EXECUTIVE SUMMARY

April 17, 2010

Miji LEE, Assistant Manager, Operations Team

Appropriate Models of Port Governance

Lessons from the Port Authority of New York and New Jersey
Considering the present of investment for Korean Ports, it is clear that the master plan for
port development has had a wrong point. Since the port facilities were supplied more than the
port demand, we should adjust the master plan for port development. In order to revise the
plan, we should review the successful model of global ports.

The port authority of New York and New Jersey (PANYNJ) is one of the most successful
global ports. Even though New York and New Jersey Ports are not belonged to the same state,
but they are located so close. Thanks to the easy access, two ports has co-operated under the
supervision of one port authority (PANYNJ) so that they has a variety of portfolio for the
revenue. The PANYNJ’s role has changed from the contribution to the global economy to the
contribution to the local economy increasingly; likewise, Incheon port is close to Seoul even
though Seoul doesn’t have a port and has performed the one mean for the global and local
economy.

This article indicates that the operating port can have a number of ways to generate not only
the financial revenue but also social revenue. By one of operating port ways, port
governance, the PANYNJ doesn’t hesitate to extend their influence, so that it owns
bridges, air ports, World Trade Center as their asset. We find below three structures
explaining the PANYNJ.

√ The history of PANYNJ established in 1921 with its changed role

√ The round table of operations revenue and asset of PANYNJ
√ Three effort for the sustainable development of PANYNJ

The findings of this article forward three recommendations

- Analyze Incheon port compared with New York and New Jersey port
- Appoint the general body in order to manage the whole activities for Incheon port
development
- Adjust master plan for Incheon port development

Key Words : Port Governance, New York Port, New Jersey Port, Port authority
New York & New Jersey, Incheon Port