Table 1 Port governance models: description, advantages and risks.
From: An evaluation of the governance structure of marine services in South Africa’s ports system
Governance model | Description | Advantage | Risk |
|---|---|---|---|
Service port model | This is the public sector model in which the port authority owns the land and all the assets (infrastructure and superstructure) using these to perform all port functions to provide all port services. The port is controlled by the Minister of Transport | The development function and operations of the port lie with a single entity, eliminating challenges related to streamlining of activities | Difficulty with regulation, infrastructure development and delivery of services to port users |
Tool-port model | In this model, the port authority owns, develops and maintains the port infrastructure, superstructure and cargo handling equipment. In terms of the division of responsibilities and operational activities, the operation of equipment is done by the private sector | In this model, duplication of investment in facilities is avoided and small companies get to operate in the port industry | The risk is the possibility of conflict between companies performing at the operational level doing loading and unloading. Underinvestment is a big factor in this model |
Landlord port model | In the landlord model, the port authority maintains ownership of port infrastructure. The superstructure is leased to the private sector. The main responsibility of the port authority in this model is economic exploitation, development of road infrastructure leading to the port, and maintenance of quays/ berths/ breakwaters | The benefit of this model is that one company owns and operates the equipment and superstructure, resulting in improved planning and responsiveness to market conditions | The risk is that there may be duplication in communication between customer, port authority and private operators as both the authority and the operator tend to visit the same customers |
Private port | The private sector exclusively owns the port: including land, infrastructure and superstructure. Operation of the port is done by the private sector. The government has less interest in port services | Flexible investment in the port. Port efficiencies and performance are high. Pricing of port services is market oriented | The risk is that of private monopoly. If regulation is left to the private sector, the scenario of the private sector being the referee as well as the player is created and long term policy regulating the ports tends to be inadequate |