(c)

C.

Spearheading initiatives conducive to trade integration: assisting design

and implementation of first development initiatives to induce value-adding
activities to settle in port areas, helping finance facilities aiming at
attracting distribution and logistics services within the port complexes,
assisting in financing the first development phases of potential dry ports
facilities and related intermodal connections.

Issues and Challenges

16.
The characteristics of the public sector mandate, as described above, call for the
establishment of a well-defined public authority to deliver the duties and services
associated with it. This will usually be a Port Authority vested with all regulatory and
statutory powers requested to ensure sound operations of the port facilities.
17.
The necessity to establish a public Port Authority is sometimes questioned.
However, a review of prevailing situations worldwide shows that in an overwhelming
proportion, the choice is being made to vest the specific regulatory powers required to
manage the provision and development of port activities into a public Port or Marine
Authority, either at a local or national level, depending on the size of the countries. This
stems from the need to have a clearly identified public partner to act as a counterpart to the
private sector in negotiating and implementing new operational and development formula
for the port sector. The lack of such authority, easily accessible at the local level, can
quickly become a significant impediment to a balanced development of effective publicprivate partnerships. This may happen today in Argentina, where the future of the very
successful first privatization stage of port operations in Buenos-Aires is now in danger of
being hindered by want of a public Port Authority, wisely provided for in the law, but not
yet established. Simultaneously, in Brazil, where an ambitious port sector reform program
is being implemented, a major issue now debated is the format, organization and functions
of local Port Authorities.
18.
An important physical requirement, to be met early in the reform process, is to
clearly and legally define the port areas, on both the landside and the seaside, so that
singleness of command and authority on these areas, to be devoted to the public Port
Authority, can be established early on. This will make the Port Authority the official and
only local public body entrusted with the duty to deal with any proposal to develop or
invest on the dedicated port area, thus avoiding the risk of conflicts between different
public stakeholders later in the process. As we will mention further, local authorities, in
particular municipalities, will often wish, and rightly so, to be institutionally associated to
port authorities, so that decision of common interest to the port and the city can be taken
with a comprehensive view of all public interests at stake.
C.1

Institutional Framework

19.
Assets ownership and assets operations are two distinct matters. However, there
are combinations of ownership and operations structures which have proved over time to
be more or less conducive to cost-effective use of assets and to overall efficiency in the