IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Port Reform and Concessioning in Developing Countries

Listed author(s):
  • Henriëtte C Van Niekerk


    (Department of Logistics, Unit for Maritime Studies, University of Stellenbosch, Stellenbosch 7602, South Africa.)

Registered author(s):

    Over the past decade many ports, with the exception of the UK and New Zealand ports that were privatised, have introduced private participation in port operations through different forms of concession or lease agreements. One of the most common reasons for private participation was believed to be efficiency gains through the introduction of competition. However, the potential for creating private monopolies in most cases is contentious, because the investment in the cost structure of ports render them natural monopolies; if not dealt with carefully, this could give rise to anti-competitive behaviour. It is normally accepted that terminal operations in the ports of developed countries are contestable due to the size of the markets and the competition with adequately adjacent foreign ports. However, that is not the case in developing countries with low cargo volumes; remote countries that only serve natural hinterlands; and end ports on the north–south routes that are not located on existing major shipping networks. Most of these ports pursue private participation in order to generate funds for investment; increase efficiencies; and ensure cost-effective services. To avoid monopolistic behaviour in such cases, a sound regulatory framework is necessary, but without preventing commercial entrepreneurship. In this article, port reform and the issues regarding concessioning of terminals will be discussed along with the regulation needed, if free market competition does not already exist. The implications of concessioning under such circumstances of regulated competition will be discussed and applied to South Africa as an example. Maritime Economics & Logistics (2005) 7, 141–155. doi:10.1057/palgrave.mel.9100129

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.

    File URL:
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Palgrave Macmillan & International Association of Maritime Economists (IAME) in its journal Maritime Economics & Logistics.

    Volume (Year): 7 (2005)
    Issue (Month): 2 (June)
    Pages: 141-155

    in new window

    Handle: RePEc:pal:marecl:v:7:y:2005:i:2:p:141-155
    Contact details of provider: Web page:

    Web page:

    More information through EDIRC

    Order Information: Web:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:pal:marecl:v:7:y:2005:i:2:p:141-155. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)

    or (Rebekah McClure)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.