ABSTRACT
This chapter critically analyses the privatisation principles applicable to, and practices taking place in, the port industry. It evaluates the context of port privatisation following an analysis of its motivation and rationale and addresses patterns of port administration and ownership. The chapter provides the arguments for and against port privatisation in principle and practice. It discusses the several functions of ports and models of port administration, which are represented in a 'port function matrix'. The chapter assesses the role of the port authority in this era of privatisation and an analysis of the privatisation methods applicable to the port industry. It also provides a review of how such privatisation programmes have worked in practice, placing particular attention on the UK experience. The process of commercialisation involves dividing the principal activities of port authorities into separate operating units, each of which functions as an independent and commercial company.
