Most of the radar systems used in operating marine vessel traffic management services experience problems, such as track loss and track swap, which may cause confusion to the traffic regulators and lead to potential hazards in the harbour operation. The reason is mainly due to the limited adaptive capabilities of the algorithms used in the detection process. The decision on whether a target is present is usually based on the amplitude information of the returning echoes. Such method has a low efficiency in discriminating between the target and clutter, especially when the signal-to-noise ratio is low. With modern signal processing techniques more information can be extracted from the radar return signals and the tracking parameters of the previous scan. The objectives of this paper are to review the methods which are currently adopted in radar target identification, identify techniques for extracting additional information and consider means of data analysis for deciding the presence of a target. Instead of employing traditional two-state logic, it is suggested that the radar signal should be allocated in terms of threshold levels into fuzzy sets with its membership functions being related to the information extracted and the environment. Additional signal processing techniques are also suggested to explore pattern recognition aspects and discriminate features which are associated with a return signal from those of clutter.