Topics in Port and Maritime Consultancy ~ Privatisation

Much has been written about privatisation. Although it is less of a hot topic as we enter 2004 than is has been over the last decade, privatisation is in essence about institutional development and governance.

There is never an absolute best solution at any point in time. Furthermore, over time, new solutions emerge and the "best" solutions can change in response to changing market conditions and political ideologies.

Interestingly, the UK remains the only country in the world which has completely privatised most of its major ports (yes - including the port authority role). Is there a good reason why other countries have not adopted this?

If there is one, it is that ports are often the vanguard of wider maritime clusters that have a significant socio-economic and environmental impact, and the economic agenda in port policy and development tends to get lost. This is something incomprehensible to most countries. On the other hand, UK ports are broadly very efficient and mostly unsubsidised, a fact that in truth frightens many elsewhere!

Most countries have developed a kind of middle road approach, maintaining certain functions in the public sector, whilst achieving private sector efficiency where the gains clearly outweight the cons.

The following assignments illustrate our work with respect to privatisation, institutional development and governance:

19 projects were relevant to this section. Listing 5 most recent projects:

Structural Review, Port of Shoreham

Shoreham Port commissioned Fisher Associates to undertake a Review of Structural Change in response to the requirements of "Modernising Trust Ports [second edition]". This required the Port of Shoreham to report to the UK Department for Transport on its analysis of structural change, and to explain and justify its intended course of action.

We assessed the opportunity for structural change at Shoreham Port, and the impact that this might have on enhancing efficiency and value from assets. We considered various options for the Port of Shoreham, for example remaining a Trust Port as is, or a variation of this, and other institutional / ownership models. The review included (2009/10):

• The performance of the port.
• Key proposals for structural change and the rationale for these.
• Conclusions and recommendations.

Port Concession Advice, Mauritius

Mauritius Ports Authority was in the process of letting an international concession for operation of most of the facilities in Port Louis. It appointed Fisher Associates to (2009):

• Review, propose changes to, and advise on proposed terms and conditions for the RFP and concession contract for a container terminal and other services.
• Advise on the main "heads of terms" for the concession agreement.
  

Governance Options Review, Port of Sunderland

Sunderland City Council commissioned Fisher Associates to undertake a fresh review of the Port following a protracted period of unresolved negotiations with a potential private sector partner, and in the light of the Municipal Ports Review (MPR). (2009)

The review assessed six fundamental options for the governance of the Port:

1. Do nothing
2. Municipal Ports Best Practice
3. Incorporation
4. Trust Port
5. Concession
6. Sale

To assess the appropriateness of each option, we developed a number of criteria against which these were evaluated. The criteria were:

• Maximise the port's potential contribution to regeneration and employment
• Identify and implement financial improvement
• Respond better to the market place
• Make independent decisions
• The ability to make a difference in the near term (within 12 months)
• Minimise the cost of and risk to implementation

The Review concluded that the best course of action for the short term was to implement Municipal Ports best practice.

Commercialisation Study, Jersey

We were appointed by the States of Jersey to undertake a review of Jersey Harbours. This focused on practical recommendations for improving performance, and the development of a financial model to appraise Jersey Harbour's future ability to be self-funding in the light of its likely capital commitments.

The study included an assessment of the potential for further private sector participation in the Port of St Helier, and particualry in the future development of the marine leisure industry. It also considered improvements in institutional arrangements, including application of Municipal Ports Practice as adopted in Engalnd and Wales. (2008)

Marine Services Review, Port of Aqaba

We were engaged to undertake a management and operations review of marine services at the Aqaba Port Complex covering pilotage, towage, lighterage and other services. We also prepared an Information Memorandum with a view to attracting strategic partners to invest in new craft and contribute operational expertise. Sub-contracted to BearingPoint. (2 Fisher, 2005)

All Projects In This Section