The right strategy is the basis for any successful port development project. The strategy development is based on a sound analysis of port performance and port competitiveness. The performance of ports and consequently port competition can best be expressed in terms of logistic chain cost.

The choice of a port as a node in a logistic chain is based on the comparison of the total chain cost of the transportation of the cargo from the origin to the destination. The chain cost components in a port can be described in terms of hinterland connections, maritime accessibility, terminal efficiency, service quality, labour, tariffs, environment and policy.

During the last few years PCR analysed the port performance of a number of ports and port related industries, identified bottlenecks as well as chain opportunities and recommended on the improvements to increase the competitiveness of ports in the logistic chain.

The studies start with a comprehensive data gathering phase in which desk research and interviews with key stakeholders provide a solid base for further analysis.

For the analysis the following tools can be applied:

  • Benchmark with major competitors and international world class ports
  • Market perspective and customer identification
  • Port demand and capacity analysis
  • Development of performance indicators
  • Economic benefit analysis
  • Etc.

For the analysis of chain performance PCR developed a Transport Efficiency Model in which the performance of every shackle in the chain is expressed in terms of transport cost, time and societal (environmental) cost. The model proved to be an extremely versatile tool in analyzing the effect of improvements in port performance and hinterland transport solutions on the competitiveness of ports.

If you want to know more about what PCR can mean for your port or terminal or if you have any other enquiries, please contact us!

Projects related to port competition and market studies: