Cruise terminal operational evaluation from an environmental, social, and governance perspective using a system dynamics approach

Abstract

The number of international tourists visiting Bali by cruise ships is increasing annually. In response, the government started a project to enhance services at the Port of Benoa cruise terminal, considering not just infrastructure but also environmental, social, and governance (ESG) aspects that impact terminal service performance. ESG assessments can be classified into various factors, particularly within the dynamic operations of terminal services. Understanding these factors and their relationships is vital for assessing the impact of ESG on terminal performance. Service performance is measured by passenger embarkation and debarkation durations, with operational efficiency playing a key role in streamlining these processes. Subsequently, a system dynamics model is employed, and a model is developed considering ESG factors such as energy consumption (environment), air pollution (environment), port governance score (governance), and employee satisfaction index (social). The findings indicate that these factors positively contribute to the efficiency of terminal port operations. In scenarios of improvement, the service time can be reduced to 2.94 hours to serve 1,636 passengers, compared to 3.02 hours for 1,402 passengers without improvement. Therefore, the simulation results show that installing onshore connections, offering employee financial compensation, and implementing management improvements will enhance terminal operations.