Management Model of Port

Model84 MODULE 3 qualifications and failinges of Port commission Models Public Service Port Strength Superstructure festering and charge handling operations argon the responsibility of the same agreement (unity of command). Weaknesses thither is no politics agency or only a limited role for the confidential sector in warhead handling operations. there is less chore solving capability and flexibility in representative of labour problems, since the look nerve also is the major employer of appearance labour. There is lack of internal competition, leading to inefficiency. inefficient use of resources and underinvestment s a publication of government interference and dependence on government budget. Operations are not user or market oriented. insufficiency of innovation. No or limited chafe to public funds for basic infrastructure. shaft Port Strength Investments in embrasure infrastructure and equipment (particularly ship/shore equipment) are decided and pr ovided by the public sector, thusly avoiding duplication of facilities. Weaknesses The appearance administration and head-to-head enterprise jointly share the committal handling services (split operation), leading to remote situations. Private operators do not let major equipment, therefore they tend to function as labour pools and do not develop into firms with strong balance sheets. This causes unbalance and limits future expansion of their companies. happen of underinvestment. pretermit of innovation. Landlord Port Strengths A single entity (the secret sector) carry throughs cargo handling operations and owns and operates cargo handling equipment. The remnant operators are more loyal to the port and more seeming to make needed investments as a consequence of their long-term contracts. Private terminal handling companies generally are fail able to cope with market requirements. Weakness Risk of overcapacity as a resolving power of pressure from various hole-an d-corner(a) operators. Risk of misjudging the proper timing of capacity additions. fully Privatized Port Strengths Maximum flexibility with love to investments and port operations. No direct government interference. Ownership of port land enables market-oriented port development and tariff policies. In case of redevelopment, private operator probably realizes a high price for the sale of port land. The often strategic location of port land may enable the private operator to broaden its scope of activities. Weaknesses governing body may need to create a port regulator to control noncompetitive behavior. The government (national, regional, or local) loses its ability to execute a long-term economic development policy with respect to the port business. In case the necessity arises to redevelop the port area, government has to spend considerable amounts of money to buy back the port land. There is a serious risk of system with port land by private owners. Source A. Baird a nd P. Kent (2001).