Seaports - Case Study Example

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Seaports

Actually, the participation of private sector has already crept into some of the major ports in the world (Anon, 1996). The issue of privatization has gained more importance in the backdrop of globalization and liberalization moves sweeping across the world.
However, the experience of the management of some ports like the Singapore port has clearly established that total privatization is not the panacea for the ills faced by several ports today. Systematic management of port operations with the public-private participation will go a long way in making them sustainable financially.
There are three essential factors of a port which can be privatized; port land, port operations, and port regulations (Baird, 1999). The extent of privatization can differ within ports depending on which of these elements are transferred to private sector from public sector. We can get a wider concept from Table 1 shown below. In the private model I, port operations are transferred to private sector, and this type of arrangement is referred to as a 'landlord' port. When compared with private model I, private II model has two elements which are property and operations rights. Under the private III model, all three essential functions are controlled by private sector. ...Show more

Summary

Seaports are a major economic multiplier for the nation's prosperity (Alderton, 1999). All over the world, they have been continuously facing the threat of privatization for many years. As ports are the key centres in a country's supply chain system of import-export and distribution of goods, the issues of proper governance and scientific management of ports have gained importance through out the world…
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