to compare terminals and can describe how important the
different schedules are for the berth utilisation. It should be noted
that berth occupancy cannot be used as a decision base for adding new
customers or changing services, but the actual schedule has to be studied
before any changes to the present schedule can be considered.
Definition
∑ (Berth metres x service hours)

The terminal occupancy ratio = x 100
∑ (Quay length metres x days x 24)
Where:
Berth metres service hours is the sum of all the berth metre hours for all
vessel calls during the given time period (one year, one month, one week).
Berth metre service hours for a given vessel call is calculated as:
(Vessel LOA + lines) x (berthing hours + “technical manoeuvring time”*

for arriving/departing vessel).
* Note: manoeuvring time is normally not included in the service time.

However, to be realistic, we know that the berth should be empty
when a new ship arrives in the basin close to the berth. It means
that we need a minimum of time between the berthing of two ships.
By convention, we will name “technical manoeuvring” time this period
that is thus to be included in the service time of the ship at berth
Calculation
2-056 Calculation of the berth occupancy is based on the standard berth

schedule. Please note that it is important to change the figures when
the standard schedule changes. If a part of the berth is permanently
reserved or can only be used for barges, this part should be excluded
from the calculation.
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Multipurpose Quays
2-057 The problem is different for multipurpose quays because the arrivals of
trampers and general cargo are more irregular; the schedule is more
flexible and it is difficult to manage such quays with a tight schedule.
Description
2-058 The berth occupancy ratio shows the level of demand for services,
compare with the availability of the infrastructure (supply).
Calculation
∑ Service time in hours

Berth occupancy ratio % = x 100
∑ Hours in a year*
Where:
∑ Service time is the sum of ship hours spent at berth for all the calls
during a given period.
* usually, for one year, 365 x 24 = 8,760 hours per berth.
2-059 It can be calculated for a specific berth or terminal or calculated for the
whole port or for type of vessels as well. The use is to calculate the
berth occupancy ratio per terminal.
2-060 We can see that the method of calculation is different because the capacity
of container terminals is calculated per metre length. The regularity and
respect of the schedules enable tight use of the terminal. The regularity
of arrivals minimises the probability to have a space at berth occupied
when a ship arrives. On the opposite, in multipurpose, multi users quays,
the irregularity of ship arrivals results in uncertainty, and maximises the
probability to find a berth occupied when a new ship arrives. It is one
major reason to calculate the occupancy per berth and not per metre as
for the container terminals.
Berth Productive Time Ratio
2-061 This shows the number of hours that the ships are effectively operated.
It gives an indication about the quality of services to ships. The formula
is:
∑ Productive hours
Berth productive time ratio % = x 100
∑ Service hours
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2-062 It shows whether there is a high idle time or not during the operations.
Remember that idle time may have various causes such as bad weather
conditions, non-working hours, break down of equipment, insufficient
equipment etc.
2-063 Some of the problems are dependant on human errors and can be solved
while others cannot. Efficient management will limit human errors in
order to reduce the idle time and thus the service time.
2-064 The latter ratio is often associated with the following working hours per
day that indicates the daily working (or opening) hours.
Daily working time rate = Working hours/24
2-065 For example, a working time of 50% means that the port operates only
for 12 hours.
2-066 This information is provided from the timesheets. Some difficulties exist
for collecting this information:
• If the port authority is operating the port, it is easy to get the

timesheets.
• If independent operators or stevedores perform the handling, the

port authority may have difficulty in accessing the documents.
2-067 Other difficulties arise because the operators do not indicate the effective
reason of the idle time not to show the weaknesses of their work
organisation.
• The quality of the handling operations (see the following

section).
• The opening hours of the port.
• The social climate.
• The weather.
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2.4 CONCLUSION
2-069 The berth related ratios mainly concern the services for ships: they
measure the maximum capacity of the port, the level of services supplied
by the infrastructures and are used by planners for translating the
forecasted demand in requirements for new berths or new terminals.
2-070 But berth operations are not independent from the other activities in
the port and the time in ports depends mainly on the productivity of the
handling operations between ship and shore, on one hand, and the quay
transfer operations, on the other hand.
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HANDLING OPERATIONS
Learning Outcomes
After reading this section, you will be able to:
• evaluate the productivity of the handling operations;

and
• diagnose the efficiency of the handling operations.
2-071 When analysing the berth indicators, only the infrastructure is concerned.
As to the handling operations, they mobilise:
• equipment for operations from sea to shore or vice-versa;
• land equipment for the transfer from/to storage area; and
• the labour force.
2-072 The efficiency of a port is measured by the output it is able to produce

during a period of time and with the means that it mobilises for serving
ships and goods.
2-073 We analyse first the efficiency ratios when serving the ships and then
the efficiency ratios of the input mobilised for performing the handling
tasks.
3.1 HANDLING OUTPUT INDICATORS
3.1.1 Ship Output
2-074 The major commercial argument for a port is the ship output because
the shipowner requires short calls. A shipowner wants to know what is
the number of containers or the tonnage that the port can handle per
hour and can they guarantee it. The more the port is able to reduce the
time spent in the port, the more satisfied the shipowners are.
2-075 All the indicators, which show the exact situation and the evolution of
the call duration are, therefore, very relevant.
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3. Performance Indicators for Handling Operations Unit 2
Definitions
2-076 Ship output indicators measure the rate at which cargo is handled to and
from a vessel. They are clear indicators of how good the cargo handling
operations are. There are three ship output (SO) indicators:
∑ Containers handled
1. WSO – Containers per productive hour =
∑ Productive hours*
2. BSO – Containers per ship at berth =
∑ Berth hours*
3. PSO – Containers per ship hour in port =
∑ Hours in port
* Note that:
• “berth hour” is defined as the time from all lines fastened on

arrival to last line released on departure.
• “Productive hour” is the time effectively worked, i.e. the (“berth

time” minus “idle time”).
2-077 As far as the bulk or break bulk cargo handling is concerned, the formula
of the three ratios are modified. Instead of total containers handled, the
numerator in the formula is replaced by “total number of tonnes”.
It is logical that WSO > BSO > PSO
2-078 Indeed, though idle time should be minimised, there are sometimes idle
times and non-operational times under some circumstances when the
ship is berthed and is in the port.
Source and Reliability of Data
2-079 The main source of data to be collected for calculating the ratios is the
timesheet form filled in by the handling supervisor.
2-080 The same as for the ship time in port survey, some difficulties exist in
collecting this information:
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Unit 2 3. Performance Indicators for Handling Operations
• If the port authority is operating the port, it is easy to get the

timesheets.
• If the handling is performed by independent operators, the port

authority may have difficulties in obtaining the documents.
• Other difficulties arise in comparing the port operators

