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Port administration structures : (a study relating the characteristics of proficiency and autonomy in… McMullan, Wallace Edward 1968

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PORT ADMINISTRATION STRUCTURES  (A STUDY RELATING THE CHARACTERISTICS OF PROFICIENCY AND AUTONOMY IN PORTS) by Wallace Edward McMullan B.A., University of B r i t i s h Columbia, 1967  A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION in the Department of COMMERCE AND BUSINESS ADMINISTRATION  We accept this thesis as conforming to the required standard  THE UNIVERSITY OF BRITISH COLUMBIA July, 1968  In p r e s e n t i n g  for  that  this  thesis  an a d v a n c e d d e g r e e  the  Study.  thesis  Library shall  | further  for  or p u b l i c a t i o n  b y hits  of  my w r i t t e n  Department  fulfilment  the U n i v e r s i t y of  make i t  that  freely  British  available  permission  for  of  for  of  representatives.  this  thesis  for  It  is  financial  the  requirements  Columbia,  I agree  reference  and  e x t e n s i v e copying of  s c h o l a r l y p u r p o s e s may be g r a n t e d by t h e  Department or  without  agree  at  in p a r t i a l  Head o f my  understood  gain  shall  that  copying  n o t be  permission.  Commerce a n d B u s i n e s s  The U n i v e r s i t y o f B r i t i s h V a n c o u v e r 8, Canada  Columbia  this  Administration.  allowed  i i ABSTRACT This t h e s i s  is concerned with the various  under which ports are a d m i n i s t e r e d .  It  structures  is a c u r i o u s  that there are a great number of d i f f e r e n t types of administration of  structures  through which the major  the world are a d m i n i s t e r e d .  of which t h i s  t h e s i s grew  One important  fact port  seaports  question out  is:  Given the v a r i e t y of port a d m i n i s t r a t i v e s t r u c t u r e s , what can be s a i d in defense or in favor of each of these various forms of a d m i n i s t r a t i o n ? This  t h e s i s reviews  the goals of port  methodology of port o p e r a t i o n s . of w r i t e r s in the f i e l d results national  activities  Subsequently, the  the  opinions  are summarized and o u t l i n e d .  of a study of a s e r i e s of reports Bank f o r  and  by the  R e c o n s t r u c t i o n and Development  concerning port  operations) are then r e p o r t e d .  thesis outlines  the f i n d i n g s of a f i e l d  The  Inter(sections  Finally,  the  study i n v o l v i n g  the  Port of Vancouver, B r i t i s h Columbia, and the Port of  Seattle,  Washington, U . S . A . A t h e s i s on such a general t r a t i o n Structure nebulous f o r the present  may, at f i r s t ,  objective structure  Canada to o b j e c t i v e  subject as Port Adminisseem too broad and too  study.  The n e c e s s i t y of  of p o r t s '  administrative  subjecting systems in  a n a l y s i s , i s reason enough f o r  ment white paper, which is p r e s e n t l y  in the making  National  in Ottawa.  Harbours  Board headquarters  An  a governat important  problem of constant,  this  particularly  ment p e r s o n n e l . variable,  t h e s i s , is that of holding exogenous v a r i a b l e s the v a r i a b l e - - t h e  quality  of manage-  In order to f i n d a r e l a t i o n s h i p  management  structure,  all  between  other v a r i a b l e s  the  have to  be held reasonably c o n s t a n t . A variety  of methodologies are used to draw  on the s u b j e c t .  Firstly,  available  subject of port a d m i n i s t r a t i o n  on the  of port a d m i n i s t r a t i o n . statements  there  is a review of  H e r e i n , an appeal  of p r o f e s s i o n a l s or "experts"  literature and systems  is made to  in port  Secondly, a study i s made of a s e r i e s of reports port operations  throughout  the w o r l d .  c l a s s i f i e d according to ( 1 ) and (2) q u a l i t y correlate  was made ( u t i l i z i n g of the r e g i o n .  Thirdly,  interview  The f i e l d  s h a l l o w , attempted  on s p e c i f i c  These s t u d i e s were structure,  A matrix was set up to  and f i n a l l y ,  methodology)  study r e p o r t ,  a field  Structure  2.  Performance.^  although  (also degree of autonomy),  by and l a r g e , major  proficiently  run--when  seaports are best  ports  admittedly foci.  and  The most basic c o n c l u s i o n to grow out of t h i s was t h a t ,  study  on two major  to analyze the ports around the  1.  the  administration.  type of a d m i n i s t r a t i v e  of port o p e r a t i o n s .  the f i n d i n g s .  information  thesis  run--most  they are run by p r o f e s s i o n a l  iTh i s i s s i m i l a r to what was done in the study of reports on world ports by the I n t e r n a t i o n a l Bank mentioned above.  management from structure with  o f t h e h a r b o u r , and t h r o u g h a  o f a d m i n i s t r a t i o n which  regards  autonomous  the l o c a l i t y  to day-to-day  with  regard  i s completely  operations,  to l o n g - r u n  and  autonomous  relatively  planning.  V  T A B L E OF  CONTENTS  CHAPTER I.  PAGE 1  INTRODUCTION A Review o f Subject Matter the Problems Encountered  II.  in Preparation  G O A L S OF PORT O P E R A T I O N AND D E V E L O P M E N T An  I n s i g h t i n t o t h e P o l i c i e s and which l i ebehind  throughout  Inherent  10  in a the World  T H E N A T U R E OF PORT O P E R A T I O N S  26  A Presentation of the Various  IV.  ...  Goals  Port Operations  Number o f C o u n t r i e s III.  o f T h e s i s and  Functions  i n the Workings of a Port  PORT A D M I N I S T R A T I O N S T R U C T U R E S A Review and S y n t h e s i s  43  o f much o f t h e  C u r r e n t L i t e r a t u r e on P o r t  Administration  Structures V.  G U I D E L I N E S FOR PORT MANAGEMENT  54  An E m p i r i c a l C l a s s i f i c a t i o n o f S t u d i e s R e l a t i n g Types o f Management S t r u c t u r e s With E f f e c t i v e n e s s o f Port Management VI.  MEASURES  OF P E R F O R M A N C E  A Discussion of Various  72 Statistics  to Measure t h e O p e r a t i n g a  Port  Used  Performance of  PAGE  CHAPTER VII.  85  A FIELD STUDY This  Chapter Attempts  Information Surveying Operations  to U t i l i z e the  of Previous  Chapters i n  two o f t h e M a j o r i n Vancouver,  Port  British  C a n a d a , and S e a t t l e , W a s h i n g t o n , VIII.  SUMMARIZATION  BIBLIOGRAPHY  Columbia, U.S.A.  102 1 04  LIST OF  TABLES  TABLE I.  PAGE Growth  o f A i r and  Between II. III.  Trends  the U n i t e d  and  Transport  Kingdom and A b r o a d  . . . .  i n Type of P o r t A u t h o r i t y  Estimate Spent  Sea T r a v e l  21 51  o f A v e r a g e Number o f Days a Y e a r i n P o r t and  Classes  of S h i p s  a t Sea  by  Representative 75  viii LIST OF CHARTS, ALSO A STATISTICAL  REVIEW  CHART I.  PAGE Representation  o f t h e C o r r e l a t i o n Between  Type o f P o r t Management and Q u a l i t y o f Port Operations II.  A Statistical and  III. IV.  (by c o u n t r y )  56  Review f o r the P o r t of S e a t t l e  t h e P o r t o f V a n c o u v e r (1 967)  P o r t of S e a t t l e O r g a n i z a t i o n  Chart  Port of Vancouver O r g a n i z a t i o n  Chart  88 95 96  CHAPTER I INTRODUCTION Statement of Purpose The  purpose of t h i s  t h e s i s i s to evaluate  i n terms o f  efficiency  and o t h e r  of v a r i o u s  forms of a d m i n i s t r a t i v e s t r u c t u r e s o f p o r t s .  The  g o a l s , where i n d i c a t e d , t h e q u a l i t y  m e t h o d o l o g y used was:  current  ( 1 ) t o draw t o g e t h e r  some o f t h e  k n o w l e d g e on p o r t management; ( 2 ) t o c o r r e l a t e p o r t  p e r f o r m a n c e and p o r t a u t h o r i t y s t r u c t u r e s i n a s t u d y data  from o t h e r  lines  s t u d i e s ; (3) thereby  to e f f e c t i v e  some s t a t i s t i c s  port operation;  obtaining  guide-  (4) to f u r t h e r generate  to t e s t f o r the e f f i c i e n c y  ment; and f i n a l l y ,  some  using  o f p o r t manage-  ( 5 ) t o use t h e i n f o r m a t i o n o b t a i n e d  a t e s t on two l o c a l  to run  ports f o r the purpose of e v a l u a t i n g  port  management o r g a n i z a t i o n . The stated  task o u t l i n e d i s extremely  i n h i s book, C a r g o H a n d l i n g  "Firstly, how a p o r t  there  be  As C o l o n e l  and t h e Modern P o r t  has n e v e r been n o r e v e r  should  Despite  complex.  will  Oram  (1965):  be a g r e e m e n t on  administered."^  such p e s s i m i s t i c o p i n i o n s  been s e v e r a l a t t e m p t s t o p r o v i d e  useful  as t h i s ,  there  have  s o l u t i o n s to the  problem of p o r t a d m i n i s t r a t i v e s t r u c t u r e s .  In Great  1Co1. R. B. Oram, Cargo H a n d l i n g and t h e Modern ( O x f o r d , E n g l a n d : Pergamon P r e s s , 1 9 6 5 ) , p. W.  Britain,  Port  2 the r e c e n t  Rochdale  Inquiry into  the major  made a number o f r e c o m m e n d a t i o n s including  the s e t t i n g  1932,  ports.  growth of t h i s  in  Ottawa.  with  In Canada, the Gibbs Commission  The N a t i o n a l inquiry.  i s a white  Harbours  of  faced  Board was one  Moreover, a t the present  out-  time,  p a p e r on p o r t a d m i n i s t r a t i o n i n t h e making  Therefore,  a u t h o r i t i e s may the  Ports Authority  i n q u i r e d i n t o t h e p r o b l e m s o f t h e day w h i c h  Canadian  there  on p o r t a d m i n i s t r a t i o n ,  up o f a N a t i o n a l  wide r a n g e o f powers.  ports of B r i t a i n  though  the task  be a p r o d i g i o u s  of e v a l u a t i n g  port  one--tru1y formidable  at  b e s t o f t i m e s - - i t i s a j o b t h a t must be, and i s , b e i n g  done. The f i r s t  step  of a l l , t o r e v i e w Administration Chapter  towards t a c k l i n g  some of t h e c u r r e n t  S t r u c t u r e s , the l a t t e r  IV, of t h i s  thesis.  a d v a n t a g e s and d i s a d v a n t a g e s  This  this  problem  literature being  chapter  of d i f f e r e n t  i s , first  on P o r t  the t i t l e of  deals  with the  forms of p o r t  a d m i n i s t r a t i v e o r g a n i z a t i o n s , from p r i v a t e e n t e r p r i s e , along the  s p e c t r u m as f a r as c e n t r a l government  chapter  also looks  into other  types  control .  of c l a s s i f i c a t i o n s o f  port a u t h o r i t i e s ( i . e . municipal, p r o v i n c i a l or m i x e d  authorities).  of d i f f e r e n t Throughout theoretical  Trends  (state), federal,  i n the h i s t o r i c a l  f o r m s o f p o r t management a r e a l s o  this  chapter  there  The  i s extensive  development considered.  reference to  arguments.  Two o t h e r  chapters  precede the chapter  on P o r t  3 Administration. an  insight  and  into  a feeling  Both  these  The p u r p o s e o f t h e s e  chapters  i s to provide  the goals of a port o p e r a t i o n , (Chapter I I ) ,  f o r the inner workings  chapters  of a p o r t , (Chapter I I I ) .  s h o u l d make t h e p r o b l e m s and c o m p l e x i t i e s  o f p o r t o p e r a t i o n s more e v i d e n t . The  g o a l s and p o l i c i e s  of ports  (Chapter  i n c o n t e n t , f o r m a l i t y , and i m p o r t a n c e , M o r e o v e r , i t would p r o b a b l y  be v e r y  II) v a r y  widely  from p o r t to p o r t .  near the t r u t h  t o say t h a t  v e r y f e w , i f a n y , p o r t s have a " c o m p l e t e and c o n s i s t e n t f o r m a l l y w r i t t e n s e t of g o a l s . determining  However, t h e p r o b l e m o f  p o r t g o a l s must be d e a l t w i t h , b e c a u s e any  e v a l u a t i o n o f o p e r a t i n g p r a c t i c e must be made w i t h r e g a r d t o divergencies  from  Chapter  the goals of port o p e r a t i o n s .  I I I , on t h e N a t u r e o f P o r t O p e r a t i o n s ,  provide a basic understanding  of the workings  of a p o r t .  T h e r e a r e a g r e a t many f u n c t i o n s t o be p e r f o r m e d operation.  The number and c o m p l e x i t y  depend b a s i c a l l y port;  the g e o g r a p h i c a l these  (1)  upon t h r e e t h i n g s :  (2) t h e scope o f p r o d u c t s peculiarities  three c h a r a c t e r i s t i c s  of these  handled  i n any p o r t  functions  the s i z e of the i n t h e p o r t ; and ( 3 )  of the harbour.  vary g r e a t l y  should  Because  between p o r t s ,  port o p e r a t i o n s , i n t u r n , vary a l s o .  Therefore,  be done by a p o r t a u t h o r i t y may a l t e r  from p l a c e t o p l a c e .  This  i m p l i e s t h a t the nature  be f u n c t i o n a l l y involved  related  the job to  of the port o p e r a t i o n s  to t h e type  i n administering port  should  of port a u t h o r i t y  activities.  4  Chapter v/hat  is  the  authority  III  proper  operations, of  Chapter  the end,  V, entitled  a series  provided a port,  of  type  which suited  then  made  material  to  knowledge this  decide  to  of  it  the  port  of  port  the  basically  i n the  on t h e  between  of  to  were,  this  could  operation  by and  large,  the  theoretical  IV. try  first be u s e d  to  bring  p.ort  of a l l , to  form  Performance.  this  management. to  g i v e an  Discussion  statistics  Measures of  managing  a number o f  s t u d y and  of a p o r t .  performance  have  draw c o n c l u s i o n s  e v a l u a t i o n of l o c a l  which  They  A c o m p a r i s o n was  was t o  necessary,  with  for  authority for  to  this  q u a l i t y of  used  in Chapter  performance  Chapter V I , e n t i t l e d ,  port  of a p o r t .  Bank  utilized.  management  thesis  was f o u n d  of d i f f e r e n t ' p o r t  an a t t e m p t  administration  been of  port  study.  To a c c o m p l i s h  authorities  results  of  theoretical  empirical  was t h e n  operation  atmosphere  International.  Correlation  on some s t a t i s t i c s of  the  some  port  type  port  management  step  bear  task,  impression use  the  on p o r t management  The n e x t  and  D e v e l o p m e n t have  the  between  of  by t h e  on b o t h  types  which  operations.  q u a l i t y of  port  problem of d e c i d i n g  the  a small  type  port  countries. of  port,  is  the  studies  and  and t h e  best  For  of  material  different  about  of the  Guide!ines, is  empirically  Reconstruction  and  i n t r o d u c t i o n to  goals  effectiveness  the  of f u n c t i o n s  p o r t management,  correlate  into  filling.  the  the  delves  field  s h o u l d be  Following  study  also  the  on  the  content,  5 A questionnaire  was  in Chapter V I I .  constructed  Interviews  to o b t a i n  the  information  were t h e n c o n d u c t e d  Port A u t h o r i t i e s at Vancouver, B r i t i s h  with  Columbia,  the  and  S e a t t l e , W a s h i n g t o n , U.S.A. The the  eighth  c o n t e n t s of  been  and the  final  c h a p t e r s and  There are encountered serious  i n the  relative  conclusions  of  that  first  of  with--is  preparation  the  meshed  two  the  thesis.  relative  have  organization  term  often  the  formal  ( i . e . the is mainly  s t r u c t u r e as involved  considers  with  fill  p e o p l e who lies  these p o s i t i o n s .  the  problem:  difficult  t o say  of a p o r t  a u t h o r i t y are  i n any  due  the  as  locations  of  structure  n a t u r e and  actual ability  of  second v a r i a b l e .  strengths formal  formal  organization  than the  the  The  particular situation,  to t h e  or t o t h e . a b i 1 i t i e s of t h e  structure.  Formal  s t r u c t u r e are  to what e x t e n t  authority.  The  The  paper i s concerned  such t h i n g s  responsibility.  embody t h e  inter-  i t a p p e a r s on  hierarchical positions rather  p e o p l e who  most  "organization."  which t h i s  r e f e r r e d t o as  The  structure, is  v a r i a b l e s which are  i n t o the  problems  e f f i c i e n c y , or  one  power, a u t h o r i t y , and  port  this  these v a r i a b l e s - - t h e  charts),  port,  of  p e r f o r m a n c e of an  and  structure  Herein  noteworthy methodological  in evaluating  isolate  connecting  the  any  summary  Methodology  several  problem  to t r y to  the  i s a short  reached.  