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What Works and What Doesn’t in Port Modernization

World Bank launches toolkit for reformers
Press Release No:2007/164/SDN

Contact:
In Washington, DC Kristyn Schrader: (202) 458-2736

kschrader@worldbank.org

 

WASHINGTON, December 6, 2006—An updated Toolkit on Port reform – an extensive update of the first edition published in 2001 – was launched today by the World Bank.  The publication is directed to government officials dealing with the modernization of ports in developing countries.  The toolkit draws from the industry’s experience over the past two decades in port reforms in both developing and industrialized economies.

 

The publication includes:

 

§          Updated industry trends and analysis

§          Most recent statistics

§          Case studies

§          Enhanced legal and regulatory framework text and discussion

§          Checklists for preparing and executing concessions

§          Improved module on social dialogue and labor restructuring in ports

§          Supporting materials and updated useful resources have been added

§          Financial model (English and French versions)

§          Newer easier to use online and printed formats

Ports in developing countries represent a key asset for economic development but they need to operate efficiently and be properly structured in order to support an increase in trade and GDP and contribute to the achievement of  the Millennium Development Goals (MDGs) of halving the poverty by 2015.   

 

“We want to provide public officials in developing countries with an effective tool to undertake sustainable institutional reforms of port services,” said Maryvonne Plessis-Fraissard, Director, Transport and Urban Development.  “I believe that the Toolkit will also be a great resource for other government officials, port service and shipping companies, as well as companies dependent on port services, in building lasting public-private partnerships.”

 

The world’s ports unloaded more than 7.1 billion tons of goods involved in seaborne trade in 2005, which has been growing at an average rate of over 4.2 percent per year for the past quarter century.  Such growth in trade has mainly been on the backs of developing economies whose share of global seaborne trade has increased from 16.4 percent since 1970 to more than 30.4 percent in 2005 (Review of Maritime Transport, 2006, UNCTAD).

 

Developing country ports continue to be under pressure to reform and keep up with demand and as a result have seen over 230 projects totaling more than $24.7 billion of investment that included private sector participation in the past 15 years. According to the World Bank Private Participation in Infrastructure (PPI) Database, developing economy ports experienced record level investments totaling over $4.1 billion in 2005 alone.

 

“Institutional reforms are always complex,” say Cornelis Kruk, Lead Ports Specialist. “When countries undertake reforms transforming the interface of public and private sectors, the knowledge and experience needed is usually very limited.”  To address this, the Toolkit provides the overall design and implementation framework together with current trends and best international practices.

 

The Toolkit draws on inputs from United Nations agencies including United Nations Conference on Trade and Development (UNCTAD), International Labor Organization (ILO), International Maritime Organization (IMO), as well as discussions with representatives of the private sector. It is available free to the public on the World Bank’s transport website (www.worldbank.org/ports). The CD-Rom version will be available for purchase in the World Bank’s Info Shop.

 

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About World Bank’s Transport Unit

The mission of the Transport Unit in the World Bank is to assist developing countries to reduce poverty by improving the efficiency and equity of transport policy and interventions.  Over the last ten years, lending for transport projects amounted to 15 percent of the Bank’s total lending portfolio.  Lending for Ports, Waterways and Shipping has totaled over $7.0 billion since the Bank’s inception.  The Unit works with the public and private sectors and communities to enhance the capacity of transport institutions to provide sustainable infrastructure and services.  For further information on the World Bank’s Transport program, visit http://www.worldbank.org/transport.   For further information on PPIAF visit http://www.ppiaf.org

 





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