Improving the competitiveness of Portugal’s ports

An article in the Economist (March 24,2012) describes the drop in prices per container from $1000 to $300 from Asia to Europe as ship capacities increased to 14,000 containers. Portugal’s deep ports can accommodate these ships but are uncompetitive for port services. Entrenched unloading companies with long leases and strong unions with high wages means that ships bypass this port. If leases are awarded competitively, there were more unloading companies, and port operators were privatized even more, could prices drop and productivity increase to make the ports more competitive and attract more ships, thus increasing much needed jobs ? Can port changes be viewed as an externality – meant to assist the Portuguese economy with opportunities for value added work ? Could the resulting transport and rail flows to Southern Spain boost opportunities for towns enroute ? Is port competitiveness a land based concept more than sea related ?

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About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , , , , . Bookmark the permalink.

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