Port Sector: Business Lobby Wants Councils Cast Off From Ports
August 25th, 2010
Forcing local authorities to sell their shares in port companies, improved financial disclosure, contestability in stevedoring and separation of asset ownership from operations are four proposals being recommended to the Govt by a powerful business lobby group in order to improve port operational efficiency and initiate restructuring. The report was commissioned by the Local Govt Forum whose members include the Business Roundtable, Business NZ and FedFarmers.
The report has been produced in an attempt to support claims made by the OECD 2025 Taskforce and some industry commentators Local Govt ownership is hindering the rationalisation of the ports sector widely seen as essential to improving the country’s overall economic performance. It claims cutting the link between local authorities and port companies will reduce the extent to which local interests could hinder rational decisions about port investment. It also claims local body politicians may influence port companies to charge discount and uneconomic berthage rates to get shipping companies to call their local port. The report says improved financial disclosure of ports is needed as it claims some port companies are breaching existing regulations surrounding financial disclosure. It also sees boosting waterside competition through stevedoring contestability as a means of cutting costs and improving efficiency while clearly distinguishing between port asset ownership and operations will create a more competitive workplace environment for all above wharf activities. The report will be presented to Cabinet Ministers.
Copyright © Media Information Ltd
NZ Transport Intelligence Briefing
Amalgamated Dairies
Strait Shipping