Some P r o b l e m s i n T h e s i s  the  chapter  or  weaknesses  structure  p e r s o n a l i t i e s who  i t is  of make  the up  6 Organizational  t h e o r i s t s u s u a l l y contend  that  a v e r a g e , t h e p r o p e r s t r u c t u r i n g o f an o r g a n i z a t i o n the  smooth f u n c t i o n i n g  therefore,  in this  i n the world  administrators,  case, a better  that  i s of l i t t l e  or incapable  performing  from  and c a p a b i l i t i e s  bias  inherent  organiz-  i n t h e hands o f poor  to separate the p e r s o n a l -  of a d m i n i s t r a t o r s  i n d i f f e r e n t ports  s t r u c t u r e of those p o r t s , i t  I t i s important, in this  system.  management.  the q u a l i t y of the formal 2  was n o t done.  port  the best formal  value  B e c a u s e i t was t o o d i f f i c u l t ities  adds t o  o f ' d e c i s i o n m a k i n g , and g e n e r a l l y ,  However, i t must be r e c o g n i z e d ation  on t h e  however, t o r e c o g n i z e  s t u d y from  the f a i l u r e  the  tod i f f e r e n t i a t e  between t h e q u a l i t y o f management and t h e q u a l i t y of t h e formal  management s t r u c t u r e .  The s t u d y  h a s , by i g n o r i n g  d i f f e r e n t i a t i o n , assumed t h a t good and poor management been s p r e a d assumption  evenly  through a l l types of s t r u c t u r e s .  i s not e n t i r e l y  capable port  valid,  a u t h o r i t y would  towards changing  i t s formal  have  This  b e c a u s e i n many c a s e s , a  be a b l e  to exert  some  pressure  s t r u c t u r e of c o n t r o l .  Another major problem encountered the  problem of c l a s s i f y i n g  For  example, a s e t of c a t e g o r i e s  less  this  data  i n c l u s i v e of a l l p o r t s ,  in this  s t u d y was  into different categories. w h i c h p e r t a i n t o be more  i s the system  of  categories  ^ T h i s s e p a r a t i o n was p e r f o r m e d t o some e x t e n t i n t h e I n t e r n a t i o n a l Bank s t u d i e s . T h e r e f o r e , the m a t e r i a l of C h a p t e r IV o n l y p a r t i a l l y c o n t a i n s t h i s b i a s .  7 which ranges from f r e e e n t e r p r i s e to d i r e c t c e n t r a l government c o n t r o l . these s l o t s different  though.  Most p o r t s  have e l e m e n t s o f many  forms of c o n t r o l i n v o l v e d  decisions. in  M o s t p o r t s d o n ' t f i t n e a t l y i n t o any one o f  in their  operating  The " p o r t a u t h o r i t y " g e n e r a l l y has t h e f i n a l s a y  the p r o v i s i o n of a l l s e r v i c e f u n c t i o n s of a p o r t .  Usually,  however, t h e p o r t a u t h o r i t i e s a l l o w d i f f e r e n t  organizations  to perform  boundaries.  For  specific  functions w i t h i n the port  example, i n a n a t i o n a l l y - o w n e d  towage s e r v i c e s may be p e r f o r m e d In f a c t ,  by p r i v a t e l y - o w n e d  t h e p o r t a u t h o r i t y may have c o n f i n e d  activities as  p o r t , a l l s t e v e d o r i n g and  to the p r o v i s i o n of c e r t a i n f i x e d  lighthouses, jetties  approach channel,  o r b r e a k w a t e r s , and a  as w e l l as o v e r a l l  companies.  i t s own facilities  well-dredged  c o o r d i n a t i o n of port  planning.  Even t h e c o n s t r u c t i o n o r m a i n t e n a n c e o f t h e s e  facilities  may be c o n t r a c t e d  the  overall  complexity  such  out t o p r i v a t e f i r m s .  of a p o r t o p e r a t i o n may d e f y  I n summary, simple  categorization. This  b r i n g s us t o t h e e v e r - p r e s e n t  sciences--the  existence of other  problem of t h e s o c i a l  variables.  Flere writes:  The v a r y i n g f o r m s o f c o n t r o l : the d i f f e r i n g degrees o f i n t e r v e n t i o n by n a t i o n a l and l o c a l g o v e r n m e n t s : v a l u a b l e t r a d e s o f l i t t l e volume and l e s s v a l u a b l e t r a d e s of g r e a t volume: much impounded w a t e r h e r e and many open berths there: a n c i e n t c i t y quays w i t h l a t e r a d d i t i o n s i n one p l a c e a n d , i n o t h e r p l a c e s , e n t i r e l y modern p o r t s c u t out o f green f i e l d s o r t h e c o a s t a l d e s e r t : accretion and s i t u a t i o n on one c o a s t and e r o s i o n on t h e o t h e r ; a l l t h e s e t h i n g s and many more l i k e them; make i t d a n g e r o u s to r e l y e x c l u s i v e l y upon a b s t r a c t t h e o r i s i n g a b o u t p o r t s . 3  W. A. F l e r e , P o r t E c o n o m i c s ( R e v . E d . , L o n d o n : Ward and F o x l o w L t d ~ 1 967 ) , p~. 5. d  8 Although  the c e n t r a l  p o i n t F l e r e i s making  p r o b l e m w h i c h t h e many v a r i a b l e s of d i f f e r e n t impose upon t h e f i e l d theorizing operative  on  port operations  i n p o r t s ; the  constant  faces  in  shows how  fact,  researcher,  the  port  the  operations  problem of  the  b e c a u s e of t h e many v a r i a b l e s  same p r o b l e m o f h o l d i n g o t h e r v a r i a b l e s  the f i e l d the  but  i s not  researcher.  F l e r e ' s next  problem a l s o a f f e c t s  the  statement,  researcher.  I n d e e d , i t i s o f t e n d i f f i c u l t enough t o make a c o m p a r i s o n on one g i v e n p o i n t , w h i c h w i l l be a t once s i m p l e and v a l i d between two o r t h r e e p o r t s . 4 In  o t h e r w o r d s , the d i f f e r e n t  p o r t s have so few  common  e l e m e n t s amongst them i t i s p e r h a p s somewhat e l u s i v e t o s p e a k of a p o r t i n d u s t r y . may  be  the  same, but  performing  these  The  the myriad  b a s i c f u n c t i o n s they of c o m b i n a t i o n s  f u n c t i o n s i s the c o m p l i c a t i n g  perform  of means o f factor.  Summary The  purpose of t h i s  t h e s i s i s to come t o some c o n c l u s i o n s  a b o u t t h e most e f f e c t i v e f o r m s of p o r t management. method of etical  study  has  i n v o l v e d , b a s i c a l l y , a review  m a t e r i a l s , a study  based on o b s e r v a t i o n s  s t u d i e s , and  direct  problem w i t h  such a s t u d y , i s t o h o l d  operating  in ports constant  between two (2)  type  research  variables:  of f o r m a l  ^Loc . c i t .  into  some l o c a l  s t r u c t u r e of the  of  of  theor-  other  ports.  The  main  the many o t h e r v a r i a b l e s  w h i l e a check c o u l d  (1) s t a n d a r d  The  be made  of p e r f o r m a n c e , port a u t h o r i t y .  and In  9  particular,  there  i s the problem  of d i s t i n g u i s h i n g  i n c a p a b l e management f o r c e from an e f f e c t i v e organization  structure.  or  between  ineffective  CHAPTER I I GOALS OF PORT OPERATION AND The  statement  with regard  DEVELOPMENT  of n a t i o n a l goals or n a t i o n a l  t o t r a n s p o r t a t i o n , i n g e n e r a l , and p o r t s , i n  p a r t i c u l a r , a l l o w s one t o e v a l u a t e t h e w o r k i n g s transport  policies  or p o r t s y s t e m .  Without these  of the  p o l i c i e s , the  a n a l y s t must impose h i s own f r a m e w o r k o f v a l u e s on t h e output  of the port system.  Moreover, n a t i o n a l goals  means-end a n a l y s i s t o t a k e p l a c e , t h e a d v a n t a g e h e r e that  i t i s not the f o r t e of the s o c i a l  scientist  e n d s , b u t r a t h e r t o a r r i v e a t methods o f r e a c h i n g prescribed  For  f o r the "acceptable" working  ends  of a t r a n s p o r t s e c t o r .  growth of t h e c o u n t r y , o r t o a i d s p e c i a l  proper  to prescribe  o f g o a l s w h i c h a g o v e r n m e n t may  i n s t a n c e , p o r t p o l i c i e s may be f r a m e d  Policies  may have t h e g e n e r a l  allocation  concept  of r e s o u r c e s  t o encourage  of e f f i c i e n c y  i n mind.  t o f o l l o w i n managing i t s p o r t s .  concerned  with these  policies  influence  on t h e o p e r a t i o n o f a c o u n t r y ' s  E c o n o m i c and f i n a n c i a l port operations.  economic  sectors of i t .  National  and t h e  ownership  or f r e e - e n t e r p r i s e may be d o m i n a n t i n t h e p h i l o s o p h y may w i s h  being  by o t h e r s .  There i s a v a r i e t y legislate  permit  a country  This chapter i s  and o t h e r s , w h i c h have  direct  ports.  g o a l s o f t e n seem o v e r r i d i n g i n  This a t t i t u d e  embodied  in efficiency  11 terminology  i s summed up i n t h e f o l l o w i n g q u o t a t i o n :  For upon an i n c r e a s e d volume of i n t e r n a t i o n a l commerce l i e s one of the best hopes of mankind: e f f i c i e n t p o r t s , f i n a n c i a l l y s e c u r e and e c o n o m i c a l l y sound, y e t o p e r a t i n g as c h e a p l y as p o s s i b l e w i l l c o n t r i b u t e much to t h a t end.' Expanding a c o u n t r y ' s goal  of most every  country  export  t r a d e i s an  important  and, e s p e c i a l l y of those  c o u n t r i e s which a r e s u f f e r i n g from a c h r o n i c balance of payment d e f i c i t s .  P o r t charges a r e o f t e n one c o s t i n a  s t r i n g of c o s t s , which go t o make up t h e p r i c e t h e f i n a l customer has t o pay f o r a product economic t h e o r y and  tells  t h e c o s t of s e r v i c i n g a s h i p i n p o r t , would have a But because t h e r e a r e  i f any, p e r f e c t markets i n t h i s w o r l d  the q u e s t i o n liable  (even i n s h i p p i n g )  as to who b e n e f i t s from reduced p o r t c o s t s , i s  to be a complex one f o r which to f i n d a s i m p l e  answer.^ charges,  i t i s , however, l o g i c a l other  t h i n g s being  p r i c e s f o r export  and  Classical  us t h a t a r e d u c t i o n i n p o r t charges  d i r e c t e f f e c t on s h i p p i n g c h a r g e s . few,  bought a b r o a d .  products  to assume reduced  equal, w i l l  port  r e s u l t i n lower  a b r o a d , and a c c o r d i n g l y a g r e a t e r  H i . A. F l e r e , P o r t Economics (Rev. Ed.; London: Ward F o x l o w , 1967), p. 4.  2The c o s t to t h e s h i p owner of having h i s s h i p c a l l a t a p o r t i s dependent on many f a c t o r s , one i m p o r t a n t one being the t u r n a r o u n d time o f the s h i p from a r r i v a l to d e p a r t u r e . Ten thousand d o l l a r s a day i s not regarded as abnormal as the c o s t o f harbor time f o r many of today's ship-?3 p e t e r C. Omtvedt's Report on the P r o f i t a b i l i t y of P o r t I n v e s t m e n t . The c o n c l u s i o n i s reached t h a t i n t h e case of  demand f o r them. Increasing in and  port e f f i c i e n c y  a l l probability, thereby  way) of r e d u c i n g  s t i m u l a t i n g the export  Additionally, subsidize  the best  i s o n l y one way  trade  of a  a t t h e expense of i m p o r t s , ^  cross-subsidization.  This  policy  t h e way a t a r i f f  imported  were r e c e i v i n g p o r t charged  reduction  of t o t a l  to a i d i n g the  The W o r l d  t h a t government agencies  s e r v i c e s a t much l o w e r  to p r i v a t e e n t e r p r i s e .  5  effect  or otherwise,  s e c t o r s o f t h e economy.  S t u d y of 1963 o b s e r v e d  a type of  effect.  C r o s s - s u b s i d i z a t i o n may n o t be l i m i t e d  at b e n e f i t i n g other  so as t o  g o o d s , much i n  would--the "hidden t a r i f f "  s e c t o r , b u t may be i n t e n t i o n a l l y  charges  country.  has t h e f u r t h e r  o f p r o t e c t i n g home i n d u s t r i e s f r o m  export  port  p o r t a u t h o r i t i e s may a d j u s t r a t e s  exports  (however,  T h i s , they  aimed Bank  i n Spain  p r i c e s t h a n were s a i d was g i v i n g  port costs:  T-b,e d i v e r s i o n o f s a v i n g s i n c o s t s o f s h i p ' s t i m e i s s u b j e c t e d t o t h e mechanism o f t h e m a r k e t i n such a f a s h i o n as t o e n s u r e t h e consumer o f b e n e f i t i n g by t h e l a r g e r p a r t of t h e amount b e i n g s a v e d . T h i s i s because t h e c o m p e t i t i o n i s so keen as t o a l l o w no p r o f i t s h i g h e r . . . t h a n a r e n e c e s s a r y f o r d e p r e c i a t i o n and o t h e r c o s t s , and f o r a r a t e of i n t e r e s t on i n v e s t m e n t s n o t above t h a t p r e v a i l i n g f o r i n d u s t r y i n g e n e r a l , p. 1 3 . 4 E a s t A f r i c a n R a i l and H a r b o u r s A u t h o r i t y was u n d e r o b l i g a t i o n t o t h e g o v e r n m e n t t o keep c h a r g e s down on a g r i c u l t u r a l c o m m o d i t i e s ( t h e c o u n t r i e s ' main e x p o r t s ) , but a l l o w a n y l o s s e s t o be made up by c h a r g i n g h i g h e r p r i c e s on m a n u f a c t u r e d g o o d s , ( t h e c o u n t r i e s ' main i m p o r t s ) . c  The I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and D e v e l o p ment, The E c o n o m i c D e v e l o p m e n t o f S p a i n , J o h n H o p k i n s P r e s s , B a l t i m o r e , 1 9 6 3 , p. 236.  13 undue a d v a n t a g e t o p u b l i c e n t e r p r i s e s and ated  because of  the m i s a l l o c a t i o n of r e s o u r c e s  A more g e n e r a l accomplished level The  by  t h a t the  type  reducing  the  and  out  profits.  One  example o f  Spain  kept her  chronic d e f i c i t s  of h i g h e r  a profit).  to such a  low  w h i c h may  expenses  lost  100  With the  further inclusion  and  interest  the  port  on  (use  million  capital  of 6 p e r  loss.  loans  to  have  resulting by  has  port Spain.  had  f o r example, a l l 108  million  ( l e a v i n g only  pesatas,  two  port  ports  after with  equipment  p e s a t a s ) , a l l p o r t s showed l o s s e s . o f d e p r e c i a t i o n on  (other cent  is  low  otherwise  t h a t she  A f t e r i n c l u d i n g d e p r e c i a t i o n on t o 200  place.  at a  i s provided  low  In 1958,  together,  (another  cost  p o r t c h a r g e s and  such a p o l i c y  for years.  operating  taking  after year,  or v e r y  p o r t c h a r g e s so  p o r t s , taken  i n t e r e s t and  grants  year  expansion,  been f i n a n c e d  Spanish  port charges  p o r t must o p e r a t e ,  finance operations  be e l i m i n -  of s u b s i d i z a t i o n f o r e x p o r t s  government then g i v e s  has  should  fixed  capital  than l o a n c a p i t a l ) i n v e s t e d  interest  rate),  t h i s would  in  raise g  the  total  port  d e f i c i t well  i n e x c e s s o f one  bi11ion  B e c a u s e i t i s g e n e r a l l y b e l i e v e d most p o r t s a r e extent  m o n o p o l i e s , e s p e c i a l l y i n the a r e a  proximity  6  t o them, ( o f t e n r e f e r r e d t o as  1 b i d.,  p.  pesatas. to some  which i s i n c l o s e their hinterland)  7  235 .  A s t u d y by Ross R o b i n s o n o f t h e Un i v e r s i t y .of B r i t i s h Columbia, in a doctoral t h e s i s , entitled., S p a t i a l Patterns of P o r t - L i n k e d F l o w s : G e n e r a l C a r g o ImporTs Through t h e P o r t o f V a n c o u v e r , 1965, t h r o w s some d o u b t on the t h e o r y of 7  14 ports a r e able to a d m i n i s t e r p r i c e s . often  T h i s means t h a t p o r t s  have a l a r g e d e g r e e o f d i s c r e t i o n  above c o s t o f s e r v i c e . prices  Policies  i n making  m i g h t be s u c h  basis.  C o m p e t i t i o n from  national  freight  has been d e a l i n g l a r g e l y  merchandise, Rochdale  which  usually  bears  would r e s u l t  desire which  the f a c t  from  i n high  goals.  value The  which  l o s s e s i n revenues.  port charges  a cost-of-service  have basis.  and low c o s t o p e r a t i o n s may a l s o be They w o u l d  be s o u g h t  to avoid the economical may as e a s i l y  problems f a c i n g  the ports,  large  that B r i t i s h  t o a l a r g e d e g r e e from  Efficiency national  for inter-  the heaviest c o s t s .  