Benchmarkborobudur

Port & Terminal
Performance Benchmarking
Jasief S. Putrahardja
1
What is Benchmarking ?
Benchmarking is a continuous systematic process for

evaluating the products, services and work processes
of organizations that are recognized as representing
best practices for the purpose of organizational
improvement.
(Spendolini, J.M. The Benchmarking Book. American
Management Association. New York 1992, p.2 )
2
Benchmarking is a performance measurement tool used

in conjunction with improvement initiatives; it measures
comparative operating performance of companies and
identifies the best practices.
3
Benchmarking creates value by:

Focusing on key performance gaps;
Identifying ideas from other companies;
Creating a consensus to move an organization
forward;
Making better decisions from a larger base of
facts.
(Mission Statement for The Procurement And
Supply-chain Benchmarking Association
(PASBA))
4
Port &Terminal Benchmarking
. in most cases, it is not possible to determine

benchmarks which would be applicable for any port,
and that all expressions of port performance do not
address the same requirements.
Therefore, carefully identifying problems to be
monitored and taking into account the main
characteristics of the commercial activity should lead
to more accurate indicators and targets.
5
The diverse nature of intermodal trade means that
there are some sectors of the terminal operations
where the improvement of efficiency and effectiveness
are wholly within the control of the terminal operator.
Some other sectors may be only partially within his
control.
There will also be other sectors with problems to the
efficient running of the terminal that are wholly
outside the terminals control,
however benchmarking can be used to highlight these
problems and their solution to third parties.
6
Much has been written on benchmarking for container
terminals and useful background information upon use
of benchmarking is provided in:
International Benchmarking of the Australian
Waterfront, 1998;
OECDs Bench Marking of Intermodal Freight
Terminals, 2002.
Good sources of data on terminals are also available

in publications such as Container International
Yearbook
7
tainer Terminal Benchmarking Standa
There are some commonly applied published

benchmarking standards, such as:
World Container Terminals Drewry, 1998;
Containerisation International Yearbook 1998
and now;
Global Container Terminals Drewry, 2002.
8
e of Trade and Size of Container Term
The mega container terminals with high throughputs

of transhipment cargoes have led the way and evolved
state-of-the-art systems and equipment to meet their
potential needs.
Most consideration of container terminals only covers

Lo-Lo operations, but containers are also shipped on
trailers using Ro-Ro facilities, sometimes with great
efficiency.
9
Local Factors
Every terminal is different with its own constraints

whether these relate to its size, shape, navigation,
linkage with the hinterland and many other factors.
the size of vessels and the percentage of containers

offloaded and loaded in any one ship have a direct
impact on crane productivity and vessel turn-around
time.
10
What to Measure
Benchmarks need to be readily identifiable from

published information usually from trade
directories, annual reports and/or marketing
information and can be focused on various
aspects of the terminal business to report on
one of three areas:
Charges;
Level of Service;
Productivity of Labour and Capital.
11
Evaluating Throughput Productivity
Terminal Size Benchmark

The throughput of a terminal can be set against
the available quay length,
the number of quayside cranes and
the area of the terminal to provide a reasonable
benchmark as to how well it is performing
This can also be used to assess the likelihood of being
able to expand without immediate further major capital
investment
12
Productivity Benchmarks
When assessing productivity within a terminal, operators
will generally tend to look at issues such as the
following:
Type Description
Vessel Number of lifts per crane operating

measurements hour
Average delay per vessel departure
Number of lifts per vessel hour
Number of lifts per quay labourer
hour
13
Type Description
Yard Average truck cycle time
Measurements No. lifts per yard crane operating
hour
Net container lifts per gross container
lifts
TEUs stored per hectare of terminal
Mean storage dwell time
Mean stack height
Number of lifts per yard labourer hour
14
Type Description
Gate Entry gate delay per arriving
Measurements truck
Exit gate delay per departing
truck
Trucks per gate per operating
hour
Trucks per gate labourer hour
16
Type Description
Equipment Equipment availability
Measurements available/required
Mean time between failures
Mean time to repair per failure
17
More commonly used benchmarks on productivity are:

