IDjBjC.4j131jSupp.l/Rev.

1

UNITED NATIONS ,CONFERENCE ON TRADE AND DEVELOPMENT

Port performance indicators

UNITED NATIONS

NOTE

Symbols of United Nations documents are composed of capital letters combined with figures. Mention of such a symbol indicates a reference to a United Nations document.

TD/B /C.4/131/Supp.l/Rev.l

Sales No. [Link].D.7

UNITED NA nONS PUBLICA nON

Price: $U.S. 1.50

(or equivalent in other currencies)

CONTENTS

Page
jv
Paragraphs
1-9 3
10-27 5
10-20 5
21-27 8
2842 10
4349 15 Explanatory notes Introduction

Chapter

I. Why calculate port performance indicators?

Il. The most important indicators

A. Financial indicators ..

B. Operational indicators

Ill. Collecting the data ....

IV. Costs and benefits of using indicators

ANNEX

Application of the indicators to the port of Piraeus

Section

Paragraphs

I. Physical description and organizational set-up of the port

A. Introduction .

B. Management organization

C. Physical description

D. Responsibilities .

E. Operations

F. Storage facilities

II. Application of the performance indicators at the Port of Piraeus

A. Scope of the application

B. Data collection ....

C. Performance indicators .

1-9

2-3 4-5 6 7-8 9

10-16 10 11-13 14-16

LIST OF TABLES

In the text

Table

1. Summary of financial indicators

2. Summary of operational indicators

3. Berthing facilities file showing example of information required for one berth

4. Port equipment file showing some equipment classes

5. Berth facility maintenance cost file

6. Port equipment cost summary file

7. Labour cost/productivity file .

8. Ship file .

9. Port revenue file for ship to transit storage operation and vice versa

10. Sample layout of shift work-sheet ..... . . . . . . . ..

iii

17

17 17 17 17 18 18 18

18 18 18 20

9 9 11 11 12 12 13 13 14 15

In the annex

Page

L Berthing facilities for one berth at Port of Piraeus

18

11. Summary of berthing facilities and equipment costs of study section for ship/transit area

operation . . . . . . . . . . . . . . . . 19

II l. Example of labour cost/productivity file 19

IV. Example of ship file 20

V. Example of revenue file 21

VI. Port of Piraeus: Section I, general cargo berths, Summary of operational performance indicators 21

VII. Port of Piraeus: Section 1, genera] cargo berths, Summary of financial performance indicators 22

Figure

1. Open loop control system

2. Closed loop control system

LIST OFHGURES In the text

4 4

3. Expenditure breakdown for typical break-bulk berth in developing country 5

4. Functional areas of the transport chain as seen by port management 6

5. Suggested presentation of monthly financial indicators for a berth group 7

6. Sample port performance chart showing frequency distribution of tons worked per ship-hour in

port .. _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

7. Main port management information files and their interrelationship . . . . . . . . . . . . . .. 10

In the annex

I. Main port of Piraeus .

II. Study section, main port of Piraeus

III. Frequency distribution of fraction of time berthed ships worked at Port of Piraeus IV. Frequency distribution of tons per gang-hour at Port of Piraeus ....

V. Graphical presentation of tonnage worked indicator for a berth group .

VI. Graphical presentation of total contribution indicator for a berth group

17 17 22

23 23 23 23

VII. Graphical presentation of productivity for a berth group L

EXI'LANA TORY NOTES

References to dollars ($) are to United States dollars, unless otherwise stated. In the tables, a dash (. ) signifies that the amount is nil or negligible.

iv

INTRODUCTION

(i) In response to the request by the Committee on Shipping at its third session for work on port statistics,' the UNCT AD secretariat prepared a manual on the subject." The manual provided guidance for the establishment of better statistical [Link] addition to the above work, the study on berth throughpur' induded a chapter on port performance indicators.

(ii) The present report advises port authorities on the coflection and the use of a set of performance indicators concerning both operational and financial aspects of port operation. The benefits associated with each indicator are discussed to aid in the selection of indicators for implementation. All indicators have been selected with a view to providing assistance to port management in medium-term planning and control.

(iii) In chapter I the reasons for using performance indicators are discussed. A set of performance indicators is proposed, and a discussion of how the indicators may be used to monitor performances is to be found in chapter II. Chapter III deals with a method of collection and presentation of port indicators, while chapter IV discusses the costs and benefits of such an exercise. Finally, the application of the indicators in a case-study port for a group of break-bulk general cargo berths is illustrated.

(iv) The UNCTAD secretariat wishes to thank the port authorities which co-operated in this study by furnishing information. In particular the secretariat would like to express its appreciation to the Port of Piraeus Authority for allowing the Port of Piraeus to be used for the purposes of a case-study.

1 See Official Records of the Trade and Development Board. Ninth Session. Supplement No.3 (TD/B/240), annex I, resolution 6 (111).

2 Port statistics: selection, collection and presentation of port information and statistics (United Nations publication, Sales No. E. [Link].D.I)_

3 Berth throughput: systematic methods for improving general corgo operations (United Nations publication, Sales No. [Link].D.1), part one, chap. VII.

(page 2 blank)

WHY CALCULATE PORT PERFORMANCE INDICATORS?

Chapter I

1. Of the various reasons for collecting data relating to ports," two arc of primary concern to port authorities: first, the data can be used for improving port operations, and secondly, they can provide an appropriate basis for planning future port development. The UNCT AD manual on port statistics discussed the large amount of information available for collection ill aport. 5 Basically, the statistical system must provide data on port facilities and operations, while the accounting system must provide data on port costs and revenues, if analysis of the port's performance is to take place. One form of analysis is the creation of a set of performance indicators.

2. Port performance indicators are simply measures of various aspects of the port's operation. To fulfil their purpose, such indicators should be easy to calculate and simple to understand. They should provide insight to port management into the operation of key areas. They can be used, first, (0 compare performance with a target and secondly, to observe the trend in performance levels. For example, the productivity for handling general cargo for the first month might be 15 tons per gang-hour. If successive monthly figures showed a decline from this value, clearly action to determine the reason for the decline and to remedy it would be called for. The indicators can also be used as input for negotiations on port congestion surcharges, port development, port tariff considerations and investment decisions.

3. The major purpose for collecting information to maintain performance indicators is to provide management information fer planning and control. D. R. Daniel, in a paper on management information, has stressed that:

The key to the development of a dynamic and usable system of management information is to move beyond the limits of classical accounting reports and to conceive of information as it relates to two vital elements of the management process-planning and control.6

The purpose of planning is to pre-determine a course of action and the purpose of control is to ensure progress towards the objectives defined in the plan.

4. A port authority with the over-all responsibility for the smooth functioning of the port is the logical correct organization to maintain a set of performance indicators. Such an authority is confronted with an extremely large

4 See Port statistics ... [op. cit.}, chap. 1. 5 Ibid., chap. III.

6 D. R. Daniel, .. Management information crisis", Harvard Business Review (Boston), vol. 39, NO.5 (September-October 1961),p.113.

volume of data and its response may be either to collect too little data or to collect masses of data which are never analysed. All information should be collected with a clear purpose in mind and not merely so that it may be available for some future as yet undefined analysis.

5. A set of indicators should exist for each category of cargo since the port provides different facilities according to the way cargo is handled. The following is suggested as a set of cargo categories;

Break-bulk general (or conventional) cargo Unitized cargo

Liquid bulk

Dry bulk (ore, grain, cement, fertilizer)

A port handling a significant number of passengers may need to keep a set of indicators relating to passengers also.

