Management Model of Port

Model84 MODULE 3 Strengths and Weaknesses of Port Management Models Public Service Port Strength Superstructure maturation and cargo use operations are the responsibility of the same brass (unity of command). Weaknesses in that location is no role or only a trammel role for the secret sector in cargo handling operations. in that location is less problem solving capability and flexibility in mooring of labour problems, since the user interface administration also is the major employer of style labour. There is lack of internal competition, leading to inefficiency. Wasteful use of resources and underinvestment s a result of organisation interference and dependence on government budget. operations are not user or market oriented. Lack of innovation. No or limited access to public funds for basic infrastructure. slit Port Strength Investments in larboard infrastructure and equipment (particularly ship/ margin equipment) are decided and provided by the public secto r, thus avoiding duplication of facilities. Weaknesses The look administration and private enterprise jointly share the cargo handling services (split operation), leading to conflicting situations. Private operators do not avouch major equipment, therefore they tend to function as labour pools and do not develop into firms with strong balance sheets. This causes instability and limits future working out of their companies. happen of underinvestment. Lack of innovation. Landlord Port Strengths A single entity (the private sector) executes cargo handling operations and owns and operates cargo handling equipment. The terminal operators are more loyal to the port and more likely to make fatalityed investments as a consequence of their long-term contracts. Private terminal handling companies primarily are better able to cope with market requirements. Weakness essay of overcapacity as a result of pressure from various private operators. Risk of misjudging the proper timing o f capacity additions. Fully Privatized Port Strengths Maximum flexibility with respect to investments and port operations. No direct government interference. Ownership of port land modifys market-oriented port information and tariff policies. In case of reformulatement, private operator probably realizes a high price for the sale of port land. The often strategic location of port land may enable the private operator to broaden its scope of activities. Weaknesses Government may need to create a port regulator to control monopolistic behavior. The government (national, regional, or local) loses its ability to execute a long-term economic development policy with respect to the port business. In case the necessity arises to redevelop the port area, government has to spend considerable amounts of money to buy spikelet the port land. There is a serious risk of speculation with port land by private owners. Source A. Baird and P. Kent (2001).