Week 5: Governance

Question 1

Governance

Answer 1

Mechanism behind working of economic activities

Ownership and responsibility of assets and services (ports)

Question 2

Governmental domain, why?

Answer 2

Regional economic development
Strategic asset (military POV)
Negative externalities
Large fixed costs / amounts of capital
Infrastructure required
Life span exceeds time horizon loans
Immobile, no alternative uses
High private risk
Public interests
Energy transition

Question 3

Private domain, why?

Answer 3

Government slow
Restrictive labour practices
Government unable/unwilling to invest
Competition leads to efficiency and innovation

Question 4

Port governance models/types

Answer 4

Serviceport, toolport, landlord port, private port

Ownership and control of waterways, ownership land, ownership equipment, port operations

Question 5

Landlord port

Answer 5

PA manages port area and access, private companies for e.g. terminal operations

Question 6

Why not complete privatization?

Answer 6

Irreversible
Strategic assets
Limited influence
No future cash flows

Question 7

Core issues PDC:

Answer 7

Port planning
Functional integration
Information exchange
Procedure customs
Innovation, transition
Stakeholder management

Question 8

Transitions PA

Answer 8

Modernization (public department)
Commercialization (autonomy)
Corporation (private company, but shares in hands of government)
Privatization (no public involvement)
–> into more commercial organizations within governmental structure

Question 9

Result of reform for PDCs

Answer 9

More autonomy
Financially self-supporting
Own strategies

Question 10

PDC business model

Answer 10

Land rent: high quality port cluster, land value, to attract and keep port investors
Port dues: high quality integration of port in chains, value of transport node, attract and keep port users

Question 11

Important role of PDC

Answer 11

Business ecosystem manager