6. The following factors make it attractive - indeed, necessary - for port management to plan:

(a) Changing conditions: As new trade develops, port labour working rules alter, shipping lines change, and cargo-handling technology changes, the priorities a port assigns to its various areas arc likely also to change. This makes it necessary to build a framework within which such changes can be measured and so managed in an orderly and consistent fashion. For example, technological change in shipping and cargo handling is at present occurring so rapidly that regular reviews of replacement and improvement options should be held in order to identify significant shifts in cost/performance relationships and to develop contingency plans to handle them. Early recognition of changes calling for major port development is critical as the timelag between recognition of the need for a capital work and its completion is long, sometimes as much as three years or more.

(b) Scarcity of management personnel: The scarcity of trained, perceptive middle management personnel tends to be a characteristic of ports in developing countries. The development of performance standards, the establishment of reporting systems and the standardizing of methods for the collection and analysis of information can mitigate the problems created by this deficiency.

(c) Scarcity of capital resources: Port development is only one of many strategic investment opportunities for a country, and capital invested in it is obtained only at the expense of other areas. Justifying investment funds from these restricted resources necessitates adequate information for the development of long-range plans.

7. Although ports have little control over the level of demand for their services, they should nevertheless attempt

3

to control the response of the port of that demand. Control is being exercised when operations of the enterprise follow the guidelines in the plans adopted, arc held within limits of tolerance in the face of varying conditions, or are returned to an acceptable state after deviations arc located. Merely discovering out-of-line conditions, or securing detailed information about a situation, does not achieve control. Control is exercised by taking action, and action can be taken only by those having the appropriate information and the necessary authority.

8. Control of a process or an operation is possible only if there is some form of feedback of performance or results. Feedback involves the measuring of the actual output and comparing it with the desired output to determine what course of action to take. Figure 1 illustrates a system without feedback where the indicator is gang productivity measures in tons per hour. The target output is normally pre-determined by studies. In this example, feedback occurs only when actual productivity is so poor that management becomes aware of difficulties because of complaints from users. Figure 2, on the other hand, illustrates the system with a feedback loop. Here management may practise control by, for example, taking steps to identify the part of

the operation that is holding down productivity to only y tons/hour, and then taking steps to improve this.

9. Control is the complement of planning and neither element is useful without the other. The fundamental step in control is the measurement of deviation from goals and standards which have been set during the planning activity. Thus the selection and the maintenance of indicators is a necessary step for ports to obtain effective control. If, in maintaining a set of performance values the port establishes the practice of using feedback, it will be exercising control. In addition, such a set of indicators will allow management to make improved utilization of resources by highlighting problem areas and thus improve service to port users and reduce unit costs. The following additional benefits might be derived from the proper use of a set of indicators:

(a] The highlighting of the start and the cause of a congestion period;

(b) The negotiation of a reduction in a port congestion surcharge as a result of monitoring and documenting port performance;

(c) The timely adjustment of port tariffs;

(d) The provision of a sound information base for port planning, and justification for capital development.

FIGURE 1

Open loop control system

Planned performance

Actual performance

Gang productivity x tons/hour

Berth System

Gang productivity y tons/hour

FIGURE 2

Closed loop control system

Difference

Planned

performance CD

------------~~ ~----------~.~ Gang productivity

x tons/hour

(x-y)

Berth System

Actual performance

..

Gang productivity ~ y tons/hour

Performance indicator feedback

4

THE MOST IMPORTANT INDICATORS

Chapter II

A. Financial indicators

10. A port authority should be aware of the costs generated by its operations and the revenue resulting from these operations. The bulk of this information must come from the accounting system. Thc trend, even in countries where ports are not treated as autonomous bodies within the national economy, is towards making them increasingly financially viable. Sound financial information is a prercquisite to a sound port tariff system.

FIGURE 3

Expenditure breakdown for typical break-bulk berth in developing country"

._ .

. _-_ .. _

Staff costs 11/6)

....... , .

_ .. __ ._._ .

...............

....... , ....

Capital

. . . :: equipment

..... ,.. costs

11/2)

.. _ .... _ ....

.......... _ ... _ ....

.. . , .. , .

. _ ..

, .....

. ..... ,

, .. , .................... ".,

._ .

Source: Based on information collected by the UNCTAO secretariat.

• Cf. Unitization of cargo: Report by the secretariat of UNCTAD (United Nations publication, Sales No. E.[Link]), pp. 129-130, which imply the following breakdown of total costs: staff, 14 per cent, direct labour, 35 P'" cent; capital equipment,S I per cent.

11. The UNCT AD secretariat report on port pricing discussed methods for converting capital expenditure into a flow of annual capital costs." Capital costs for port facilities and equipment form the bulk of the fixed costs of a port. In tum, these fixed costs are normally a large portion of the total port expenditure. Figure 3 illustrates

7 Port pricing: Report by the UNCTAD secretariat (United Nations publication, Sales No. [Link].7), annex V.

the approximate breakdown of costs for a typical breakbulk berth in a developing country. An important consideration is how fixed costs arc to be allocated when selecting financial indicators. Since a large portion of fixed costs are associated with capital costs and since these costs are associated with a particular port area, the basis for their allocation is that which best represents the capacity for that area. For break-bulk general cargo berths, the 1110St suitable basis is the quantity of cargo handled.

12. The remaining general overheads not allocated, for example supervision, staff facilities, utilities, etc., can only be allocated to the various cargo-handling areas of the port on an arbitrary basis. Thus it is recommended for control pUIJ)oses that such costs are not allocated. Therefore each area will make a contribution (the difference between revenue and direct costs) which will cover overhead costs, return on investment and profit for the port. It should be remembered that although fixed overhead rates are important for costing and long-run pricing, such rates have limited significance for control purposes."

13. Within each cargo class there are various commodities, various types of packaging and various types of operations." The case is often made for maintaining productivity (tons/gang-hour) and cost figures for each combination. However, experience shows that the maintenance of these detailed productivity and cost figures entails the collection of a large volume of accurate and precise information - a task beyond the means of most ports.

14. For effective day-to-day control of the operations, the port must depend on an on-the-port manager who, by physical observation, obtains continuous feedback which allows him to resolve difficulties when they occur, rather than attempting to record the fact.' 0 Nevertheless, the need exists to give management quantitative information concerning the productivity and cost/revenue performance of the various areas of the port. The maintenance of a set of performance figures for each category of cargo, as defined in paragraph 5 above, is suggested as a viable solution .

15. For the purpose of this study only the costs and revenue associated with the transfer of cargo to or from

8 See C. T. iIorngren, Cost Accounting: A Managerial Emphasis (3rd ed., (Englewood Cliffs (New Jersey), Prentice-Hall International Inc., 1972), p. 277.

9 For example, the various modes of transfer from the ship for import cargo; directly to hinterland surface transport, through port storage or through lighters.

! 0 111e need for an on-the-spot supervisor to co-ordinate 111e operation is noted in Berth throughput .. _ (op. cit.}, part one, para. 162,2 (d) and (e).

5

FIGURE 4

Functional areas of the transport chain as seen by port management

Port navigational services

Maritime transport

Cargo transit storage services

Hinterland transport

~:%a Portion of chain (transf er of cargo'to 0< from "" ... ,,1$) .,.,...,...,.j by poet ~orm"""" indicaton_

ships are taken into account in the calculation of the various indicators (see figure 4). Thus cost and revenue generated from the transit storage and warehousing function and from the delivery and receipt of cargo via these storage areas .are excluded. This decision is based on the fact that cargo handling to or from vessels takes place during a well-defined period of time, namely, when the ship is at berth, while for the same ship the delivery of discharged cargo from storage areas within the port can extend over a period of months. Thus a separate group of indicators should be developed for the transit storage and warehousing areas that are not linked to the particular ship call.