Workforce productivity (TEU/employee/year);
Quay Crane Productivity (TEU/crane/hour);
Berth Productivity (TEU/m of berth length);
Yard Productivity (TEU/hectare of yard).
18
Some less commonly used benchmarks are:

Yard Equipment Productivity (TEU/Unit/hour);
Vessel Turnaround (hours);
Berth Occupancy (% age);
Dwell time in Yard (days);
Vehicle turnaround time (minutes);
Loss or damage (per 1000TEU).
19
alculating Efficiency Growth Potentia
Labour
Workforce Productivity
This can be measured as the number of TEU per
annum divided by the total number of staff employed
in the terminal.
Drewry indicates figures for a medium sized terminal
(210,000 TEU pa) of 900 TEU/man pa rising to
1,100 TEU/man pa in a large terminal
(over 500,000 TEU pa).
20
Labour
Workforce Productivity
Clearly every terminal has differing manpower issues
and in terminals where robotic equipment is used
operational staffing levels are much lower than in a
terminal operating a manual system of tracking
containers.
In general terms a low TEU/employee/year figure
would indicate a need for implementation of better
training, review of working practices and optimisation
of staff utilisation
21
Container Yard
Yard Productivity
This is broadly the number of TEUs handled pa
divided by the total area of the terminal.
The industry benchmark standard is generally taken
as 20,000 TEU/ hectare/ year.
For larger terminals an increase of up to 50% could
be considered
22
Container Yard
Dwell Time
The dwell time for containers between delivery and
dispatch in the terminal presents us with a good means
of identifying poor clearance procedures.
In practice typical averages of between 5 and 7 days
are usually considered reasonable.
23
Container Yard
For any particular yard there is a limit beyond which
logistics and system improvements cannot reasonably
stretch the capacity. It will then be necessary to resort to
capital expenditure for any or all of the following:
Additional equipment to improve the existing stacking
system;
Increase the area of present terminal;
Undertake improvements to the pavement to maximise
stack utilization and traffic flow;
Transfer to a higher density stacking system with
necessary adjustments to pavement.
24
Container Yard
Vehicle Turn-round Time
The time that vehicles spend within a terminal
discharging or collecting their container is a good
measure of the efficiency of the gatehouse and the
yard procedures.
Generally a period of between 25 and 30 minutes
from entry to exit is considered acceptable but in high
volume single user terminals this can reduce to 10 to
15 minutes for regular customers.
25
Container Yard
Loss or Damage
This is measured as the number of TEU pa claimed to
have been damaged, broken into or stolen divide by
the total throughput.
26
Berth
Berth Productivity
Berth productivity is given as the total TEU across the
quay edge divided by the total length of the berthing
quay in the terminal.
27
Berth
Berth Productivity
Port Actual TEUs per annum per
meter of quay
Felixstowe 971
Southampton 663
Thamesport 772
Antwerp 412
Bremerhaven 604
Hamburg 622
Le Havre 252
Rotterdam
884
28
Berth
Berth Productivity
For the purposes of terminal planning an industry
standard of about 1,000 TEU/m of Quay is suggested,
but in Hong Kong HIT with 1,500 TEU/m/year has been
achieved.
Other ports, such as Felixstowe, are believed to be
seeking to achieve 1,400TEU/m per annum.
The average in Europe is reportedly closer to
850TEU/m/year and
in the USA 550TEU/m/year.
29
Berth
Berth Productivity
Berth productivity depends very much on the size of
ship and the percentage of cargo exchanged.
Also terminals with high volumes of transshipment
cargoes will have a considerably higher value because
of the inherent speed of this operation.
30
Berth
Quay Crane Productivity
Between 20 and 25 moves per crane per ship
operating hour is normal for a traditional container
terminal with conventional single lift quayside cranes.
An industry benchmark of about 115,000 TEU pa is
set for modern gantry crane planning purposes, but
this tends to reflect more on the systems operating
around the crane rather than the crane Itself.
31
Berth
Quay Crane Productivity
Obviously the type of quay crane used has a major
bearing on the physical limitations of crane
productivity, for example:
Post Panamax gantry cranes 35 to 45 lifts/hour;
Panamax gantry cranes 20 to 30 lifts/hour;
Port Mobile 18 to 25 lifts/hour;
Ships Gear 8 to 15 lifts/hour.
32
fying Bottlenecks & Implementing So
Berth
Berth Occupancy
Berth occupancy is the proportion of time that a
vessel is occupying a berth.
In practice this can become a balancing act between
the shippers, who wish to avoid waiting time, and the
terminal operator who wishes to maximize use of the
facilities.
It is generally held that occupancy levels of between
60% and 80% per berth is desirable to avoid vessel
waiting time delays.
33
Berth
Growth Potential
Berth occupancy is the proportion of time that a
vessel is occupying a berth.
In practice this can become a balancing act between
the shippers, who wish to avoid waiting time, and the
terminal operator who wishes to maximize use of the
facilities.
It is generally held that occupancy levels of between
60% and 80% per berth is desirable to avoid vessel
waiting time delays.
34
Berth
The quay crane reliability is of vital importance to
most terminals and, as for the yard equipment,
preventative maintenance regimes and remote
diagnostic have improved the reliability.
The speed of operation of the crane is mostly
controlled by factors in the yard or on the vessel,
but there will come a time when the operational
parameters of the crane need to be reviewed.
35
Berth
In some terminals refurbishment and upgrading of
existing cranes can work well and provide additional
productivity until additional new crane age is
required.
36
Yard and Gate

