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Port Management

Port management specifies the roles and responsibilities of the port authorities towards the ports and aim at creating objectives and strategies that help in the management of ports (Wang 2004, p. 3). Port management are affected by many issues. The challenges are influenced by the changes in the global markets such as competition from the globalization and other technological forces. There are so many shipping industry development and improvement in the transportation technology. These changes have influenced the changes in the port management and operations (Tongzon 2006, p.

2). A good port management process ensures success and profitable (Al-Homeadan 1996, p. 217). The aims and objectives of the report are to illustrate key elements for each type of administrative regime and explain role and responsibilities of port management. The report will also identify current issues affecting port management and the port industry and analyse and discuss port management issues. This paper also aims at clearly identifying the advantages and disadvantages of each individual regime.

Findings and discussion 1. State 1. 1. Explain role and responsibilities of port management The state regime in this report is the Victorian port. The role and the responsibilities of the port management in the Victorian port are to establish statutory authority that will act as a port landlord. In this role, Melbourne Port Corporation acts as landlord to Port of Melbourne. Port management are to establish port services roles to ensure that the ports are cleaned and there is total security in the port.

The other role and responsibility for the state port management is to establish statutory authority that is used for channels management in which the Victorian Channels Authority is responsible for controlling and the management of the commercial ports channels through the Ports Services Act. Victorian Channels Authority is responsible for controlling the harbour in Port Phillip (Meyrick & Associates 2001, p. 2). The Victorian Channels Authority is also responsible for maintaining and dredging the State channels by providing navigating aids for the State channels.

The Victorian Channels Authority also charge channel usage vessels and provide other port services as provided by the port Services Act 1995 (Meyrick & Associates 2001, p. 2). The other roles and responsible for the state port management is the sale of onshore ports assets. In 1996, the Port of Portland and Geelong were sold to Infratil and Toll Holdings respectively from state ownership. The other role of the state port management is to separate the non economic regulatory functions from Ports Authority to Government Agencies.

The state port management processes port reform (Meyrick & Associates 2001, p. 3). The port management is also responsible for other activities such as regulatory and non-commercial. The regulatory activities include safety and the environment protection. The non-commercial activities are among government agencies and they include environmental protection. The government agencies that are involved include Environment Protection Authority and the Marine Board of Victoria. The other government agencies that are involved are the Victorian Workcover Authority and the Office of the Regulator General.

The other role of the port management is the economic regulatory and open access regime application in which the Office of the Regulator General is responsible for setting port services pricing. The Office of the Regulator General also monitors market power use and market open entry. This ensures competitive environment by allowing third party to access economic facilities. Lastly, the state port management is to divest the non commercial assets and functions by controlling and managing the extensive land areas such as beaches and parks.

For example, the Natural Resources and Environment Department takes care of the Ports of Gippsland, Apollo Bay and Fairy (Meyrick & Associates 2001, p. 3). 1. 2. Identify current issues affecting port management and the port industry The issues that are affecting the state port management are lack of efficiency, competition and economic contribution of Victoria. The other issue affecting the state port is the institutional arrangement and objectives and functions issues. The other current issue is requirements of accountability and reporting (Meyrick & Associates 2001, p. 4). 1. 3.

Analyse and discuss port management issues There are many issues that are affecting the state port management. These issues include challenges in assessing the state port impacts such as efficiency, competition and economic contribution. The other current issue affecting the state port is the institutional arrangement such as port land structural separation, management of channel and administrative arrangement. Other key issues include port corporation objectives and functions that were established by Port Corporation Act in which there is need of strategic planning and delivery services.

The other issue is the government roles on state port management for development of the Victorian Port. The other current issue that is affecting the state port is the requirements of accountability and reporting such as transparency and other compliance administrative issues. The other issues that are affecting the Victorian port are that there is need of mechanism of formalised industry and consultation and economic regulation system application in the delivery of state port services.

The other issues that are affecting the state port management are the legislation technical and drafting issues and responsibility allocation in the management of the Victorian port (Meyrick & Associates 2001, p. 4). Private sector participation in management and operation can take place when the provision of services is licensed to private operators. The responsibility of the port management here is to ensure that licenses are issued to private operators. The public port authority provides the infrastructure and super structure.