16. The port area should be divided into berth groups which are areas or sub-areas, each handling a different cargo class.' 1 The primary financial indicator for each berth group is the contribution per ton of cargo handled over a specified time period. To arrive at this indicator, the costs and revenues produced at the berth group are first calculated to indicate the portion of each element to the contribution. The elements to be considered for each berth group are:

(a) Ship revenue related to the berth group;

(b) Cargo revenue related to the cargo handling; services of the berth group;

(c) Labour costs;

(d) Capital equipment costs. 1 2

The ship revenue may come from berth occupancy charges or port dues. Normally, only a portion of the revenue from port dues is set aside to help cover the costs associated with

11 For example, a port with 12 berths handling general cargo and 3 berths handling dry bulk could be divided into 2 general cargo berth groups of' 6 berths each and a dry bulk berth group.

12 Including amortization, maintenance and operating costs. The variable cost portion should be recorded on a monthly basis. The whole of the berth group's direct fixed expenses, which by definition is a constant quantity incurred during a period of time, is allocated to the quantity worked in that period, since the revenue produced by handling the cargo must be used to recover expenses. The costs should not be allocated to individual berths.

the cargo-handling service. The assumption is made in the remainder of this report that this ship revenue comes from berth occupancy charges. The cargo revenue may originate from charges for the cargo-handling operation from ship to storage area and vice-versa. Port authorities may also charge dues to help cover the cost of this operation. In addition, they may contract private firms to handle one phase of the cargo-handling operation. In this case, only the costs and revenues flowing between the authority and the private firms should be considered when calculating the indicators, but the authority should nevertheless be aware of the charges made by the private firms. This report assumes that cargo revenue originates from charges made for the cargohandling operation which is entirely the responsibility of the authority.

17. Figure 5 illustrates a format for monthly presentation. A negative contribution may not necessarily be a bad thing provided it has arisen as the result of a policy decision to allow other local or national economic interest to benefit from a port subsidy. If the policy of the port is to operate as a profit centre, the rate of return may be determined on the total capita] employed in the port. I 3 Such a measure is perhaps the best single indicator of the financial success of the employment of capital. However, as most ports are justified not on a micro-economic level but only on a macro-economic level, the use of the rate of return indicator is not proposed.

18. An extremely important indicator, both operationally and financially, is the monthly volume of the cargo worked. If, for example, the port charges for cargo handling are based on tons of cargo worked, management must be made aware of the variance between the budgeted and the actual quantity handled. This difference is an indication of the likely revenue variation. With volume variances, ship traffic and cargo projections can be re-

13 The formula for calculating return on investment is as follows:

Gross revenue (working expenses + staff and misc. charges + capital charges)

Return =0. X 100

Working capital + present value of assets

6

l'IGUH.E 5

Suggested presentation of monthly financial indicators for a berth group

~
------------------------- -~---------------
Berth
occupancy*
Contribution (+)
--- -- ----------------

Labour
Cargo-
handling
Capital
equipment
.. e o

.t'. :l .2:

:I

>...

'" ...

Q)

e o

~

Revenue

• Revenue produced from tariff charged for the use of the quay alongside which the vessel is moored.

Expenditure

estimated and used to determine the course of action the port should follow. Possible alternatives to improve cash flow when the quantity of cargo handled is lower than expected are:

(a) Port maketing promotions to increase traffic and thus revenue;

(b) Increase in tariff to increase revenue ;14

(c) Measures to increase productivity and thus decrease the variable cost per ton;

(d) Re-adjustment of deferable budgeted expenditure. 19. The following indicators should be calculated each month for the ships sailing from each berth group;

(a) Total tonnage worked;

(b) Berth occupancy revenue per ton of cargo: total berth occupancy revenue produced, divided by tonnage worked;

(c) Cargo handling revenue per ton of cargo: total revenue produced from transferring cargo to or from ships, from or to storage areas/ 5 divided by tonnage worked;

14 The success of such a policy is dependent on the increased tariff not significantly affecting the volume of cargo.

15 If cargo is being sent on direct, any revenue from discharge or loading of hinterland transport should be included.

(d) Labour expenditure per ton of cargo: total direct labour expenditure for transfer of cargo to or from ships, from or to storage areas, divided by tonnage worked;

(e) Capital equipment expenditure per ton of cargo: total amortization and interest allocated to and maintenance and operating costs incurred for the berth group, excluding the costs of transit sheds and warehouses, divided by tonnage worked;

(f) Total contribution: berth occupancy and cargo handling revenues minus labour and capital equipment expenditure;

(g) Contribution per ton of cargo: total contribution divided by tonnage worked.

20. The financial indicators proposed answer the following two questions:

(1) What revenue is produced from a service? (2) What is the cost of the service?

With the development of these financial indicators, port management personnel would be supplied with the information necessary for them to take steps to achieve financial viability. If financial criteria for performance are removed, a significant incentive to efficiency also goes. In addition, financial viability criteria are often important when the port has to negotiate loans.

7

B. Operational indicators

21. Perhaps of more direct concern to port management than financial indicators are operational ones. If port charges have been well thought out and actual traffic follows the projected figures, then through the control of the operational performance, management will control the financial performance of the port as well. Operational indicators have been discussed in other publications. 16 The indicators presented are not exhaustive but it is felt they are the most important ones for port management initially to select for medium-term planning and control.

22. Important information to maintain is the number of ship arrivals and a breakdown of the ships' time in port for each class of cargo. These data are of prime concern to the ship owners and operators for the setting of freight rates and thus of direct concern to shippers and consignees who must pay the freight rate. Perhaps the most complicated and intricate prohlem existing in the transport field today is the turn-round of ships in ports. 1 7 An excellent indicator to maintain of port effectiveness is the quantity of cargo worked per ship hour in port!" with a high figure being desirable. To maintain this indicator, information on the arrival time, departure time and tons loaded/discharged for each ship must be recorded. In addition, the time of berthing, ship length and location of berthing should be noted. The various ship times must be accurately defined and then consistently recorded. In addition to the above information, data on the total hours at berth during which the ship was worked and on the total gross gang-hours worked 19 should be recorded, to permit measurement of the intensity of working.

23. From these records, the following averages can be calculated on a monthly basis"? for each berth group servicing a cargo class:

(a) Arrival rate: number of ships arriving during a month, divided by number of days in the month;

(b) Waiting time: total time between arrival and berthing for all berthing ships, divided by number of berthing ships;21

16 Berth throughput ... (op. cit.). part one, chap. VII: Economic Commission for Asia and the Far East, "Collection of port operational statistics all a uniform basis" (E/[Link]/TRANS/ Sub.3(X)/L.2) (mimeographed document of 28 August 1973): K. J. Chacko, "Statistical control of port operations", Indian Ports (New Delhi), Vol. IV, No.3 (February 1972), p. 131.

17 The turn-around time of ships in port (United Nations publication, Sales No. [Link].5).

18 See C. H. Plumlee, Port Performance Index, Fifth Interim Report (Port Hueneme (California), Public Works Consultants, 1975).

19 A breakdown of gross gang-hours into idle gang-hours and gang-hours actually worked should also be recorded.

20 For the ships departing within the period, unless otherwise noted in the definition for the indicator. Thus indicator (a) is calculated for all the ships that arrive at, indicator (b) for all the ships that berth at, and the remaining indicators for the ships that sail from the berth group during the month.

