The Politics of Ports: Privatization and the World's Ports

Abstract

AbstractThe recent controversy over a foreign-owned company running a US port brought attention to the creeping privatization of work in ports worldwide. Since the 1980s, there has been a head-long rush to privatize ports. The pace can be best described as rapid and chaotic. For some economists privatization is seen as a method to increase efficiency. But the process has substantial critics. For many privatization is perceived as problematic. There is evidence that the process does not indeed lead to savings and greater efficiency. Instead, the process has been haphazard and far from uniform in its application. Even where there is an entrenched presence, savings from privatization have yet to be realized. Others have made the point that the process cannot be transferred to ports in the developing world. That is, the multiplicity of ports and transportation problems in the interior make privatization more like wishful thinking than a policy that can work.