timesheets.
2-081 In many ports, the ship output is given in number of boxes per hour. Such
a calculation does not take into account the size mix of the containers.
2-082 Other difficulties arise because the operators do not always indicate the
effective reason of the idle time, in order not to show the weaknesses
of their work organisation.
Factors Influencing the Results
2-083 The ship output obviously depends on the handling methods at the quay
and, therefore, the means mobilised for the handling labour force (number
of gangs and equipment).
2-084 It is the reason why we set up ratios related to the gang output and the
equipment utilisation.
3.1.2 The Gang Output/Crane Output
2-085 The ship output depends, among other things, on the number of gangs
used for the handling and the efficiency of those gangs. Except in very
small old-fashioned ports, the gang includes not only workers but also
the handling equipment for ship to shore operations and quay transfer
operations. Therefore, the gang output (or crane output) can vary with
the type, capacity and efficiency of the equipment provided.
Definitions
2-086 As far as the containers handling is concerned, the formula is:
∑ Boxes handled
Average gross productivity per crane =
∑ (Gang x gross hours)
Where:
• Gross hours are defined as gang hours – deductible time.
• Deductible hours are stand-by for vessels, meal breaks, handling of

break bulk if any, gang at other vessels and back again. When a gang
is guaranteed certain payable work hours but the vessel is finished
earlier, the guarantee time is considered as the gang hours.
Magnum 8 (LM1797) 2-23

• Gross hour = (gang x hours) – gang x (idle hours + meal breaks

hours + bulk handling hours + other ship handling hours +
(guaranty hours – actually worked hours)).
2-087 The ratio can be calculated for a day or for a shift or for an hour. It is
not recommended to calculate it for a year because it is often necessary
to fine-tune the analysis and take into account the problems related to
the peak phenomenon.
2-088 Sometimes, in some ports, the average output is calculated per man x
hour. Additionally, the method of calculation depends on the information
provided in the timesheets.
2-089 In the majority of cases, the gang output is similar to the crane or gantry
crane output because each gang uses a crane or gantry crane.
2-090 For gantry cranes, we usually speak of “moves per hour” (it is then easier
to compare the performances of the different ports because every port
has its own mix of 40 ft and 20 ft containers).
2-091 As far as bulk and break bulk cargo are concerned, the gang output is
measured by the following ratio:
Tonnage handled
GO ratio (average output per gang per hour) =
∑ Gang x productive hours
2-092 It is also relevant to evaluate the mobilisation of the labour force capacities
in the port. The number of gangs mobilised for operating one ship is a
good indicator of the efforts for accelerating the operation.
∑ Number of gangs x hours

Average number of gangs per ship =
∑ Number of ships x hours
This ratio is usually calculated for each type of vessel.
Source and Reliability of Data
2-093 The difficulties for estimating the gang output are the same as the ones
for the ship output because the source of information is the “timesheet”
as well.
Factors Influencing the Results
2-094 The gang production depends more on the quality and capacities of the
equipment used than on the number of workers.
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2-095 All other factors being constant, experience shows that:
• quay ship to shore handling equipment is always more efficient

than the ship handling equipment;
• numbers of quay transfer equipment on the platform and the

quality of operators; co-ordination between STS operations and
transfer operations is essential;
• to operate old ships is usually more time-consuming than new

ones (depending on vessel structure);
• an overstaffed gang does not increase the output; and
• the social climate and incentive policies influence this result.
3.2 UTILISATION RATIOS OF THE INPUT
2-096 Equipment and labour force are the two physical inputs.
3.2.1 Utilisation of the Equipment
2-097 For the purpose of estimating the capacity and the degree of mobilisation
of a port, or to evaluate the capacity remaining for additional traffic as
well, it is necessary to know the time of utilisation.
2-098 Crane utilisation figures give an indication of the utilisation of available

crane hours. Equipment utilisation can be used for comparison between
terminals.
∑ Number of worked hours

Rate of utilisation of cranes =
∑ Available hours
Where, available crane hours are total hours (720 per month or 8,760
per year) minus crane breakdown and maintenance time.
The average rate can be calculated per day or per month or per year.
3.2.2 Utilisation of the Workers
∑ (Men x hours) worked

Rate of utilisation of workers =
∑ (Men x hours) available
The average rate can be calculated per day or per month or per year.
Magnum 8 (LM1797) 2-25

2-099 Because of the problems of the peaks, it is preferable to calculate the

ratios on a monthly or daily basis. The yearly average rate does not
show the periods when the problems occur.
2-100 This ratio is very important because it is always the basis for discussion
between workers and employers when they determine the level of
employment required in the port.
3.2.3 Source of Information and Reliability
2-101 The source of information is the timesheet with all the difficulties that
we have already explained:
• When the port equipment is owned and operated by the port

authority, it is possible to know the number of worked hours for
the equipment and workers.
• When the port quay equipment is owned by the port authority

and rented on an hourly basis to operators, it is also easy to get
the information.
• When the port is only a landowner port, only the private operator
is interested by the ratio and does not provide the port authority
with the information.
2-102 The main factors influencing the ratio with regard to quay equipment are
explained in the following paragraphs.
The Peaks of Traffic
2-103 Any port in the world has experienced irregular daily traffic. One day,
four ships are berthed while only two are berthed another day and traffic
is sometimes higher in seasonal periods such as October in Europe and
USA due to the import of Christmas gifts, or in winter when tropical fruit
are exported etc.
2-104 The peak factor is the excess of traffic compared with the average monthly
traffic.
Maximum monthly traffic

Peak factor =
Average monthly traffic
This peak factor may be between 1.2 to 2.
Peak hours are also registered every day, namely in the delivery area.
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The Frequency of Breakdowns
2-105 Usually a preventive maintenance policy avoids frequent failure of

equipment. However, this may happen regardless. A high frequency of
failure makes the availability rate very poor and hinders the efficiency
and productivity of the port.
2-106 The following indicators are used:
∑ Crane x total hours

– ∑ non-available hours
Equipment availability = x 100
∑ Crane x total hours
Where total hours are 30 days x 24 hours = 720 hours per month or
8,760 hours per year.
∑ Operational time
Equipment reliability = x 100
∑ (Operational + crane
down time)
2-107 The main factors influencing the ratio with regard to labour force are:
• the peaks of traffic;
• the trade unions policy;
• the type of equipment;
• the type of cargo; and
• the type of ships.
Magnum 8 (LM1797) 2-27