in disproportionately  illustrates  deviated  the a i r l i n e s  price  r e p o r t o f 1 9 6 2 , v o i c e d some f e a r a s t o t h e f u t u r e  l o s s e s of high value merchandise  This  as t o s e t  on a v a l u e - o f - s e r v i c e b a s i s , o r a h i g h e s t  possible  charges  after  because of the  mi s a l 1 o c a t i o n o f r e s o u r c e s  o c c u r t o p o r t s as e l s e w h e r e .  Spanish  ports,  t h e World  Among t h e  Bank c o n s i d e r e d  p o r t m o n o p o l y i n a s p a t i a l l y proxim.i t o n s h i n t e r l a n d . In h i s s t u d y he showed where i m p o r t s t h r o u g h t h e P o r t o f V a n c o u v e r end up d e p e n d i n g on t h e i r c o u n t r y of o r i g i n . For example, 21 p e r c e n t o f t o t a l i m p o r t s had c o n s i g n e d o r i g i n s o u t s i d e V a n c o u v e r ; 36 p e r c e n t of t h e s e were c o n s i g n e d e a s t of t h e Saskatchewan-Manitoba, border. The p e r c e n t a g e c o n s i g n e d o u t s i d e of V a n c o u v e r v a r i e d w i t h t h e c o u n t r y o f i m p o r t o r i g i n . 46 p e r c e n t o f i m p o r t t o n n a g e f r o m Hong Kong was c o n s i g n e d o u t o f V a n c o u v e r , o f w h i c h 88 p e r c e n t was c o n s i g n e d e a s t o f the S a s k a t c h e w a n - M a n i t o b a b o r d e r , and 80 p e r c e n t t o M o n t r e a l and T o r o n t o . These f i g u r e s p r o d u c e a s t o r y l e s s e x t r e m e t h a n i n r e a l i t y b e c a u s e no m e n t i o n i s made o f i m p o r t s c o n s i g n e d to V a n c o u v e r , b u t s o l d o u t o f V a n c o u v e r , o r f u r t h e r p r o c e s s e d i n V a n c o u v e r , and t h e n r e s o l d o u t - o f - p r o v i n e e . 8 B r i t a i n , (Rochdale Report) Report of the Committee of I n q u i r y i n t o the Major P o r t s of Great B r i t a i n , London, Her M a j e s t y ' s S t a t i o n e r y O f f i c e , 1 962, p~. 19.  1 5 t h e mi s a l l o c a t i o n o f r e s o u r c e s  t o be t h e most c e n t r a l o n e .  The c e n t r a l p r o b l e m f a c i n g S p a n i s h p o r t s i s one o f an i m b a l a n c e among t h e v a r i o u s e l e m e n t s o f p o r t c a p a c i t y . T h e r e has been heavy i n v e s t m e n t i n p o r t i n f r a s t r u c t u r e such as w h a r v e s and b r e a k w a t e r s . . . . A t t h e same t i m e i n s u f f i c i e n t f u n d s have been d e v o t e d t o t h e o t h e r components o f p o r t c a p a c i t y . T h i s i s p a r t i c u l a r l y t r u e o f l o a d i n g and u n l o a d i n g e q u i p m e n t . . . .9 It of t h e s e  is difficult policies  may have e v o l v e d International impression around  or p r a c t i c e s are. historically.  Rather,  many  many o f them  From s e v e r a l o f t h e  Bank's s t u d i e s , one m i g h t e a s i l y  t h a t many a c t i v e p o r t  the world  legislated  t o s a y , h o w e v e r , how i n t e n t i o n a l  policies  are h i s t o r i c a l l y  or p r a c t i c e s  evolved  r a t h e r than s c i e n t i f i c a l l y  form t h e  and  haphazardly  determined.  A  g o v e r n m e n t may have as a m o t i v e one t h i n g , f o r e x a m p l e , t h e expansion of the export  sector.  financial  The r e s u l t i n g  lead  to a port's  was,  by and l a r g e , an i n q u i r y i n t o  (or a c t i v e p o l i c i e s ) primary  recession.  The R o c h d a l e  the standard  of a l l the major B r i t i s h  purpose of c r i t i c a l l y  policies  evaluating  may  Report  practices  ports with the  the r a t i o n a l e  behind  these p r a c t i c e s . Rochdale found repeated  some p o r t s  l o s s e s , while others  in Britain  were making  were making large  gains.  Among t h e r e c o m m e n d a t i o n s t o come o u t o f t h e r e p o r t was t h e recommendation t h a t a l l p o r t s  International  be made f i n a n c i a l l y  Bank - S p a i n ,  op. c i t . ,  independent  p. 228 .  16 of t h e g o v e r n m e n t u n l e s s the  special  circumstances  need f o r g o v e r n m e n t a s s i s t a n c e .  to be c o n s i d e r e d  as  reasons  need were t o be  for this  This s p e c i a l  explicitly  stated.  t h a t under  e x t e r n a l b e n e f i t s arose  to the community a t  need  was  s o m e t h i n g a p a r t f r o m t h e o r d i n a r y , and  R o c h d a l e C o m m i t t e e d i d not r e c o g n i z e circumstances,  dictated  The  average  from p o r t  operations  large.  T h e r e a r e i n our v i e w , no s o c i a l o r o t h e r r e a s o n s why t h e p o r t s h o u l d have t o be s u b s i d i z e d by the t a x p a p e r ; i t i s not i n t h i s way t h a t an e f f i c i e n t and e c o n o m i c p o r t s y s t e m can be a c h i e v e d . 1 0 The policy  committee presumably expected  t h e y would  unfavorable  be a b l e t o r e d u c e such  effects  s u b s i d i z a t i o n , and These e f f e c t s use  as:  The ports  unplanned  m i s a l l o c a t i o n of  o f t e n snowball  viable  out of p o l i c i e s  s e r v i c e s that are  not  and cross-  resources. which attempt in line  with  operate,  not as  tools  stated that  of g o v e r n m e n t  British  policy,  but as c o m m e r c i a l u n d e r t a k i n g s . l l S e p a r a t i o n of p o r t p o l i c i e s  i n t o good o r  c a t e g o r i e s would  be a s u b s t a n t i a l  purposes of t h i s  paper, i t s u f f i c e s  such  books as  study  the Rochdale R e p o r t ,  Rochdale Report, Ibid.,  p.  60.  to  practices.  Rochdale Committee e x p l i c i t e d l y  should  this  c h r o n i c l o s s e s , unplanned  general  a port to provide  commercially  that with  op.  cit.,  p.  bad  in itself.  to a l l u d e to which  80.  argues  For  the  17 intensively less  f o r c e r t a i n port  to.  other  goals  e c o n o m i c and f i n a n c i a l  other  setup  of a country's  the l a t t e r  earlier  of a  political  ' i s m ' may be a f a c t o r i n f l u e n c i n g t h e o r g a n -  1aiss' e z - f a i r e c a p i t a l i s t i c during  there  w h e t h e r i t be c a p i t a l i s m , s o c i a l i s m , communism,  o r some o t h e r izational  goals,  w h i c h p o r t s and p o r t a u t h o r i t i e s a r e s u b j e c t  For i n s t a n c e , the pervasiveness  philosophy,  ports.  philosophy  p a r t of t h e t w e n t i e t h  the e a r l i e r  The d o m i n a n c e o f i n the United  h a l f of the nineteenth century,  d e p e n d e n c e on p r i v a t e c o r p o r a t i o n s for  r a t h e r than  d e s i r a b l e ones.12 Beyond b a s i c a l l y  are  policies  century  and t h e  l e d t o a much  (especially  development of American p o r t s  States  stronger  railroads), than  elsewhere.  During the l a s t h a l f of the nineteenth c e n t u r y , the r a i l r o a d s were t h e d o m i n a n t f a c t o r s i n d e v e l o p i n g t h e c o m m e r c i a l w a t e r f r o n t a t most o f t h e i m p o r t a n t s e a p o r t s . . . .13 However, t h e n a t u r e process  of port  of the port o p e r a t i o n  and t h e  d e v e l o p m e n t were s u c h t h a t t h e p r i v a t e  c o r p o r a t i o n was more o r l e s s e c l i p s e d by d i f f e r e n t public  a u t h o r i t y i n the United  States.I  forms o f  4  l ^ T h e r e a d e r i s a l s o u r g e d t o r e a d " P o r t E c o n o m i c s " by F l e r e ( i n t h e B i b l i o g r a p h y ) , t o o b t a i n an u n d e r s t a n d i n g o f p o r t p o l i c i e s as t h e y a r e c r i t i c i s e d and e v a l u a t e d t h r o u g h economic t h e o r y . M a r v m L. F a i r , P o r t A d m i n i s t r a t i o n i n t h e U n i t e d S t a t e s ( C a m b r i d g e , M a r y l a n d : C o r n e l l M a r i t i m e P r e s s , 1 9 5 4 ) , p. 4 2 . J  l 4 F a i r ' s s u r v e y , i n 1954, o f t h e t y p e s o f p o r t a d m i n i s t r a t i o n i n the U n i t e d S t a t e s r e v e a l e d t h a t p r i v a t e c o r p o r a t i o n s accounted f o r only 3 per cent of U n i t e d S t a t e s  port  The  i n f l u e n c e of the "isms"  the w o r l d  by v e r y  countries.  i s f u r t h e r demonstrated  c e n t r a l i z e d control of ports  or c o o r d i n a t i o n establishment  f o r r e g u l a t i o n of port  of a N a t i o n a l  Port Council  of Canadian p o r t s  premises underlying  the establishment  competition  investments.  The  in Britain of port  l e s s r e l i a n c e on t h e f o r c e s o f c o m p e t i t i o n .  more c o o r d i n a t i o n  i s t h e degree  p u t on e i t h e r  r e s u l t o f a d e s i r e f o r more c o o r d i n a t i o n and  i n many  S i m i l a r to the i n f l u e n c e of "isms"  of dependence d i f f e r e n t c o u n t r i e s  around  was t h e  investment Moreover,  was one o f t h e b a s i c of the National  Harbours  Board. B e f o r e t h e N a t i o n a l H a r b o u r s B o a r d was e s t a b l i s h e d , t h e r e was e v i d e n c e o f c o m p e t i t i o n between some o f t h e h a r b o u r s . . . . One o f t h e p u r p o s e s f o r w h i c h t h e b o a r d was e s t a b l i s h e d was t o a v o i d c o m p e t i t i o n between Canadianports.15 Robinson's t h e s i s revealed of many o f t h e p o r t s R o b i n s o n went f r o m  the great  of Southern B r i t i s h  interdependency  Columbia.^  there, to point out probable e f f e c t s of  a u t h o r i t i e s he s u r v e y e d (61 a u t h o r i t i e s s u r v e y e d - - t w o o f w h i c h a r e p r i v a t e ) . M o r e o v e r , one o f t h e two p r i v a t e p o r t s has had i t s m a j o r i t y i n t e r e s t bought o u t by t h e c i t y i n which i t i s l o c a t e d . Source: M. L. F a i r , P o r t A d m i n i s t r a t i o n i n t h e U n i t e d S t a t e s , pp. 6 1 , and 7 0 - 7 1 . A s h l e y S m a i l s , C a n a d i a n Crown C o r p o r a t i o n s M a c M i l l a n Co. o f Canada L t d . , 1 9 6 5 ) , p. 221 . 1 5  (Toronto:  ^ Ross Robinson, S p a t i a l Patterns of P o r t - l i n k e d Flows, unpublished d o c t o r a l d i s s e r t a t i o n , U n i v e r s i t y of B r i t i s h C o l u m b i a , 1967. 6  19 non-coordinated  investment a c t i v i t y  i n these ports  future  development. Social Just  and m o r a l  goals  treatment of users  legislation  preventing  differentials,  from  being  widely  or openly  are often  required  port  away f r o m  the f r e i g h t p i e r , "  the  - provide  is difficult  inclined  missions  to give  due  consider The  recommended t h a t t h e  to increase  berth,  safety  J u s t what w e i g h t was g i v e n t o to s a y , but t h e  t o c a l c u l a t e t h e economic v a l u e  various  practiced.  "a s e p a r a t e t a n k e r  i n order  w e l l as expand c a p a c i t y . ^  failure the  Corinto  safety aspect  policy.  behind  as e f f i c i e n c y .  Bank's s t u d y o f N i c a r a g u a  principal  as  i n port  r a t e d i s c r i m i n a t i o n n o t based on c o s t  t o s a f e t y o f t r a n s p o r t , as w e l l  International  evident  i s an a t t i t u d e w h i c h l i e s  Moreover, o r g a n i z a t i o n s ation  are also  mission's  o f such a p r o j e c t , as  f r o m t h e I n t e r n a t i o n a l Bank were u s u a l l y  t o d o , would  leave  the impression  s a f e t y was an i m p o r t a n t c o n s i d e r a t i o n  that  i n that  increased  investment  proposal. Transportation system o p t i m i z a t i o n theory.1^  This  theory rather  means t h a t  has r e c e n t l y been i n v o l v e d i n than sub-system there  optimization  has been some s h i f t t o  17The I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and D e v e l o p m e n t , The E c o n o m i c D e v e l o p m e n t o f N i c a r a g u a ( B a l t i m o r e : John H o p k i n s P r e s s , 1 9 5 5 ) , p. TZ. ^ i n a t t e n t i o n t o t h e t o t a l s y s t e m i n an a t t e m p t t o m a x i m i z e a s u b - s y s t e m , has r e c e n t l y r e s u l t e d i n t h e P h y s i c a l D i s t r i b u t i o n Theory. T h i s t y p e o f a n a l y s i s may r e v e a l t o a company t h e a d v a n t a g e o f u s i n g , f o r e x a m p l e , h i g h e r c o s t  20 inter-mode c o o r d i n a t i o n Canada, the r e c e n t up  of operations  National  Transportation  the Canadian T r a n s p o r t a t i o n  all  and i n v e s t m e n t .  Act (1967), s e t  Commission.  This  means  t h e modes o f t r a n s p o r t a r e now u n d e r one common  ation. will  be t h e c o o r d i n a t i o n  of inter-modal  a f f e c t i n g the port  and  rail,  and  passenger),  transport  i s usually that  and c o a s t a l s h i p p i n g ,  competition  between  and l i n e r  p o r t s , to the a i r l i n e s  and a i r p o r t s .  the  e f f e c t s o f t h e g r o w t h of a i r u s a g e on t r a n s p o r t Great B r i t a i n .  (Table  t h e f o l l o w i n g t a b l e t o show  I , next  cross-elasticities  of investment  The main i m p l i c a t i o n o f t h e t r e n d  to t o t a l  on  services, coordinsystem  i s t h a t s o m e t i m e s p o r t a u t h o r i t i e s may have t o  otherwise  unattractive)  information  o f demand f o r t h e s e c o m p e t i t i v e  which they would use t o a i d p o l i c i e s  optimization  by s e a ,  page).  A s i n g l e a u t h o r i t y may w i s h t o g a t h e r  the t o t a l  (freight  has been t h e l o s s o f p a s s e n g e r s e r v i c i n g by  Rochdale Report presented  of  road  The e f f e c t s o f such  The  forego  organiz-  competition.  or between a i r l i n e s  and o v e r s e a s s h i p p i n g .  passenger ships  ation.  that  One o f t h e most p r o b a b l e e f f e c t s o f t h e c o m m i s s i o n  Competition  in  In  attractive  ( o r t o make  investment, i n order system.  (Refer  otherwise  t o maximize the w e l f a r e  to footnote  No. 1 8 ) .  t r a n s p o r t a t i o n s u c h as a i r f r e i g h t , r a t h e r t h a n s a y , r a i l f r e i g h t , b e c a u s e o f t h e i m p l i c a t i o n s a i r f r e i g h t has t o t h e need f o r w a r e h o u s i n g . In t h i s e x a m p l e , t h e t o t a l storage and f r e i g h t b i l l m i g h t be c h e a p e r u n d e r a i r f r e i g h t , even t h o u g h t h e f r e i g h t b i l l ( h e r e t h e s u b - s y s t e m ) i s , by i t s e l f , more e x p e n s i v e .  21  TABLE I GROWTH OF AIR AND SEA TRAVEL AND TRANSPORT BETWEEN THE UNITED KINGDOM AND ABROAD 1938  1948  1960  1961  Air  179  918  5,945  7,017  Sea  4,716  3,722  6,826  7,063  22  256  292  66,000  90,000  85,000  Passengers c a r r i e d (thousands)  Goods c a r r i e d (thousands tons) Air Sea  102,000  Source: Board of T r a d e , M i n i s t r y E s t i m a t e s by M i n i s t r y o f T r a n s p o r t . * * R o c h d a l e , op. c i t . , p. 18.  of A v i a t i o n ,  The  policy  attempting  to d e c a s u a l i z e the labour  of many p o r t s i n C a n a d a , t h e U n i t e d  Kingdom, and t h e U n i t e d  S t a t e s , s p r i n g s as much o r more f r o m h u m a n i t a r i a n reasoning the  as f r o m e c o n o m i c l o g i c .  ideal  pool  the ideas they  content  i s t h a t both  was made by  concluded  that  s i d e s [ l a b o u r and management] s h o u l d the labour  force  and happy."  efficiency  policy  a l s o p o s s i b l y a t odds w i t h  i s t h a t of changing  content  to a n a t i o n a l one.  popular  w i t h some A f r i c a n  and  "The R e p o r t "  have f o r k e e p i n g  Another labour  rule.  Britain  into  by t h e H o n o u r a b l e Mr. J u s t i c e D e v l i n ,  (known as t h e D e v l i n e n q u i r y ) . "the  (or social)  I n 1 9 5 6 , an e n q u i r y  l a b o u r u n r e s t on t h e d o c k s i n G r e a t  a c o m m i s s i o n headed  forces  In E a s t A f r i c a ,  t h e l a b o u r f o r c e from a f o r e i g n  This  i s a p o l i c y w h i c h has been  n a t i o n s , h e r e t o f o r e under  f o r i n s t a n c e , the East A f r i c a n  H a r b o r s A u t h o r i t y has i n s t i t u t e d  ation."  