Port Privatisation

'This book is an excellent reference on the state of port reform throughout the Asia-Pacific region. While there have been a number of articles in recent years on port reform in Australia, China, Hong Kong, Korea and Singapore, much of the Asia-Pacific region has been overlooked. This book not only rectifies this gap by providing much needed insight into the situation in India, Japan, Malaysia, and New Zealand, while also consolidating the work already completed elsewhere. With the rise of Asia as the world's most important shipping and port market, the editors are to be commended for bringing new voices to the discussion and developing a strong contribution to the port reform and port governance literature.' - Mary R. Brooks, Dalhousie University, Canada

Containerized shipping has brought profound changes to maritime transport, including a shift from labor-intensive to more capital-intensive activities. Revising the traditional organization of seaports everywhere will prepare ports for a more competitive market and less financial dependence on governments.

`Colombo Port Bunkering Privatisation' under IMF, World Bank and ADB privatization agenda, discloses a scandalous privatization, annulled as illegal and fraudulent by a 3-Judge Supreme Court Bench of Sri Lanka, presided by Chief Justice, Sarath N. Silva; compelling Secretary, Finance Ministry / Secretary Treasury, P.B. Jayasundera to resign. It involved, John Keells Holdings Ltd., an UN Global Compact Co. committed to combat fraud and corruption. It is an `eye opener' on socio-political realities, of those holding selected and elected influential and powerful public office, including Secretary, Finance Ministry, P.B. Jayasundera, compromising national and public interest, with scant regard for the `rule of law', and hollow dictates by international agencies, on governance, transparency and level playing field. President Chandrika Bandaranaike Kumaratunga, in a Memorandum to Cabinet Ministers opposed this privatization. Prime Minister Ranil Wickremesinghe disregarding the President had pushed the deal, with his Advisor, former Secretary, Ministry of Finance, R. Paskaralingam; approved by Economic Sub-Committee of Cabinet, including Finance Minister, K.N. Choksy, PC. It reveals condoning of fraud and corruption by confidantes of those at helm in a country; with governments and society uninhibitedly bestowing upon corrupt miscreants, even more recognition and position, without arraigning them, as warranted, before the law; President Mahinda Rajapakse re-appoints, P.B. Jayasundera, Secretary, Finance Ministry / Secretary Treasury. Susantha Ratnayake, continues as Chairman, John Keells, and helms Ceylon Chamber of Commerce; appointed Chairman, Sri Lanka Tea Board, by Government New Chief Justice, J.A.N. de Silva and other Supreme Court Judges act to accommodate necessity of President Mahinda Rajapakse, when P.B. Jayasundera is permitted to be re-appointed to same powerful position. A sole woman, Justice Shiranee Tilakawardena courageously dissents, upholding principles of moral turpitude and democracy to keep organs of State within the law - `anyone would balk at such re-appointment'; 2 pages of Judgment suppressed from media.

This book provides an expert analysis of alternative investments routes and the investment strategies available to the major port players, and is a much-needed guide to expanding the investor base for private debt funding of projects from loan providers to bond investors. Port infrastructure investments are vitally important to all ports throughout the world; without these investments, the competitive position of ports and of the dependent logistics sector will deteriorate. National/regional governments and the local port authorities are no longer a guaranteed source of sufficient financial input to meet the continuous port infrastructure investment needs of major ports. It is, therefore, increasingly crucial for ports to broaden their strategies and secure alternative streams of investment. This book provides expert insight into areas of port infrastructure finance across the main regions of Europe, Asia, Africa and the USA. Topics include how to estimate future demand by way of forecasting; Public-Private Partnerships; corporatisation; the pricing mechanisms for syndicated loans; European port privatisation; finance strategies for ports in Asia, the USA and Africa; and a discussion of the investment strategies available to the major port players. Port Infrastructure Finance is an invaluable book for all parties involved in the port and maritime business, as well as investment companies, banks and other financial institutions involved in infrastructure investment.

Containerized shipping has brought profound changes to maritime transport, including a shift from labor-intensive to more capital-intensive activities. Revising the traditional organization of seaports everywhere will prepare ports for a more competitive market and less financial dependence on governments.With containerized shipping, maritime transport has changed profoundly. Among other things, it has shifted from labor-intensive to more capital-intensive activities, including larger specialized ships that require substantial investments in port infrastructure and equipment.Integrated transport chains have reduced transport costs so much that a shipper may find a distant port cheaper than a closer one. Modern ports must be competitive on times and prices for their services.Seaports must be integrated within logistical chains to serve their many functions. An efficient seaport requires infrastructure, superstructure, equipment, adequate connections to other modes of transport, a well-motivated management, and qualified employees.The public sector has been an important port organizer in the past, but private participation in port operations and infrastructure could make ports significantly more competitive.Trujillo and Nombela provide an overview of changes in maritime activity, discuss concession contracts (a key instrument of privatization), and analyze how regulatory mechanisms affect such factors as seaport tariffs, port congestion, port safety, the quality of cargo handling, and relevant indicators of performance, finances, and factor productivity.They describe how an optimal seaport system should allocate tasks between the various institutions involved, including the port authority.The degree of a seaport`s decentralization, they conclude, depends on a country's size, the number of ports it has, and its legal tradition. Among several national governments in Latin America - Argentina, Brazil, Colombia, Mexico, and Venezuela - there is an evident trend toward decentralization and greater autonomy for port authorities.This paper - a product of Governance, Regulation, and Finance, World Bank Institute - is part of a larger effort in the institute to increase understanding of infrastructure regulation. Gustavo Nombela may be contacted at [email protected].