STORAGE OPERATIONS
Learning Outcomes
After this section, you will be able to:
• understand the factors that impact upon the storage

capacity of yards; and
• estimate the land requirement for storage.
2-108 All the ports in the world have to provide:
• covered transit sheds for the break bulk cargo;
• yards for open storage;
• space and storehouses for long term storage;
• open storage or silos for bulk cargo;
• tanks for liquid bulk; and
• space for dangerous goods.
2-109 And specifically container terminals have to provide:
• yards for open storage, mainly containers;
• space and storehouses for long term storage;
• space for dangerous goods; and
• the CFS for the LCL containers.
2-110 However, such facilities have a cost for building, maintaining and operating
them.
2-111 To determine the needs in square metres of sheds or open storage facilities
is difficult because the surface depends not only on the type and volume
of cargo but also on the time that the cargo stays in the port.
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Unit 2 4. Performance Indicators for Storage Operations
2-112 The commercial policy of the port depends also on the availability of space
and possible extension. If the port area and storage facilities are large,
the commercial policy might consist in attracting cargo by a low tariff.
On the other hand, if the port is surrounded by a city and cannot enlarge
the space available, the terminal policy will be to accelerate the delivery
time and reduce the transit time by increasing dues on storage.
2-113 Therefore, the ratios mainly concern the utilisation factors of the storage
facilities. They are the key of the policy.
4.1 DEFINITION OF THE RATIOS
2-114 The average dwelling time in storage facilities is calculated by the

formula:
∑ (Containers x dwelling time)

Average DT =
∑ Containers stored
The unit is the day or hour.
This formula is as valid for open storage as for covered storage.
For general cargo, we replace containers with tonnes in the above

formula.
2-115 It is obvious that any reduction of the time spent in the yard or shed will
result in the reduction of space requirements.
2-116 Later, we will show the calculation of the capacity of the port facilities by
using these different ratios.
4.2 SOURCES OF INFORMATION AND RELIABILITY
2-117 In the transit slots, the information comes from the register book where all
the cargoes are consigned. The date, hour of the in and out movements
are also registered.
2-118 This information is transferred to the financial department or the operation

department for the billing of the storage; the financial department is the
source of the information in this case.
2-119 However, the problem is complicated by the fact that, in most ports,
a grace delay exists during which the storage is free. The financial
department consequently knows only the cargo staying more than the
grace delay in the shed or on the yard. Usually, the grace delay is 10
days and it is difficult to know something about the cargo staying less
than 10 days. Two solutions for solving the problem are to:
Magnum 8 (LM1797) 2-29

4. Performance Indicators for Storage Operations Unit 2
• investigate by enquiry in the register book: this method is boring

and not very reliable because of the peak phenomenon; or
• investigate at the freight forwarders who have a very good

knowledge of the port and are able to roughly estimate the
average dwelling time according to the type of cargo.
2-120 If the administrative operations are monitored, then it is very simple to

calculate the dwelling time ratio of any kind of cargo.
2-121 In most of the big ports, monitoring systems exist and it is easy to
get the information. In other ports, only the “handcraft” system of
collection of information is possible (such methods may be in place in
small multipurpose ports that handle only few containers, i.e. less then
10,000 per year).
2-122 Monitoring is compulsory when good information is required concerning

the port operations and ways to improve performance.
4.3 FACTORS INFLUENCING THE RESULTS
2-123 The level of the ratios often depends on the following elements:
• the custom clearance delay;
• the shippers’ abilities and capacities for storage; and
• the tariff policy.
4.4 CONCLUSION
2-124 Storage is often a problem in ports because of changes in the lay out
design as a consequence of technological development in ships and
handling methods.
2-125 The dwell time determines the space required. Performance indicators are
consequently required to improve the efficiency of the port. Monitoring
is progressively introduced into terminal management and is the only
way to calculate these indicators.
2-30 Magnum 8 (LM1797)

5. INDICATORS FOR QUALITY OF SERVICE
Learning Outcomes
Quality of services is more important than prices for

catching and keeping customers for a port.
At the end of this section, you will be aware of:
• the difficulty to quantify the quality of services;
• evaluating the quality of services in a terminal;

and
• the limits of this analysis.
2-126 The quality of service is nowadays the first requirement from the shipper’s
logistician.
2-127 Many factors determine the quality of the services in ports: some are
quantifiable while others are not. In the framework of our course about
the performance indicators we deal only with the quantifiable ones but
we cannot ignore the others.
2-128 Some of the previously shown indicators can be considered as quality

indicators:
• waiting time;
• turn-round time in port;
• handling productivity and berth productivity
• storage grace delay; and
• working hours in the port.
2-129 But other non-physical indicators show the other aspects of the terminal
because, as you know, a port is not only an infrastructure but also the
combination of many services gathered for serving the ships and the
goods.
Magnum 8 (LM1797) 2-31

5. Indicators for Quality of Service Unit 2
2-130 Experience shows that shippers and shipowners are very concerned by
the social climate, reliability, the welcome in the port and many other
services provided to the crews or to the shippers.
2-131 The ISO 9000 family of standards process for gaining quality assurance
accreditation is spreading in the port field. More and more ports are
engaged in this process.
Further information on the ISO standards is available from:
• http://www.iso.org/iso/en/iso9000-14000/index.html
2-132 But there is not yet a well-defined list of indicators or an objective way
to measure quality.
2-133 In this section we point out some indicators which could be used by ports
for surveying the evolution of the quality of the services.
5.1 FLEXIBILITY INDICATORS
2-134 Flexibility measures the ability of the port services to adapt to the
requirements of the shippers and shipowners.
5.1.1 Working Hours
2-135 The co-ordination of administrative and physical operations is one of the

key aspects of efficiency. The target is the simultaneous opening hours
for all services.
2-136 The measurement ratio is: number of non-co-ordinate hours/24 hours.
Example
Number of
Opening
Service Non-co-ordinated
Hours
Hours
Tugging/pilotage 6 – 22 8 hours
Handling 0 – 24 0
Customs clearance 8 – 18 14 hours
Delivery/receipt 6 – 20 10 hours
Port office 7 – 17 14 hours
Total average/24 hours 11.5 hours
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Unit 2 5. Indicators for Quality of Service
2-137 This means that the port is opened 24 hours a day only for the handling
and that other services do not organise 24 hour services.
5.1.2 Punctuality
2-138 Shipowners and shippers are very concerned by the capacity of the
port to respect the forecasted time schedule (particularly for ferries, or
containerships).
2-139 The measurement ratio is the percentage of respective arrival and

departure times:
∑ Ship x delayed time

(arrivals or departures)
Punctuality ratio =
Number of calls
2-140 According to the purpose of the analysis and the type of sailing, we may
take into account only the delays superior to a certain time (for example
one hour or more).
2-141 Of course, terminals are just as interested in punctuality of the ships and
may measure the ratio for lines as well.
5.2 RELIABILITY INDICATORS
5.2.1 Security
2-142 Security for ships and cargo are essential for shipowners and shippers.
2-143 A port is never 100% safe and secure and there are sometimes acts of
pilferage or accidents. Some ports have developed a marketing policy
by promising the shippers “a zero mistake target” in the port.
2-144 It is, therefore, relevant to determine indicators for measuring the grade
of success of such a policy.
∑ Number of pilferage
(or robbery or other) cases
Indicator of security =
∑ Number of BL (or manifests)
2-145 The time unit of registration can be the month or the year.
Magnum 8 (LM1797) 2-33

