Performance-Based Contracts: The Next Step for the Container Handling Industry



Guenter Schmidmeir, SVP, Sales & Marketing, Kalmar Automation Solutions


Many other industries have already innovated their business models by transitioning to outcome-based contracts, either with availability or performance guarantees. In a performance-based contract, a service provider can offer a complete solution incorporating equipment, software and services under a rate that is tied into the terminal’s operational performance based upon agreed key performance indicators.

For terminals, performance-based contracts offer a number of potential advantages including payment for actual performance or usage, reduced risks due to lower capital investments, and continuous improvement through the service provider’s incentivised commitment to improve productivity.

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