Condition Nature
Bidding process Open and transparent bidding process.
Infrastructures Capacity and quality of port infrastructure as well as for hinterland access.
Regulations Safety and labor conditions. Retrenchment and retraining of labor.
Port authority Landlord model with clear role.
Customs Efficient procedures.
Source: adapted from UNCTAD meeting on Globalization of Port Logistics: Opportunities and Challenges for Developing Countries, December 2007, Geneva.
Conditions for Port Privatization
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 issue concerns conditions related to labor. In many countries ports provide a lot of employment even if the productivity of this labor is low. 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.