21 Although this indicator, which is defined as the difference between arrival time and berthing lime, is meant to measure the

(c) Sen/ice time: total time between berthing and departure for all ships, divided by number of ships;

(d) Turn-round time: total time between arrival and departure for all ships, divided by number of ships;

(e) Tonnage per ship: total tonnage worked for all ships, divided by number of ships;

(0 Fraction of time berthed ships worked.' total time that berthed ships were actually worked, for all ships, divided by the total time between berthing and departure of all ships;

(g) Number of gangs employed per ship per shift. total gross gang time, divided by total time that berthed ships were actually worked;

(h) Tons per ship hour in port: total tonnage worked, divided by total time between arrival and departure;

(i) Tons per ship hour at berth: total tonnage worked, divided by total time between berthing and departure;

(j) Tons per gang-hour: total tonnage worked, divided by total gross gang time;

(k) Fraction of time gangs idle: total idle gang time, divided by total gross gang time.

FIGURE 6

Sample port performance chart showing frequency distribution of tons worked per ship-hour in port

Berth group Period

Av. tons/hr. Number of ships:

General cargo February 1975

22.5 tons/hr. (21.5 tons/hr. previous period) 103

33

'"
e,
:E
'"
-
0 19
! 20
.c 17
E
::s
Z
10 5 10 15 20 25 30 35 40

Tons worked per ship-hour in port

24. In addition to the calculation of the above average figures, it is suggested that certains indicators be calculated on an individual ship-call basis and plotted as a frequency distribution. Figure 6 illustrates such a distribution for the tons per ship-hour in port.

o

degree of congestion in the port, ports having a long entrance channel will naturally have a higher figure than ports without.

8

25. One aspect of port operation that management should carefully monitor and take steps to correct when unfavourable trends appear, is the productivity per gang. The maintenance of the tons per gang-hour indicator will supply the index for monitoring this important phase of port operation. The actual figures could also be compared with standards established by the application of such methods as work study. 22 Action should follow if values are outside an established range, to determine the reasons for this variation, and steps should be taken to correct the deviation.

26. The indicators that have been proposed are summarized in tables 1 and 2. These indicators allow port

22 An application of controlling operations by the comparison of actual productivity with standards is given in a paper by .I. C. Telfer, "The control of cargo handling costs", National Ports Council Bulletin (London) 1972, No.3, p. 32.

managers to measure, first, the quality of the service their ports supply and secondly, the demand for these port services. The fact that an indicator does not vary over time does not mean that the performance measured by that indicator is necessarily good. It may be consistently bad! Thus the need exists to establish standards or norms.

27. The decision regarding which indicators to maintain depends on the port authorities' particular requirements. Ports which do not have sufficient strength in their statistical sections to deal with the collection of the data and calculation of the chosen indicators should review the pruposes and benefits of other information collected by these sections. In addition, the accounting systems should differentiate between the various berth groups, to allow cost and revenue data to be collected easily. The following chapter proposes a manual system for the collection of the data necessary for the calculation of the indicators.

TABLE 1

Summary of financial indicators*

Indicators

Units

Tonnage worked .....

Berth occupancy revenue per ton of cargo Cargo-handling revenue per ton of cargo Labour expenditure per ton of cargo

Capital equipment expenditure per ton of cargo Contribution per ton of cargo

. Total contribution

Tons

Monetary units/ton Monetary units/ton Monetary units/ton Monetary units/ton Monetary units/ton Monetary units

* Calculated monthly for each berth group servicing a cargo .class,

TABLE 2

Summary of operational indicators*

Indicator

Units

Arrivalla te . Waiting time Service time . Turn-round time Tonnage per ship -.

Fraction of time berthed ships worked Number of gangs employed per ship per shift . Tons per ship-hour in port

Tons per ship hour at berth

Tons per gang-hour. .

Fraction of time gangs idle

Ships/day Hours/ship Hours/ship Hours/ship Tons/ship

Gangs Tons/hour Tons/hour Tons/gang-hour

• Calculated monthly for each berth group servicing a cargo class.

9

COLLECTING THE DATA

Chapter III

28. In the previous chapter a number of performance indicators to assist port management in the planning and controlling of port operations were described. In this chapter, a method for the collection of the necessary information to permit the calculation of these indicators will be discussed.

29. An integral part of the method is a set of interrelated files or registers. These files and their interrelationship are shown in figure 7. This chapter ill ustrates the layout of each entry or record in the file and discusses the use of the files to calculate the indicators for the general cargo break-bulk operation from ship to storage area or vice versa.

Berth facilities file

30. This file contains information on the physical characteristics, the capital costs and the amortization periods for the various berthing locations in the port. The file is static, with changes occurring only when new berthing facilities are added or old facilities taken out of service. A model of the information necessary to establish this file is shown in table 3. The development of a berth facility code system+" will allow the file to be maintained

B For example 0101, where the first two digits refer to berth number 1 and the next two digits to the quay wall facility.

FIGURE 7

Main port management information files and their interrelationship

Berth facilities file

Berth facility maintenance cost file

Berth number

Labou r cost/ productivity file

Ship name

Port equipment file

Ship file

Berth number

Port equipment cost summary file

Revenue file

10

TABLE 3

Berthing facilities showing example of mfomation required for one berth

Berth group:~ _

Draugh urn]

Area(m' )

Berth number:
Capital
Amortization cost
Date in period (thousands
service (years) ot aouars)
1970 40 1280
----
197() 40 190
1970 30 400 Facility code

Facility

Lengtrum}

0101 * Quay ..

160

20

0.102

Surfaced open area .

10000

0103

Transit shed ..

0104 Other facilities

19()OO

• First Ol:herth numher; second [Link] ,

in code sequence. Such a coding system should be recorded on port plans or maps and also be consistent with the accounting codes used in the port.

Port equipment file

31. Information on the technical characteristics, date in service, expected life, purchase cost, current replacement cost and delivery time of major port equipment, is contained in this me. Again, a port equipment code should be developed.i" It is suggested that this code be marked on the various pieces of equipment for ease of identification. This file is also static, with modifications being required only when equipment is added or taken out of service, and when replacement costs or delivery times change. Table 4 shows a model layout for the information and also suggests the various equipment classes.

Berth facility maintenance cost file

32. This file contains information on all maintenance costs incurred by the particular berth facility. A separate

24 For example, a four-digit code with the first digit specifying the equipment class and the remaining digits an identification number.

sheet can be kept for each berth. Thus all facilities for one berth are recorded on the same sheet. The description notes the specific berth asset maintained. The duration of the maintenance can be noted for utilization calculations. Table 5 illustrates a model format of this file.

Port equipment cost summary file

33. Each week, information from the department responsible for equipment maintenance plus information on operating cost is used to update the cost summary file. This file contains weekly figures on the equipment, the running cost and the maintenance cost allocated to each berth group. If the level of detail is too great for recording costs of individual pieces of equipment, the cost figures can be grouped by major equipment type. A suggested layout for this file is illustrated in table 6. The cost information is used for calculating capital equipment charges.

Labour cost/productivity file

34. The labour cost/productivity file is the file for recording how efficiently port labour is being used. As port labour is the main variable cost item in the port, effective control of this element will make a major contribution to

TABLE 4

Port equipment file showing some equipment classes

Main

Replacement Delivery

cost time

Port equipment code*

Port equipment

Technical characteristics

service

area

Date in service

Average lifetime

1 Quay crane

2_._ Mobile crane

3 __ . Floating crane

4._. Forklift

5... Truck

6... Trailer

7... Straddle carrier

8... Lighter

9 .. _ Tug

Purchase price

• Four-digit code (see foot-note 24 above).

11

TABLE 5

Berth facility maintenance cost file

Berth group: _~~~~_~ _

Berth nurnberi.: .• , _

Date

Facility code

Duration.

Cost

Description of maintenance

TABLE 6

Port equipment cost summary file

Berth "rOu1J:_~ ... _

Month: _. _

Port equipment code

Week

Running cost

Maintenance cost

the financial performance of the port. A model format of this file is shown in table 7. Each record of the file summarizes one shift of working. Multiple hatches may be worked by the gang during the shift, as such flexibility may reduce ship turn-round time or cargo-handling costs. The columns for tonnage worked, gross hours worked, labour cost and idle hours should be totalled for entry into the ship file.

