The Port Authority of New York and New Jersey Performance Analysis


The Port Authority of New York and New Jersey is an autonomous, interstate, corporation that controls and sustains bridges, tunnels for both road and rail transport. Their control also spans to bus terminus, airports, PATH and seaports that are important to commerce and shipping capacity. Through various amenities and services, individuals are capable to create fundamental associations as industries can expand. This provides secure and well-organized travelling. According to the staff this is their main concern. It was formed in 1921 to guard and support businesses conducted in New York Harbor. Its other responsibilities included the development of terminals and transport amenities within the urban vicinity.


The Port of New York Authority, was formed by the collaborative efforts of each Governor from both New York and New Jersey. They were Alfred E. & Walter Edge from New Jersey. Their ambition was driven by the need to solve persistent issues that were often founded from imaginary border that cut down to the Hudson River. This imaginary line divided the union of the port. Since it was an interstate agreement, it required the support and permission from Congress.

This treaty enables the Authority to acquire, build, rent and/or manage transport facilities and to charge individuals and businesses for using these facilities. Its area of authority broadens over a 25 mile radius. This area stretches from lower Manhattan. Control also extends beyond this limit, this can be initiated if support is given by the respective authorities of the two metropolitan areas. This is sought by a board comprised of 12 individuals who manage the duties of the Port Authority. Members of this board are picked and appointed by the governors of the two states, six from each state.

One of the roles of this board is to pick an executive director whose responsibility is to administer the daily activities of the port. The role of the director is seen as the key towards the success of the port. This was evident in when the port was under the helm of J. Austin Tobin. He was in charge of the port from 1946 to 1972.

His efforts are recognized for making the port influential in planning and economic development matters of the two states and the nation at large. He made the authority to become the largest and most powerful port authority in the country. The success of the port was largely attributed to the utilization of the port’s profit on long-term projects that later made the port authority that powerful. This expanded the influence of the authority as transport and logistics was and is still a key element in regional commerce.

On top of managing several of the area’s bridges and roads, the degree of management also comprises the erection and running of transportation for mass transit. This also involves the both sea and air transport. The jurisdiction of the authority also encompasses expansion of real estates. This real estate’s may be in the form of office and residential housing. Along with the infrastructure developed, held, and controlled by the Authority, some key establishments are managed by Authority, they are, the George Washington Bridge, and several tunnels within the region The Port Authority runs all the airports located in the two states the region’s major airports.

The most famous facility that it managed was the World Trade Center. Unfortunately it was destroyed in the September 11 Terrorist attacks. Having been opened in 1973, the towers conquered the skies of New York together with presenting symbolism in terms of the rise of Globalization.

How A Port Uses Marketing To Promote Its Services

The role of marketing is to change and shape the behavior of the port’s clients. This is achieved through careful studying consumer markets, formulating and implementing strategies that apply to that targeted market. The port uses its service quality as its main marketing tool to both new and old customers of its services. Service quality is the impression of the port in terms of its excellence or superiority as charged by its customers. Better customer service makes the port to be more profitable. A satisfied customer will keep on coming back. If a customer becomes unhappy with a port’s service, the customer will try to find an alternative. It is known that the only company that can remain profitable with poor provision of customer service has monopoly in the market or which faces little or no competition. Thus, when competitors come in such a company survival is threatened (Abbot 89). The role of quality customer service is vital when customers are using the ports services.

Logistics functions within the Port

In the ports New York and New Jersey, as elsewhere, constant though not amazing enhancement in container throughput can set off significant gridlock in terms clearance, hence the need to come up with sound logistic measures that will ensure that everything is sorted and that other supply management functions are maintained.

Logistics is defined as the integration of activities in management required in ensuring that products move swiftly through the supply chain. For different products, the supply chain extends from the source of raw materials to production, the system of distribution and finally consumption of such products. In connection to this, the activities that can be grouped as logistical include the management of the inventories, transportation of the cargo, storage of finished goods and raw materials, handling of materials and any other activity which is undertaken about processing of information regarding the products in the supply chain (Comptroller of the currency administrator of National Banks 66).

The role of logistic functions within the port is to develop competence and success and to avoid avoidable repetition of logistics duties among the service mechanisms. Logistic functions within the port are first analyzed. Analysis is done on the cost of each hub within the port. The first cost is the fixed cost. These include rent of the facilities, computers and other equipments as well as insurance costs. The second type of costs is the variable costs. These include salaries for the employees in the respective hubs and any other recurrent expenditure.