2-146 In addition, the indicator must show the importance of the problem in
value or in volume:
Indicator of loss in value = Total amount of the loss (in dollars)
Total loss in TEU

Indicator of loss in volume =
Total TEU operated
Total number of casualties

Indicator of casualties =
Number of ships (or tonnes)
2-147 These indicators are usually completed by carrying out an analysis of

the causes of the casualties or the loss. It can be analysed by type of
cargo or type of package or on a specific terminal of the port.
5.2.2 Commercial Climate
2-148 There are always arguments in all the ports in the world in case of
pilferage, robberies or loss and casualties or late delivery of the cargo
etc. Any activity leads to mistakes or accidents. But all these facts do
not lead to actions in courts. Only the big events or the high value loss
are conducted by the judges.
2-149 Many other affairs are dealt with by mutual agreement after an
investigation performed by specialists. The problem is often raised not
on the estimate of the value of the loss but on the responsibilities of the
different parties involved.
2-150 The behaviour of the parties and their aptitude to solve and indemnify
the victims of the loss are key elements of the commercial climate in the
port.
2-151 The port authority is not the only responsible party in this field, except
in the case of the ports operating all activities. In the landlord ports,
where all the operations are privatised, the port authority is responsible
only for the defects in the police management or the maintenance of
the infrastructure. The function of the port authority is, nevertheless,
to create a good climate in the port so that the victims (shipowners and
shippers or workers) are well indemnified and on a very short term.
2-152 A good indicator of the commercial climate is the number and value
of arguments in the ports and the compliance for solving the litigious
situations.
2-34 Magnum 8 (LM1797)

Unit 2 5. Indicators for Quality of Service
Number of litigation actions

Litigation indicator =
Number of BL (or manifests)
Number of solved litigation actions

Rate of agreement =
Number of litigations solved in

a one month delay (or other time)
Delay indicator =
2-153 This indicator shows the importance of the effective will of the parties to
solve problems quickly.
2-154 In some ports, the litigation indicator is very low but it does not mean
that there are few accidents or pilferage and the port is safe. In fact,
if the rate of agreements is low and the delay indicator is low as well,
it may indicate that the victims have decided not to pursue litigation as
they are not indemnified, nor desire spending money and time for no
result.
2-155 This example shows that the indicators must be read and analysed
carefully by the analysts before giving a diagnosis about the situation.
5.2.3 Work Reliability
2-156 Shippers and shipowners are very sensitive to “just-in-time

operations”.
2-157 All logistic chains are nowadays organised for reducing delays, transit time
and limiting the stock levels thanks to a good transportation policy.
2-158 The port is an element of this chain and any stoppage of its activity
results in problems all along the logistic chain and finally on the cost and
reputation of the products.
2-159 The reliability of the port is, therefore, an important topic.
2-160 A universally used indicator of reliability is the absence of strikes or social

issues in the port.
Number of effective worked days

Reliability indicator =
Number of scheduled working days
Magnum 8 (LM1797) 2-35

5.3 CONCLUSION
2-161 There are many different situations and plenty of different types of
economic, sociologic and political environments. The indicators for
quality are, therefore, only partial and must be adapted to the different
situations.
2-162 The indicators shown above are probably applicable in most ports because
they concern most of the problems met in most ports.
2-163 It is up to each port authority or terminal to discover other indicators

according to their targets.
2-36 Magnum 8 (LM1797)

6. ESTIMATE OF PORT CAPACITY AND PORT
PLANNING
Learning Outcomes
This section synthesises all the previous ones and will

make you aware of:
• evaluating the overall capacity of a port;
• auditing the main positive and negative aspect of

the different operations in port; and
• preparing a keyboard in order to plan the future

development of the port and make recommendations.
2-164 One of the targets of port performance indicators is to diagnose the

present situation and permanently survey the port activities.
2-165 The second target is to enable the planners to estimate the limits of the
capacity of the port and the time when new facilities will be required
according to the traffic forecasts.
2-166 Finally, the information about the port’s or terminal’s performance gives
the manager a good base for fixing the improvements objectives as far
as performance is concerned.
2-167 According to performance indicators of the productivity of operations,

the port or terminal management can analyse whether they can handle
a higher or lower volume of cargo and/or number of ships.
2-168 The physical limiting factors of performance are the number of berths,
the sheds, the open storage areas (for example the container yard), the
handling capacity and the gate.
2-169 It is clear that each facility influences the performance of the others:
• The handling productivity determines the berthing time of the ships

and consequently the berth occupancy ratio and the waiting time.
• The capacity of the yard and the design of the lay out influence
the handling productivity.
Magnum 8 (LM1797) 2-37

6. Estimate of Port Capacity and Port Planning Unit 2
• The customs clearance delay determines the dwell time of the

cargo in ports and, therefore, the surface of the yard needed for
storing the cargo.
2-170 It is clear that any element influences the other elements of the chain
in the port area. Nevertheless, we should analyse the capacity of each
of the elements, independently one from another. In spite of that, we
successively analyse:
• the berth capacity (length);
• the storage capacity (storage area); and
• equipment, i.e. ship to shore (STS) cranes and yard equipment.
2-171 Once this analysis is completed, it is then possible to diagnose the

situation in the port.
2-172 Finally, the planners will be able to propose solutions for coping with the
traffic forecast over the short and long term (maybe up to 15 next years,
especially if signing a long-term concession agreement.)
6.1 BERTH CAPACITIES (LENGTH)
2-173 The past performance indicators in handling operations are the way to
estimate the port capacities.
2-174 Usually, in practice, the berth capacity is determined by benchmarking

with other relevant terminals, i.e. which turn over could be expected per
crane and per berth metre.
6.2 STORAGE CAPACITY
2-175 Storage capacity is very often limited by the cities surrounding the ports
or by the topographic elements (hills, mountains, rivers etc). Anyway,
the land area is expensive and it is economically justified to limit the area
dedicated to storage and using the land for operations. As you know,
the handling and quay transfer operations need more and more space
to be efficient.
2-176 Nevertheless, the planners must know the capacity of the storage facilities
(covered and open) for estimating the capacity of the port to cope with
the traffic in the next 10 years.
2-177 The capacity depends on the dwell time of the cargo:
• Dwell Time
The time of occupancy of the yard determines the times that we

can fill in the ground slots.
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Unit 2 6. Estimate of Port Capacity and Port Planning
• Type of Cargo in Container Freight Stations (CFS)
When containers are consolidated or unstuffed in ports, the

goods are stored in CFS and the surface requirements depend
on categories of commodities.
Each type of cargo has its own characteristics and some