Ship file

35. This file contains all the information necessary for the calculation of the operational indicators. A suggested format for this file is shown in table 8. Rather than assign a sequential number to each ship call, as is required with a mechanized system, it is suggested that a ship call be identified by its name and arrival date. If possible, the eonference to which the ship belongs should also be recorded, since this information is important when analysing ship turn-round time in relation to congestion surcharges. The ship dimension or size recorded is the basic unit on which berth occupancy charges are calculated. The sum of the delays between the arrival and berthing and between any deberthing and subsequent reberthing of the ship is recorded as the berthing delay. The sum of the times

between berthing and deberthing of the ship _. the total time at berth - is recorded as the berth time. The sum of the berthing delay and the berth time is defined as the turn-round time of the ship for that berth group. If the ship sails to another berth group or waits in the port basin for sailing instructions, the total time in port will be greater than the above berth group turn-round time. A precise definition of the times used to calculate these intervals must be made to ensure the consistency of the data recorded. The following definitions are suggested:

(a) Arrival time: time the ship requests, and is ready to proceed immediately to, a berth;

(b) Berthing time: time the ship arrives in a position to prevent the use of the berth by another ship;

(c) Deberthing time: time the ship sails from the berth.

36. A code for the reason for the berthing delay should

also be noted. The following might be used:

01 Waiting for berth

02 Waiting for pilot

03 Waiting for tugs

04 Waiting for export cargo to arrive in the port

05 Other

12

TABLE 7

Labour cost/productivity file

Berth group: --- _

Ship flame: _

Berthing date: ~

Gross ganghours worked

Labour cost

idle Idle gang- rim" hours code

Gang performance (tons/ gang-/lOurjb

Shift

Hatches Foreman Gang Ton .•

worked code size worked= Regular Overtime

Day

Berth No.

Regular Overtime

a If desired, may be split into import and export tonnage.

bTons worked, divided by the remainder of gross hours worked minus idle hours.

TABLE 8 Ship file

Berth grQup: _

Month: _

year: _

Ship name

Conference

Size"

Arrival time

Berthing delay

Berthing delay code

Berth time

Berth location

Hours Tons worked at

workedu berth

Gang-hours

gross idle

Labour cost

a Ship length if berthing dues are based on length of vessel, or tonnage if berth occupancy charges are based all tonnage. b If desired may be split into import and export tonnage.

The berth location (or locations) is recorded to determine which berth facilities are used. Information on the total tons of cargo worked are recorded from the labour cost/productivity file. From this file also, the cumulative hours worked at berth} 5 and the cumulative gross ganghours worked are recorded. These data measure the

intensity of working on the ship. Information on total labour costs for the transfer of goods from ship to storage area or vice versa must be recorded. A shift report kept for the payment of wages should supply sufficient information to calculate this figure.

Revenue file

2S The total interval during which cargo was worked from or to the ship, for example, if two gangs worked the first shift of eight hours and one gang worked the second shift of eight hours, the cumulative hours worked at berth for that day would be 16.

37. The last of the port management information files to be illustrated is the revenue file, which maintains a record

13

of the revenue obtained from each ship call. Table 9 illustrates the sources of revenue about which information is collected for the purpose of calculating the financial indicators for cargo-handling. The ship name and arrival date allow this file to be linked to the ship file. Other revenue sources are discussed in the UNCT AD port pricing study?" in conjunction with a possible pricing system.

Use of files to ealculateindicators

38. For a berth group the information from the berth facility and port equipment files can be used to determine the annual capital charges.?? For the reasons given in paragraph 15 the cost (including the capital charges) of transit sheds, warehouses and 'Open storage areas and the revenue from delivery and storage are excluded when calculating the indicators. As storage Space is required to operate a port, part of the contribution from the cargo transfer operation could be allocated to cover the above costs. An estimate of the annual berth facility maintenance charges based on the berth facility maintenance cost file plus any special maintenance work scheduled can be used to project the annual maintenance charge. The sum of the above costs gives the capital equipment cost portion of the annual expenditure for the cargo handling operation of the

26 Port pricing (op. cit.}, table 9.

27 Annual capital charges are given by the formula:

Cji/l - (1 + i)"nf)

where Cf = capital cost of facility t. i '" annual interest rate;

nf = amortization period in years for facility f

berth group. This sum can then be distributed over the twelve months of the year? 8

39. The variable costs involved in the berth group operation are composed mainly of labour costs and the operating and maintenance costs of handling equipment. From the ship file for all ships sailing in that month, the totals of these costs can be added to the monthly fixed cost for that month to give the total expenditure.

40. The revenues derived from the berth occupancy and cargo-handling operation for every ship sailing in the period, are summed to give the total monthly revenue. This sum, minus the monthly expenditure, gives the total contribution for the berth group. The total contribution and the individual sums are divided by the tonnage worked to give the financial indicators as defined in paragrah 19.

41. The ship file contains all the information necessary to calculate the operational indicators as defined in paragraph 23. Certain indicators may be calculated for each ship in addition to the average monthly figure. The indicators on tum-round time and tons per ship-hour in port are the primary measures of the service provided to shipowners and operators. The arrival rate and tonnage per ship quantify the demand for the port cargo handling services. The fraction of time berthed ships are worked and the number of gangs employed per ship per shift indicate the intensity of working. Finally, tons per ship hour at berth, tons per gang-hour and the fraction of time gangs are idle are measures of the efficiency of port working.

42. An example illustrating the methods of collecting the data and the presentation of the indicators are given in the annex for a group of break-bulk general cargo berths in the case-study port of Piraeus.

28 For example, assuming the eargo handled each month is approximately the same, allocate 1/12 of the annual cost to each month.

TABLE 9

Port revenue file for ship to transit storage operation and vice versa

Berth group.' ~

Month:

year: _

Ship name

Arrival time

Revenue from cargo handling

Revenue from berth occupancy

14

Chapter IV

COSTS AND BENEFITS OF USING INDICA TORS

Costs

(g) Idle time

(h) Equipment used.

Often the prime purpose of such a sheet is to record information necessary for the payment of wages. However, these records, when complete and accurate, give most of the information necessary to complete the lahour cost/ productivity file which is the most active file. Table 10 illustrates a sample layout of such a shift work sheet.

44. Experience gained in the case-study port showed that the average time for the extraction of the necessary information from the shift work-sheet and recording on the labour cost/productivity file is approximately 5 minutes. The total time taken per month is thus dependent on the

43. An estimate of the time required to collect, record and analyse the information for the indicators was made, as this is the main cost item. Often in ports there is some form of shift work-sheet which records the following information:

(a) Shift (b) Date

(c) Ship's name (d) Berth number (e) Manning

(f) Production

Shift: ~ __ ~

TABLE 10
Sample layout of shift work-sheet
Ship name:

Date: Berth No.:

I I i I I I Berth group: _

Personnel in gang:

Labour production:

Description of work

Hatch No.

Time on

Timi'

off

Quantity (tons)

Idle time:

Time Time
work work Time
Reason for idle time stopped restarted lost Equipment use:

IEqUiPment No.

I I I I I I I I I I I I I I I I I

Entries certified correct: _

* If gang moves to a different ship or berth during shift, this information should be recorded on labour production portion of sheet.

15

number of gang shifts worked for the berth group during this period. The next most active files arc the ship and revenue files which have a record entered when a ship completes working and sails from the port. Other active files are the port equipment file and the berth facility maintenance cost file.