T h i s , they  European  have b r i e f l y  Rail  a program o f " a f r i c a n i z -  outlined  in their  annual  s t a t e m e n t s . ^0 P o r t g o a l s may be j u s t political for over  goals  the e x t e n t i o n of a country's  i n some c a s e s .  r e c o g n i t i o n o f Benghazi;,  The I n t e r n a t i o n a l  Libya's  and above e c o n o m i c e f f i c i e n c y .  second Benghazi  Bank a r g u e d  p o r t , f o r reasons i s located i n a  ^ A . H. Brown, Dove and T o o t h , P o r t O p e r a t i o n and A d m i n i s t r a t i o n ( L o n d o n : Chapman & HaTT L t d . , 1 9 6 0 ) , p. 268. ^ East African 1965 and 1966. u  Rail  and H a r b o r s ,  Annual  Statements,  separate existence  province  from T r i p o l i  of p r o v i n c i a l i s t  of c o n c e n t r a t e d  unsound  on T r i p o l i , action.  plan of almost u n i l a t e r a l  w i t h a p l a n f o r some d e v e l o p m e n t  ignoring  Therefore, the  Bank recommended m i t i g a t i n g t h e more  favorable  p o r t ) , and t h e  p a t r i o t i s m , w o u l d make a program  p o r t development  Benghazi, a p o l i t i c a l l y World  ( L i b y a ' s major  economically  development  of T r i p o l i ,  of Benghazi.  The m i s s i o n has been aware o f t h e k e e n e s s o f t h e C i r e n a i c a n Government t o d e v e l o p t h e f a c i l i t i e s o f t h e p o r t ( B e n g h a z i ) . . . . The f a c t t h a t B e n g h a z i i s one of t h e c a p i t a l s o f L i b y a , and a l s o t h e c a p i t a l o f C i r e n a i c a , . . . the mission i s s a t i s f i e d nevertheless t h a t some i m p r o v e m e n t s t o t h e e x i s t i n g h a r b o u r a r e needed.21 M o r e o v e r , a e s t h e t i c g o a l s , s u c h as u r b a n b e a u t i f i c a t i o n , or s h o u l d  play a part i n port p o l i c y .  Vancouver, f o r i n s t a n c e , there port development  i s much c o n s t e r n a t i o n  over  to consider the  city.22  What i s more, t h e r e world,  In t h e p o r t o f  schemes w h i c h have f a i l e d  beauty of Vancouver  may  i s a l s o a c t i v e i n many p o r t s o f t h e  t h e d e s i r e f o r g r o w t h much a k i n t o t h e n a t i o n a l  d e s i r e f o r gross  n a t i o n a l product growth.  International  " B i g g e r and  Bank, L i b y a , pp. 240 and 2 4 2 .  2^in a r e c e n t p o r t seminar ( t h e F o u r t h Annual M e e t i n g of t h e C a n a d i a n T r a n s p o r t a t i o n R e s e a r c h Forum, May 2, 1 9 6 8 ) , Dr. H a r d w i c k , head o f t h e G e o g r a p h y D e p a r t m e n t a t t h e U n i v e r s i t y o f B r i t i s h C o l u m b i a , s t a t e d t h a t t h e r e were many c o n c e r n e d c i t i z e n s o f V a n c o u v e r , h i m s e l f among them, who were d i s m a y e d a t t h e P o r t A u t h o r i t y i n V a n c o u v e r H a r b o u r developing the w a t e r f r o n t without c o n s i d e r a t i o n of the urban beauty of Vancouver. He r e f e r r e d s p e c i f i c a l l y t o l a n d r e c l a m a t i o n , and new b u l k l o a d i n g f a c i l i t i e s i n t h e h a r b o u r .  24 better" for  p o r t s may e i t h e r s p r i n g f r o m p o l i t i c a l  desires  a g g r a n d i z e m e n t , o r as G a l b r a i t h a r g u e s , t h i s  g r o w t h may have an i n t e r n a l Industrial running  source.  He a r g u e s  S t a t e , that the t e c h n o s t r u c t u r e ,  the c o r p o r a t i o n  growth goal  ( i n this  i n . t h e i r own b e s t  case,  desire for  i n The New  the s p e c i a l i s t s  the p o r t ) , f o l l o w the  interests.  T h i s g o a l ( g r o w t h ) a l s o commends i t s e l f s t r o n g l y t o the s e l f - i n t e r e s t of the t e c h n o s t r u c t u r e . Expansion of o u t p u t means e x p a n s i o n o f t h e t e c h n o s t r u c t u r e itself. Such e x p a n s i o n , i n t u r n , means more j o b s , w i t h more r e s p o n s i b i l i t y , and hence more p r o m o t i o n and compensation.23 Therefore, goals  i t c a n be seen t h a t t h e r e a r e a g r e a t  and p o l i c i e s ,  framing  t h a t they  official  and i n f o r m a l , a t work  the d i f f e r e n t decisions i n the port.  most c h a r a c t e r i s t i c is  both f o r m a l  attribute  are contained  of the National  number o f  of these  Probably,  g o a l s , and  policies  i n no s i n g l e d o c u m e n t .  Harbours Board  An  t o l d me t h a t t h e  f a c t Canada d i d n o t have a c o m p l e t e and u n i f i e d  port  was a b i g i m p e d i m e n t i n c a r r y i n g o u t p o r t r e s e a r c h . in  effect,  that this  forced  upon t h e i r own c o n c e p t i o n s  the  the researchers  to f a l l  policy He  said,  back  o f what was good o r bad p o r t  policy. At  the present  administration  being  port administrators are  sure  time,  there  prepared i n Ottawa.  i s a white  p a p e r on p o r t  by a c o m m i t t e e o f Objectives  t o be one p r o b l e m on w h i c h t h e y  J . K. G a l b r a i t h , The New I n d u s t r i a l H o u g h t o n M i f f l i n Co., 1 9 6 7 ) , p. 171 .  experienced  of port  will  policy  have t o make  State  (Boston:  25 decisions. In some o f t h e m a t u r e n a t i o n s which of  possess a formal  some a i d i n g u i d i n g  B r i t a i n , and t h e U n i t e d overall the  transportation  transportation the port States, policy.  efficient  world  p o l i c y , i t w o u l d be  sector's  policies.  Canada,  a l l have s t a t e m e n t s o f A l l three  urgency of a t r a n s p o r t a t i o n  a l t h o u g h above a l l ,  i n t h e Western  countries  system, safe  stress  and a d e q u a t e ,  and e c o n o m i c a l .  I t i s h e r e b y d e c l a r e d t h a t an e c o n o m i c and e f f i c i e n t t r a n s p o r t a t i o n s y s t e m making t h e b e s t u s e o f a l l a v a i l a b l e modes o f t r a n s p o r t a t i o n a t t h e l o w e s t t o t a l c o s t i s e s s e n t i a l t o t h e e c o n o m i c w e l l - b e i n g and g r o w t h o f Canada.24 The of f r e e has  United  enterprise  favored  stricter  States  regulation  t h a n does G r e a t B r i t a i n .  ^National  of investment  States.  r o a d between U n i t e d  pm  on t h e f u n c t i o n i n g Great  Britain  some n a t i o n a l i z a t i o n o f t r a n s p o r t a t i o n , and  than the United  1 967,  p u t s more s t r e s s  (although  not of r a t e s ) ,  Canada a p p e a r s t o f a v o r  States  and B r i t i s h  Transportation' Act,  the middle  policies.  Queen's P r i n t e r , O t t a w a ,  CHAPTER I I I MATURE OF PORT OPERATIONS Chapter  Contents  The c e n t r a l p u r p o s e o f t h i s the  nature  of p o r t o p e r a t i o n s .  of a l l , w i t h : various  the various  i n the p o r t s .  whom s h o u l d  This  deals,  first  of p o r t s ; the  a t p o r t s ; and t h e t r a d e  Secondly, there  be p e r f o r m i n g  i s to o u t l i n e  chapter  classifications  f u n c t i o n s performed  interest  chapter  various  the c o o r d i n a t i o n of d i f f e r e n t  i s a d i s c u s s i o n of  port f u n c t i o n s .  Finally,  i n t e r e s t s i n the port i s  discussed. Some G e n e r a l  Factors 11,  The s i z e , are  A f f e c t i n a Port  the topology,  and t h e p r o d u c t s  the t h r e e main d e t e r m i n a n t s  performed function ology)  i n a port. or f u n c t i o n s  Functions  i  i  o f t h e f u n c t i o n s t o be  More o r l e s s ,  however, the b a s i c  (when d e s c r i b e d  a r e t h e same, or a t l e a s t  of a p o r t  i n broad  termin-  similar, f o r a l l ports.  The p r i m a r y p u r p o s e of a p o r t i n any p a r t of t h e w o r l d i s t o p r o v i d e t e r m i n a l f a c i l i t i e s and s e r v i c e s for shipping. The term ' t e r m i n a l f a c i l i t i e s and s e r v i c e s ' may embrace many f u n c t i o n s , t h e number d e p e n d i n g m a i n l y on t h e g e o g r a p h i c a l p o s i t i o n of t h e p o r t , i t s s i z e and i m p o r t a n c e , and t h e t y p e o f t r a d e for which i t c a t e r s . 1  'A. H. J . Brown, Dove and T o o t h , P o r t O p e r a t i o n Admi n i 1960), _ _ s t r a t i on ( L o n d o n : Chapman & Ha 11 L t d . ,  and  Increasing size  of o t h e r  operations few  men  their  a port's  s i z e , not  corporations,  causes the  to m u l t i p l y t o t h e  are own  necessitates  an  structure.^  With the  The  organization  operations  n a t u r e and one  of  complexities  run  the of  man,  this  port  even a only  techno-  superstructure  functions  and  operations,  increasing  a n o t h e r , and , what i s m o r e , t h e  or  operations  of c o o r d i n a t i n g  themselves, with  the  of  port with  specialists--a  emergence o f  r e l a t i o n s h i p of  increasing  where one  complexity  the m u l t i p l y i n g c o m p l e x i t i e s i n the  point  unable to p r o f i c i e n t l y  experience.  unlike  size,  then  and the  change v i s a v i s  functions  themselves  may  even change.** The of  the  port  functions by  their  lake  second f a c t o r , the s e t t i n g — the  to be natural  a port.  For  are  river  sometimes  vary  instance,  with  river way  the  and  natural  river  The  ports,  provision  ports,  than other  by  2 j . K. G a l b r a i t h , The New I n d u s t r i a l S t a t e (Boston: Houghton M i f f l i n Company^ 1 9 6 7 ) . A d e f i n i t i o n o f t h e t e c h n o s t r u c t u r e a p p e a r s on p. 71. functions  performed  and  types  ports.  •^For i n s t a n c e , t h e s p e c i a l i zed.  of  c h a r a c t e r i s t i c s of  estuary  of d r e d g i n g  the  classified  ports, estuary  ( a l s o deepsea) p o r t s .  l a r g e , r e q u i r e more i n the of  Ports  s e t t i n g as:  s e r v i c e s may  characteristics  harbour--mod i f y o r change  performed.  p o r t s , or ocean  certain  topographical  become more  The also  third  reflect  factoi—products  on t h e s e r v i c e s  extent of passenger t e r m i n a l s and t h a n would according general  require  backdrop  ports,  b u l k c a r g o p o r t s , o i l p o r t s , o r as a i t e m s make up  the  trade).  alter  There  passenger  classified  passenger  p o r t ( i . e . when a few  structure with  the  pleasing  specialist port's  port-  special  Sometimes, p o r t s are  type of t r a d e , as:  ports,  Moreover,  a more a e s t h e t i c a l l y  general cargo.  cargo  provided.  services will  perhaps  to t h e i r  shipped through a  The  p o r t may  the bulk of  in i t s physical  the type of p r o d u c t s s h i p p e d t h r o u g h i t .  is a distinct  l i n e of thought today t h a t  says,  T h a t t h e p o r t must be b u i l t , o r t h e e x i s t i n g p o r t i m p r o v e d , t o t a k e t h e s h i p t h a t has been d e s i g n e d to do t h e j o b . 4 Port Functions When a s h i p e n t e r s a h a r b o u r s h e l t e r or calm w a t e r . filled  In some p l a c e s t h i s  by n a t u r e ( i . e . t h e c a s e o f n a t u r a l  harbour). required  In o t h e r p l a c e s , b r e a k w a t e r s and to p r o t e c t  the harbour from  Then t h e s h i p a l s o sufficient the  depth  harbour.  requisite  (New  its first  function  has  harbours  -  jetties  been  Vancouver  have been  seas.  r e q u i r e s an e n t r a n c e c h a n n e l  to a l l o w f o r i t s s a f e passage  Dredging  depths  rough  requirement i s  into  of  and  about  u s u a l l y must be done t o p r o v i d e t h e  i n the r i g h t  p l a c e s on  ^R. B. Oram, C a r g o H a n d l i n g and Y o r k : Pergamon P r e s s , 1 9 6 5 ) , pT  the harbour  t h e Modern P o r t 133. "  floor.  29 In most p o r t s , w h e t h e r t h e y a r e s i t u a t e d r i g h t on t h e sea b o a r d , e . g . A l e x a n d r i a and S u n d e r l a n d ; o r w i t h i n e a s y r e a c h o f t h e s e a , e . g . M i d d l e s b r o u g h ; o r a l o n g way up a r i v e r e s t u a r y , e . g . London o r C a l c u t t a , d r e d g i n g i s necessary to m a i n t a i n the r e q u i r e d depth i n the approach c h a n n e l , e i t h e r because of s h o a l i n g o r s i l t i n g , or b e c a u s e t h e d r a u g h t o f v e s s e l s u s i n g t h e p o r t have i n c r e a s e d . . . .5 Then t h e p o r t must p r o v i d e such houses, and  fog s i g n a l s ,  r a d a r , s h i p - t o - s h o r e r a d i o , and buoys  b e a c o n s " t o mark d r e d g e d  perils."k pilots.  provide the services  have t o be examined on t h e i r  of the harbour f l o o r , harbour  c h a n n e l s and u n d e r w a t e r  The p o r t must a l s o The p i l o t s  s a f e t y f e a t u r e s as l i g h t -  and c e r t i f i e d  authority.  s h i p s about than If  knowledge  a c c e p t a b l e by t h e  Tugs and towage s e r v i c e s a r e r e q u i r e d  less  of h a r b o u r  t o move  large  i n t h e h a r b o u r when t h e i r own m a n o e u v e r a b i 1 i t y i s adequate.  the port i s a l i g h t e r a g e  p o r t not having  facilities  f o r s h i p s , then l i g h t e r s  goods f r o m  ship to shore.  In t h i s  berthing  a r e needed t o move t h e c a s e , t h e s h i p may f i n d i t  n e c e s s a r y t o have i t s own h o i s t s and c r a n e s f o r u n l o a d i n g . Where t h e s h i p  i s a b l e t o be b e r t h e d a l o n g s i d e a q u a y , t h e n  shore-based  cranes are u s u a l l y  suitability  t o work on t h e q u a y , o r b e c a u s e  specify  5  used  because  of t h e i r  s i z e or  quay owners may  nonuse o f s h i p b o a r d c r a n e s .  A . J . Brown, op. c i t . ,  p. 6 1 .  ^W. A. F l e r e , P o r t E c o n o m i c s ( L o n d o n : Dock and H a r b o u r A u t h o r i t y ( F o x l o w P u b l i c a t i o n s L t d . ) , 1 9 6 7 ) , p. 10.  30 They [ q u a y c r a n e s ] a r e e x p e n s i v e i t e m s . . . and i n c o n s e q u e n c e i t i s a common p r a c t i c e among quay owners [ i n most o f t h e w o r l d ' s p o r t s ] t o r e q u i r e t h a t s h i p s s h a l l u s e and pay h i r e f o r quay c r a n e s r a t h e r t h a n u s e t h e i r own g e a r and l e t t h e c r a n e s s t a n d i d l e . 7 Lighterage  i s g e n e r a l l y regarded  peacetime, "mainly c o s t and r i s k of e x p o r t million found  because of t h e e x t r a  involved."^  c a r g o moving  tons  as u n e c o n o m i c a l i n  the port  overside  using  lifts).  Fair  from c r a f t . ^  l i g h t e r a g e s e r v i c e s (except  which w i l l  should  be r e g a r d e d  as "a s p e c i a l  Labour i s r e q u i r e d  t o perform  function  i s needed t o s t o r e g o o d s , p r i o r  7  Ibid.,  8  B r o w n , op. c i t . , p. 57.  operations  t h e use of l i g h t e r a g e  the stevedoring  o f l o a d i n g and u n l o a d i n g  of cargo from s h i p s .  plan the  case."^  function  discharge  i n t h e c a s e o f heavy  make such  [ l i g h t e r a g e ] unnecessary," or a t l e a s t ,  In 1 9 5 4 , F a i r  i n the United  recommended t h a t " p o r t [ s ] s h o u l d  development of f a c i l i t i e s  tons  o f L o n d o n , 1 1/4  t h a t New Y o r k was t h e o n l y m a j o r p o r t  States  and a d d i t i o n a l  Even s o , o f t h e f o u r m i l l i o n  through  were l o a d e d  handling  ships.  A l s o , a warehousing to loading  or a f t e r  N e x t , i n b o u n d c a r g o must move  p. 27.  N a t i o n a l P o r t s C o u n c i l , P o r t D e v e l o p m e n t , An I n t e r i m ( L o n d o n : 1 9 6 5 ) , p. 3 6 .  9  Plan  1°M. L. F a i r , P o r t A d m i n i s t r a t i o n i n t h e U n i t e d S t a t e s Cambridge, Maryland! C o r n e l l Maritime Press, 1954), p. 1 0 8 .  31 from warehouse t o t r u c k (coastal to  vessel  i t s place  o r an o c e a n - g o i n g  or perhaps  to another  s h i p ) , ^ and f r o m  ship  thence  of d e s t i n a t i o n .  