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Sajeev Kumar V.

There is a need for more caution in the present era of globalisation. One way to capture overseas market for goods is to ensure inexpensive shipping service and port operations. This is what advanced maritime nations were achieving through focussed policy measures, according to Mr Iyer.

Kochi, Nov. 10

INDIAN ports need to be more cautious with privatisation as the port's world over, especially in developed countries, still continue to function in the public sector, according to Mr K.V.A. Iyer, Vice-President of the Water Transport Workers Federation of India.

The privatisation of ports, Mr Iyer said is flaunted as a great policy measure to promote efficiency in port operations. However, a recent survey of top 100 container ports in the world by the International Association of Ports and Harbours revealed that though the influence of private sector in ports is growing, the role of public sector agencies also remained significant. As many as 92 per cent of the port that had responded to the international association's survey were public organisations, he said.

Mr Iyer alleged that the governments of developing countries were under pressure from IMF, World Bank and WTO regime to privatise public enterprises including ports. Therefore, the privatisation experience worldwide is confined to mainly developing countries.

There is a need for more caution in the present era of globalisation. One way to capture overseas market for goods is to ensure inexpensive shipping service and port operations. This is what advanced maritime nations were achieving through focussed policy measures of unobtrusively keeping the flow of public funds to shipping and ports.

According to Mr Iyer, private sector in ports in advanced maritime nations serve as just a façade to hide subsidies going into ports. The American Association of Ports, an association of US public ports, promotes massive public investment in port infrastructure, while private sector is inducted as a minor participant for investment.

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