Critical determinants of service quality for the port of cape town users

Abstract

This research study was motivated by the daily observed operational experiences from the perspective of the researcher’s logistics business. Poor levels of operational service quality were observed in the Port of Cape Town during the 2017/2018 “wind season” which occurs from September to March, where the port lost more than 1200-man hours due to wind delays. The poor levels of operational service quality are further compounded by the effects of the wind delays and its impact on congestion at the port which results in financial loss to importers and exporters and their intermodal service providers. Nearly ninety six percent (96%) of exports from South Africa are by sea, therefore South Africa’s trade with the rest of the world is by sea. Thus, ports are important economic contributors and play an important role for both inbound and outbound logistics. Service quality failures affect business-to-business players in the logistics chain. Port users suffer financial and reputational damage when containers, which are shipped via the port, are delayed due to service quality failures. The purpose of this treatise was to determine what the critical determinants of service quality for the Port of Cape Town users are. To achieve this a conceptual research model was developed, where six variables were identified that have an influence on service quality. The six variables identified are Communication, Competence, Access, Reliability, Understanding/Knowing Customer and Tangibles. A literature review was then conducted to determine what the difference between B2C and B2B operational service quality is. This was done by investigating both the similarities and differences between B2C and B2B and providing a review of service quality and customer satisfaction. Similarly, a literature review was also conducted to investigate the contrasts between international and local port service quality. This was achieved by investigating the importance of ports and an overview of the South African port network. An overview of the Port of Cape Town was then provided where inefficiencies in the Port of Cape Town are discussed. Service quality in selected international ports are then discussed before the chapter was concluded by providing a review of service quality at the port of Cape Town’s two closest international competitors. The methodological approach to the study was quantitative research using a survey strategy to test the conceptual model. Analysis was performed through descriptive and inferential statics. Based on the analysis, the study could conclude by making important managerial recommendations that the management of the Port of Cape Town could implement to improve the level of Operational Service Quality at the port. Some of the recommendations are, that the ports staff should be trained in the importance of proactive communication. Port staff should receive regular training with respect to their operational functions. The port should provide a platform which will allow port users to raise concerns or provide compliments related to container operations or port staff interactions. Before communicating start up times after port stoppages, the port needs to take in to consideration the necessary time required to get staff back to their operational posts and other start-up operations when advising the port reopening time to port users. Port management should implement a better maintenance programme for the container handling equipment as it was the respondent’s perception that the handling equipment used in the port is not always in good working condition