Port operation, reform and governance in China : a case study

Abstract

of thesis entitled Port Operation, Reform and Governance in China: A case study Submitted by Ng Koi Yu Adolf for the degree of Master of Philosophy at the University of Hong Kong in August 2002 The contemporary port industry is undergoing dramatic changes unlike the age of imperialism and colonization during the late 19 and to those of early 20 centuries. The role of modern port is completely different and thus there have been significant changes in the operations of ports. This has also led to the reform of ports and the way they are governed. As the most economic mode of transportation, ports efficiency is critical to success of economic development and international trade of a region. Since containerization in the 1960s, increasing trade, globalization, as well as business restructuring of shipping lines and port operators, have greatly affected port relations. Ports have to reform themselves in order to enhance efficiency and retain their competitiveness, thus able to survive in this dynamic world. As a result, the question is not ‘whether ports should reform’, but ‘how ports should reform’ in order to maintain competitiveness. This research is based on the recognition that reforms are important for ports to remain competitive in the contemporary world. It discusses port reforms in the context of the concept of port governance. In this thesis, different aspects of the contemporary port industry, including Porter’s five forces, different port administration models and their implementation methods, port governance, as well as the new public and private sectors roles in ports one discussed. China is chosen as the case study to illustrate port reforms due to its recent Open Door Policy and economic development. In this research, several aspects of governmental reforms in ports, including institutional, financial, legal, decentralization and inviting private participation are analyzed. The effectiveness of the reform package, as well as the business strategies of the transnational port operators, are illustrated. It is hoped that this thesis provides a framework for understanding the port industry as well as for further research on other aspects of transportation studies.