commodities can be stacked while others cannot. Some goods
are voluminous while others are heavy.
2-178 Therefore, the number of square metres occupied by one tonne of cargo
depends on the type of cargo. This characteristic is named the stowage
factor. The stowage factor is the surface occupied by one tonne of
goods.
2-179 Concerning containers, the stowage factor is effectively the “slot” that
the area occupied by one 20 ft container (20 ft x 6 ft).
2-180 The mathematic formula for calculating the number of slots for storage
is as following for containers:
Yearly container visits x

dwell time x peak factor
Number terminal slots =
365
∑ Terminal slots
Number of ground slots =
Allowed peak stacking height
Where:
Throughput (moves)
Yearly container visits =
(1 + transhipment ratio)
2-181 For RTG, the allowed peak stacking height is considered as 75% of the
maximum operational stacking (maximum operational stacking of a block
is width x height minus 1).
2-182 For straddle carriers, the allowed peak stacking height is considered as 75%
of maximum operational stacking (one over two high = three high).
2-183 Transhipment ratio is to be considered, as two moves over the quay for
a transhipment container would only require one slot in the yard.
Surface Requirement
2-184 Once the number of slots is determined as well as the ground slots, the
total surface of the storage yard depends on the lay out of the platform
and the storage equipment used.
Magnum 8 (LM1797) 2-39

6. Estimate of Port Capacity and Port Planning Unit 2
2-185 Separation between blocks of containers depends on the shape of the

layout (a rectangular shape is ideal but sometimes, due to topographic
constraints, the yard may have an other polygonal shape) and the quality
of services provided (dedicated yards or not).
2-186 The capacity of each block depends on the choice of equipment used
leading to different circulation systems on the yard.
2-187 We say that the effective footprint per TEU varies with the type of
equipment.
2-188 Straddle carriers need bigger footprints than RTG but less than reach
stackers.
2-189 Consequently, the capacity of storage area in TEU is:
∑ Ground slots foot prints x 365 x max

stacking high
Yearly capacity in TEU =
Average dwell time
The formula shows that the higher the dwelling time is the lower the
storage capacity is.
2-190 The requirements and capacities are calculated for each type of containers
(dry, empty and reefer and so on) because the respective storage yards
are not mixed on the platform.
6.3 EQUIPMENT (STS AND YARD)
2-191 Consistency between STS and yard equipment are essential. The
principle is that the performance of yard equipment in moves per hour
be compatible with the performance of the STS cranes. For example, if
the crane can handle 27 containers per hour, the overall equipment used
to transfer the containers to the yard should be able to carry at least 27
containers per hour wherever the containers are located on the yard.
2-192 If the yard is far from the ship being operated, we need more equipment
than if the yard is close to the ship. In fact, the determining element is
the time needed for performing a round trip between the crane and the
ground slot where it is stored.
6.4 PORT PLANNING
2-193 Project planning consists of performing scenarios of development

according to the traffic forecast.
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Unit 2 6. Estimate of Port Capacity and Port Planning
2-194 The evaluation of the capacities of the different facilities gives the port
planner the time when the port will be congested. It is good information,
but it does not show how to solve the problem of the congestion.
2-195 The performance indicators are the tools for helping to solve the
problems.
6.4.1 Estimate of Time of the Congestion
2-196 The comparison of the traffic forecast and the maximum capacity of the
facilities will show the year when the congestion will happen either for
berth or for the storage.
6.4.2 Use of Indicators for Limiting or Delaying the Congestion
2-197 The port planners have to take decisions after analysing all aspects of the
decisions – the consequences of the decision from the social, economic,
financial, operational and technical points of view. The performance
indicators are the tools of quantification of the consequences.
2-198 The congestion can be postponed by different actions:
• building new berths (but this is expensive and it might be

financially difficult); and
• to improve the output by:
- extending the open hours, (some terminals do not work

24 hours per day);
- buying new equipment, (the availability ratio of equipment

is a good indicator of their over or under-utilisation);
- changing the methods of working, (better co-ordination

between STS and yard equipment, computer based
operation planning, training of workers and so on);
- taking incentive measures for workers;
- accelerating the customs clearance; and
- limiting the dwelling time of the cargo in port etc.
This is probably cheaper than building new quays.
2-199 Performing a simulation on a spreadsheet, we can easily evaluate the

consequences of any solution on the port capacity.
Magnum 8 (LM1797) 2-41

7. APM TERMINALS AND KEY PERFORMANCE
INDICATORS
7.1 APM TERMINALS KEY PERFORMANCE INDICATORS (KPIs)
2-200 As outlined, port performance indicators can be used to measure and

compare many facets of a port or terminal operation. APM Terminals is no
different in this and Appendix 1 contains the APM Terminal’s document
that provides an overview of the standard APM Terminal’s KPIs.
2-201 KPIs and the concept of quantitative indicators are applied both for
operational awareness and cost awareness (and control). Knowing the
cost of specific aspects of the operation, in conjunction with well defined
productivity metrics, allows good business decisions to be made while
executing the operation.
2-202 Note that the document states:
“Although these are the KPIs that need to be reported, please note that
this is not a complete list. The creation of localised, and specific process
improvement measurements, are encouraged to be developed.”
7.2 APM TERMINALS WORLD CLASS OPERATIONS
2-203 A well defined set of KPIs, that not only cover the higher level indicators
and goals of terminal operations, but also cover specific areas are
necessary. These operation specific measurements can be used for
process improvement and success measurement. In order to achieve and
sustain best practice and operate the most efficient terminal operations
in the world, APM Terminals has developed guidelines for designing and
managing operations. These are contained within the APM Terminals
“Process and Organisational Guidelines” (available from Communigate
or CENAPMTOPS), and referred to as “World Class Operations”.
2-204 The “Process and Organisational Guidelines” set four principles of

organisation, one of which being “Control with Key Performance
Indicators”, in which a set of quantitative indicators are outlined that are
used to show how well objectives are being met and how successful the
organisation has been in attaining the goals established.
2-205 For World Class Operations, APM Terminals has identified five Key KPIs
to measure, access and compare terminal operations. When combined,
and presented along with the results for the other terminals in the group,
these are referred to as the “World Class Operations Scorecard”. An
outline of how these are used is included in Appendix 2 along with an
example of the monthly scorecard.
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8. CONCLUSION
2-206 Port performance indicators have been created for improving the ways
of analysing the diagnosis and to help the decision-makers.
2-207 Most of the indicators are related to the operations (berth, handling,
storage) because they are the main fields where improvement is
possible.
2-208 As far as the quality of the service is concerned, the indicators are to be
found and universally adopted. The actions to be decided are not simple
because they deal with the workers and human behaviour. Only a subtle
mix of indicators put together can give the planners a good estimate of
the actions to be decided.
2-209 The performance indicators are the tools but the interpretation and the
research of the right decisions to be taken is probably a subtle art.
Magnum 8 (LM1797) 2-43

FURTHER READING
• Assessment of a seaport land interface: an analytical framework (UNCTAD,

