Rethinking maritime privatization in Africa

While recognizing the need for increased participation of the private sector in the maritime industry of developing countries, there is a need to go beyond the call for privatization in terms of mere change of ownership from state to private sector as the only solution to the inefficiency of the maritime industry in developing countries. This limited understanding of the maritime problems of these countries abounds in the literature on maritime privatization. This study departs from this approach and focuses on the political economy of the maritime industry, and suggests that maritime privatization will not necessarily result in increased efficiency of the divested maritime enterprises. Rather, it argues that maritime problems in these countries have less to do with ownership than with the structural constraints in world shipping together with internal management and local ~olitics. The maritime industrv in West and Central Africa is used as a case studv. and recommendations such as selective privatization, 'programme contract', and most importantly, corporatization, are suggested as alternative strategies that could enhance maritime privatization and the development of the maritime industry in developing countries.     

(Law for the Promotion of Competition and Consumer Protection) was passed in early 1995. The impact this law will eventually have, however, is uncertain because rules for its implementation have not yet been established.

Governments in their port reform efforts have experimented with liberalization and commercialization to improve port operations. Because of their failure to meet expectations or because of changing competitive environments, these options have generally been discarded in favour of privatization. In mature large-volume port systems, privatization was a relatively obvious solution, because interport or interterminal competition would be achieved to the extent that the monopolistic tendencies characteristic of their predecessor organizations would cease to exist. In countries with a limited number of ports having relatively small cargo volumes, however, the case is quite different. These countries would have to pursue strategies that would still induce competition in spite of their limited cargo volumes if they hoped to achieve the same privatization benefits and market disciplines enjoyed in other countries. This article examines the port reform approaches used in three distinct competitive settings;the experiences in these countries offer some guidance on how to assure that ports will feel competitive pressures even under conditions of limited cargo volumes.     

U.S. public transit earnings, employment and privatization

This paper uses individual worker and municipal information to examine privatization's influence on public transit workers' earnings and employment. OLS findings on labor earnings reveal that privatization is associated with an erosion of the public transit union premium. These labor earning findings do not change when correcting for privatization heterogeneity, as unobserved worker characteristics do not differ with differing levels of municipal privatization of public transit services. The employment findings reveal that union public transit workers are more likely to be employed in the public sector and this union-nonunion employment probability differential, declines with increasing levels of privatization. This employment result is interpreted as suggesting that labor cost savings from privatization can be derived from the enhanced employment of relatively low wage nonunion workers in the public sector of public transit services.     

The privatization of Polish ports—the present situation and outlook for the future

The Polish economy is going through fundamental changes from a central planning to a market economy. The main aim of this transition is the privatization process which has to change the structure of Polish economy. Privatization has to establish more favourable ways of utilizing the productive capacity of state enterprises and create better conditions to compete on the market. The Privatization process for Polish state enterprises was defined in the Act on the Privatization of State Enterprises of 13 July 1990. According to this Act state enterprises can be privatized in capital or liquidation methods. The capital method has been applied to the privatization of Polish ports. In 1991 the major Polish ports were transformed into a State Treasury shareholder company. The holding company was used in the first stage of privatization. Gdynia was the first port which started this process building the real model of holding. Another important element connected with the structural transformation of Polish ports is the separation of operational and management roles. According to the Act on Ports, the Port Authority is also responsible for the development of the commercial, industrial and distribution services. This Act will also enable Poland to adapt economic and legal regulations which are similar to those in the European Union ports.     

The privatization of Polish ports—the present situation and outlook for the future

The Polish economy is going through fundamental changes from a central planning to a market economy. The main aim of this transition is the privatization process which has to change the structure of Polish economy. Privatization has to establish more favourable ways of utilizing the productive capacity of state enterprises and create better conditions to compete on the market. The Privatization process for Polish state enterprises was defined in the Act on the Privatization of State Enterprises of 13 July 1990. According to this Act state enterprises can be privatized in capital or liquidation methods. The capital method has been applied to the privatization of Polish ports. In 1991 the major Polish ports were transformed into a State Treasury shareholder company. The holding company was used in the first stage of privatization. Gdynia was the first port which started this process building the real model of holding. Another important element connected with the structural transformation of Polish ports is the separation of operational and management roles. According to the Act on Ports, the Port Authority is also responsible for the development of the commercial, industrial and distribution services. This Act will also enable Poland to adapt economic and legal regulations which are similar to those in the European Union ports.     

