Different forms of the ownership structure of ports and port services
Public ports
Public ports are owned and operated by the government. The government may be responsible for all aspects of port management, including infrastructure development, cargo handling, and marketing. Public ports are typically subject to government regulation, and their rates and services are often subsidized.
Examples of public ports include:
- Port of Los Angeles, California
- Port of New York and New Jersey
- Port of Rotterdam, Netherlands
Private ports
Private ports are owned and operated by private companies. Private ports may be fully or partially privatized. Fully privatized ports are owned by private companies and operate with little or no government involvement. Partially privatized ports may be owned by a combination of public and private entities.
Examples of private ports include:
- Port of Dubai, United Arab Emirates
- Port of Singapore
- Port of Gioia Tauro, Italy
Landlord ports
Landlord ports are a hybrid form of port ownership that combines elements of public and private ownership. In a landlord port, the government owns the port land and infrastructure, but leases it to private companies to operate. The private companies are responsible for building and operating cargo terminals, warehouses, and other port facilities.
Examples of landlord ports include:
- Port of Hong Kong
- Port of Tanjung Priok, Indonesia
- Port of Piraeus, Greece
Full or part service provider terminal facilities within ports
Terminal facilities within ports can be owned and operated by a variety of entities, including the port authority, private companies, or joint ventures. Some terminal facilities may be fully owned and operated by a single entity, while others may be partially owned and operated by multiple entities.
Examples of full or part service provider terminal facilities within ports include:
- Container terminal operated by MSC (private company) at the Port of Piraeus, Greece
- Ro-Ro terminal operated by PSA (joint venture between the Singapore government and PSA International) at the Port of Algeciras, Spain
- Dry bulk terminal operated by APM Terminals (private company) at the Port of Rotterdam, Netherlands
Conclusion
There are a variety of ownership structures for ports and port services. The specific structure that is used in a particular port will depend on a number of factors, including the country’s economic system, the port’s strategic importance, and the level of government involvement desired.
Benefits and drawbacks of different ownership structures
Public ports
Benefits:
- Public ports can be more responsive to the needs of the local community.
- Public ports can provide subsidized rates and services to certain users.
- Public ports can be used to promote national economic development.
Drawbacks:
- Public ports can be inefficient and bureaucratic.
- Public ports can be subject to political interference.
- Public ports can be slow to respond to changing market conditions.
Private ports
Benefits:
- Private ports are typically more efficient and innovative.
- Private ports are more responsive to market demand.
- Private ports can attract investment and create jobs.
Drawbacks:
- Private ports may be less responsive to the needs of the local community.
- Private ports may charge higher rates and fees.
- Private ports may be subject to monopoly power.
Landlord ports
Benefits:
- Landlord ports combine the efficiency of private operation with the public interest of government ownership of land and infrastructure.
- Landlord ports can attract investment and create jobs.
- Landlord ports can provide a level of government oversight and regulation.
Drawbacks:
- Landlord ports may be more complex to manage than other port ownership structures.
- Landlord ports may be subject to political interference in the leasing process.
Full or part service provider terminal facilities within ports
Benefits:
- Full or part service provider terminal facilities can bring in expertise and investment from the private sector.
- Full or part service provider terminal facilities can provide more flexibility and competition in the port market.
Drawbacks:
- Full or part service provider terminal facilities may be more expensive to operate than government-operated terminal facilities.
- Full or part service provider terminal facilities may be less responsive to the needs of the local community.
Which ownership structure is best?
The best ownership structure for a particular port will depend on a number of factors, including the country’s economic system, the port’s strategic importance, and the level of