Changing Ownership Strategies for Australian Ports: Some Emerging Issues

Abstract

Microeconomic reform has characterised the Australian maritime sector over the last decade or so. Shipping reform, waterfront reform and the current changing ownership strategies of state governments throughout Australia have focused on enhancing efficiency and competitiveness of Australian ports. Within this environment ports are no longer seen as public utilities but are expected to be market driven profit maximising operations similar to any private sector business venture. This paper examines a number of different strategies being implemented by state governments and some of the real and/or anticipated benefits that will result. The paper argues that if government business enterprises are to operate along private sector lines then an appropriate legislative framework must be set in place. The paper looks in some detail at changes in NSW ports where problems are already emerging precisely because the ports were corporatised under an inappropriate legislative structure.