Table of Contents
The majority of the ports in the world are state-owned. A body or an authority administrates the port as the agents of the country. As per the administration, the port operator and port owner below models can be introduced. So we have described the Port Models under service ports, tool ports, landlord ports, and private ports for your easy understanding.
Service Ports| Operating Ports
In service ports, port authority does the administration and operation of port activities. The port operation includes providing navigational services, warehouse facilities, cranes, and skilled employees/laborers. So the construction of infrastructure, superstructure, and providing employees, becomes the responsibility of the port authority. Even the port authority act as to the public interest full ownership of the port remains with the state or the government. When the port operates as a service port, the main objective is to provide a smooth and secured transaction through the port and creating employments rather than focusing on the profit.
In most cases, service ports run on losses due to inefficiency. Since the port belongs to the state and operation control by the port authority, workers go on strikes to obtain their demands. Does not worry to implement productive methods to improve the quality of service. Port is a gateway to a country. So having the port under the state’s control and having administration control too makes strong the national security by controlling the flow of goods and people through the port.
Jawaharlal Nehru Port (JNP) in India is an example for service ports.
In tool ports, port owner or the landlord provides the tools requires to operate the port. So the port authority provides infrastructure and superstructure including, cranes, port control equipment, and other supplies. The port operator uses the provided equipment to continue the port operation. The port operator should invest in the superstructure. Tools port can consider as a stage in ports transforming public or state-owned ports to private ports.
The main reasons for having tool ports is when government wish to improve the port efficiency with private involvement. But wants to support private operator financially if the investment cost for equipment is very high and operators are unable to make huge investments. If the port has several operators handling different terminals tool port concept avoids the monopoly power of the operator who prefers to invest more on equipment. Also, if the return on investment is very law by investing in equipment port authority will facilitate the operator with the equipment.
The Chittagong port in Bangladesh is a good example for tool ports.
Highly using port model in the world. In landlord ports, port authority or the state only owns the land. The construction of the port, purchasing the necessary equipment to provide safe navigation, faster turn around time for both ships and trucks become a responsibility of the port operator. The port authority has limited interference in the port activities. The land lease to the port operator on an agreed period for them to convert the land to a port/terminal and do the operation. At the end of the leased period operator has to return the land to the port authority unless the lease period extends.
The private sector invested on the port will look for dynamic marketing strategies and productive and efficient methods to increase their return on investment. This will help to increase the competition among regional ports and provide a better service and maximum utilization of resources.
If the port is fully privatised port owns the private party and operate the private party. In most of the cases, these ports become self-regulated too. So the port infrastructure, superstructure, labour and providing the majority of other facilities become the responsibility of the port operator or the private party. Here the government lose their control over the port.
It is very essential the private port operator being a trustworthy party. As explained earlier, private party get the total control over the port and has control over what flows through the port even there are border control bodies. Further land of the port belongs to the port and state has no control over how the private party use the land or for what purpose.
Very few countries go this far and sell the land to private sector to have fully privatized ports.
Munra port and Pipawa ports in India are examples for private ports.
Interested on Introduction to Sea Ports and Harbor ?