Key logistic elements within the port are manifested in the form of economy, the society and the environment. In terms of economy, sustainable logistics in the supply chain aims at achieving growth, efficiency, employment, competitiveness and choice. In connection to the society, sustainable logistics is aimed at enhancing safety, access, health and equity while in connection to the environment it is aimed at ensuring positive climate change, enhancing the quality of the air, reducing air pollution, enhancing sustainable use of land and ensuring proper disposal of green wastes (Daniels 65).

Performance of the port

Measurement of the port’s performance has a contributory role in management control. The management uses the opportunity of performance appraisal to achieve several objectives. The management’s effectiveness is usually rated by the performance of the port as well as the results obtained at the end of the financial year. The management therefore has to ensure that it employs all the tools that can help the port Authority to achieve its objectives (Oyj 69). One of the main tools the management uses to ensure there is an upgrading in the performance level of employee, environment and shareholder value. (Oyj 72).

In the New York and New Jersey port, the triple bottom approach of performance evaluation is used. The triple bottom approach concentrates on the people involved, the environment and the profits that the port authority is supposed to accrue to come up with a better value for shareholders.

People: The triple bottom approach aids in helping the management to gain better control of the authority and to ensure that the activities are being run as they actually should be. This they do by getting the details of employee’s performance as each line manager deals with his line of employees (The Port Authority of New York and Jersey 88). This is revealed in the following advantages of employee performance evaluation to the management.

  • Giving feedback about the employees and their performance – This information when obtained lays the foundation for any subsequent decision that needs to be made by the management concerning the employee.
  • Identifying the needs of the employee – The organization’s management also uses the performance appraisal to identify the training needs of the employees. Where flaws are noted in the employee’s performance the organization then employs means to improve and upgrade the performance of the employee. This is normally done through training forums (Petersen 22).
  • The information from the appraisal is also used to form criteria to be employed in allocating rewards in the organization. The management does this by identifying the various strengths and weaknesses and identifying who deserves to be rewarded as a result of outstanding performances (Shapiro 19). This concept is used for motivating the workers. Thus, in the long run it results to better performance as every worker covets the reward and thus puts extra effort.
  • It also helps the management to form decisions on such issues as salary increment. This is when the performance of an employee is accredited and the management now results to a conclusion of increasing the salary. It also helps in making decisions such as promotions depending on the outcome of the result of the appraisal. This could also result to implementation of disciplinary actions where workers flaws and weaknesses as well as unpardonable failures are identified. Finally, this also could help the management to reach to a decision of issuing bonuses and determining how much is due to who and who qualifies and who does not qualify (Shapiro 34).
  • The process also facilitates the communication between the employee and the administrators. The process of appraisal is an interactive process that provides an opportunity for the workers to give feedback to their employers concerning their performance. The administration is also able to learn the employee’s complains and it could lead to the improvement of relationships (Tunner 196).
  • Employee appraisal is also used to ensure improvement and development of the organization as a whole. Appraisal could sometimes involve the introduction of new techniques altogether. In the process of employee appraisal, some techniques that are employed are coaching of employees as well as counselling. At the end of the process, the employee in question has improved and this contributes to the development and betterment of the organization. The improvement and betterment could also result from the improved communication (UNCTAD 70).
  • Performance appraisals also help the management to monitor the employees’ standards of operation. They can observe whether the employees are flowing with the objectives of the organization. This will aid in the decision making process as far as the management is concerned.
  • The information from the annual employee appraisals aid in the planning and organization of the annual activities of the organization in the following annual year (Wulderman 110). This is so because from the appraisal of employees there is fresh information as per who needs a pay rise or a promotion and thus the results obtained aid in planning as well as in budgeting.
  • The process of appraisal is also used in succession planning where in case of retirement or any other termination appraisal ensures that the succeeding candidate is well versed for the job vacancy.
  • “Planet” The port being a TBL organization strives to be beneficial benefit the environment. This is dictated by rules and regulations that ensure that no harm is done to its immediate environment. The ports Authority strives to minimize its ecological footprint by ensuring smart and innovative energy consumption. This also includes the careful management of non-renewables and reduction in the quantity of waste. The port has on many occasions been seen as having a followed all the environmental safe practices. Development and protecting environment is balanced within the ports and its infrastructures, balanced and some means can be incorporated in the development process to ensure protecting the environment is championed. In the development, energy is the major component and currently most industries use fossil fuels, coal, charcoal and other energy types that release carbon dioxide and carbon monoxide in large quantities. Thus, instead of this type of energy, development has been encouraged around the use of renewal energy such as solar and wind. Such energies do not release pollutants and thus the environment will be protected.
  • Profit: Many organisations aim to create and increase revenue collection but in some instances, it is not applicable or does not balance with the requirements of institutions. These organisations are guided and directed by vision and mission statement that is entrenched in their culture and thus ensures provision a platform in which goals and objectives may be achieved. Hence it is the role of the port authority to ensure that the share holder’s value increase with time.