Some p o r t s f r o m one l e v e l allows  or t r a i n ,  require  of water  the port  lock  systems  so as t o move  to another l e v e l .  to maintain  ships  The u s e o f l o c k s  a s t a b l e depth of water,  despite  tides. Policing required  and f i r e  at ports.  at the port. to m i t i g a t e  protection functions  Besides,  Bonding  t h e customs  and f r e e p o r t s  the effect  of customs  are also  function  are functions  (in c e r t a i n  i s performed existing  circumstances^,  on goods i n t h e p o r t . Ports repairing  are often  companies.  t h e home o f s h i p b u i l d e r s and s h i p Hence, t h e r e q u i r e m e n t f o r d r y - d o c k i n g  facilities. The and  above a r e t h e m a j o r i t y  s e r v i c e s which  services, setting  need  accounting  t o be p r o v i d e d  such as p r o v i s i o n i n g  and c o l l e c t i n g  port  information,  of t h e major  facilities  i n a port.  the ships  with  fuel  Other and s t o r e s ,  c h a r g e s , k e e p i n g s t a t i s t i c s and  planning  traffic,  making  are  very  important functions  so,  the l i s t  port  development,  promoting  r u l e s and r e g u l a t i o n s , and a s s i g n i n g  is still  only  t o be f u l f i l l e d  partially  at ports.  berths, Even  complete.  ''Some p o r t s s u c h as L o n d o n , a r e c a l l e d e n t r e p o t ports b e c a u s e c a r g o e s c o n g r e g a t e a t t h e s e p o r t s and t h e n a r e r e s h i p p e d elsewhere around the w o r l d .  Trade  Interests Fulfillment  o f many p o r t f u n c t i o n s  of  the p o r t a u t h o r i t y .  of  trade interests Commercial  i s the  responsibility  Even s o , t h e r e c a n be a l a r g e  involved  agencies  number  in a port.  include  principally:  Carriers Motor Truck A i r Lines Pipe Lines  Steamship Operators Barge O p e r a t o r s Ra i 1 r o a d s Storage Waterfront General Agenc i es Warehouses  Agencies  Storage  Grain Elevators F r e e - t r a d e Zones  S h i p p e r and S h i p p e r ' s  Freight  Cooperage  Handlers Grain Elevators  Loaders  and  O r e , C o a l , and o t h e r Bulk-handling Terminal Compani es  Firms Vessel  Steamship  Agents Customs B r o k e r s Export Agents  Shippers of F r e i g h t R e c e i v e r s of F r e i g h t  Stevedores Car and T r u c k Unloaders  Operators  Agents  Agents Steamship  Brokers  33  Vessel  Service  Agencies  Towage F i r m s Vessel Stores Suppliers Fuel S u p p l i e r s  Repair Yards Dry Dock F i r m s S u p p l i e r s o f Water and Power  Financial  Institutions Insurance  Banks  Firms  Indu s t r y Waterfront  Business  SOURCE:  F a i r , op. c i t . ,  Port Functions--Who Should The vary  Export S u b s i d i a r i e s of W a r e h o u s i n g and processing firms  Firms  pp. 11-12.  P e r f o r m Them?  a u t h o r i t y and r e s p o n s i b i l i t i e s  i n extent  from p o r t to p o r t .  of p o r t a u t h o r i t i e s  I n some p o r t s , t h e p o r t  a u t h o r i t y may be r e s p o n s i b l e f o r t h e p l a n n i n g , c o n s t r u c t i o n , and  maintenance of a l l f i x e d  operator  of bulk  facilities,  and a l s o be t h e  t e r m i n a l s and w a r e h o u s e s , a n d , what i s more,  perform a l l the stevedoring  f u n c t i o n , as w e l l as most o f t h e  other  A l l i n a l l , such an a u t h o r i t y  important  functions.  may be c o n s c i o u s l y a t t e m p t i n g interests  i n t h e p o r t ; p e r h a p s even t o h a v i n g  nationalized. functions  t o reduce t h e scope o f o t h e r  A n o t h e r p o r t may w i s h  as p o s s i b l e .  the port  t o p e r f o r m as few  The a r g u m e n t as t o who s h o u l d  w h i c h f u n c t i o n i s an o l d o n e .  perform  34 T h e r e i s p r o b a b l y no a s p e c t o f p o r t management where t h e r e i s more d i s a g r e e m e n t i n p r i n c i p l e t h a n i n t h e a l l o c a t i o n o f t h e s e d u t i e s . [The v a r i o u s d a i l y o p e r a t i n g f u n c t i o n s ] . 12 The  stated policy  o f t h e N a t i o n a l Harbours Board o f  Canada i s : To p r o v i d e t h e n e c e s s a r y m a j o r f a c i l i t i e s f o r p u b l i c use, but t o r e f r a i n from p e r f o r m i n g c e r t a i n s e r v i c e s t h a t c a n be p r o v i d e d a d e q u a t e l y by p r i v a t e i n t e r e s t s . 1 3 The  N a t i o n a l H a r b o u r s B o a r d would  the  q u e s t i o n as t o whom s h o u l d  functions  i s a matter  Harbours Board enterprise  philosophy  certain  different Therefore,  which corresponds  different  a safe approach channel, groups,  that  port the National free  to the o v e r - r i d i n g  philosophy. have s e e n f i t t o a r g u e as t o whom  functions.  p o r t f u n c t i o n s , such  interests  perform  of p h i l o s o p h y .  Different authorities perform  apparently feel  has seen f i t t o embrace a m o d i f i e d  Canadian p o l i t i c a l  should  then  I t would  seem  that  as t h e p r o v i s i o n o f l i g h t h o u s e s ,  and t h e c o o r d i n a t i o n o f d i v e r g e n t  by and l a r g e , f a l l  to the port a u t h o r i t y .  [ D r e d g i n g ] . . . i s t h e main p r e o c c u p a t i o n o f a p o r t authority. When [ d r e d g i n g ] t h i s d u t y has been e i t h e r i n many, o r i n a d e q u a t e h a n d s , . . . t h e r e i s t h e r e a l d a n g e r o f t h e p o r t s i l t i n g up.14  l ^ O r a m , o p . c i t . , p. 1 0 . ^ N a t i o n a l H a r b o u r s B o a r d , N.H.B., ( i s s u e d by t h e T r a f f i c D e v e l o p m e n t B r a n c h , F e b . 1 9 6 7 ) , p. 4. 1 4 ram, 0  op. c i t . , p. 4.  This  quotation  being  r e v e a l s the a u t h o r ' s  preference  a port a u t h o r i t y ' s f u n c t i o n .  concurred  on  this  p o i n t , by  The  for  dredging,  Rochdale Committee  recommending  that:  a) p o r t a u t h o r i t y , c o n s e r v a n c y , and p i l o t a g e f u n c t i o n s s h o u l d , w h e r e v e r p r a c t i c a b l e , be c o m b i n e d i n s i n g l e authorities. On the  the m a t t e r  of c o o r d i n a t i o n of d i v e r g e n t  interests,  R o c h d a l e C o m m i t t e e recommended t h a t t h i s a l s o be  responsibility  of the  the  port a u t h o r i t y .  e) p o r t a u t h o r i t i e s s h o u l d c o n s i d e r how c l o s e r c o - o p e r a t i o n and l i a i s o n between a l l o r g a n i z a t i o n s c o n c e r n e d i n p o r t o p e r a t i o n s may be s e c u r e d . 1 5 Other experts  have added t h e i r  conservancy under the Moreover, there as  left be  port a u t h o r i t y . ^  s t e v e d o r i n g , are  be  left  two  to the c o n t r a r y .  For  literature  to p r i v a t e e n t e r p r i s e .  f u n c t i o n s which are u s u a l l y  to p r i v a t e e n t e r p r i s e , although  found  6  i s some a g r e e m e n t i n t h e  to which f u n c t i o n s s h o u l d  Towage, and  consent to p l a c i n g  many e x c e p t i o n s  could  instance,  In t h e F r e e P o r t o f C o p e n h a g e n , t h e p o r t a u t h o r i t y a l s o c a r r i e s o u t a l l t h e s t e v e d o r i n g work; i t does the w a r e h o u s i n g and m a i n t a i n s a t r a n s p o r t s y s t e m . 1 7  l Rochdale, 5  op.  cit.,  p. 36.  (Underlining author's).  l ^ F l e r e , op. c i t . , i n P o r t E c o n o m i c s , h i n t e d a t p r o b l e m s t h a t m i g h t a r i s e i f c o n s e r v a n c y i s not p e r f o r m e d by t h e p o r t a u t h o r i t y , (p. 13). F u r t h e r m o r e , F a i r , op. c i t . , showed t h a t " d r e d g i n g o f s l i p s and a r e a s not m a i n t a i n e d by t h e C o r p s of E n g i n e e r s , " was a f u n c t i o n p e r f o r m e d by t h e m a j o r i t y of p o r t s i n t h e U n i t e d S t a t e s i n 1954, p. 50. Oram, op.  cit.,  p.  11.  36 The  National  does not  do  H a r b o u r s B o a r d of Canada i s one stevedoring.  a u t h o r i t y which.  In V a n c o u v e r :  U n l o a d i n g and h a n d l i n g t o or f r o m s h i p s s l i n g s a r e p e r f o r m e d by a p r i v a t e s t e v e d o r i n g company u n d e r c o n t r a c t to t h e B o a r d , and a c t u a l s t e v e d o r i n g i s done by p r i v a t e interests.18 The where t h e and  Rochdale Committee encountered p o r t a u t h o r i t y was  o t h e r s , where t h e  many.  The  ports  the major employer of  p o r t a u t h o r i t y was  one  c o n t r o l o f , "both the  a limited  private operators."  and  number o f  that their  d e c i s i o n was  labour,  e m p l o y e r , among  C o m m i t t e e recommended t h a t s t e v e d o r i n g  performed under the  stated  i n England  work  be  port a u t h o r i t y Moreover,  based on g e n e r a l  and  they  observations,  that: I t i s d i f f i c u l t , i f not i m p o s s i b l e , t o d e t e r m i n e what e x t e n t t h e e f f i c i e n c y o f p o r t s i s a f f e c t e d by p r a c t i c e [ d i f f e r e n t forms of a u t h o r i t y over s t e v e d o r i n g ] . 19 The  of t u g s  R o c h d a l e Committee r e c o g n i z e d  and  Upon t h i s  lighters  is usually left  s t a t e of c o n d i t i o n s , the  recommendations f o r  l^The N a t i o n a l l^Rochdale,  op.  t h a t "the  to  provision  to p r i v a t e e n t e r p r i s e . "  C o m m i t t e e made  no  change.^  Harbours Board--a paper--op. c i t . , c i t . , p.  p.  4.  35.  0 1 b i d . , p. 32. However, on page 92 o f the R e p o r t : "Whether t u g s a r e o p e r a t e d by p o r t a u t h o r i t i e s o r by p r i v a t e e n t e r p r i s e i s u s u a l l y a m a t t e r o f l o c a l c u s t o m and c o n v e n i e n c e . T h e r e may be some a d v a n t a g e t o h a v i n g a d e g r e e of c o m p e t i t i o n i n the l a r g e r p o r t s , but we a r e s u r e t h a t a l l p o r t a u t h o r i t i e s s h o u l d have t h e r i g h t t o o p e r a t e t h e i r own t u g s i f they wish t o . " 2  Despite of e v a l u a t i n g  the  R o c h d a l e s c e p t i c i s m on  d i f f e r e n t t y p e s of t e r m i n a l  management, w i t h  the  He  able  reported  to reach  C o m m i s s i o n w h i c h showed  United  the  best  a conclusion  s t u d i e s conducted  D e v e l o p m e n t s e c t i o n of t h e  possibility  operations'  i n t e n t of d e t e r m i n i n g  management, F a i r was point.  the  i n the  States  on  form  of  this  Port  Maritime  that:  Some o f t h e most e f f i c i e n t o p e r a t i o n s i n c a r g o h a n d l i n g were t o be f o u n d when [a s t e a m s h i p - o w n e d or leased terminal w i t h a s u f f i c i e n t number of s a i l i n g s to j u s t i f y a s t e v e d o r i n g d e p a r t m e n t ] . Another type of o p e r a t i o n are  very  efficient"  a s u b s i d i a r y o f an  i s an  handling  tobacco."  points  to s h i p s ' h o l d s  of  case, the  operation  p r e c i s i o n of an  . . control  [must be]  or  sugar,  terminal  were c o n s i d e r e d  In o r d e r  .  company  f l o w of goods f r o m  u n d e r most c i r c u m s t a n c e s . "to a p p r o a c h the  usually  such c a r g o as  In any  c o m p a n i e s w h i c h c o n t r o l each s t e p inland  be, and  "independent terminal  industry  c o t t o n , c o f f e e , and  w h i c h "can  f o r the  preferential terminal  assembly  c e n t r a l i z e d " over the  line  goods when  pi t h e y moved between i n l a n d c a r r i e r The  literature  whom s h o u l d  do  and  belt-line  run  the  the  and  i s more d i v i d e d  the on  ship.  the  question  warehousing, operate grain railroad.  These a r e  as  elevators,  three  functions  w h i c h u s u a l l y seem a m e n a b l e to e i t h e r t y p e o f c o n t r o l . more s o c i a l i s t i c Fair,  op.  nations c i t . , pp.  would  lean  154-155.  to  to p u t t i n g t h e s e  The  functions  38 under the c o n t r o l of the p o r t a u t h o r i t y , w h i l e capitalistic  would wish  to l e a v e  these  t h e more  services f o r private  companies to p e r f o r m . According operated  to F a i r , warehousing  but " p u b l i c ownership  sometimes d e s i r a b l e . . . .  should  be  of w a t e r f r o n t  He r e c o g n i z e d ,  privately  facilities is  however,  that  p o r t a u t h o r i t i e s a t L i v e r p o o l and L o n d o n , E n g l a n d , and Hamburg, Germany, among o t h e r s , have g i v e n to  w a r e h o u s i n g as a p o r t  usual  at United Fair's  study,  States  study  more a t t e n t i o n  [ a u t h o r i t y ' s ] f u n c t i o n than i s  ports."  2 2  showed a m i n o r i t y o f t h e U.S. p o r t s  owned and r e g u l a t e d  F l e r e , however, noted  or operated  i n the  public-belt railways. ^ 2  that "the governing  body o f a p o r t  o f t e n f u n c t i o n s as a p r i v a t e r a i l w a y company  . . . w i t h i n the  24  limits  of the port In g e n e r a l ,  construction operation For istic  t h e p o r t a u t h o r i t y has a b i a s  of f a c i l i t i e s ,  of f a c i l i t i e s  22  or the p r o v i s i o n of s e r v i c e s . port  operations  as  social-  t h e f o l l o w i n g a n a l y s i s m i g h t be  I f we o b s e r v e t h a t a p a r t i c u l a r  F  a i r , op. c i t . , p. 124. 1 b i d ., p. 54.  24  towards  and p r i v a t e f i r m s t o w a r d s t h e  purposes of c a t a l o g u i n g  or c a p i t a l i s t i c ,  employed.  2 3  estate."  F 1  e r e , op. c i t . , p. 12.  port a u t h o r i t y i s  39 involved  i n providing  enterprise, it  would  then  usually  i t m i g h t be r e g a r d e d  o f a p o r t may  continuum from to those f i l l e d  Normally  be p l a c e d ,  17.  Belt line railway. Warehousing, g r a i n  on a  authority,  Responsibility  Zone  elevators. Supplied  Towage. Bunkering, s t o r i n g , crewing, r e p a i r i n g . Dry-docking. L i g h t e r a g e and b a r g e o p e r a t i o n s . Motor t r u c k operations. Stevedoring.  l e a s e , and p r i v a t e  by  for simplicity,  C o o r d i n a t i o n of d i f f e r e n t i n t e r e s t groups. P l a n n i n g of p o r t f a c i l i t i e s . Dredging. P r o v i s i o n of l i g h t h o u s e s , buoys, r a d a r , e t c . P o l i c e and f i r e p r o t e c t i o n . O p e r a t i o n of l o c k s . R u l e s and r e g u l a t i o n s , c o l l e c t i o n o f s t a t i s t i c s . S u r v e y and sound h a r b o u r . Assign berths.  Moreover, the continuum c e n t r a l  functions  organization.  by t h e p o r t  Harbour A u t h o r i t i e s  Normally P r i v a t e l y 12. 13. 14. 15. 16.  for private  enterprise.  The Grey 10. 11.  system of  those normally f i l l e d by p r i v a t e  reserved  as s o c i a.l i s t i c ; • i f n o t ,  tend towards a c a p i t a l i s t i c  The f u n c t i o n s  1. 2. 3. 4. 5. 6. 7. 8. 9.  services  o w n e r s h i p may  ownership,  rent,  be u s e d t o i n d i c a t e  whether  are p r i v a t e l y c o n t r o l l e d , or c o n t r o l l e d c e n t r a l l y  the port  authority.  An e x p l a n a t i o n  as t o why some s e r v i c e s  are best  provided  by t h e c e n t r a l  d e c i s i o n makers, might the  services  private  be g i v e n  decentralized  i n terms of the n a t u r e of  provided--!'.e. a r e they p u b l i c  services?  lighthouse,  a u t h o r i t y , o t h e r s by  A public service  like  services or  the p r o v i s i o n of a  or t h e d r e d g i n g of a c h a n n e l , a r e such t h a t i t  is d i f f i c u l t  t o s a y how much d i f f e r e n t i n d i v i d u a l s o r f i r m s  benefit  them.  from  A private  s e r v i c e or a s t e v e d o r i n g certain are  shipowners  applied)  using  s e r v i c e , c a n be shown t o b e n e f i t  ( i . e . t h o s e on whose s h i p s  and n o t t o b e n e f i t o t h e r s .  c e r t a i n towage f i r m  Arguments along enterprise providing  s e r v i c e , such as a t o w i n g  may  this  ( i . e . t h o s e not  or not r e q u i r i n g  n o t be as e f f e c t i v e as a p u b l i c services.'  