When complexity meets precision: At container terminals, every move, every truck entry, and every refrigerated container inspection is part of a tightly coordinated logistics process. Transparency is essential for smooth operations and to avoid costly disruptions. This is where key performance indicators (KPIs) come into play.
KPIs are important tools for management reporting; they translate abstract goals such as "efficiency," "safety," or "sustainability" into concrete, measurable values. For terminal managers, this means having a clear understanding of what's working, where bottlenecks occur, and how small changes can lead to big improvements.
When used wisely, they align operational decisions with long-term strategy and help terminals respond more quickly to dynamic conditions. They also promote cross-team accountability by creating a common language that connects the control centre, yard, as well as berth and gate.
As port operations become increasingly automated, the importance of automation KPIs grows. Planners and human operators need reliable, real-time data to support their decisions. This opens up new opportunities—and new expectations—for performance monitoring.
KPIs aren't just about measuring performance. Modern terminals are under pressure to do more with less, so they must continuously, intelligently, and scalably improve their operations. Indicators guide the way.
Key Performance Indicators (KPIs) are measurable metrics that reflect how effectively a company, in our case a terminal, achieves its operational and strategic goals. They are the signposts that indicate whether performance is moving in the right direction—or lagging behind. They highlight areas where action is needed, such as avoidable movements in the yard or the duration of truck waits at the gate.
While KPIs are numbers, they also represent agreements. The introduction of a KPI and its benchmark makes a clear statement: "This is what success looks like." This shared understanding applies to plant operators, planners, IT staff, commercial managers, and management.
When it comes to automation, KPIs—specifically automation KPIs—ensure that technology investments translate into measurable improvements rather than vague efficiency gains (see also: RFID automation). Without clearly defined indicators, automation risks becoming a black box. With them, it becomes a tool for transparency, precision, and control.
Categories of KPIs
Not all KPIs serve the same purpose. In terminal operations, they can be divided into several strategic categories, each reflecting a different performance aspect:
Operational KPIs focus on efficiency and throughput. Typical examples include quay crane productivity, truck turnaround time, and storage space utilisation. These are often the most visible indicators of terminal health and are heavily influenced by port terminal automation and planning systems.
Commercial and customer focus KPIs capture commercial performance (e.g., cost per throughput, revenue per TEU) and customer service (e.g., dwell time, gate turnaround time, complaint handling). They help terminals align operational reliability with customer expectations.
Safety KPIs indicate the terminal's ability to protect employees, contractors, and visitors. They include the frequency of lost-time accidents, the number of near misses, and the results of compliance audits. Automation reduces the burden on humans, so these KPIs demonstrate progress in risk mitigation.
Resilience and risk management KPIs assess the terminal's ability to withstand disruptions and maintain service continuity. These include metrics such as equipment redundancy, recovery times, system availability, and incident response times.
Environmental KPIs measure the terminal's impact on its surroundings. Key metrics include fuel and electricity consumption, emissions per container, and energy consumption of reefer containers. These types of indicators are becoming increasingly important as sustainability becomes a central focus of port strategies.
The Challenge of Measurement
The concept of KPIs is quite simple, but measuring them effectively is often more complicated than it seems. Container terminals are dynamic, data-rich environments – yet this data is not always standardised, accessible, or trustworthy. Different systems (TOS, gate systems, equipment telemetry, reefer monitoring platforms) often operate in isolation, resulting in inconsistent or duplicated data sets.
Furthermore, many key performance indicators are only meaningful if they are defined consistently. What exactly counts as "truck turnaround time"? From the entry gate to the exit? Or from the queue to the loading dock? A lack of definitions can render comparisons meaningless—even within the same terminal.
Automation introduces both new data sources and new complexities, making the accurate definition and application of automation KPIs more critical than ever. Data from detailed logs must be filtered and transformed into actionable performance metrics, which are then integrated into real-time dashboards.
Measurement also has a cultural dimension: People need to be able to trust the numbers. When employees feel that KPIs are only being used to assign blame, data quality and engagement often suffer. However, when they are used constructively, for example, to identify bottlenecks, teams are significantly more willing to support accurate reporting and follow-up actions.
