ABSTRACT

Port effectiveness is concerned with how well a port provides services to its users – that is, carriers, shippers and passengers. Specifically, a port is effective when it adheres to its overall operating objective; that is, its effectiveness operating objective in provision of port services to its users. In a survey of ports worldwide, the majority of the ports listed economic performance as a primary operating objective – to maximize profits for shareholders, return on investment for government and throughput, and maximize throughput subject to a maximum allowable operating deficit. Ineffective ports may have lower profits as a consequence, resulting in lower profits to finance port investments. Port investments may also include investment in: a port's seaway access such as dredging of its harbor and provision of navigational aids; its highway access such as pavement and traffic lights; and its rail access such as building of rail tracks.