Conditions for Port Privatization

Conditions for Port Privatization

Source: adapted from UNCTAD meeting on Globalization of Port Logistics: Opportunities and Challenges for Developing Countries, December 2007, Geneva.

A set of conditions can be made available to favor a more efficient port privatization process, namely the bidding process. One of the most complex issues concerns conditions related to labor. In many countries, ports are a significant employment source, even if this labor productivity is low (social port). Privatization will inevitably lead to less labor employed, commonly by a factor of 50%. This is particularly the case if a terminal facility is expanded or converted for containerization.