Also,  by t h e p o r t  t o be d e r i v e d  extent,  authority,  private  enterprise in  be used  t o show t h e  by h a v i n g  supplier combinations f o r d i f f e r e n t functions.  large  towage).  the t h e o r i e s of  o l i g o p o l y , and m o n o p o l y , may  a d v a n t a g e s and d i s a d v a n t a g e s  regulations  services  l i n e m i g h t be used t o show why  c e r t a i n port  competition,  services  these  certain  The use o f  h o w e v e r , can m i t i g a t e  the e f f e c t s of d i f f e r e n t o r g a n i z a t i o n a l  to a  arrange-  ments. Coordination  of D i f f e r e n t I n t e r e s t Groups i n P o r t  I t has been a r g u e d t h a t interests  among  there  i s a divergence of  d i f f e r e n t groups i n a port  the  shipowner's i n t e r e s t i s f a s t turnaround  can  be c a r r y i n g  community. so t h a t  Where  h i s ship  a p a y l o a d a t sea more o f t h e t i m e , t h e quay  41 owner's i n t e r e s t expensive  i s having  equipment.  maximum u t i l i z a t i o n  The s h i p o w n e r w o u l d  abundance of p o r t f a c i l i t i e s , The so  quay o w n e r , on t h e o t h e r  will  company, l i k e utilization  lines.  hand, would p r e f e r long  queues  t h a t h i s e q u i p m e n t and  be w o r k i n g a t maximum c a p a c i t y .  of h i s equipment.  cars  only  He w i l l  i f the marginal  wish  exceeds t h e i r marginal  o r no o p p o r t u n i t y  counted called  cost.  interests,  In t h i s  world  facilities,  with  c o s t , t h e p r i c e s y s t e m c a n n o t be  on t o a u t o m a t i c a l l y c o o r d i n a t e f o r i s an o u t s i d e  t o add more c a r s  revenue of the  o f m o n o p o l i e s , o l o g o p o l i e s , and g r e a t f i x e d little  The r a i l w a y  t h e quay owner, w i s h e s t o a l s o g e t maximum  or l o c o m o t i v e s additional  p r e f e r an  w i t h few o r no w a i t i n g  t h a t he c a n be q u i t e c o n f i d e n t  facilities  of h i s  operations.  What i s  power t o r e s o l v e d i f f e r e n c e s among  and t o make r e g u l a t i o n s t h a t a r e i n t h e g e n e r a l  i n t e r e s t of the port. It found  i s somewhat s u r p r i s i n g  t h e r e was a u n a n i m i t y  unanimous i n t e r e s t , turnaround, cites the  only  of i n t e r e s t  i n the port.  i t i s argued, i s i n favour  and t h e r e f o r e few q u e u e s .  The  o f speedy  The r e p o r t , h o w e v e r ,  t h e c a s e s o f t h e s h i p o w n e r s , t h e m e r c h a n t s , and  port a u t h o r i t y .  No r e a s o n  queues i s i n t h e i n t e r e s t The  t h a t t h e Rochdale Committee  economically  i s given  why a r e d u c t i o n i n  of the port a u t h o r i t y , though.  ideal  operation  R o c h d a l e , op. c i t . , p. 90.  ( a t any g i v e n  3  level of  o u t p u t ) i s one  w h i c h m i n i m i z e s the  system--to the  s h i p o w n e r s , the m e r c h a n t s , the  and  the  r a i l w a y s , et c e t e r a .  authority  with commercial  operation  and  complicate  regulation.  this  simplified  This  goals  may  total  i s the wish  c o s t of  quay  to reach may,  position.  port  owners,  position a  Other port goals economic  the  port  through however,  CHAPTER  IV  PORT ADMINISTRATION STRUCTURES This which  has  chapter  proposes to deal  been w r i t t e n on  s t r u c t u r e s , and  the  i s made of the  various  structural  allocated  different  p r o s and  mention  some o f  the  theory  f o r m s of p o r t a u t h o r i t y  cons of each f o r m .  trends  forms.  with  i n the  Some  i n c e p t i o n of  these  M o r e o v e r , some s p a c e i s  t o d i s c u s s i o n of the  need f o r a p o r t s y s t e m  super-  authority. P r i v a t e Company  Port  A sampling that only  three  administered the  have had  financing . biggest  per  by  individual  ports  of A m e r i c a n P o r t s cent  of U n i t e d  by F a i r States  p r i v a t e companies.  Closer  p o r t s c o n c e r n e d , showed s p e c i a l developmental  i n 1954, ports  revealed  were  examination  t h a t e a c h of  problems.  effective utilization  these  In f a c t ,  o f a p r i v a t e p o r t d e v e l o p m e n t seems t o be  drawback i n the  of  the  of t h i s  form  of p o r t a u t h o r i t y . A l a r g e c a r g o p o r t r e q u i r e s g r e a t sums of money t o c r e a t e , m a i n t a i n , o p e r a t e , and d e v e l o p , and normally p r i v a t e e n t e r p r i s e w o u l d not be a b l e , even i f w i l l i n g , t o p u t up t h e money.! By  itself,  Flere,  op.  this  cit.,  s t a t e m e n t seems u n r e a l i s t i c  p.  52.  the  because  44 many e x a m p l e s can been a b l e ments.  to put  be up  f o u n d where p r i v a t e e n t e r p r i s e large  However, the  sums of money f o r v a r i o u s  i n v e s t m e n t s w h i c h have drawn  of p r i v a t e c a p i t a l  are  are  to m a i n t a i n  therefore  able  government r e g u l a t i o n s  not  has  usually  invest-  l a r g e sums  public u t i l i t i e s ,  and  somewhat more d i s t a n t f r o m  than p u b l i c u t i l i t i e s  (also  ports)  can. For  this  last  r e a s o n , p r i v a t e e n t e r p r i s e would  unable to e x t r a c t the  profits  p o s i t i o n might confer  upon i t . F u r t h e r m o r e , p r i v a t e company  ports the  have to compete w i t h  latter,  they "are  governmental in  the  capital but  subject  States.  to t h e  on  p u b l i c subsidy  and  seaports,  i s t h a t they are shore land  development of  the  op.  a n t i - t r u s t laws"  Bonds can  be  the  issued, favourable obtain.  private enterprise not  ports  necessary  a u t h o r i t y might  operating  in a favourable  result,  springing  position  private enterprise's  c i t . , p.  69.  from  private  certain interests in own  I f the p o r t i s p r i v a t e l y owned . . . h i g h ( r e t u r n ) on t h e i r i n v e s t e d c a p i t a l  Fair,  normal  port.  ownership, i s a b i a s , favouring  2  Unlike  n e c e s s a r y f o r t h e most e c o n o m i c  a d d i t i o n a l negative  p o r t , n a m e l y , the  and  must make t h e  which a p u b l i c port  to a p p r o p r i a t e  An  r e g u l a t i o n of  u n l i k e l y to o b t a i n  A f u r t h e r d i s a d v a n t a g e of large  public ports.  labour  improvements from e a r n i n g s .  rates  i n a monopoly  What i s more, f r e e e n t e r p r i s e  p r i v a t e companies are  interest  non-profit  l a w s , i n c l u d i n g the  United  cannot r e l y  that a port  be  the  interests. to obtain they w i l l  a be  45 i n t e r e s t e d i n the h i g h e s t p o s s i b l e u t i l i z a t i o n of t h e i r equipment. In c o n s e q u e n c e t h e y w i l l be r e l u c t a n t to i n v e s t i n new e q u i p m e n t a s , a s s u m i n g a c o n s t a n t f l o w of g o o d s , s u c h i n v e s t m e n t would r e s u l t i n l e s s u t i 1 i z a t i o n. 3 The is  principle  a d v a n t a g e of a p r i v a t e company  t h a t i t ensures a commercial  from the  e x i g e n c i e s of  The  politics.  f o r m of c o n t r o l has  abandonment t h r o u g h o u t t h e Public  (3 per  c e n t ) , and  related  in general  with  this  lead to i t s  world.  Corporations  In t h e U n i t e d Bi-State  of management--divorced  overwhelming disadvantages  particular  P o r t s as  type  port  States, Public Corporation  cent), State  Municipal  P o r t s may  (6 per c e n t ) , D i s t r i c t  or C o u n t y , (14  per  of a d m i n i s t r a t i o n i s t h e most p o p u l a r  cent).^  type  (3  per  This  i n the  be  type  United  States. In B r i t a i n , different  public trust  ports are  to p u b l i c c o r p o r a t i o n s  in r e a l i t y  i n t h a t they  i n t e r e s t group of r e p r e s e n t a t i v e s composing  have a  their  Commonly, r e p r e s e n t a t i v e s o f n a t i o n a l g o v e r n m e n t the  local  community, merchants, shipowners,  wharfingers,  as w e l l as  M i n i s t r y of T r a n s p o r t , trust  and  a r e f o u n d on  ^Percentages  cit., as  p.  departments, public  the g o v e r n i n g  15.  per F a i r , op.  cit.,  p.  61.  broader  boards.  r e p r e s e n t a t i v e s o f l a b o u r , and  ports.  ^ O m t v e d t , op.  only  the  boards  of  46 On  the  controlled  other  hand, p u b l i c c o r p o r a t i o n s  by a p a r t i c u l a r  In C a n a d a , t h e corporation  but  corporations of  ports.  t h o u g h t of as  political  P o r t , not  type of c o n t r o l the  seems to be  other  in governing  i n high  favour  i t may  be  to any  trust  1930  ports  Royal  by  selected  C o m m i s s i o n on  political  R o c h d a l e C o m m i t t e e as  respondents.  Transport  super-authority.  attached.  in Britain.  was  be  port v a r i e s  The  Committee noted o v e r w h e l m i n g l y f a v o u r a b l e on  a number  i t e x e r c i s e s might  public corporation  particularly  is a public  public  c e n t r a l i z e d c o n t r o l of a the  be  government.  H a r b o u r s Board  i t is involved  u n i t to w h i c h  tied  of  i t i s d i f f e r e n t from  Comments on the  National  in that  The  level  may  The  Trust  authority, Rochdale  opinions  given  Moreover, quoted  by  the  the  follows:  We a r e . . . of the o p i n i o n t h a t the best kind a u t h o r i t y t o own d o c k s and h a r b o u r s i s a P u b l i c T r u s t . . . .5 The  advantages of  this  with  type of a d m i n i s t r a t i o n are  of  chiefly:  (1) t h e i r power t o s h o u l d e r t h e heavy f i n a n c i a l b u r d e n w h i c h t h e p r o v i s i o n and m a i n t e n a n c e o f d o c k s e n t a i l s ; (2) t h e r e p r e s e n t a t i o n w h i c h t h e y o f f e r t o t h o s e u s i n g t h e p o r t i n t h e c o u r s e of b u s i n e s s and o r g a n i z a t i o n whose i n t e r e s t s a r e a f f e c t e d , o f t e n v i t a l l y , by i t s e f f i c i e n c y and s u c c e s s ; (3) t h e i r f r e e d o m f r o m p o l i t i c a l c o n s i d e r a t i o n s ; and (4) t h e i r i m p a r t i a l p o l i c y i n r e l a t i o n t o a l l f o r m s of t r a n s p o r t w i s h i n g t o use t h e p o r t s . 6  R o c h d a l e , op.  c i t . , p.  Brown, Dove, and  37.  T o o t h , op.  c i t . , pp.  6-7.  One the  o f t h e main d i s a d v a n t a g e s o f t h e T r u s t  tendency of i t s board  t h e r e f o r e , an i n e f f e c t u a l  t o become u n w i e l d l y  Port i s  i n s i z e , and  p o l i c y maker.  The s i z e o f Board v a r i e s f r o m p o r t t o p o r t , b e i n g as h i g h as 42 i n t h e c a s e of t h e C l y d e N a v i g a t i o n T r u s t , and as l o w as 15 a t L e i t h . 7 The  R o c h d a l e r e p o r t , commenting on t h i s  down t h e number of  'fifteen'  representatives  as t h e a b s o l u t e  which should  problem  laid  maximum number  be on a g o v e r n i n g  board.  When a t t e m p t s a r e made t o r i g i d l y  limit.the  representatives  board, the b i g problem  on a T r u s t  becomes d e c i d i n g are  Port's  who s h o u l d  number o f  be r e p r e s e n t e d .  (Criticisms  bound t o a r i s e as t o who was s e l e c t e d and t o who was  not).  Moreover, t h e R o c h d a l e Committee f e l t  8  emphasis should appointed  be p l a c e d  to represent  "on members b e i n g  any p a r t i c u l a r  less  elected or  interest."  Another recommendation which the Rochdale made w i t h the will the  respect  to Trust  board r e c e i v e a f e e .  Ports  different As  board  report  was t h a t t h e members o f  "The p u r p o s e o f t h i s  be s e l f - e v i d e n t , " t h e r e p o r t fee should  9  stated.  provision  I n any c a s e ,  reduce the degree of p a r t i s a n s h i p of representatives.  to the other  type of p u b l i c c o r p o r a t i o n s ,  i.e.  Brown, T o o t h , and Dove, o p . c i t . , p. 4. ^The R o c h d a l e R e p o r t n o t e d c r i t i c i s m , o p . c i t . , p. 3 9 . 9  Loc. c i t .  t h a t t h i s was a f a m i l i a r  those  connected with a p a r t i c u l a r  s u f f e r , more o r l e s s , political  politics  and p o r t s a r e n o t i d e a l  in  keep o u t of p o r t  o p e r a t i o n , then t o t h a t e x t e n t  States, Fair  " . . .  bed f e l l o w s . " ^  t h a t governments  c o r p o r a t i o n may be an e f f e c t i v e In t h e U n i t e d  f a u l t of  i n t e r v e n t i o n i n port a f f a i r s .  the extent  the short-run  body, t h e y a l l  f r o m t h e same f a u l t — t h e  partisan  To  political  Port A u t h o r i t y  affairs  the p u b l i c Structure.  observed:  While the several c o r p o r a t i o n s are l i m i t e d to the a u t h o r i t y g r a n t e d by t h e s t a t e or l o c a l g o v e r n m e n t i n t h e i r A r t i c l e s o f I n c o r p o r a t i o n , and a r e s u b j e c t t o p o s s i b l e v e t o o f t h e i r a c t i o n s by t h e c h i e f e x e c u t i v e a n d / o r l e g i s l a t i v e body of t h e S t a t e , t h e y a r e d e s i g n e d t o p r o v i d e maximum f r e e d o m o f a c t i o n i n d e v e l o p m e n t and a d m i n i s t r a t i v e a c t i v i t y , and t h e maximum i n s u 1 a t i o n ~ f r o m the c u r r e n t s of p a r t i s a n p o l i t i c s . 1 1 The  Independent Commission The  State  I n d e p e n d e n t C o m m i s s i o n m i g h t be r e l a t e d t o a  (5 p e r c e n t ) , a D i s t r i c t  pality  (1 p e r c e n t ) , o r a M u n i c i -  o r C o u n t y , (14 p e r c e n t ) . ^  tration  i s more l i k e l y  political  overtones  Whereas, F a i r ,  2  This  type  of  adminis-  t h a n a p u b l i c c o r p o r a t i o n , t o have  i n many o f i t s o p e r a t i n g  ( i n the United  States)  regards  policies. independent  Oram, op. c i t . , p. 9. l^Fair,  op. c i t . , p. 67.  1 1 b i d., p. 6 1 . percentages g i v e n ) . 2  (Fair's  (Underlining i s writer's).  study  i s the source  of the  49 c o m m i s s i o n s as b e i n g  "largely  politics.""^  jhe British  the  nature  political  proximity  of these  removed f r o m t h e c u r r e n t s o f  w r i t e r s have t e n d e d  t o emphasize  of a p p o i n t m e n t and t h e o v e r a l l  general  commissions to p a r t i s a n p o l i t i c s .  However, t h e w o r d , " M u n i c i p a l " r a t h e r t h a n t h e word "Independent," British  i s used as an a d j e c t i v e t o d e s c r i b e t h e  Commissions.  separated  into  (Municipal  P o s s i b l y these  c o m m i s s i o n s m i g h t be  two g r o u p s , one of g r e a t e r  C o m m i s s i o n s ) and t h e o t h e r  (Independent Commissions).  political influence,  of l e s s e r i n f l u e n c e ,  A t any r a t e , t h e d e g r e e of  autonomy t h e p o r t a d m i n i s t r a t i v e body e x e r c i s e s , t e n d s t o be a key f a c t o r i n a u t h o r s ' of  port  restates  operations.  various  opinions  as t o t h e q u a l i t y  For example, the f o l l o w i n g  the a t t i t u d e that p o l i t i c s  quotation  do n o t mix w i t h  port  management: The a d m i n i s t r a t i o n and d e v e l o p m e n t o f a m u n i c i p a l p o r t u n d e r t a k i n g c a n become a m a t t e r o f c o n t e n t i o n i n l o c a l p o l i t i c s a n d , i n such c i r c u m s t a n c e s t h e v i c t o r i o u s p o l i c y may n o t a l w a y s be t h e t r u e e c o n o m i c p o r t p o l i c y . 14 The G o v e r n m e n t  Department  When a g o v e r n m e n t d e p a r t m e n t i s t h e p o r t a u t h o r i t y , there  are a combination  these  being  likelihood  of d i s a d v a n t a g e s ,  the g r e a t e s t of  government i n t e r f e r e n c e i n p o r t a f f a i r s . of a u t h o r i t y from a d i s t a n c e  M o r e o v e r , p o r t p o l i c y may  be s e t o u t so as t o a p p l y  Ibid. Flere,  i s increased.  op. c i t . , p. 52.  The  50 uniformly  to a l l ports.  