The legal framework

The major and minor ports in India operate within different legal frameworks. Both allow privatization, but impose different conditions. Administrative culture has acted as a constraint on privatization in the major ports; private development at the minor ports has been very responsive to the amount of assistance offered by individual States.     

Debt—equity conversion and port privatization

Port privatization has been perceived as an instrument for the improvement in port management operations and marketing, yet it also provides a major opportunity for public debt reduction by converting debt incurred in port development into equity or other assets. There are many different ways in which debt, particularly foreign debt, can be converted. It can be directly converted into equity, it can be swapped for other debt, converted into various portfolio investments or exchanged for future services or exports. In recent years, 'ecological' swaps have also been considered in which some debt is written off in return for improvements in environmental management. This paper reviews the reasons for port privatization, the different methods for port ownership financing, and the role debt-equity conversion could play in it.     

The problems faced by Indian ports today

Indian ports require substantial physical modernization, but their poor performance can also be attributed to administrative problems. Institutional change is both a necessary condition for privatization and one of its principal benefits.     

The privatization of United Kingdom seaports

The background is described to U.K. port administration and the implementation of the Conservative Goverment's privatization policy is reivewed. The objectives of privatization and the ways in which it has been achieved with trust and municipal port authorities are discussed. The paper goes on to discuss the difficulties encountered in privatizing statutory undertakings and concludes by examining the benefits port managers claim have arisen from the introduction of teh policy.     

Privatization trends at the world's top-100 container ports

Over recent years, the role of the private sector in seaports has been greatly expanded. Yet, in practice, the extent of privatization in ports can vary significantly, in part due to the different methods employed to bring about private sector participation. This paper identifies and analyses, through a survey of ports, recent trends in regard to privatization at the world's top-100 container ports. The survey has benefitted from, and seeks to extend, a previous survey undertaken by the International Association of Ports and Harbours (IAPH). Findings suggest that, although the influence of private sector actors in ports is growing, the role of public sector agencies also remains significant.     

Privatization trends at the world's top-100 container ports

Over recent years, the role of the private sector in seaports has been greatly expanded. Yet, in practice, the extent of privatization in ports can vary significantly, in part due to the different methods employed to bring about private sector participation. This paper identifies and analyses, through a survey of ports, recent trends in regard to privatization at the world's top-100 container ports. The survey has benefitted from, and seeks to extend, a previous survey undertaken by the International Association of Ports and Harbours (IAPH). Findings suggest that, although the influence of private sector actors in ports is growing, the role of public sector agencies also remains significant.     

Foreword

Although the benefits of privatization are undoubtedly large, implementation has been slow because of concern about the details. A gradualist approach has been adopted, based on the assessment of individual proposals.     

Institutional structure of Canadian ports

Canada's federal government is responsible for ports. Despite this, an integrated national ports system has not been established. The Canadian system includes: the Canada Ports Corporation; Harbour Commissions; and Transport Canada's Public Harbours. These are historic divisions. Following a failed 1970s attempt to place all ports within Transport Canada, in 1983 parliament opted for a Crown corporation model in establishing the Canada Ports Corporation for Canada's major ports. This paper addresses the question of whether, in today's increasingly competitive environment, a more integrated and businesslike national system of ports is required. Alternative systems range from centralization to regionalization and enhanced 'commercialization' of local ports to privatization. A suggested alternative for Canada includes incorporating all commercial ports within the Canada Ports Corporation, using a regional system for planning, and augmenting local autonomy of financially self-sufficient ports by making them crown corporations. Eventual privatization of the expanded Canada Port Corporation is also considered.     

Private sector responses to port privatization in India

Indian ports offer good opportunities for investors prepared to take a long-term view, and some successful small-scale private contracts are already in place. But strategic direction from the centre is required to accelerate and broaden the privatization process, and ensure that private interest in the ports sector is maintained.     