45. In addition to the time required to complete the above records, an allowance must be made to locate the forms, raise queries, complete missing information, etc. Once the records are complete and verified, the data must be summed and the performance indicators calculated.P" Based on an average berth occupancy of 80 per cent with an average gang allocation of 3 gangs per ship and 2 shifts worked per day with a 6-day working week and an average of 10 ships per berth per month, it is estimated that one statistical clerk would be required for each group of four herth. This estimate is based on the availability of data inputs such as the shift work-sheet and experience gained in the case-study port. Thus a port with, for example, 8 berths handling 800,000 tons of cargo per year, would require an additional staff of 2 statistical clerks to maintain the indicators.

Benefits

46. It is difficult, if not impossible, to quantify the actual benefits to be achieved from the introduction of the performance indicators. Information on performance is necessary for control of operations and this control must permit an improvement of operations. The possible extent of the savings from improvements in operation for a typical medium-sized port is noted below for comparison with the resources required to maintain the indicators.

47. For example, an 8-berth general cargo port operating with 80 per cent berth occupancy that obtains a 5 per cent reduction of berth time because of improved operational

29 The use of a calculating machine for computing totals and calculating ratios will reduce the chance for error and simplify this task considerably,

control, could experience almost a 12 per cent reduction in total port time."? For the above example, this amounts to a saving to shipping companies of 270 ship-days per year. The reduced turn-round time may also reduce port surcharges, which would be a cost saving to shippers. In most cases, the charge for cargo-handling is made per ton of cargo; thus any reduction in the cost per ton of handling the cargo will directly benefit the port stevedoring operation. The monitoring of financial indicators will show if tariff changes are necessary. Recognition of the need for a change at an early stage can save the port authority paying interest charges on borrowed working capital. Further, the availability of financial information for various berth groups can speed the acquisition of loans for port development.

48. The above observations show that the possible return from investing in a set of performance indicators is substantial, and vastly exceeds the cost. Port authorities must ask themselves if they can afford not to take advantage of such opportunities. Initial steps to implement the indicators can be taken at a pilot group of berths.

49. Port authorities which attempt to develop and implement the proposed system of port performance indicators may seek the advice of the Shipping Division of UNCT AD which, through the generosity of. the donor countries to the Ports Project Trust Fund, has certain resources available to assist ports in applying the results of its research. In the event that more substantial outside help were to be required, UNCT AD has a number of interregional advisers in shipping and ports who are available, upon request by Governments, to visit developing countries to discuss problems in the field of shipping and ports, to give advice and to help formulate requests for more long-term assistance.

30 See Berth throughput .... (op, cit.}, part one, annex, table.

From this table, the expected queuing time to service time ratio for an 8-berth port operating with 80 per cent berth occupancy is 0.286. A 5 per cent reduction in service time gives a berth occupancy or 75 per cent. which results in a new ratio of 0.196. This is equivalent to an J 1.7 per cent reduction in ship turn-round time, or a reduction of 270 ship-days per year.

16

ANNEX

Application of the indicators to the Port of Piraeus

1. Physical description and organizational set-up, of the port

A. INTRODUCTION

1. To test the feasibility of the suggested approach in a real life situation, an application of the performance indicators to a port in a developing country was undertaken. The port selected was the Port of Piraeus, the major port of Greece. The port has trade characteristics which arc common to most developing country ports for example, a large portion of the traffic is imported break-bulk general cargo.

B. MANAGEMENT ORGANIZATlON

2. The port is administered by a legal entity of public interest, the Port of Piraeus Authority (P.P .A.) which is operated under the supervision of the Ministry of Merchant Marine. The P.P.A. is directed by a seven-member Board of Directors which is the supreme organ of direction and administers its property and decides on all matters outside the jurisdiction of the P.P.A.'s other organs. The P.P.A. services are supervised by the general manager who represents the P.P.A. before the state authorities, supervises the operation of the port and the development and maintenance of all machinery, buildings and installations.

3. At the berths each gang, both on the ship and on the quay, is supervised by a gang foreman. Work is carried out in two shifts from Monday-morning till Saturday night:

From 07.30 to 14.30 (actual working time 08.00 - 14.00) From 14.30 to 21.30 (actual working time J 5.00 - 21.00P The possibility of night work and work on Sundays and holidays exists. All shirts are worked without a break.

C. PHYSICAL DESCRIPTION

4. The Port of Piraeus can be physically divided into three areas, the main port, Hercules port and the annexes of the port (sec

a The extra [Link] before and after working time if for gangs to prepare or put away mechanical equipment, etc.

figure 1). The total length of the port's qlwys is I H,300 metres, of which 8,289 metres arc in the main port with 4,609 metres fOJ commercial traffic, 3,134 for passenger traffic and 550 metres for auxiliary purposes.

5. The section selected for study (see figure II) comprises a length of quay 560 metres long which is divided into four berths each J 40 metres in length. Each berth has a shed associated with it, three 01 these being single-storey sheds and one having four floors. The quay aprons are 15 metres wide and only the berth with the four-storey shed has quay crane facilities. The depth alongside varies from 10 to 11.5 metres. The section was selected because general cargo was worked there and the size of the area was sufficiently small to facilitate data collection. The operation studied was the transfer of cargo from ships to storage area or vice versa, and all costs and revenue generated from the storage and delivery of cargo were excluded.

FIGURE I

Main port of Piraeus

_ Study 501:1101\

FIGURE II

Study section main port of Piraeus

r--- ---- -~~--~~--- -~ -- - ~- -- -~~- - --- --~---~-- -- __

I -_

I

I -_
I
I
I
I FOUR·STOREY SHED
I (284110,q.m.1 I SHED
I SHED SHED
I (4000-;q:~.1 (4000 sq.m.) (3950 sq.m.)
I
I ____"....._" .. ~ -
_, ."~-'- ~
, BERTH 1

BERTH 2

~60m.

__ ~ _ Study section

---

.., I (

I

.J

Bt:RTH J

BERTH 4

I I

------------------------~:

I

17

D. RESPONSIBILITIES

6. The Port of Piraeus is responsible for:

(a) The construction and maintenance of harbour works, i.e., quays, storage sheds and buildings, dry docks, buildings and installations of the port, and also equipping them with all the necessary machinery and other means for their operation;

(h) The approach, anchorage and berthing of vessels and the assignment of points of loading/discharge of same;

(c) The loading/discharge, storage, safe-keeping and delivery of

the goods imported and exported through the port;

(d) Services and facilities to vessels entering the port;

(e) Facilities to passengers moving through the port by sea;

(f) The general management, security and operation of the port, the right to impose dues and charges on vessels, goods and passengers for the use of the port, the right to draw up regulations governing all port work and the right to impose and enforce such regulations.

E. OPERATIONS

Operations before the vessel arrives at the berth

7. The ship's expected time of arrival is communicated by the agent to the Co-ordination Department along with the declared amount of tonnage to be worked. This information is used to allocate berths to the expected vessels. Berths 1-4 are used for foreign general cargo vessels. Pilotage is compulsory, with the exception of some smaller Greek ships which call frequently.

Operations on the berth

8. The ship's gangs work from the hold to the quay, under the supervision of the foreman. With the exception of herth 2, where electric shore cranes arc used, all operations are carried out with ship's gear. Unhooking and transfer of cargo to the shed or open area (the so-called "sotto palango " operation) is carried out by the quay gangs under the supervision of a foreman. Delivery of goods from the place of storage to the consignee's transport is also carried out by P.P.A. personnel.

F. STORAGE FACILITIES

9. Approximately 65 per cent of the port's incoming traffic passes through the sheds. Of the remaining 35 per cent, 30 per cent is put into open areas and the remaining 5 per cent moves directly onto road vehicles. The rent for the first 8 days of storage within the port is included in the loading/discharge dues. A charge is made for the transfer of goods from the storage area to hinterland transport vehicles. From the ninth day, charges according to a sliding scale are levied per unit of 50 kg. per day. The average

storage time of cargo in the sheds amounts to 30-60 days, about 20 per cent of the total port revenue being derived from storage dues. Thus the Port of Piraeus ads as a "storage port" rather than a "transit port".