B e c a u s e of t h e g r e a t  different  p o r t s ' p r o b l e m s , and many p a r t i c u l a r  which a r e p e c u l i a r to i n d i v i d u a l more l i a b l e  t o be a h i n d r a n c e  diversity in  p o r t s , uniform  circumstances policy i s  t h a n an a i d .  However, t h e g o v e r n m e n t d e p a r t m e n t as a p o r t a u t h o r i t y also  has i t s a d v a n t a g e s .  adequate f i n a n c i a l  Government a u t h o r i t i e s s h o u l d  resources  at favourable  w h i c h c a n be b o r r o w e d f o r p o r t A n a t i o n a l i z e d port to  be d e r i v e d  reduction national ation  rates  and d e v e l o p m e n t .  system might f u r t h e r reap the b e n e f i t s overall  of w a s t e f u l planning  planning,  e s p e c i a l l y , the  d u p l i c a t i o n of f a c i l i t i e s . .  might bring with  of the v a r i o u s  authority to  from  operation  interest  have  i t the e f f e c t i v e  arms o f t r a n s p o r t .  can maintain  Perhaps coordin-  Furthermore, the  an i m p a r t i a l p o s i t i o n w i t h  respect  t h e i n v o l v e m e n t w i t h v a r i o u s forms of t r a n s p o r t i n t h e  portj  4  The  o v e r r i d i n g argument w i t h  regard  to a l l these  a d v a n t a g e s o f n a t i o n a l i z a t i o n w o u l d seem t o be t h e t r e m e n d o u s diversity overall  of port o p e r a t i o n s  plan  effectively  Nevertheless, smaller ports  directing  are unable to a f f o r d t o maintain structure.  satisfied  a less costly  with  Then, s m a l l  port  operations.  op. c i t . ,  an  expensive  p o r t s m i g h t need t o be  form of a u t h o r i t y , perhaps t h e  F 1  ere,  the various  i t must be b o r n e i n mind t h a t many  administrative  14  and t h e u n l i k e l i h o o d o f any  pp. 53-55.  51 Government D e p a r t m e n t t y p e o f a u t h o r i t y . structure  i s p r e s e n t l y , used f o r a d m i n i s t r a t i o n  numerous s m a l l e r  Canadian  Trends i n A u t h o r i t y The port  This  of  the  ports.  Structures  f o l l o w i n g t a b l e o u t l i n e s the  a u t h o r i t i e s w h i c h have been s e t up  in various  formal  trend  i n the  i n the  type  United  of  States,  periods: TABLE I I TRENDS IN TYPE OF  Types Prior  PORT AUTHORITY  Number E s t a b l i s h e d to 1 921 1 921 -1 930  by P e r i o d 1 931-1 940  1 941 -1 951  Government Departments  5  1  -  3  Independent Commissions  7  2  5  3  Corporations  7  8  3  10  Source:  Fair,  Publ i c  The  British,  nationalization considered public is  on  the  their  other port  preferred  on  day  hand, show a p r e f e r e n c e  industry. and  over other  t o day  investment decisions have been v e r y  78.  has  (National  a d v a n t a g e of  decisions.  much i n t h e  In C a n a d a , p o r t s  Harbours  the  are  Board)  t y p e s of a d m i n i s t r a t i o n .  the  s u c h as  for  i t i s f e l t that a c e n t r a l i z e d  type of c o n t r o l  form of c o n t r o l  politics  c i t . , p.  public u t i l i t i e s ,  corporation  to be  latter  of  op.  isolation  ( N o t e , however, R o b e r t s Bank  r e a l m of  political  This from  large  Development forum).  The  52 A National The  Port A u t h o r i t y R o c h d a l e C o m m i t t e e became:  I n c r e a s i n g l y aware i n t h e c o u r s e o f [ t h e i r ] i n q u i r y that a fundamental d e f e c t i n the o r g a n i z a t i o n of ports i n t h i s c o u n t r y [ B r i t a i n ] i s t h e l a c k o f any c e n t r a l p l a n n i ng.14 The  report  expenditure and  prior  illustrates  t h e need t o c o o r d i n a t e  on p o r t d e v e l o p m e n t , t o s t i m u l a t e p o r t  capital research,  t o t h a t , t o p r o d u c e and s t i m u l a t e p r o d u c t i o n o f  port s t a t i s t i c s ,  and m e a n i n g f u l  and c o m p a r a b l e  accounting  p r o c e d u r e s amongst p o r t s , and g e n e r a l l y , " t o promote and assist of  the e f f i c i e n t  their  functions."^  The land  disapproving  of t h e t h e o r y  has shown t h a t p o r t s a t a g r e a t  another, all  e x e r c i s e and p e r f o r m a n c e by t h e p o r t s  may be i n c o m p e t i t i o n  situations,  investment. fied  hinter-  d i s t a n c e f r o m one  together;  hence, i n n e a r l y  i s some need f o r c o o r d i n a t i o n o f  The p r o v i s i o n o f a c e n t r a l p o o l  staff  authority  there  of t h e p r o x i m a l  of h i g h l y  i s an a d d i t i o n a l a d v a n t a g e o f a n a t i o n a l (or advisory  quali-  port's  board).  Summary In summary, an i d e a l would  be one t h a t would  politics  i n matters  port a u t h o r i t y f o r a major  be c o m p l e t e l y  relating  isolated  port  from  t o day t o day o p e r a t i o n s , and  N a t i o n a l Harbours Board i s , however, a t a d i s a d v a n t a g e w h i c h stems f r o m t h e f a c t t h a t much c o n t r o l o v e r o p e r a t i o n s i s e x e r c i z e d from a d i s t a n c e from t h e p o r t s . 14  R  ochdale, 1 5  Ibid.  o p . c i t . , pp. 53-59.  53 even somewhat autonomous f r o m g o v e r n m e n t s on ment of l o n g - r a n g e p o l i c i e s . probably  b e n e f i t from  authority and be  as  an a i d and  development. locally  the  However, a p o r t  establishment  a coordinator  Local  of a c e n t r a l  of p o r t  control exercised  professional  management w i t h  various  i n t e r e s t s i s most g e n e r a l l y  establish-  system  could port  operations  Otherwise, port c o n t r o l should  exercised.  port  the  probably by  perhaps a r e p r e s e n t a t i o n favoured.  of  CHAPTER V GUIDELINES FOR N a t u r e and  study (1)  Purpose of  The  contents  of  secondary  the  nature  r u n , and  (2)  of  PORT MANAGEMENT  Chapter this  chapter  sources,  have grown o u t  of a  a l l of w h i c h made r e f e r e n c e  of o r g a n i z a t i o n t h r o u g h which the  the  q u a l i t y of a p o r t o p e r a t i o n  port  and  to: was  its  management. It of the  the  is freely  port  admitted  hierarchy  here t h a t formal  i s not  the  s o l e , and  predominant f a c t o r determining  operation. t y p e s of  Nevertheless,  this  the  w i t h , the  A study  research  two  The  presented  a v a i l a b l e was  desired  an  be,  port  economic  chosen f o r  requesting  secondary  Reconstruction w h i c h were  an  appraisal  transportation sector  a n a l y s i s of  port  was  M o r e o v e r , most ports.  usually sufficient  c h a r a c t e r i s t i c s of  less  port. the  consulting missions  t o some d e g r e e i n e v e r y s t u d y . studies  on  I n t e r n a t i o n a l Bank f o r  to d i f f e r e n t c o u n t r i e s  information the  The  economic s e c t o r s .  the  of a  s e r i e s c o n s i s t i n g of r e p o r t s  data.  then sent  of  even  q u a l i t y of a  e f f i c i e n t operation  Development o r g a n i z e d  analyzed  not  w r i t e r f e e l s that c e r t a i n  d e v e l o p m e n t of d i f f e r e n t c o u n t r i e s was  their  may  o r g a n i z a t i o n a r e u s u a l l y more a m e n a b l e t o , or  in c o n f l i c t  and  organization  to  The determine  structure  and  of  55 efficiency. later), port's (B),  was  First  of a l l , a methodology  utilized  governing  ( t o be  to determine whether the  body was  a:  described country's  (A), Private Enterprise;  Autonomous G o v e r n m e n t Body;  ( C ) , Semi-autonomous  G o v e r n m e n t Body; ( D ) , a S p e c i a l G o v e r n m e n t D e p a r t m e n t ; (E),  two  or more g o v e r n m e n t d e p a r t m e n t s d i v i d i n g  responsibilities methodology  is:  so  "quality"  these  two  correlation  between t y p e  operation.  The  next page.  results  specific The  be  s q u a r e s on  to e f f e c t i v e  argued t h a t the  relevant data  study  i n the c o n t e x t  from d e v e l o p i n g  probably  employed  of formal obtained  (4) v e r y  the of  of  s t r u c t u r e and  are  shown on  are  poor. matrix, the  quality  the c h a r t  on  used t o e x p l a i n some countries'  such a s t u d y  i s to  ports  provide  p o r t management s t r u c t u r e s . results  or  For  I t might  i m p l i c a t i o n s are  of d e v e l o p i n g  l e s s s o p h i s t i c a t e d than those  only  c o u n t r i e s because  utilized.  This  e x a m p l e , one  would  of d e v e l o p e d c o u n t r i e s . p r o f i c i e n c y of p o r t  only  is  c l a s s of most u n d e r d e v e l o p e d c o u n t r i e s  the  of  matrix.  c o u n t r i e s was  u n d o u b t e d l y would a f f e c t  to  i . e . whether  be g r a p h i c a l l y o b t a i n e d  t r u e , t o some e x t e n t .  the managerial  poor; or  in placing different  ultimate value  guidelines  (3)  Footnotes provided  problems encountered into  was  c h a r a c t e r i s t i c s were made i n t o a  t h a t some i d e a c o u l d  the  later),  their  another  of p o r t o p e r a t i o n s ,  (1) g o o d ; (2) a v e r a g e ;  Thirdly,  Secondly,  ( a l s o t o be d e s c r i b e d  determine the it  functionally.  or  expect to  be  This  operation  Good (Above Averaqe)  (A)  (B)  Private Enterprise  Autonomous Gov't. Agency  Syria^ (1955)  East ^ Africa (Kenya '61 (Tangan( y i k a '63 I r a q (1952)  (C)  (D)  SemiAutonomous Gov't.Agency Ni qeria (1955)  Tha i 1 a nd (1959) Morocco (1966) Cevlon (1963)  Average (Par) (4)  «  Libya (1960) 6  4  0  Nicaragua^ (1963) Spain (1963)  >• i -  Turkey (1951 ) Venezuela (1961) 7  i- °  CD  Type o f Port Management  3  Poor (Below Average) ,  Special Gov't. Dept.  (E) 2 o r more Gov't.Depts -functional Division  O  O u a l i t y of Port Ooera t i o n s CHART I REPRESENTATION OF THE CORRELATION BETWEEN TYPE OF PORT MANAGEMENT AND QUALITY OF PORT OPERATIONS (by c o u n t r y )  57 FOOTNOTES TO MATRIX CHART I 1.  SYRIA: One p o r t o f any c o n s e q u e n c e , d e v e l o p e d and r u n by a p r i v a t e company. Government owns 90 p e r c e n t o f t h e capi t a 1 . G o v e r n m e n t g u a r a n t e e s a 5 p e r c e n t d i v i d e n d on i nvestment. G o v e r n m e n t has imposed r e g u l a t i o n s and has c o n t r o l l e d commerce so as t o a i d p o r t . T h e r e f o r e , S y r i a ' s major p o r t ( L a t a k i a ) i s r e a l l y o p e r a t i n g u n d e r a v e r y autonomous g o v e r n m e n t agency.  2.  EAST AFRICA: The c o n t r o l l i n g body--The E a s t A f r i c a n R a i l and H a r b o u r s B o a r d — i s an autonomous g o v e r n m e n t body, b u t i t i s r e s p o n s i b l e f o r b o t h r a i l w a y s and h a r b o u r s .  3.  NIGERIA: A t t i m e o f M i s s i o n , N i g e r i a was i n t h e p r o c e s s o f s w i t c h i n g f r o m E - l , "a m u l t i p l i c i t y o f o r g a n i z a t i o n s r e s p o n s i b l e f o r p o r t o p e r a t i o n and m a i n t e n a n c e . " This c o n d i t i o n has " f o r a l o n g t i m e been r e c o g n i z e d t o be a limiting factor i n their [the port's] e f f i c i e n t o p e r a t i o n and d e v e l o p m e n t , " t o B-1, an autonomous public corporation.  4.  MOROCCO: L i t t l e information, although the information a v a i l a b l e , i s very s p e c i f i c with regard to d e t e r m i n i n g t h e two c o o r d i n a t e s .  5.  that i s  NICARAGUA: P o r t s y s t e m i s by and l a r g e , a mixed economy, a l t h o u g h C o r t i n o - - a g o v e r n m e n t p o r t — b y i t s e l f h a n d l e s 75 t o 80 p e r c e n t o f o c e a n - b o r n e i m p o r t s and e x p o r t s . C o r t i n o i s under t h e c o n t r o l o f the n a t i o n a l r a i l w a y ( p u b l i c owned). O t h e r g o v e r n m e n t p o r t s a r e u n d e r customs ' c o n t r o l .  LIBYA: M i s s i o n recommended t h e c r e a t i o n o f an "autonomous f e d e r a l a u t h o r i t y " t o r u n t h e main p o r t ( T r i p o l i ) . Such an o r g a n i z a t i o n a l change s h o u l d r e d u c e i n f l e x i b l e p r o c e d u r e s o f g o v e r n m e n t c o n t r o l and d i f f i c u l t y i n obtaining authority f o r expenditures w h i c h hamper e f f i c i e n c y a t p r e s e n t . TURKEY: L i t t l e i n f o r m a t i o n , however, i n f o r m a t i o n which i s a v a i l a b l e , i s useful i n determining coordinates.  although  i t might not a f f e c t  ( t o t h e same d e g r e e , anyway)  the o r g a n i z a t i o n a l system of the p o r t a u t h o r i t y . it  would  be f o o l i s h  is completely study  t o go  t o o f a r and  inapplicable  to developed  by t h e D e p a r t m e n t of Economic and  the U n i t e d  Nations  entitled  "The  i n P o r t , " used t h e f o l l o w i n g the  imply  However,  that this  countries. Social  A  1967  Affairs  T u r n - a r o u n d Time o f  statement  study  of  Ships  i n a c o n c l u s i o n to  article: T h e r e i s no c l e a r - c u t d e m a r c a t i o n o f d e v e l o p e d and d e v e l o p i n g c o u n t r i e s i n so f a r as p o r t s a r e concerned-some p o r t s i n t h e s o - c a l l e d d e v e l o p i n g c o u n t r i e s have been i n e x i s t e n c e f o r h u n d r e d s o f y e a r s and have d e v e l o p e d o v e r t h e y e a r s i n a s i m i l a r manner t o t h e p o r t s i n the d e v e l o p e d a r e a s , so t h a t q u i t e o f t e n t h e i r problems are s i m i l a r i n n a t u r e . F u r t h e r m o r e , most o f the s p e c i a l i z e d p o r t s i n d e v e l o p i n g c o u n t r i e s and e s p e c i a l l y t h o s e f o r h a n d l i n g b u l k c o m m o d i t i e s such as o i l and ores are h i g h l y developed. The main p r o b l e m a r e t i e s i n the a r e a o f t h e h e t e r o g e n e o u s " g e n e r a l " c a r g o . 1 Therefore,  what i s s a i d  h e r e may  to t h e o r g a n i z a t i o n of p o r t a u t h o r i t i e s  have d i r e c t in  relevance  developed  countries. Two  b a s i c p r o b l e m s w i t h m e t h o d o l o g y were:  up m e a n i n g f u l objectively The the  types  c o o r d i n a t e s , and into  setting  (2) p l a c i n g p a r t i c u l a r  p a r t i c u l a r matrix  ports  boxes.  c o o r d i n a t e , Type o f Management, was ran from  (1)  s e t so  t h e most d e c e n t r a l i z e d (A on  that  Chart  ' U n i t e d N a t i o n s , The T u r n - a r o u n d Time o f S h i p s D e p t . o f E c o n o m i c and S o c i a l A f f a i r s , 1967, p. 33.  I)  in Port,  ^ R e f e r t o C h a r t I , p. 56 f o r name d e s c r i p t i o n s c o r r e s p o n d i n g to l e t t e r s A - E, used h e r e i n p a r e n t h e s e s .  to t h e most c e n t r a l i z e d ; s i m i l a r i l y , port  a u t h o r i t i e s , ( A ) , to the  ities,  (E).  definitely  Of that  l e a s t autonomous p o r t  course, in r e a l i t y , i f a port  f r o m the most autonomous  i t does not  i s nominally  port's  follow  administered  government d e p a r t m e n t , ( D ) , or from s e v e r a l departments, (E), t h i s  management w i l l  ( A ) , or a p u b l i c e n t e r p r i s e  imagine, f o r conceptual  port,  be  a u t h o r i t y , or a p u b l i c c o r p o r a t i o n several  ports  isolated its  an  inland c i t y ,  control.  National some of  with  (B).  purposes, a p r i v a t e  any  i r o n h a n d , f r o m an  the major p o r t s ,  One  might  enterprise  office  in  argue, f o r example, t h a t  an  the  under  the  f a r removed  from  ( n o t a b l y , V a n c o u v e r ) , under i t s  to e f f e c t i v e l y On  enterprise  f a r removed f r o m t h e m a j o r p o r t s  Some w o u l d  over operations..  less  authority, controlling  H a r b o u r s B o a r d o f Canada i s too  jurisdiction,  from a  government  autonomous i n i t s d e c i s i o n m a k i n g t h a n a p r i v a t e port,  author-  exercise  other  the  hand, one  power i t h o l d s could  c o n c e i v e of a  government department l o o s e l y e x e r c i s i n g c o n t r o l  over  or  offices.  two  ports  i n the  vicinity  of t h e  Even t h o u g h a c e r t a i n n o m i n a l not  entail  ation  a corresponding  t y p e of  implied  by  the  type of a u t h o r i t y .  