Chapter 25 Issues in Measuring Port Devolution Program Performance: A Managerial Perspective

One of the premises of devolution is that productivity gains will result from better management of the resources of the entity devolved. The success of a devolution program, however, is difficult to measure and may be a product of many variables. A review of the literature on port devolution indicates mixed results. The literature on port performance measurement provides a myriad of efficiency measures with little emphasis on whether these ports are effective or meet customer or stakeholder needs. This paper examines the literature on performance measurement, both at the firm level (public and private) and at the program level, and explores what constructs may be suitable to measure the performance of devolution programs for ports from a strategic management perspective.