2004). Available from:
- http://www.unctad.org/en/docs//sdtetlbmisc20043_en.pdf
(accessed May 2006)
• Container Port Production and Economic Efficiency (Tengfei Wang, Kevin

Cullinance and Dong-Wook Song, Palgrave Macmillan, 2005)
• Port Management and Operations (Patrick Alderton, Informa Business

Publishing, 2005) ISBN 1843114224
2-44 Magnum 8 (LM1797)

APPENDIX 1
APM TERMINALS KEY PERFORMANCE

INDICATORS (FROM CENAPMTOPS)
Key Performance Indicators (KPIs) are the performance measures

critical to an organisation’s core business – quantitative indicators
that show how well the organisation’s objective is being met.
In a highly competitive terminal environment, one has to be

information-rich, knowledge and process orientated in its
management. KPIs become a crucial input for senior managers
to perform effectively, and focus resources for improvement.
A well defined set of key performance indicators is necessary.
KPIs and the concept of quantitative indicators should also be applied

in cost awareness and control. Knowing the cost of specific aspects of
the operation, in conjunction with well defined productivity metrics, will
allow good business decisions to be made while executing the operation.
For easy reference, below is an overview of the definitions of the

KPIs that APMT Terminals report currently. Although these are
the KPIs that need to be reported, please note that this is not
a complete list. The creation of localised, and specific process
improvement measurements, are encouraged to be developed.
Magnum 8 (LM1797) 2-45

Appendix 1 Unit 2
APMT KPI Definitions
Staff blue collar (number) If this classification does not

apply, employees mainly working
outside should be included.
Staff white collar (number) If this classification does not

apply, employees mainly working
inside should be included.
In-hired staff (number) Includes all in-hired

(subcontracted) lashers/labour/
union. Full time equivalent
based on manning hours.
For example if in-hired labour

worked 1600 hours and an
employee works 160 hours per
month, the in-hired staff would
be equal to 10.
Hectares Include the entire terminal area,

facilities, buildings, traffic lanes,
stacking areas, parking slots.
Quay metre (m) Length of berth in metres.
Ship-shore crane (number) Number of ship to shore gantry

cranes.
Mobile cranes (number) Number of mobile cranes.
RTG (number) Total in use (only relevant for

RTG terminals).
Straddle carrier (number) Total in use (only relevant for

straddle carrier terminals).
2-46 Magnum 8 (LM1797)

Unit 2 Appendix 1
Reach stacker + empty handlers Total in use. Top loaders should

(number) be included.
Terminal tractors (number) Total in use (terminal tractor =

prime movers).
TEU – total throughput Total throughput.
Moves – transhipment Include barge moves.
Moves – shiftings (restows) Include ship-to-ship and ship-

yard-ship restows. Include only
billable moves.
Number of LWCs (Lost Workday Any work related injury that

Cases) prevents the employees from
working any scheduled workday
or shift. Also includes in hired
lashers/labour.
For example when the employee

is able to continue work the
same day it is not a LWC. When
the employee is not able to
work the next workday/shift it is
counted as a LWC.
Number of man hours Actual hours worked by

employees, including in hired
lashers/labour. Include all
operational and non-operational
staff. Non-worked guaranteed
time should be excluded.
Number of fatalities Any fatality at the terminal

must be reported immediately,
either by phone or e-mail to
CENAPMTHSSE.
Magnum 8 (LM1797) 2-47

Appendix 1 Unit 2
Number of near misses Any accident that could have

led to a personal injury had the
circumstances differed or any
hazardous occurrence which
had the potential for, but did not
result in an accident or injury.
Days without incidents Current month: number of days

since last incident (LWC). Year
to date: longest consecutive
period without LWC (in days).
For example when the last
incident at the terminal occurred
on 11 April, then your days
without incidents for April is 19
days. If this is also the longest
period without any incidents for
that year then the YTD figure is
also 19 days.
Berth occupancy (% of available Total berth metre hours/ (24

metres) hours x No of days x total quay
length) x 100 where total berth
metre hours is the sum of berth
metre hours for all vessel calls
during the given time period.
Berth metre hours for a given
vessel call is calculated as:
(vessel LOA + lines) x (berthing
hours + manoeuvring time for
arriving/departing vessel).
Should be based on actual
berthing schedule.
For example a terminal has a
quay of 600 metres and fourteen
300 metre long vessel are calling
that month. Every vessel needs
320 metre at the quay, the extra
20 metres Is for the lines. Every
vessel lies along the quay for
20 hours and needs one hour
manoeuvring time for arriving
and departing.
Berth occupancy can now be
calculated as follows: (14 vessels
* 21 hours * 320 metres)/(24
hours * 30 days * 600 metres) *
100 = 21.8%.
2-48 Magnum 8 (LM1797)

Unit 2 Appendix 1
Berth productivity – mainliners Total container moves/berth

hours. Berth hours: timeframe
from arrival at berth (all fast)
to departure berth (last line),
excluding extra time for vessel
along side due to master’s
convenience (bunkering,
maintenance, repair etc).
Calculation should be based on

actual berthing schedule. If
vessels arrives earlier or leaves
later due to masters convenience
(repair, bunkering, crew change
etc), berthing hours should be
updated with only 30 minutes
prior work commence to 30
minutes after work ended.
Please note that a mainliner is

defined as: an ocean carrier which
has at least two continents in it’s
service on which the terminal
has the possibility to deploy a
minimum of three cranes.
Berth productivity – others See previous definition.
Gross crane productivity – Total container moves/gross

mainliners hours (per crane).
Gross hours: Labour going on

board till labour goes a shore
(per crane) with following
deductions: heavy lift (gang
waiting for heavy lift operations);
gang at other vessel (when
gang within timeframe works on
another vessel); and meal hours.
All container moves should be

included (no matter if empty or
full, restows from cell to cell and
to the yard and non-billable).
Please note that a mainliner is

defined as: an ocean carrier
which has at least two continents
in it’s service on which the
terminal has the possibility to
deploy a minimum of 3 cranes.
Magnum 8 (LM1797) 2-49

Appendix 1 Unit 2
Gross crane productivity – others Total container moves/gross

hours (per crane).
See previous definition for gross

hours.
Crane utilisation % Crane working hours/(total

hours (720 per month) – crane
breakdown time).
Crane availability % (Number of cranes x total hours

(720 per month) – total non-
available hours)/number of
cranes x total hours (720 per
month)) x 100.
Note: non-available hours

are crane down time plus ALL
preventive and corrective
maintenance.
Crane reliability % Total operational hours/(total

operational hours + breakdown
times) x 100.
For crane KPIs please note the

following:
• Crane breakdowns: technical

failures of crane and
spreader.
• Breakdown time is the time

from stop of the operation
due to crane failure,
including spreader failure,
until crane starts again.
• Stoppage due to non-

technical issues (i.e.
spreader stuck in the holds)
does not count as down
time.
2-50 Magnum 8 (LM1797)

