Container Terminal Performance: System Dynamic Approach with Port Capacity Constraints and ESG Integration

Abstract

Each container terminal has attempted to improve its performance through effective strategic and tactical management. Therefore, performance measurement is needed due to the long waiting time of the service process within container terminal operations. We have utilized the system dynamics methodology to assess container terminal performance. Container port enterprises have been influenced by governance, environmental and social components, therefore, the management of those components has significant impacts on the service port's performance. Therefore, the objective of the research is to model the dynamic performance of the container terminal with consideration of environmental, social, and governance components. Furthermore, this dynamic model has presented practical value for increasing the performance of the container terminal operation under capacity constraints. The case study focused on the Indonesia Port Corporation of Jakarta, Indonesia. As a result, the research has identified the influence of container terminal decision variables, such as emissions, employee satisfaction, and good corporate governance, on container terminals, implying their significance in reducing berthing time as the main indicator of container terminal performance. The novelty of this research is to provide a system dynamic model which combines tactical and strategic levels for container terminal operation.