Importance Of Port Efficiency

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Part A The key construct in my area of research is port efficiency. Port efficiency is not something that can be fully observed directly. Ports play an important role in world trade and economy. The importance of ensuring efficiency in ports is strongly related to the ability of international maritime transport cost reduction. The definition of this construct quite broad and vary in perspective of researcher. Basically, port fficiency is the ability of port to operate/manage with a minimum amount of effort and have a desire result. Port efficiency have been define as an importance determinant of international maritime transport costs (Wilmsmier,Hoffman and Sanshez 2006; Clark, Dollar and Micco 2004; Sanshez et all 2003). Lovell (1993); Cullinane,…show more content…
The definition in many studies is not described straightforwardly. As far as, the port efficiency is concerned, the observed performance or productivity of a port will be typically related to its objective (Cullinane, Ji and Wang, 2005). Port’s Objectives are key elements for the definition of variables to measure port efficiency. Different objectives might have different input variables to consider as a main determinant of port efficiency. Researchers will generate or select potential port efficiency’s input variable such as delay at custom clearance, the port infrastructure, port’s time (waiting time) and so forth. Mostly, these variables will be measure by survey, questionnaire, interview and obtaining the secondary data to be analysed. Moreover, many previous studies will adopt regression to measure correlation between variables and efficiency. From the prior investigated relationship of input variables, researches will illustrate how port efficiency effect international maritime transport costs. The outcome will be more straightforward such as what is port efficiency’s determinant and its impact. Port efficiency definition also depends on port type because different type have some different operational characteristics. For instance, container port will mainly concerned about container throughput because it is very…show more content…
First, the impact of port characteristics on international maritime transport cost by Wilmsmeier et all, 2006. In this studies, there are two key constructs; port efficiency and international maritime transport costs. Researchers sought the empirical evidence to prove that port characteristics have an impact on international maritime transport costs. Most importantly, they looks more closely at six indicators of port characteristics: port infrastructure, port efficiency, port privatization, port connectivity, general transport infrastructure and customs delay. Each individual variable was translated to be indices. The sources for the indices was taken from related organization such as International Trade Data Base and World Economic Forum. These data sets are often guarantee of quality data by these institutions, but it is not always the case. As researchers cannot control the quality of data, this issue must be aware (Saunders, Lewis and Thornhill,

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