Unit 2 Appendix 1
Average daily slots occupied (calculated on a

Yard stack utilisation – % full
monthly basis)/total slots available.
Average daily slots occupied can be retrieved

by taking an overview of occupied slots on a
specific reoccurring time. In example take
an overview of slots occupied every day at 3
o’clock.
To calculate total slots available, multiply

ground slots by max stacking height.
Calculating total slots available for SC

operations: For straddle carrier and reach
stacker ops, max stacking height with 3-high
equipment is 3, for 4-high equipment is 4.
For a mix of 3-high and 4-high equipment,
stacking height should be proportionally
calculated.
For example, with a total of 16 SC, 12 3-high

and 4 4-high, the stacking height will be: 3 *
75% + 4 * 25% = 3.25 (where 75% is 12/16
and 25% is 4/16.)
With above mix of Straddle carriers and

in example 5000 ground slots, total slots
available can be calculated as following:
5,000 * 3.25 = 16,250. So when 12,000 slots
are daily occupied the yard stack utilisation is
12,000/16,250 = 73.8%.
Calculating total slots available for RTG

operations: For RTG ops, max stacking height
can be calculated as follows: (total slots
– shifting slots)/ ground slots. For example
in a RTG 7 x 5 height, max. stacking height
is (7 * 5 – 4)/7 = 4.43.With 5,000 ground
slots, total slots available are: 5,000 *
4.43 = 22,150. So when 12,000 slots are
daily occupied the yard stack utilisation is
12,000/22,150 = 54.1%.
Please note it is not possible to reach 100%

yard stack utilisation. Terminals may
experience a productivity decrease when yard
slot utilisation is higher than around 60-80%.
The actual percentage where this occurs
differs per terminal. Some terminal may
reach this at 65%, others at 80% depending
on the cargo split. The terminal needs to
determine this factor by experience.
When yard capacity is the bottleneck capacity

for a terminal (see also capacity utilisation
for further explanation) then the Yard Stack
Utilisation percentage where productivity
decreases start occurring represents the
maximum capacity. In other words when
productivity decreases start occurring in a
terminal when yard stack utilisation is above
70 %, then maximum capacity is reached at
a Yard Stack utilisation of 70%. This means
that capacity utilisation will be 100% in that
situation.
Magnum 8 (LM1797) 2-51

Appendix 1 Unit 2
Yard stack utilisation – % empty Average daily total slots occupied

(calculated on a monthly basis)/
total slots available.
Housekeeping moves Housekeeping are planned

(unproductive) moves within the
yard, performed to optimise the
stacking in the yard.
For RTG ops one housekeeping
move involves two RTG moves
and one truck move.
Dwell time full Average number of days a

container stays at the terminal.
∑ (Time of departure – Time of
arrival)/Number of containers
handled.
Dwell time empty Average number of days a

container stays at the terminal.
∑ (Time of departure – Time of
arrival)/Number of containers
handled.
Truck visits Number of trucks that entered the

terminal. It is lower than gate
moves if trucks bring in/out more
than one container at a time.
Gate moves – total This should include all containers

coming in/going out via the
gate and Inter Terminal Transfer
(ITT). Note: barge moves should
be excluded from this count.
This does not include rail moves.
Gate turnaround-time (minutes) Time between gate-in and gate-

out.
2-52 Magnum 8 (LM1797)

Unit 2 Appendix 1
Capacity utilisation (%) Actual throughput in TEU/max

throughput in TEU. Indicates
utilisation of the terminal capacity.
Maximum throughput in TEU is the
yearly designed operational capacity
and indicates the max amount of TEU
that can be handled by a terminal
in a year. Maximum throughput is
equal to the bottleneck capacity of
the terminal. So depending on what
is the bottleneck of the terminal, this
is either berth capacity, crane or yard
capacity.
Often Yard capacity is the
bottleneck. Yard capacity can
be calculated using the following
formula:
TGS x TS x OSH x 365
ADT x PF
TGS: TEU Ground Slots
TS: Transhipment Ratio
OSH: Operational Stacking Height
365: days per year
ADT: Average Dwell Time
PF: Peak Factor
The transhipment ratio can be
calculated as following: 1 + (%
transhipment in cargo split * 1). In
other words the transhipment ratio
is 1 when the terminal is 100%
import/ export and 2 when it is
100% transhipment. In example
a terminal where the cargo split is
80% transhipment the transhipment
ratio is 1 + 0.8 * 1 = 1.8.
Workable operational stacking
height is: 1.8 for Reach stackers and
3 High Straddle Carriers. 2.4 for 4
High Straddle Carriers. 3.1 for RTG
7 x 5 height.
Average dwell time is the weighted
average of dwell time full and dwell
time Empty. Peak factor depends on
the seasonal peak the terminal is
experiencing. Per industry practice it
is 1.3. But the local peak factor should
be calculated by the terminal itself.
To calculate the capacity utilisation
at a certain time, the design
capacity is calculated pro-rata over
the yearly designed capacity.
In example, to calculate design
capacity at the end of March, the
total design capacity is divided by 4
(12 months/3).
Magnum 8 (LM1797) 2-53

Appendix 1 Unit 2
LTA frequency rate Number of lost workday cases x

200,000 man hours/actual man
hours.
Actual man hours includes

in hired lashers/labour. All
operational and non-operational
employees (white/blue) plus in
hired/subcontracted lashers/
labour must be included. Impact
is measured with frequency, not
in time lost (it is not relevant
for this KPI how long the injury
last).
2-54 Magnum 8 (LM1797)

APPENDIX 2
APM TERMINALS WORLD CLASS OPERATIONS

SCORECARD (FROM CENAPMTOPS)
Key Performance Indicators (KPIs) are the performance measures critical
to an organisation’s core business. They are quantitative indicators
that show how well the organisation’s objectives are being met. In
a highly competitive container terminal environment, one has to be
information-rich, knowledge and process orientated in its management.
KPIs become a crucial input for senior managers to perform effectively
and focus resources for improvement.
APM Terminals uses the World Class Operations concept (WCO) to build
a long-term competitive advantage for all APM Terminals locations by
creating a benchmark for terminal operational performance.
Magnum 8 (LM1797) 2-55

