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Ports of Portugal SA

Ports of Portugal SA

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Published by Vitor Caldeirinha

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Published by: Vitor Caldeirinha on Dec 16, 2010
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Ports of Portugal SA?

A few years ago that some people in the industry and other sectors have been talking about possibility of creating a society Ports of Portugal SA, a holding company that is as includes all current SA administration of ports, either as a single administration port of Portuguese ports, by replacing all the existing ones. If the first case of creating a holding company, would keep the current model with a administration port by port, by making some coordination of strategies and policies national level, without jeopardizing the operational competition between ports and proximity port of general economic actors cos sites, which seems logical to national interest, we would have certainly a cost savings in managing the sector, rather, what is not appropriate to the moment in which we live. In the second case, the creation of a single administration , Replacing all existing port authorities, would coordinate strategies and certainly a small savings in administration costs of the sector, without reflections visible in port costs and with minimal positive reflections on the state budget a few thousand euros, through increasing corporate tax and dividends of national port authority But we would have about me many negative effects on the sector and for business customers of the ports and the economy. Several studies have demonstrated the need for closeness and autonomy port authorities at each port to manage even in time and a flexible Private management similar to the operational problems of each port. An authority national port is certainly far from reality, leading questions have to be decided at the highest level and bureaucratic, indeed running as a impediment to competitiveness and agility of ports in response to changing business port and the needs of agents and corporate customers. On the other hand, there are also several studies that show that competition between ports is beneficial to ginasticar each of the ports and make them stronger to compete with foreign ports. Competition is the government become more competitive, reduce costs and fees, strive for competitiveness of the other agents and companies providing services to the ports and develop innovative solutions that go meeting customer needs cargo and vessels. A single administration fees tend to harminizar certainly over, ending the competition and the need to reduce costs, which creates stability to fatten up frameworks and investment projects and costs of dubious usefulness and suitability for customers, creating a cycle of habitual lack of competitiveness in public administration monopolistic enterprises. This is an important risk not to be overlooked, since it can bring increased costs for customers of major ports, choking off the companies and reducing indirectly their contribution to employment and the state budget through IRC and IRS. What is important in a model of port governance is to reduce costs, ensuring coordination at the level of strategy and investment and common resources, without endanger the operational autonomy of port authorities and competition between

between port terminals and ports, including port authorities, promoting competitiveness and the positive effects on the economy. It is recognized that the ports are important centers of regional and national levels and Development also wealth creation and employment. What is important is that the ports are developed, which are competitive and modern, to become important economic centers with effects on economy. In a moment of crisis in domestic demand such as ours, the ports can form a important in reducing the cost of importing products not produced zymosis internally, and especially in the export as an alternative for the disposal of domestic production, guaranteeing at least the maintenance of jobs and payment of tax and IRS to feed the state budget. Here's what should be the key State intervention in ports in time of crisis: make ports more COMPETITIVE instead of the face as a small source of increased dividends, it should be face as a major source of export competitiveness and maintaining jobs and direct tax to the state. This view implies certainly a better coordination of ports in each region of some way, in order to obtain future to more modern ports and economies of scale in each sub-sector, but also the maintenance of competition between ports and their agility and operational autonomy. This view implies, and this is what is important in the short term, a radical change in organization of each port, public authorities that have jurisdiction in ports , Giving primacy to the administration port on the other, control of providers services on the market for manpower port in order to eliminate the costs parasites ports, the obstacles to its development, the rates of return for firms above market, wages above the average of the country, the lack of transparency and failure operation of the laws of supply and demand in order to make ports more competitive and make life easier for those who want to export, economic benefits and extended in successive economy. I have ideas about what would be the best solution that I will not explain here, but let the imagination of every reader that range of governance models to achieve the aims I have stated and what measures would be necessary micro and macro ports to make them more Cheap and facilitators of the crisis.

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