What Works And What Doesn't In Port Modernization

An updated Toolkit on Port reform - an extensive update of the first edition published in 2001 - was launched today by the World Bank. The publication is directed to government officials dealing with the modernization of ports in developing countries. The toolkit draws from the industry's experience over the past two decades in port reforms in both developing and industrialized economies.

Ports in developing countries represent a key asset for economic development but they need to operate efficiently and be properly structured in order to support an increase in trade and GDP and contribute to the achievement of the Millennium Development Goals (MDGs) of halving the poverty by 2015.

"We want to provide public officials in developing countries with an effective tool to undertake sustainable institutional reforms of port services," said Maryvonne Plessis-Fraissard, Director, Transport and Urban Development. "I believe that the Toolkit will also be a great resource for other government officials, port service and shipping companies, as well as companies dependent on port services, in building lasting public-private partnerships."

The world's ports unloaded more than 7.1 billion tons of goods involved in seaborne trade in 2005, which has been growing at an average rate of over 4.2 percent per year for the past quarter century. Such growth in trade has mainly been on the backs of developing economies whose share of global seaborne trade has increased from 16.4 percent since 1970 to more than 30.4 percent in 2005 (Review of Maritime Transport, 2006, UNCTAD).

Developing country ports continue to be under pressure to reform and keep up with demand and as a result have seen over 230 projects totaling more than $24.7 billion of investment that included private sector participation in the past 15 years. According to the World Bank Private Participation in Infrastructure (PPI) Database, developing economy ports experienced record level investments totaling over $4.1 billion in 2005 alone.

"Institutional reforms are always complex," say Cornelis Kruk, Lead Ports Specialist. "When countries undertake reforms transforming the interface of public and private sectors, the knowledge and experience needed is usually very limited." To address this, the Toolkit provides the overall design and implementation framework together with current trends and best international practices.

The Toolkit draws on inputs from United Nations agencies including United Nations Conference on Trade and Development (UNCTAD), International Labor Organization (ILO), International Maritime Organization (IMO), as well as discussions with representatives of the private sector. It is available free to the public on the World Bank's transport website (www.worldbank.org/ports). The CD-Rom version will be available for purchase in the World Bank's Info Shop.

By World Bank