Appendix 2 Unit 2
FOCUS ON WORLD CLASS OPERATIONS
In order to create world best global operational practices the focus is on key
factors that have a significant impact on safety, costs and productivity.
Five focus areas have been chosen as KPIs to define and produce a World Class
Operations scorecard for APM Terminals. These are:
• Cost Per Move Development
Obtained by subtracting the Earning Before Interests and Taxes from the
Revenues and dividing the figure by total billable moves (Cost per move
= (Revenues – EBIT)/Total Billable Moves).
The lower the value compared to the previous year, the higher the score,
meaning that the cost per move should not increase.
• Year to Date Gross Crane Productivity (Mainliners)
Obtained from total container moves/gross hours (per crane).
Gross hours are gang hours with following deductions:
- Standby for vessel (when gang ordered waits for vessel to arrive
at berth).
- Guarantee time (when gang ordered for a guaranteed timeframe

but vessel leaves the berth within this timeframe.
- Heavy lift (gang waiting for heavy lift operations).
- Gang at other vessel (when gang within timeframe works on

another vessel).
- Meal hours.
- All container moves should be included (no matter if empty or

full, restow from cell to cell and to the yard and non-billable).
• Year To Date Berth Productivity (Mainliners)
Obtained from total container moves/net berth hours.
- Net Berth Hours:
Berth hours excluding extra time for vessel along side due to
master’s convenience (bunkering, maintenance, repair etc).
- Berth Hours:
Timeframe from arrival at berth (all fast) to departure berth (last

line).
2-56 Magnum 8 (LM1797)

Unit 2 Appendix 2
Calculation should be based on actual berthing schedule. If vessels arrives

earlier or leaves later due to masters convenience (repair, bunkering,
crew change etc) berthing hours should be updated with only 30 minutes
prior work commence to 30 minutes after work ended.
• Year To Date Capacity Utilisation (Percentage)
Obtained from actual throughput in TEU divided by design capacity.
Design capacity is calculated pro-rata over the yearly designed

capacity.
• Year To Date Lost Time Accident (LTA)
Obtained from number of injuries (accidents) resulting in lost time x

200.000/actual man hours (exposure hours) for the period.
Impact of accidents (lost work cases) resulting in lost time per 200,000
man hours. Exposure hours are the actual hours worked per employee,
including in hired lashers/labour. All staff are included and impact is
measured with frequency.
Non-operational (i.e. finance department, HR etc) and in-hired staff are

included in the calculation.
There is an extra penalty in the unfortunate case of a fatality.
ASSESSMENT OF WORLD CLASS OPERATION ACTIVITIES
The assessment of the World Class Operations current status provides all terminals
with insights about their current state of operation activities and planned actions
towards achieving world class operation status
The assessment of operations activities of a terminal is reflected in a score on

a 0-100 scale.
The 0-100 scale is the result of two different ratings:
• One rating for each of the five operation key performance indicators
described above (cost per move development, gross crane productivity,
berth productivity, capacity utilisation and LTA). Rating score goes from
0 to 100.
• One rating for the overall score of all measured operation processes (total
score). Some of the activities have been deemed greater importance
than others, where their weight is higher when making an aggregation
of the scores.
The weight distribution of the KPIs is shown in the table on the folllowing
page.
Magnum 8 (LM1797) 2-57

Appendix 2 Unit 2
Cost per move improvement 20%
Gross crane productivity 20%
Berth productivity 20%
Capacity utilisation 10%
LTA 30%
The resulting scores rank terminals, with those gaining over 80 (above the blue
horizontal line) being awarded “World Class” status, with those between 50 and
80 (above the red line) being accorded “First Class” status.
APM Terminals World Class Operations Scorecard
2-58 Magnum 8 (LM1797)

Unit2 Performance Indicators

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National Sea Training Centre

Professor Bernard Francou, PhD

1.1 Introduction ............................................................................5

1.2 Deﬁnitions ..............................................................................6

1.2.1 What is Port Performance? .............................................6

1.2.2 What is an Indicator? ....................................................7

2. PERFORMANCE INDICATORS FOR BERTHS 9

2.1 Berth Output Indicators ............................................................9

2.1.1 Deﬁnition .................................................................. 10

2.1.2 Source and Reliability of the Data ................................. 10

2.1.3 Factors Inﬂuencing the Results ..................................... 12

2.2 Berth Service Indicators ......................................................... 12

2.2.1 Deﬁnitions ................................................................. 13

2.2.2 Source and Reliability of the Data ................................. 15

2.2.3 Factors Inﬂuencing the Results ..................................... 16

2.3 Berth Utilisation Indicators ...................................................... 16

Magnum 8 (LM1797) 2-1

2.3.1 Deﬁnitions ................................................................. 17

2.3.2 Source and Reliability of the Data ................................. 19

2.3.3 Factors Inﬂuencing the Results ..................................... 19

2.4 Conclusion ............................................................................ 20

3. PERFORMANCE INDICATORS FOR HANDLING

3.1 Handling Output Indicators ..................................................... 21

3.1.1 Ship Output ............................................................... 21

3.1.2 The Gang Output/Crane Output .................................... 23

3.2 Utilisation Ratios of the Input .................................................. 25

3.2.1 Utilisation of the Equipment ......................................... 25

3.2.2 Utilisation of the Workers ............................................ 25

3.2.3 Source of Information and Reliability............................. 26

3.2.4 Factors Inﬂuencing the Results ..................................... 26

4. PERFORMANCE INDICATORS FOR STORAGE

4.1 Deﬁnition of the Ratios ........................................................... 29

4.2 Sources of Information and Reliability ...................................... 29

4.3 Factors Inﬂuencing the Results ................................................ 30

4.4 Conclusion ............................................................................ 30

2-2 Magnum 8 (LM1797)

5. INDICATORS FOR QUALITY OF SERVICE 31

5.1 Flexibility Indicators ............................................................... 32

5.1.1 Working Hours ........................................................... 32

5.1.2 Punctuality ................................................................ 33

5.2 Reliability Indicators .............................................................. 33

5.2.1 Security .................................................................... 33

5.2.2 Commercial Climate ................................................... 34

5.2.3 Work Reliability .......................................................... 35

5.3 Conclusion ............................................................................ 36

6. ESTIMATE OF PORT CAPACITY AND PORT PLANNING 37

6.1 Berth Capacities (Length) ....................................................... 38

6.2 Storage Capacity ................................................................... 38

6.3 Equipment (STS and Yard) ...................................................... 40

6.4 Port Planning ........................................................................ 40

6.4.1 Estimate of the Time of the Congestion ......................... 41

6.4.2 Use of Indicators for Limiting or Delaying the Congestion ....... 41

7. APM TERMINALS AND KEY PERFORMANCE

7.1 APM Terminals Key Performance Indicators (KPIs) ...................... 42

7.2 APM Terminals World Class Operations ...................................... 42

Magnum 8 (LM1797) 2-3

Further Reading .............................................................................. 44

Appendix 1 – APM Terminals Key Performance Indicators ...................... 45

Appendix 2 – APM Terminals World Class Operations Scorecard .............. 55

© Copyright Informa UK Limited, 2006. All rights reserved.

2-4 Magnum 8 (LM1797)

After reading this section, you will:

• be aware of the relevance of measuring the efﬁciency

• be able to deﬁne what is a performance indicator.