The responsibility of the licensed private companies is to invest in the superstructure and operation of the ports. The port authority is required to restrict the provision of the infrastructure. The private sector has the responsibility to provide all the facilities and services (Notteboom 2000, pp83-274). The administration of the port is divided into four areas which include the public port, the public/private port with the public sector dominant, the private/public port with the private sector dominant and the private port.

The public port, the regulatory, land owner and operator function are controlled by the government or the public authority. In the public/private port, the operator function is controlled by the private sector. The regulatory and the land owner functions remain with the government. In the private/public port, both the land owner and operator functions are handled by the private sector. The regulatory function is with the public sector. The private port the three essential elements are controlled by the private sector (Notteboom 2000, pp83-274). 2. 2. Identify current issues affecting port management and the port industry

The external environment of ports has been increasingly competitive. Privatization of ports helps in the improvement of efficiency. Rapid advances in technology and recent improvements in the shipping industry have brought the need of privatizing ports. Ports in Singapore can no longer enjoy monopoly power over their hinterlands. The cargoes originating from or destined to these places do not have to be shipped through them (Liu Z. 1995, pp 263-274). Privatization leads to more access to capital and better technology. It also allows ports to be more flexible and autonomous in their operations.

Port financing is another issue affecting the port management in the sense that it is limited by regulations and size of the public sector budget or income. The reliance of public sector income has created some a certainty on the fate of port infrastructure. The privatization of ports has reduced the dominance of the state owned ports (Liu Z. 1995, pp 263-274). 2. 3. Analyse and discuss port management issues Port management issues include includes commercialization. This involves dividing the port authority’s principal activities into separate autonomous operating units.

The port authority owns the port land and retains responsibility for regulatory matters within the port area. The increasing trend for shipping lines to own their terminals and dedicate berthing space are due to different factors including ability to gain better control over inter modal transport and better programming of their shipments, cost savings that can be generated, lower risks associated with more links under control in the distribution chain, terminals are seen as part of international networks of transport and logistics and ability to have particular needs of shipping lines met by tailor made facilities (Liu Z. 1995, pp 263-274).

The private sectors involvement in the port management and operations leads to many benefits. These are the provision of ports and access to required capital, state of the art technology and efficient management. Sales proceeds from the privatization can be used to finance the required expenditures (Liu Z. 1995 pp 263-274). The private regime can be achieved through various ways of administration. The role of the private regime is to undertake the duty of producing the public goods. The private regime also gets involved in the joint venture arrangements where it produces goods and services in partnership with the government.

There is also the de-nationalization within the private regime where all the assets and the operations are reimbursed to those who owned them before the start of the nationalization. The private sector is involved in divestment through the sale of the public assets and operations whereby they make their sales by means of a tender process and also the issuing of the public shares. The private sector promotes other institutions within the government. This is made possible through giving the private sector tenders to perform simultaneous tasks on behalf of the government (Al-Homeadan 1996, p. 217-223).

The private sector port management is concerned with the liberization that involves the removal of barriers that hinder the entry of goods into the interior market places. They also make use of the volunteers who provide ultimate help to the government agencies in producing goods and services. The private sector ensures that they withdraw from the government the means of delivering the production and provision of goods and services. The private sector also benefits from the government grants and subsidies, this assists and motivates them financially, hence aim at providing more goods and services.

The private regime is divided into the three groups of enterprises. The first group is concerned with the activities that offer direct economic relevance, enhancing the development of other sectors of economy. The second group is the regime that deals with the finance and investment within the Port facility. Then the third group is that which is involved and responsible for educating and training of the employees (Al-Homeadan 1996, p. 217-223). 3. 2. Identify current issues affecting port management and the port industry

The issues that are affecting the private regime include the user fees charges in which the finance comes from the private sector while the production of the services is public. There is the issue of contracting out in which the production is done privately but the findings are revealed publicly. The private sector is currently affected by the high taxing rates imposed upon them by the taxing authority. This unless regulated by the government through the provision of incentives, it discourages them from offering public services at affordable prize (Al-Homeadan 1996, p. 217-223).

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