II. Application of the performance indicators at the Port of Piraeus

A. SCOPE OF THE APPLICATION

10. The application of the performance indicators at Piraeus consisted of collecting information on the facilities and equipment used in the section under study, together with details of the ships and cargo workedb there during two months: January and June 1974. In addition, data on the labour used was collected.

B. DATA COLLECTION

11. The first step in the data collection exercise was to gather data on the berth facilities. This information was used later to calculate the capital equipment expenditure for the berth group_ Table I illustrates the completed berthing facility file for berth 1. Individual maintenance records for the berth group were not available and an estimate of the cost was used. Information on the equipment used in the berth group was collected from the Engineering and Supply Departments. Table II summarizes these data and includes estimates of maintenance and operating costs. The sum of the total capital charges plus the maintenance and opcrating charges divided by the number of months in the year gives the monthly capital equipment expenditure used in the calculation of the financial indicators.

12. From a financial report prepared by the section for its operation in January 1974, an estimate of the mean cargo handling revenue per ton was made. The mean revenue per ton from ship to storage area or vice versa was assumed to be $4.33 per ton. Pension payments, which are 50 per cent of direct labour costs, were included as a portion of the labour costs when the financial indicators were calculated.

J 3. The remaining cost inforrna tion necessary was synthesized from operational information and the appropriate rates and tariffs. Labour costs came from the labour cost/productivity file and information on berthing revenue from the ship file. Table III illustrates the labour cost/productivity file entries for one ship call. Table IV shows the entries in the ship file for the month of January. Finally, table V illustrates the revenue produced by the ships calling at the study area during the month of January.

b In this application, the metric ton of 1,000 kilograms was used as the unit of measurement.

TABLE I

Berthing facilities for one berth at Port of Piraeus

Berth group: section J, general cargo berths, Berth number: 1

Capital
Amortization cost
Facility Length Draught Area (sq. Date in period (thousands
code Facility (metres) (metres) (metres) service (years) o[ dollars)
0101 Quay 140 11.5 1930 100 285
0102 Open berth 12800 1930
area
0103 Shed 100 4000 1961 50 200 Source: Data collected by the UNCT AD secretariat in the case-study port ,

18

TABLE II

Summary of berthing facilities and equipment costs of study section for ship/transit area operation (Thousands of dol/ars)

Annual
A mortiza tion Annual maintenance and
Capital period capital operati~g
Asset cost (years} charge3 charge
Quays, 1 I 40.0 100 95.6 0.6
Cranes 244.3 25 22,8 40.0
Forklifts, 181.9 8 31.6 36.4
Mobile cranes 128.0 10 9.0 10.0
Tractors 53.3 8 9.3 10.7
Trailers. 48.0 10 7J 2.4
Trucks 10.0 8 1.8 4.0 TOTAL

J77.2

104.1

Source: See table I.

8Assumed rate of interest 8 per cent.

b Estimates based on a 1972 sample for the whole port.

TABLE III
Example of labour cost/productivity file
Ship type: Break-bulk general cargo Ship name: Wilhelmina
Berthing date: 06/01/74
Gross gang-hours Gang
worked Labour costa Idle Idle performance
Berth Hatch Gang Tons .gang- tim~ (tons/gang.
Day No. Shift No. size worked Regular Overtime Regular Overtime hours code hour)
06 3 8-14 17 70.0 6,0 225 1.5 01 15.6
3 8,14 2 16 37.5 6,0 212 1.5 01 8,3
3 15-21 17 99.5 6,0 225 16,6
3 15-21 2 16 34.5 6.0 212 1.0 02 6.9
07 3 8-14 1 17 55.4 6.0 145 1.5 02 12.3
3 8-14 2 16 52,2 6,0 137 1.5 02 11.6
3 15·21 J 16 65.7 6.0 137 11.0
3 15-21 2 17 34.9 6.0 145 5.8
3 15-21 3 16 102.6 6.0 137 17.1
08 3 8-14 1 15 61.4 6.0 129 1.0 05 12.3
3 8-14 2 16 34.3 6.0 137 1.0 05 6,9
3 15-21 1 17 35.8 6.0 145 2,0 03 8.9
3 15-21 2 16 46.9 6.0 .137 2.0 03 11.7
3 15-21 3 16 52.9 6.0 137 2.0 03 13.2
3 21-07 1 .17 25.0 10.0 375 7.5 03 10,0
09 3 8-14 1 14 49.1 6.0 121 8.2
3 8-14 2 14 105.4 6.0 121 1.0 05 21.J
3 8-J4 3 16 40,0 6,0 137 1.0 05 8.0
3 15·21 1 10 12.6 2.0 30 0.5 04 8.4
3 15-21 2 10 26,0 2.0 30 13.0
TOTALS 1041.7 116. 3074. 25.0
Source: See table l.
a Labour cost include supervision and have been converted from drachmas to dollars.
b The following delay codes were used; 01, getting ship ready; 02, collecting wood for dunnage; 03, rain; 04, work finished; 05, waiting
for export cargo.
19 C. PERFORMANCE INDICATORS

14. The financial and operational indicators (defined in paragraphs 19 and 23) were calculated for the port study section. A tabular presentation of the result' is given (tables VI and V II). The operational indicators show that although ship arrivals were fewer in January than in June, the port was more congested in January. This occurred for two reasons; first, the tonnage per ship was higher and secondly, the productivity - tons per gang-hour - was lower in January. These two factors increased the service time per ship and consequently increased the waiting time. Gang allocation to the ships worked was constant over the two periods. The higher fraction of idle time in January resulted from lost time due to rain.

15. The tabulation of the financial indicators shows a decrease in the labour expenditure per ton resulting from the increase in gang

productivity between January and June. This decrease is greater than the increase in capital eq uiprnent expenditure per ton that resulted from the lower tonnage worked in June. Thus the contribution per ton and the total contribution from this berth group showed an improvement in June over the January figure.

16. Graphical presentation of two of the indicators calculated for individual ship calls are given jn figures III and IV. Often a visual presentation is more useful to management as trends and exceptions are more easily recognized with this form of presentation than with a tabular one." Figures V to VII illustrate how some of the performance indicators may be recorded graphically during the year.

C See Berth throughput ... op. cit. part one, figure 17.

