A novel Index-based quantification approach for port performance measurement: a case from Indian major ports

This paper develops a unified port performance index (PPI) considering different cargo categories and the multi-dimensional nature of port performance indicators/dimensions. This study has used the quintile method to construct PPI. Further, the PPI obtained from the quintile method is compared with weighted unified index (PPIPCA) using principal component analysis (PCA), extensively used for index development in the literature. A pilot index development is demonstrated using secondary panel data for 12 major Indian ports on five significant dimensions, namely, operations, physical infrastructure, technical infrastructure, finance, and socio-economic. Results show that the JNPT port outperforms all other ports under the container cargo category. Likewise, Kandla port in the liquid port category and Paradip port in the other (dry & break bulk) cargo category are on top. Also, qualitatively similar results and insights are obtained with the PPIPCA. Subsequently, the panel data regression and efficiency analysis are performed to demonstrate the utility of the proposed index. The results affirm that the operations, physical infrastructure, and socio-economic dimensions have a positive and significant impact on port financial performance. The present study operationalises some key unexplored port performance indicators/dimensions that can enable effective decision-making.