In most container terminals, and especially those
where space is at a premium, the minimization of
dwell time is the single most important issue
causing bottlenecks by congesting the yard.
In most terminals collection within 3 or 4 days will
engender no storage charge.
37
Yard and Gate

Many terminals are now operating with advanced
logistic and communication systems such as pre-
assigned collection and delivery windows for trucks
and minimizing or avoiding time that truck drivers
have to leave their cabs to complete paperwork.
38
Yard and Gate

In terminals where customs clearance is required for
the majority of cargoes the introduction of both fixed
and portable X-ray units means that the number of
containers which have to be physically emptied for
inspection is minimized without loosing security.
39
Labour
In most container terminals a high degree of training is
required for all staff covering operating procedures,
safety and security if optimum utilisation is to be
achieved from the large investment in terminal
equipment.
In Australia has shown that, following implementation
of improvements in stevedoring productivity, the number
of containers worked per hour of gangs on board has
improved from 25.2boxes/hr in March 2000 to 29.6
boxes/hr in June 2002.
40
Some terminals, particularly in countries that are still
developing container penetration, have major problems
caused by inappropriate activities or practices such as:
De-stuffing of containers permitted in the stacking yard
or in undesignated areas in the port. This is largely
because there is insufficient equipment outside the
terminal to lift the container off of the trailer for
emptying/filling and then returning it to the terminal.
Maintenance of paper documentation and tracking systems
to accompany every transaction, with all drivers having to
leave their vehicles to have their papers scrutinised and
stamped.
41
Some terminals, .. :
Customs inspections are required for almost all
containers with no alternative but to completely de-
stuff and re-pack.
Unreliability of handling equipment because of the
absence of preventative maintenance regimes and
misuse by poorly trained staff.
Insufficient linkage between the container yard and
the berth leading to congestion at the berth.
42
In such cases a more formal benchmarking exercise

can assist in making the business case for the
necessary investment that will be needed to mitigate
the effects of one or more of the bottlenecks which
are preventing expansion of productivity and
capacity.
Sometimes there is no alternative but to invest in
more equipment and infrastructure but in most cases
investment in improved logistics will precede major
capital expenditure.
43

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Port & Terminal

Benchmarking is a continuous systematic process for

Benchmarking is a performance measurement tool used

Benchmarking creates value by:

. in most cases, it is not possible to determine

Good sources of data on terminals are also available

There are some commonly applied published

The mega container terminals with high throughputs

Most consideration of container terminals only covers

Every terminal is different with its own constraints

the size of vessels and the percentage of containers

Benchmarks need to be readily identifiable from

Terminal Size Benchmark

Vessel Number of lifts per crane operating

More commonly used benchmarks on productivity are:

Some less commonly used benchmarks are:

Yard and Gate

Yard and Gate

Yard and Gate

In such cases a more formal benchmarking exercise

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