In the context of globalization, the private sector is the main engine for growth. The private sector benefits from free and cumbersome regulatory or bureaucratic procedures that can slow down economic growth. One of the arguments is that private companies are better equipped than public enterprises because they adapt changes in the business environment much faster and, equally important, access to capital. Consequently institutional reform changes the landscape between public and private companies. However, the process of institutional reform require deep understanding of what is available rather than an imported blueprint for best practice. The local circumstances and willingness to adopt change are dominant factors. Ports are diverse organisations – each with its own local issues, and each with its own way of doing business. Therefore careful analysis of the competitive position of the port and the role of the national economy is a necessity. Port reform ends up too often in the landlord model or as a next step in corporatization of the port organisation. There is a tendency that ports follow bravely a direction, which was popular for a long without serious debating about alternative models.
There are complex issues to be solved and answered, for example: can public cargo handling terminals compete effectively with the same efficiencies as offered by private operators? Or is there a legal ground to defend the unique position of the port’s labour pool? Reforms are aimed to encourage healthy competition among businesses and to create a level playing field. Therefore institutional analysis is a search for the best thinkable system, while defending public interest. Experion Global can assist you in this process of change and to take a refreshing view on the whole matter.
Port reform involves clear identification of public functions and responsibilities. To identify assets that support each function and category of services and to determine what can be grouped together as a package to tender to private investors or operators. Whilst taking in consideration safety, security and environmental aspects and compliance with international guidelines and national legislation. Finally the legal framework that underpins the institutional arrangements may require significant amendment. These activities require a team with expertise in public administration and maritime business, whereby legal, financial and economical aspects are tackled in function of change. Experion Global can bring together a multidisciplinary team, which can map out a route away from standard practices.
Port reform means changes in public organisations, which creates the natural resistance. They seek capacity (the ability to get things done) rather than change (a different way of doing old and new things). Therefore change initiatives need powerful support and thorough leadership within the political arena. Experion Global brings the necessary expertise, while we carefully handle local circumstances and project specifics. Please contact us for more information and find out what we can do for you!