The case for using cost benefit analysis to evaluate the supply of public goods in the maritime industry

In an era in which economists have rediscovered their belief in the economic efficiency of free markets and espoused privatization as a policy means of achieving these benefits, perhaps it is advisable to consider some of the difficulties markets have in supplying public and merit goods. In the following article, the case of the Hydrographic Service safety services and the difficulties of using traditional accounting methods to assess the adequacy of that provisions. It is also argued that the techniques of cost benefit analysis should be used to assess the adequacy of the supply of public goods and a framework is suggested for the evaluative structure.     

Restructuring of the economy and its impacts on the Korean maritime industry

The Korean government has made many efforts to repair the damage done by the financial crisis since November 1997. The restructuring programmes for the Korean economy, including chaebols' (i.e. family-controlled conglomerates) restructuring, have impacted in many ways on the shipping, shipbuilding and port sectors. This is because major shipping lines, shipyards, and recent privatization and operation of container terminals have closely been related to chaebols. This paper is concerned with the impacts of the Korean financial crisis on the shipping, shipbuilding, and port sector, with restructuring of the economy and chaebols.     

Ports and shipping in Mozambique: current concerns and policy options

This paper explores the current state of ports and shipping in Mozambique, and reviews it in the context of a past history of civil war followed by radical macro-economic adjustment, and more recent concerns and debates around the deregulation and privatization of the transport industry. More specifically, it addresses the key issue of the relationship between shipping and both broader and local economic development, taking account of the needs of major industry and the need to sustain local livelihoods. It reveals that the situation in Mozambique is a product of both local and global pressures, moulded by economic and political forces. It further indicates that, while there are now positive opportunities for coastal shipping, the capacity for developing inland shipping appears to be very limited. Future growth consequently depends on local participation, training and skills development and the broader social, economic, and transport infrastructure.     

港口的区域垄断和竞争:圆周模型

港口具有一定的地理垄断性,同时港口竞争也日益加剧,交叉腹地日益扩大。区域垄断和竞争成为港口共同的发展特征,协调两者之间的关系对于港口产业发展具有重要意义。圆周模型对于分析港口产业经济特性非常恰当。通过运用圆周模型来理解港口的区域垄断和竞争特性,可以为实现港口产业规模型竞争的公共政策制定提供基础性的理论依据。具体的政策建议包括港口业务的垂直分解及构建地主港模式、加快港口民营化进程、在放松规制的同时重建规制及推动形成区域内邻近港口间的协同竞争关系。     

The funding of hierarchical railway development in China

Transport networks are hierarchal in essence. In this paper, we explore the relationship between the financing structure and the hierarchal evolution of railway network development, using the case of China. Although privatization and corporatization in transport provision have been trends in some parts of the world, the national government is still the main body responsible for railway development in many countries. Among these countries, China and India are the only two that include the Ministry of Railways (MOR). In India, the entire country's railways are clearly defined as public services provided and managed by the MOR. In China, railways have been corporatized; yet, the MOR and the National Railway Corporation are still widely regarded as a single body that has monopolistic power over almost all railway systems at the national and regional levels in both infrastructure development and operation.     

Port privatization under Cournot vs. Bertrand competition: a third-market approach

By incorporating port competition into a third-market model consisting of two exporting firms and one importing country, we demonstrate the endogenous choice of port structures (i.e. privatization or public ownership) under either Bertrand or Cournot competition. In contrast to previous studies on port competition, we analyze the port strategy in view of all trading countries (i.e. importing country and exporting countries). We find that regardless of transport cost, the port ownership strategy alters according to exporting firm’s competition mode. Under Bertrand competition, the choice of port ownership structure depends on the degree of imperfect substitutability. However, under Cournot competition, all trading countries choose same ownership structures of each port. By comparing equilibrium of each competition mode, we show that welfare of exporting country under Cournot competition is higher than under Bertrand competition if goods are sufficiently substitutes. In contrast, importing country prefers Bertrand competition to Cournot competition when the competitive pressure is sufficiently high.