Sea change in thinking on performance measures

Introduced in 1947 to essentially regulate the industry, he recalls that the scheme emphasised “management by consent”, eschewing any real need for competition, as such.

In the virtual free-for-all that followed the scheme’s abolition in 1989, shippers became aware that they could pay a lot less because of the enhanced levels of competition consequently found in ports.

“Terminal operators had to face up to the idea that, because they couldn’t make more money by boosting rates, they had to increase margins by reducing costs. As a result, everybody became more cost conscious, which ultimately meant paying considerable attention to productivity and performance.

“Only by monitoring these indicators precisely could managers obtain the statistical evidence needed to allow them to justify some of the major changes we have seen in the industry. Fifty years ago, people concentrated on rates and were not remotely as cost conscious as they are now.”