TABLE IV
Example of ship file
Berth Group: sect jon I .... general cargo berths Month: January Year: 1974
Arrival Berthing Berthing Berth Hours Gang-hours Labour
Length time and delay delay time Berthing Tons worked cost
Ship name (feet) date (hours) code3 (hours) location worked at berth Gross Idle (dollars)
Adam S .. 400 0830/22/12 323.5 4 5350 200 350 49 10550
Hollandia. 366 1100/28/12 1.5 01 210.5 3 1016 60 135 34 3429
Galiola .. 260 2315/30/12 10.5 01 81.0 2 1000 93 ISO 5 3633
Corinthian
Trader ... 284 0745/31/12 49.0 01 )02.0 2 1363 48 78 2 1565
Briseis .. 378 1345/31/12 43.0 01 85.0 1 1080 48 92 3 1920
Giuseppemme . 313 0100/03/01 55.0 01 107.0 4 792 57 124 13 3235
Marco Polo. 485 0920/03/0) 82.5 2 992 54 110 10 2550
Wilhelmina. 361 0100/()4/01 55.0 01 80.0 3 1041 54 116 25 3074
Cap Sidero . 410 0245/05/01 53.5 01 84.5 2 2272 60 130 13 2592
Ionion ... 137 1200/05/01 12.0 01 38.0 1 147 18 18 1 495
Oguzkan .. 189 1215/07/01 3.5 01 21.5 2 )4) 6 6 0 100
Georgios B. 363 1730/07/01 48.0 01 36.0 1 230 12 12 210
Madinia. 321 1900/07/01 48.0 01 84.0 4 1375 52 104 9 2483
Dimitris 425 2115/08/01 94.0 1 134 8 8 2 77
Effy ... 386 2130/09/01 J 0.5 01 31.0 3 330 24 40 7 899
Rapallo. 365 1500/ 10/01 18.0 01 82.5 2 415 54 80 19 1940
Tolmidis . 486 0620/11/01 10.5 01 246.0 3 1490 138 251 80 5890
PeW .... 229 1525/13/01 18.0 01 36.0 1 272 18 24 3 540
Indiana ... 361 0930/14/01 16.5 01 59.0 4 370 30 48 1 1094
Satsuma Maru . 514 1900/14/01 34.0 01 94.0 2 572 42 77 3 1785
Grecian ... 263 0925/16/01 75.0 1 558 42 61 4 1405
Manthos M. 270 0830/17/01 3.0 OJ 61.5 4 655 24 60 8 l200
Palladio ... 363 0830/20/0) 34.5 4 485 24 54 7 1333
Bratstvo .. 310 0830/21/01 112.0 2 1610 85 151 24 3364
Chantenay , 198 1530/21/01 16.0 02 14.0 I 302 12 19 1 388
Georgios V. 176 0200/22/01 15.0 1 76 7 7 3 117
Texelstroom . 260 0840/22/01 47.0 4 329 40 52 2 1250
Great Luck. 428 0900/22/01 216.0 3 6269 160 410 66 10580
Ionian .... 137 1900/22/01 29.0 J 230 18 24 400
Tundraland 393 ()240/24/0J 30.0 02 86.0 I 2245 60 168 23 3789
Andrea Gritti 479 0830/26/01 84.5 2 8115 57 124 21 3251
Menna. 168 0900/26/01 59.0 4 280 24 24 333
Georgakis .. 169 0900/26/01 112.0 4 659 42 60 4 1397
Astronaftis . . 355 1740/26/01 96.0 4 368 30 36 1 904
Agia Irini. .. 212 1300/28/01 77.0 1 379 27 39 0 713
Izumo Marub 515 0740/29/01 24.0 01 2
Athenianb . 308 1630/29/01 15.0 01 3
Livorno'? .. 386 0830/31/01 4
Source: See table I.
a The following delay codes are used: 01, waiting for a berth; 02, other cause.
b Ship working not completed during month of January.
20 TABLE V Example of revenue file

Berth group: Section I, general cargo berths

Month: January

Year: 1974

Revenue Revenue
Arrival from berth from cargo
time and occupancy handling=
Ship name date [dollars} (dollars)
Adam S .. 0830/22/12 350 23.183
Hollandia. 1100/28/12 182 4403
GaUola .. 2315/30/12 43 4333
Corinthian Trader. 0745/31/12 67 5906
Briseis 1345/31/12 95 4680
Giuscppemme . 0100/03/01 73 3432
Marco Polo. 0910/03/01 121 4299
Wilhelmina. OJ 00/04/01 90 4511
Cap Sidero . 0245/05/01 103 9Il45
Ionian 1200/05/01 8 537
Oguzkan . 1215/07/01 6 611
Georgia!' B. 1730/07/01 45 997
Madinia. 1900/07/01 80 5958
Dimitris 2115/08/01 106 581
Lffy. 2130/09/01 48 1430
RapaU<> 1500/10/01 91 1798
Tolmidis . 0620/11/01 334 6457
PtIii. 1525/13/01 13 1179
Indiana. 0930/14/01 68 1603
Satsuma Maru . 1900/14/01 129 2445
Grecian 0925/16/01 44 2418
Manthos M. 0830/17/01 24 2838
Palladia ... 0830/20/01 45 2102
Bratstvo .. 0830/2] /01 72 6977
Chantenay , 1530/21/01 7 1309
Georgios V. 0200/22/01 5 329
Texelstroorn . 0840/22/01 17 1426
Great Luck. 0900/22/01 241 27166
Ionian .. 1900/22/01 8 997
Tundraland 0240/24/01 98 9728
Andrea Gritti 0830/26/01 120 3835
Menna ... 0900/26/01 17 1213
Georgakis 0900/26/01 35 2856
A stronaftis. 1740/26/01 89 1595
Agia lrini .. 1300/28/01 31 1642
Source: See table 1.
• Estimate based on mean revenue of $4.33 per ton. TABLE VI

Port of Piraeus; Section I, general cargo berths Summary of operational performance indicators

January 1974

June 1974

Indicator

Arrival rate (ships/day) .... Waiting time (hours/ship) .. Service time (hours/ship). . . Turn-round time (hours/ship) . Tonnage per ship (tons/ship)

Fraction of time berthed ships worked. Number of gangs employed per ship per shirt . Tons per ship hour in port (tons/hour) .. Tons per ship hour at berth (tons/hour) . Tons per gang-hour (tons/gang-hour) _ Fraction of time gangs idle.

1.06" * ] 6.1" 88.5 a s 103.8"

1020" 0.563 , 1.88., 9.8, •

11.5, 5 11.0 .. 0.14"

Source: See table 1.

• Indicator given with number of ship" in sample, e.g. 16.1, 5 ~.e., sample of 3S ships gave a mean indicator of 16.1.

21

TABLE VIl

Port of Piraeus: Section I, general cargo berths Summary of financial performance indicators

Indicator

January 1974

June 1974

Tonnage worked (thousands of tons) ...

Berth occupancy revenue (dollars per ton).

Cargo handling revenues (dollars per ton) . Labour expenditureb (dollars per ton) ... Capital equipment expenditure- (dollars per ton). Contribution per tond (dollars per ton) .

Total contribution (thousands of dollars)

35.712., 0.081 4.333 3.297 0.656 0.461

16.463

29.340. 0 0.066 4.333 2.811 0.799 0.789

23.149

Source: See table 1.

a Based on information from a financial report for Section I for january 1974 (shipworking: 62 drachmas per ton; "sotto palango " working: 68 drachmas per ton).

b Based on information extracted from the shift foreman's report for a sample of 35 ships for January and using ratio of gang productivities for the two periods to estimate the June figure. Pension payments of 0.5 of labour expenses are included.

C Based on information from the Supply Department and the Engineering Department (1972 data) and assuming a rate of interest of 8 per cent when determining amortization charges.

d The contribution per ton excludes revenue and cost generated from the delivery of cargo, which produces approximately 50 drachmas per ton of gross revenue and costs approximately 20 drachmas per ton for labour plus the capital equipment charges.

FIGURE III

Distribution of fraction of time berthed ships worked at Port of Piraeus

(Section 1. general cargo berths - January 1974)

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 Fraction of time berthed ships worked

22

FIGURE IV

Distribution of tom per gang-hour at Port. of Piraeus (General cargo berths - January 1974)

10

9

'0 5

'"

11 4

" z

2

8 10 12 14 16 18 20 22 24

4

6

Gang productivity (tons/gang-hour)

FIGURE V

Graphical presentation of tonnage worked indicator for a berth group

c o ,....

Cumulative tonnage

M

J

A

s

o

N

o

1974

23

FIGURE VI

Graphical presentation of total contribution indicator for a berth group

Cumulative contribution

1974

FIGURE VII

Graphical presentation of productivity for a berth group

:;

o ..c

'" c.

'" c

g

Per hour at berth ~- Per hour in port

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