Linking Port Governance and Performance

Linking Port Governance and Performance

Source: adapted from Brooks M.R. and Pallis A.A. (2008). Assessing port governance models: Process and performance components. Maritime Policy and Management, 35(4), 411-432.

Once in place, a port governance model is under re-evaluation and subject to re-alignments. The scope is to fix any misalignment in the framework imposed or to fit it to changing economic circumstances, but also to incorporate feedback from the port itself or perhaps its political masters as experience with port reform unfolds in practice.

A feedback loop is generated through the evaluation of performance to the contemplation of opportunities for readjustment. Within a process that unfolds over time, the output (performance) and the contextual environment provide the background for the initiation of further adjustments aiming to adjust minimally, or comprehensively reform, the specifics of the governance model in place. Motivated by the conditions of a port, relevant policymakers decide to initiate change at (t1). These decisions are made in the light of a specific environment, with decision-makers having a vision of what they would like to see as port performance output. These decisions generate a process wherein Port Authorities (PAs) act at t2 to develop their objectives and implement the systems and processes to execute the decisions.

Even when the governance model is fully implemented (t3), estimations of its output are needed to fine-tune adjustments. All these changes are accompanied by transition times (t4). Measuring the performance (output) at (t5) and informed by any changes in the economic environment (defined partially by previous governance decisions that reform objectives and regulatory frameworks, and partially by exogenous variables), PAs and relevant government agencies and/or other actors can reach decisions for adjusting previous governance choices. Governance modifications will then continue to result in performance changes and vice-versa. Of course, to complete the process, PAs and other relevant actors need to establish essential performance monitoring practices.