How to Choose the Right KPIs for Your Terminal?
No two terminals are alike, and their KPIs are also different. A regional feeder port with limited storage space has very different priorities than a transhipment hub for 18,000 TEU vessels.
Ideally, KPIs reflect the terminal's strategic goals. If customer satisfaction is the top priority, metrics such as gate turnaround time or booking accuracy can be crucial. If the focus is on energy efficiency, emissions per handling or the energy intensity of reefer containers should be recorded.
Good KPIs also have some commonalities: They are clearly defined, easily measurable, relevant to day-to-day operations, and focused on long-term performance. Ideally, their number shouldn't be too large—enough to provide insights but not too many to make things confusing.
Selecting the right indicators is a team effort: Operations, IT, sales teams, and senior management provide cross-functional input. And they are not rigid—as operations mature and automation increases, they need to be adapted, for example, from simple activity figures to predictive and outcome-oriented indicators.
Container Throughput
Container throughput is the most important metric for terminal performance and is typically measured in TEU per hour, shift, or day. It reflects the terminal's ability to efficiently handle containers at all interfaces: vessel, yard, and gate. High throughput indicates good coordination between equipment, labour, and systems.
Automation can significantly increase throughput by reducing delays and manual intervention. Examples include optical character recognition (OCR) for container identification and ANPR (automatic number plate recognition) for truck detection, which enables better turnaround times. These systems reduce the risk of human error in container identification and sequencing.
Planning systems also play a crucial role in berth planning and storage strategy. PDS (position detection systems) record the location of containers and ontainer handling equipment (CHE) in real-time. Together, they determine the requested position and whether the container is there.
Yard Utilisation Rate
If the yard were the terminal's lungs, the performance index would indicate how well it breathes. This indicator shows the percentage of available storage capacity being utilised at a given time. If utilisation is too low, space is wasted; if it is too high, operations risk congestion, inefficiency, and safety risks.
Automation helps better manage usage and achieve higher density. Tools linked to the Terminal Operating System (TOS) can optimise container stacking, minimise unproductive handling operations, and predict future space requirements based on vessel schedules and gate activity.
Another argument for automated systems is proactive yard management. Instead of always having to react to congestion, terminals can forecast and adjust their layouts in advance. This transforms the KPI from a reactive measure to a strategic lever, helping terminals maintain high utilisation rates while remaining flexible and operational.
Gate Throughput
Gate throughput measures how many trucks pass through the terminal gates in a given period—per hour, shift, or day. It's a key performance indicator, especially for terminals with high hinterland traffic. Operated efficiently, it can reduce truck queues and lower emissions, not to mention increase the satisfaction of affected staff and external workers.
Throughput can be significantly improved through digitalisation and automation. Advanced appointment systems allow drivers to plan pickups and deliveries, smoothing traffic peaks. Automatic character recognition speeds up entry and exit, reducing the need for manual checks and paperwork.
Self-service check-in kiosks or mobile apps can further streamline the process, allowing drivers to complete the necessary formalities without involving gate employees. RFID tags attached to the truck transmit identification data to the gate and can integrate the external truck into the terminal's own system at the same time.
Total Recordable Incident Rate (TRIR)
Safety is a top priority in terminal operations. The TRIR measures the number of work-related injuries per 200,000 working hours. It includes injuries requiring medical treatment, injuries resulting in lost time, and cases of reduced ability to work. A low figure indicates a safe and controlled work environment.
Automation can prevent a large number of accidents simply by reducing the number of people in risk areas (or even on the premises at all). Equipment monitoring using telematics data also contributes to this: The risk of failures and errors is identified, thus preventing accidents before they occur.
A cultural shift is currently underway here: from reacting to incidents that have already occurred to proactive security, enabling the prediction and prevention of such incidents. The TRIR indicator clearly shows which measures lead to a reduction in the number of accidents and which do not.
Equipment Downtime
Nothing is more annoying than when equipment is running low during peak hours. Downtime measures the percentage of time-critical assets, such as cranes, trucks, and other container handling equipment (CHE), that are unavailable due to outages, maintenance, or software errors. Excessive downtime disrupts planning and results in reduced throughput and increased costs due to overtime and emergency resources.