SWOT Analysis

Companies and organizations are largely driven by the need to remain relevant in the market to continue making profits. As a result, most companies strive to ensure that they gain a competitive edge to overcome market turbulences. One of the ways through which companies evaluate their command of the market is through the SWOT analysis (Zen 200). We will hence conduct a SWOT analysis of the port to come up with a better picture of how to increase profits while reducing inherent weaknesses at the lowest level possible. In doing this, I will identify at least eight factors which form the port’s Authority strengths, weaknesses, opportunities and threats followed by an explanation of why each factor is positioned as a strength, a weakness, an opportunity or a threat. In exploring the strengths, I shall look at the attributes of the company which help the company achieve its objectives and the weaknesses will be the attributes which threaten or prove harmful to the achieving the desired objectives. In exploring the opportunities, I shall look at the external factors of the company which aid in achieving the objectives set by the company and finally the conditions which could prove dangerous in achieving the objectives of the company in exploring threats.


As mentioned above, the company’s strengths include the factors that help the company achieve its major objective of remaining competitive in the market. These include;

Diversification of its services

While the authority initially offer basic logistical services to the residents of the two states, the authority has in the recent past expanded into real estate investments and management. Diversification of services is vital as it ensures that the port’s authority a wider customer base. It also ensures that the Port’s Authority remains relevant in the market by dealing with diverse customer with diverse needs. Hence, diversification is strength as it enables the company to increase it sales through offering a wide range of products.

A large pool of qualified employees

The Authority has over 35,000 employees who ensure that the vision and mission are advanced in the new markets. As strength this factor ensures that the operations of the Authority in different market segments are competitive thus creating consumer confidence.

Technological flexibility

Technology plays a major role in the company as every process within the sea ports are handled with the help of high level of technology equipment and systems. This is manifested through the ports port terminals that use management information system. Management Information System (MIS) refers to provision of information to the senior management of firm to aid in accurate decision making process. The main components of a MIS are hardware, the software, the technology and the end user. In this case, the managerial and users are the port operators (UNCTAD 8). PMIS makes it possible for the managers of the ports to make non-routine or non-programmable decisions based on information available.

A strong corporate culture

The Authority has a strong corporate culture of fostering excellence and individuality which reliably brings in talented employees. The culture also recognizes its best performing employees through its various employee programs.


As mentioned above, weaknesses involve the factors or attributes which prove harmful to the company by hindering the achievement of the desired objectives. These include;

  • The port faces stiff competitions from other ports that sell offer the same products.


Strategic Alliances

The port has additional opportunities available through partnering with other companies involved in the industry such as expanding the customer base and extending its supply chain. This is an opportunity because alliances with other companies would help the company to determine its relative position in the market as compared to other companies.

Use of new technologies

The port has the potential of tapping into new and emerging technologies to advance it services. For example, the port can make use of the internet such that clearance and checking of cargo is done online. This is an opportunity because it would increase the features of the port’s services thus increasing its profits.

Stable financial position

The stable financial position of the port authority in short investments and cash has resulted into a negligible financial squeeze as a result of the current financial crisis which is another opportunity that can enable the company to expand its operations in other innovative services.


Stiff competition

The port faces stiff competition from a wide range of competitors. This is a threat because competitors are continuing to increase their service offerings to net a wider customer base.

High charges on services

As compared to other ports, its services are highly priced. This is a threat particularly with the current economic crisis where consumers are looking to spend less. Hence, the Authority risks losing a large segment of its customer to other port authorities with low valued sea port services.

Works Cited

Abbot, Charles: Shipping and Logistics in the Twenty First Century. Perth: Ocean View Publishers, 2008.

Comptroller of the currency administrator of National Banks. Management Information System: Comptrollers Handbook. 2000. Print.

Daniels. Addison. Port authority of New York and New Jersey. 2000. Web.

Oyj, Vaisala. Port authority of New York and New Jersey choose Vaisala weather Information system. 2010. Web.

Petersen, John. Airfreight industry-white paper. Georgia: Georgia Institute of Technology. 2007. Print.

Shapiro, Janet. Strategic planning toolkit. Washington DC: Civicus. 1993. Print.

The Port Authority of New York and Jersey. The port authority of New York and jersey. 2001. Web.

Tunner, Davis: New container terminals to lead facilities into the future. 2010. Web.

UNCTAD. Modern Port Management. Geneva: UNCTAD. 2007. Print.

Wulderman, John: Port Management. Sydney: Ocean View Publishers, 2009.

Zen, Philips: The Rise of the Port. New York: CRC Publishers, 2007.

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