Chapter 14: Transportation Studies

Title: Port development and public private partnerships: some risk management considerations

Reference: WORLD SUSTAINABLE DEVELOPMENT OUTLOOK 2006 pp. 440 - 450

Abstract/Summary: Transportation is a vital element in the world economy. Efficient movement of high volumes of freight over long distances generally requires seaborne transportation. The tonnage of goods transferred by sea increased 140% between 1970 and 2003 (UNCTAD). This increase has meant an expansion of port facilities and an increase in private investment. However, the financing, construction and management of port facilities give rise to a wide range of risks affecting owners and users of facilities and the public generally. These risks include risks of over and under capacity, damage to and by the natural environment, unexpected costs of construction and operation and losses arising from industrial disputes, organised crime and international politics. This paper examines the nature of the risks involved in port facilities and the possible methods of risk management, risk financing and risk allocation between the parties involved, including those involved in Public Private Partnerships (PPPs).

Order a copy of this article