Chapter 17: Getting port governance right
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This chapter discusses the relevance of ports for economic development and next identifies port governance as a critical determinant of a well-functioning port industry. While in the past decades privately owned terminal operating companies have emerged and contributed to more efficient supply chains, in most ports a government-owned port authority continues to play a key role. However, there is a widespread understanding that the governance structure and capabilities of the port authority often are not adequate. This chapter discusses the emergence of a governance model in which the port authority operates as a landlord port development company, within an appropriate regulatory framework. The characteristics and economic rationale of this emerging governance model are discussed in detail, and key issues in the transition towards this model are discussed.

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