C6 - Port Ownership

Question 1

What are the types of Port Ownership?

Answer 1

1. Public
2. Tool
3. Landlord
4. Private

Question 2

What is a public service port?

Answer 2

The port authority performs the whole range of port-related services and owns all infrastructure. It main objective is the realisation of public interest.

Strengths:
1. unity of command

Weaknesses:
1. lack of internal competition which leads to inefficiency
2. usually under invested due to its high dependence on government budget
3. lack of innovation

Question 3

What is a tool port?

Answer 3

It is similar to a public service port however it differs only in the private handling of cargo operations. The port authority still owns the terminal equipment.

Strengths:
1. avoids the duplication of facilities

Weaknesses:
1. conflict of interest due to split in operations (private cargo handling, public main operations)
2. limited future expansion as the private operators do not own the major equipments
3. at risk of under investment
4. lack of innovation

Question 4

What is a landlord port?

Answer 4

The port authority acts as a regulatory body and a landlord that owns and maintains port infrastructure.

It will be leased to a private port operator. The private port operator will provide and maintain superstructure and employ labour for cargo handling activities.

Strengths
- a single entity to operate and likely to make long-term investment
- market oriented

Weaknesses
- risk of overcapacity
- risk of misjudging proper timing of capacity addition

Question 5

What is a private port?

Answer 5

Port authority acts as regulatory body and landlord
that owns and maintains the port infrastructure that will be leased to private
port operator

Private port operator provides and maintains their own superstructure and
employs labor for cargo handling activities