Automation provides relief in two ways: through predictive maintenance and remote diagnostics. Telemetry and sensor data monitor the equipment in real-time and detect anomalies such as overheating, excessive vibration, or low tyre pressure.
This allows maintenance needs to be identified early and necessary interventions to be scheduled during natural downtimes. Remote access also enables faster fault diagnosis without having to dispatch someone to the crane, for example. Problems can be identified from the control room and, depending on their severity, either further monitored or immediately escalated.
Improving this indicator impacts a whole range of others, such as throughput, warehouse utilisation, safety, and even emissions. Investments in automation are not only a cost-saving factor but also a key factor in performance stability.
Carbon Emissions per Container
Reduction is a key concern for ports. This indicator quantifies the amount of CO₂ (or equivalent) emitted per unit handled and includes crane movements, cooling energy, truck handling, and auxiliary systems.
Automation provides enormous support here; for example, idle times can be drastically reduced by intelligently scheduling equipment between handling operations. The gate automation mentioned above also improves the carbon footprint.
Different stakeholders view performance from different perspectives. Port authorities, terminal operators, and shipping customers each have different strategic priorities. Aligning your KPIs with these priorities is critical to ensuring everyone is on the same page.
To make this alignment practical, we group KPIs into five overarching strategic categories: Operational Performance, Sustainability & Environment, People & Safety, Business & Customer Focus, and Resilience & Risk Management.
Port Authority Objectives
Port authorities focus on the long-term management of infrastructure, sustainability, and the public interest. Their primary concerns are:
The relevant categories are:
Terminal Operator Priorities
Terminal operators value performance, profitability, and customer loyalty. Their strategic objectives are:
The relevant categories are:
Customer and Shipping Line Expectations
Customers – including shipping lines, shippers, freight forwarders, and transport companies – value predictability, transparency, and cost efficiency. Their success depends on a terminal's ability to ensure the flow of goods on time and without surprises. Strategic goals on the customer side include:
The relevant categories are:
Different alignment doesn't mean creating different metrics for each stakeholder—it's about understanding how the same indicators support different goals. For example, gate throughput is operationally important for the terminal, a congestion issue for the port authority, and a service metric for customers.
Automation creates a common foundation: It captures clean data, enables faster reporting, and links performance to outcomes across the ecosystem. The better your KPIs are aligned with your stakeholders' goals, the more strategic value you gain from each data point.
How Did the Concept of KPIs Originate and Evolve?
The idea of measuring performance is not new. The earliest forms of performance tracking date back thousands of years:
Ancient Civilisations
Modern Evolution
Automation alone doesn't guarantee better performance—well-thought-out processes and KPIs do. They provide direction for data, align daily decisions with strategic goals, and provide all stakeholders—from port authorities to shipping companies—with a common language for progress.
When terminals understand what, how, and why they need to measure, they can move beyond mere operational troubleshooting to achieve continuous, intelligent improvements.
Delve deeper into one of our core topics: Smart port
ANPR
ANPR (Automatic Number Plate Recognition) is a technology that uses optical character recognition (OCR) and cameras to capture vehicle license plates, converting them into alphanumeric data. It enables real-time tracking, access control, and security by comparing plates against databases. Common applications include traffic management, law enforcement, and container terminal logistics for efficient vehicle monitoring. (2)
Dwell Time
Dwell time refers to the period a container remains stationary at the terminal, from the moment it is unloaded from a vessel until it is picked up for its next journey stage. High dwell times can lead to congestion, increased costs, and reduced terminal efficiency. Factors influencing dwell time include customs clearance, terminal operations, and transport availability. Efficient management of dwell time is crucial for optimising port operations and minimising delays. (3)
References:
(1) https://www.managementtoday.co.uk/management-thinkers-why-frederick-winslow-taylor-matters/management-thinkers/article/1837655
(2) Cullinane, K., & Song, D.W. (2007): Container Terminals and Terminal Operations. Edward Elgar Publishing.
(3) Notteboom, T.E. (2009): Container Shipping and Ports: An Overview. Review of Network Economics.