Port Management Essay Example | Topics and Well Written Essays - 2000 words

Port Management - Essay Example These include increased competition among ports, changes in transport technology and ports, and internal competition for global markets. Over the recent years, lending agencies and governments have come to agree on the view that the participation of the private sector can be a powerful tool for improving the performance of port assets. Many government officials and port managers believe that privatization is the only way in which the performance of public port organizations can be improved. This view emerges from the believe that some specific characteristics of the private sector are very critical in the achievement of the desired commercial success in ports. Currently, many ports have undergone reformations with an aim of reducing the role of government in port operations. In this case, the government is supposed to maintain the landlord function only. Port reform also enables a port to obtain financial autonomy and achieve increase productivity. The aim of this report is to analyz e the benefits and burdens of port reform with respect to existing forms of reform. The main objective of the report is to analyze the benefit offered by each form of port reform. Finally, the paper determines if the benefits of port reform overweigh its burdens. 2.0 Benefits of port reform 2.1 Forms of port reform strategy The overall benefit of port reform is improved operational and organizational performance. This can be achieved through the adoption of an appropriate form of port reform strategy. These forms include commercialization, privatization, corporation, liberalization or deregulation port services and modernization of Port Administration and management. These strategies present different benefits hence they are normally chosen depending on setting of the specific port. 2.1.1 Commercialization In commercialization, a public port is not changed into a private company. However, the port authorities apply accounting and management principles which are similar to those of p rivate companies. The main benefits that commercialization offers to a port is the attainment of increased accountability and autonomy in terms of decision-making and overall performance. This means that a port is free to adopt the characteristics and practices of private sector and the end results of such step improved efficiency and profitability. Commercialization as a reform strategy is characterized by decentralization of the decision-making process. This means the port management does not have to wait for a government dictate each and everything that happens in the port. Instead, they are able to make prompt decisions or change former decisions as dictated by circumstances. Decentralization also encourages specialization which is important in the delivery of quality services or leadership. Gos (1990) states that the involvement of government in port management complicates the hierarchy of its management hence commercialization as a port reform strategy therefore helps to relax this hierarchy. This enables the port management to exercise more control over, procurement and purchasing, budgeting, hiring and firing, maintenance strategies and