Port Corporatisation in Australia: Dilemmas of Microeconomic Reform

Abstract

Abstract Corporatisation and privatisation strategies in Australian ports are part of an ongoing microeconomic reform program by Australian governments to establish the maritime sector along commercially viable and competitive bases. Privatisation strategies transfer ports to non-government operators and subsequently operate under regulatory regimes identical to those imposed on any other business. Due to the inability of government to separate commercial imperatives from political control the processes of corporatisation becomes rather complex. Reform strategies in Australian ports are about removing or distancing governments from day to day commercial operations. This places governments in some dilemma for if they retain ownership Ministers remain accountable. Clearly for government owned businesses to operate like the private sector they must have freedom to respond to market demands and have independence from political constraints. This places on governments the onus to separate commercial and political imperatives. To date, this remains unresolved and, moreover, while port corporatisation is in its infancy, some practices are emerging which are anticompetitive and non-commercial. Thus, they do not reflect freedom from political control.