conducive to d e c e n t r a l i z e d local  organization.  and  may  centraliz-  d e g r e e o f autonomy i s  because c e r t a i n types of o r g a n i z a t i o n  strong  port a u t h o r i t y  d e g r e e of autonomy o r  i n a p a r t i c u l a r p o r t , the  generally  department's  one  This  seem to be  is  so  more  autonomous management, w i t h  management, t h a n do  other  forms  of  Next, s p e c i f i c  p o r t s were a f f i x e d  et c e t e r a , according them.  t o how t h e I n t e r n a t i o n a l Bank  However, some p r o b l e m s d i d a r i s e  authorities. did  as p r i v a t e e n t e r p r i s e  Sj.'ria, n o m i n a l l y  in actuality,  labelled  in classifying  a private corporation  seem more t o r e s e m b l e a p u b l i c  port  port,  corpor-  3 ation.  Nicaragua  several  ports  presented  of v a r i o u s  though, the m i s s i o n public  o r g a n i z a t i o n a l types.  t h e r e , had l i m i t e d  ports of Nicaragua,  overwhelming to i g n o r e  the l e s s important  at a l l ,  cases,  types  they  ports  where t h e r e  was  were s m a l l  i t necessary What i s  ports  i n the i n t e r e s t i n g  in this  study.  o f management o r g a n i z a t i o n t o a n o t h e r  type  However, most o f t h e  The f o l l o w i n g s t a t e m e n t s ,  in typifying  the  thereabouts,  the degree of p r e c i s i o n w i t h which the d i f f e r e n t  studies catagorized various port a u t h o r i t i e s : 1The P o r t A u t h o r i t y o f T h a i l a n d (PAT) w h i c h e s t a b l i s h e d as a s e m i - a u t o n o m o u s g o v e r n m e n t c o r p o r a t i o n i s . . .4  ^Refer  having  p o s i t i o n of changing  r e p o r t s were more o r l e s s e x p l i c i t  illustrate  - was o f  i n the study.  at the time of the N i g e r i a n r e p o r t .  port a u t h o r i t y .  to the  o f a u t h o r i t i e s , o r s o m e t i m e s no a u t h o r i t y ,  o v e r f r o m one t y p e  other  felt  having  Luckily,  i t s study  author  were t h e n u s u a l l y o m i t t e d  Nigeria  by  o f w h i c h one - C o r t i n o  i m p o r t a n c e , and t h i s  more, i n o t h e r divergent  further difficulties  to f o o t n o t e  ^International  1 of Chart  Bank, T h a i 1 a n d ,  was  I , p. 56. op. c i t . , p. 140.  62 2. The P o r t o f B a s r a a g e n c y . . . .5  ( I r a q ) , an autonomous p u b l i c  3. Each of t h e p r i n c i p a l p o r t s has . . . an autonomous p u b l i c body w h i c h i n p r a c t i c e o p e r a t e s i n a d v i s o r y c a p a c i t y t o t h e p o r t d i r e c t o r . . . . Most o f t h e i m p o r t a n t d e c i s i o n s on p o r t c o n s t r u c t i o n and t o a l e s s e r extent p o r t o p e r a t i o n , appear i n p r a c t i c e to e m i n a t e f r o m M a d r i d ( S p a i n ) . . . .6 In g e n e r a l , s t a t e m e n t s appeared type  like  those  i n each r e p o r t to g i v e a g e n e r a l  of p o r t a d m i n i s t r a t i v e body.  simple, In t h e  as  is illustrated  third  quotation,  by  eminate from M a d r i d . " basis for The  Classification  important  Further  reading  second c o o r d i n a t e - - t h e  decisions  not quotations. be  . . .  though, would a l l o w a  quality  The  ordering  i s obvious.  j u d g m e n t s were u s u a l l y made i n t h e reporting missions.  were r e f i n e d a c c o r d i n g  of t h e  port;  actual  capacity with  operations-  ( 1 ) , to very  poor, ( 4 ) .  The  Fortunately, individual  judgments present  value  studies  (5) q u a l i t y  of  respect  statistics  (4) p h y s i c a l  produced;  Bank - I r a g . op.  c i t . , p.  International  Bank, S p a i n, op.  c i t . , p.  the quality state  (6)  t o needed c a p a c i t y ; and  International  reports  (1)  a l l u d e d t o ; (3)  investment planning;  by  i n the  to the f o l l o w i n g c r i t e r i a :  p i c t u r e ; (2) t o n n a g e i n c r e a s e s and  of p o r t  T h e s e t e r m s a r e much more n e b u l o u s  than the o r g a n i z a t i o n a l t y p o l o g i e s .  of i n v e s t m e n t s ,  i n the  the  classification.  d i v i d e d i n t o f o u r p a r t s f r o m good  profit  is  of  "autonomous p u b l i c body" seems t o  was  the  above,  indication  problems e v i d e n t  i n c o n s i s t e n t w i t h most of t h e  finer  presented  609 . 234.  (7),  63 any  other  qualities  or d e f i c i e n c i e s mentioned  i n the various-  reports. A p o r t was g i v e n  a "good" p e r f o r m a n c e r a t i n g  r e p o r t went o u t o f i t s way t o s a y how c a p a b l y run.  Specific  to the e x c e l l e n c e  in  t h e "good" c l a s s i f i c a t i o n .  o f p o r t management f o r each p o r t  instance, a chronic  factor.  Nevertheless,  given system  M o r e o v e r , i t was f u r t h e r  t h a t the port d i d not e r r t o o badly  many o f t h e s e v e n c r i t e r i o n For  t h e p o r t was  s t a t e m e n t s — u s u a l l y more t h a n one — w e r e  as  required  when t h e  given  with  respect to  i n the preceding  paragraph.  and s i z a b l e l o s s w o u l d be a m i n u s breaking  worse than making a p r o f i t ,  even was n o t c o n s i d e r e d any  unless  profit  goals  were s t a t e d  o r i m p l i e d by t h e r e p o r t . An the  e x a m p l e o f a "good" p e r f o r m a n c e p o r t a u t h o r i t y i s  S y r i a n one.  Statements  such a s :  The p o r t a p p e a r s t o be w e l l managed and i n r e c e n t y e a r s has e a r n e d on i t s p a i d - i n c a p i t a l a modest p r o f i t w h i c h r o s e t o o v e r 5% i n 1953.7 An  " a v e r a g e " p o r t was i n d i c a t e d by s t a t e m e n t s t o t h e  effect,  or a b a l a n c i n g  o f f a v o r a b l e and u n f a v o r a b l e  Some w e a k n e s s e s were n o t e d "average  comments.  i n t h e c a s e o f each o f t h e  ports."  By and l a r g e , i t s [ P o r t A u t h o r i t y o f T h a i l a n d ] a d m i n i s t r a t i o n has been s a t i s f a c t o r y i n p r e s e n t y e a r s . Some c a u s e f o r c o n c e r n a b o u t t h e f u t u r e h a s , h o w e v e r , been c r e a t e d by t h e r e p l a c e m e n t o f t h e f o r m e r t o p management of t h e P o r t A u t h o r i t y w i t h a D i r e c t o r and  International  Bank - S y r i a ,  op. c i t . , p. 145.  two D e p u t y D i r e c t o r s who have had e x p e r i e n c e i n p o r t management.8  no  A " b e l o w a v e r a g e " o r p o o r l y run by  statements  to t h e f a c t ,  and  prior professional  p o r t was  recognizable  an o v e r b a l a n c i n g  of  negative  factors. A "very  poor" port  port--accentuated  had  this  arily  Because the  economic c r i t i c i s m s  s t u d i e s were v e r y istics,  e.g.  the  characteristics, izing  inclined profit e.g.  "poor"  to over-value  For  and  the bias  mission. i n the  s t u d i e s were  (unless otherwise  p i c t u r e , and  by  to note the  comments o f t h e  social  the work f o r c e .  the c a s e o f  management p r o c e s s e s  p o i n t , i t i s important  evaluations.  of a  somewhat, w i t h r e c o m m e n d a t i o n s f o r s w e e p i n g  c h a n g e s i n management and At  the c h a r a c t e r i s t i c s  s t a t e d ) , the  economic  character-  to u n d e r - v a l u e  political  prim-  value  other  of n a t i o n a l -  example, the r e p o r t mentions i n  Ceylon:  The C o m m i s s i o n [ f o r t h e m a j o r p o r t ] has a l s o had to f o l l o w t h e broad g o v e r n m e n t p o l i c y o f " C e y l o n i z a t i o n " of l a b o u r a t s e r i o u s c o s t to e f f i c i e n c y , p a r t i c u l a r i t y i n man-hour o u t p u t . 9 I t would  be d i f f i c u l t  knowing what i t was nationalize  The  this  p r a c t i c e without  w o r t h t o t h e C e y l o n e s e Government t o  i t s labour  classification process.  to e v a l u a t e  of p o r t s  force. i s the  The  major l i m i t a t i o n  subjective natureof  method used t o a v o i d  intensification  "International  Bank, T h a i l a n d , op.  ^International  Bank, C e y l o n ,  op.  c i t . , p.  cit.,  with the of  145.  p..611.  the  the  f o r m e r p r o b l e m was to  one  another  to use  in presentation--as  Bank f o r R e c o n s t r u c t i o n it  was  necessary  criteria  was  t o be  the  c l a s s , one  two  The  in setting to  A four-part value  problem of r e f i n i n g  out  the  gain  classification  too  far.  Even  t h e r e were s o m e t i m e s two  ports  Spain, in  one  (e.g.  Turkey  which,  i n f o r m a t i o n , seemed t o c l a s s i f y  well,  stating  a dearth was  first  of  The  first  i n f o r m a t i o n , i . e . M o r o c c o and  to d e l e t e those  insignificant  Kuwait, Jordan,  Interpretation  was  i n f o r m a t ion--was those  i n f o r m a t i o n was  of  J a m a i c a , and  statement which should limited  firm  there  e x h i b i t i n the  i s o n l y one  have j u s t  or  Turkey. the  coordinates, Guiana).  be made h e r e i s t h a t  number of  studies  from  or even t e n t a t i v e c o n c l u s i o n s .  as  Also,  P r i v a t e E n t e r p r i s e column,  reasonably  been p l a c e d  Column B - - t h e Autonomous Government A g e n c y . conclusions  that  Matrix  i s o b v i o u s l y a very  i t could  British  met  with  s t u d i e s f o r which  to d e t e r m i n e  w h i c h t o draw any  and  Moreover,  to f o o t n o t e  s e c o n d way  there  explicit  p r o b l e m - - t h a t of l i m i t e d  ways.  t h e r e was  (e.g.  Development s e r i e s .  Venezuela?).  limited  The  the I n t e r n a t i o n a l  of w h i c h seemed s u p e r i o r t o t h e o t h e r  A third in  similar  were c a s e s w h i c h seemed b o r d e r l i n e , ( e . g .  C l a s s 3 o r 4 ? ) , and  before  was  c a t e g o r i e s , in order  in reporting.  used t o a v o i d  so, there  and  fairly  for different  objectivity  a s e r i e s of works--each  i m p l i c a t i o n s drawn w i l l  in  Therefore,  have t o o m i t  the  any  66 private enterprise The  t y p e of  organization.  t w e l v e e x a m p l e s used h e r e do  p a t t e r n — t h e more p r o f i c i e n t p o r t s I f we  assume a c a u s a l  causality m i g h t be  (the only described  Quality  being  r e l a t i o n s h i p , and  logical  mathematically  P.O.  = f  more a u t o n o m o u s . a d i r e c t i o n of  d i r e c t i o n ) , then the as  pattern  follows:  of P o r t O p e r a t i o n s = f  [Q.  show a d e f i n i t e  (A)]  ( d e g r e e of  autonomy)  (degree of  port  authority) Where ' f are end,  i s p o s i t i v e , and  and  a functionally divided  The  other  reason the  determined  quality  Q.  anarchy),  control  by  at  one  government  end.  to assume t h a t  the  p o r t a u t h o r i t i e s i s a f u n c t i o n of operations.  Therefore,  we  the  are  the r e l a t i o n s h i p : P.O.  This exceptions  the r e l a t i o n s h i p  d i r e c t i o n of c a u s a l i t y i s p r e t t y w e l l  of d i f f e r e n t p o r t  with  (not  i s because i t i s u n r e a l i s t i c  d e g r e e o f autonomy of  = f (A), rather  t h a n A = f (Q.  P.O.)  r e l a t i o n s h i p i s even more o b v i o u s when to the  pattern  are  t h a t many m a j o r o p e r a t i o n a l her  bounds o f  autonomous g o v e r n m e n t a g e n c i e s  departments a t the  left  the  previous  examined.  Nigeria  the indicated  p r o b l e m s were a s s o c i a t e d  s y s t e m , ( E ) , and  was  at the  this  study  switching  over to  ( B ) , which  favorable  form of  organization.  The  time of  the  i n d i c a t e s as  other  exception,  with report, a more Libya,  was  hampered a c c o r d i n g  organization. the  to i t s m i s s i o n ,  The m i s s i o n ,  itself,  a u t h o r i t y of i t s major port  by i t s p r e s e n t  recommended L i b y a  t o an autonomous  port change  govern-  ment a g e n c y , (B) . Recurring  throughout these  d i f f e r e n t missions (probably  reluctance  f o r l a c k of t i m e ) .  themselves to a n a l y z i n g A notable mission  exception  analyzed  another type  s t u d i e s has been t h e  to analyze  smaller  ports  They have g e n e r a l l y  t h e l a r g e r p o r t s , i n some  confined detail.  was made i n t h e c a s e o f N i g e r i a .  N i g e r i a ' s technique  The  of changing over to  of port a u t h o r i t y , f o r a l l s i z e s of p o r t s .  They c o n c l u d e d  t h a t t h e c h a n g e o v e r was t o o c o m p l e t e , and t h a t  many o f t h e s m a l l e r  p o r t s would  structures  by an autonomous a g e n c y f o r m o f c o n t r o l .  required  n o t be a b l e  to a f f o r d  They recommended t h a t t h e new a u t h o r i t y be l i m i t e d and  Port Hartcourt,  super-  to Lagos,  t h e two l a r g e s t p o r t s .  . . . t h e m i s s i o n f e e l s t h i s a u t h o r i t y [ t h e new a u t h o r i t y ] s h o u l d have been l i m i t e d t o L a g o s and P o r t H a r t c o u r t , t h e o n l y p o r t s where u n i f i e d o p e r a t i o n s and an i n t e g r a t e d p o r t p o l i c y i s u r g e n t l y n e e d e d . They, t h e n a r g u e d should out  continue  t h a t one p r e s e n t as "a s e p a r a t e  c o n t r o l of the other Therefore,  government  department  government department t o c a r r y  [smaller] p o r t s . ^  any i m p l i c a t i o n s drawn f r o m t h i s  study  a r e from t h e nature  world  ports.  ^International  of the study  limited  Bank, N i g e r i a , op. c i t . ,  particular  to l a r g e r  p. 5 3 1 .  I i n c l u d e s the dates  Chart  respective countries. were conducted One  T h i s was  at various  might have expected  times  time  of each study, done because the over  the  studies  a fifteen-year  (progress)  the q u a l i t y of port o p e r a t i o n s .  beside  period.  t o be a f a c t o r i n  However, the degree of  the  "progress"  f a c t o r d o e s n o t seem to a f f e c t t h e r e s u l t s o f  the study,  as t h e d a t e s  about the Results  s e e m t o be s p r e a d  pretty  randomly  chart.  Compared with  the  Literature  To r e i t e r a t e , t h i s s t u d y  w o u l d l e a d one  to  believe  that autonomous a u t h o r i t i e s — a u t h o r i t i e s d e c e n t r a l i z e d t h e n a t i o n a l g o v e r n m e n t , and  otherwise  local  in their  approach to port m a n a g e m e n t — a r e p r e f e r a b l e f o r operations The 1954,  o f l a r g e and study  noted  medium-sized  conducted  from  the  seaports.  by F a i r i n t h e U n i t e d  States  in  that:  A s u b s t a n t i a l m a j o r i t y of the port communities r e p r e s e n t e d in t h i s study have e s t a b l i s h e d p o r t a u t h o r i t i e s , t h e e x t e n t of whose p o w e r s and l o c a l p o s i t i o n s u g g e s t a s u r p r i s i n g a g r e e m e n t on t h e g e n e r a l c h a r a c t e r i s t i c s of good p o r t a d m i n i s t r a t i o n . 1 1 F a i r , then,  lists  administration,  these  general  c h a r a c t e r i s t i c s of good  the f i r s t of which i s t h a t the a u t h o r i t y  "a b o d y c o n s t i t u t e d o u t s i d e  the normal  bureaucracy,  administers  op.  which normally  Fair, Port Administration c i t . , pp. 73-74.  pattern of a separate  in the United  port be  government port  States,  fund  and,  t h e r e f o r e , does n o t hand o v e r income t o t h e g e n e r a l  69  1 2  fund the is  of t h e c i t y ,  c o u n t y , or s t a t e . "  port a u t h o r i t y should financially  istic  In o t h e r  be a s e p a r a t e  autonomous.  p u b l i c body, which  F a i r ' s second g e n e r a l  o f good management r e q u i r e s t h a t t h e r e  or a m b i g u i t y  i n regard  words,  to the r e l a t i o n  character-  be "no  conflict  of the port a u t h o r i t y  1 3  to  e s t a b l i s h e d government u n i t s . "  segregates political A third  d e c i s i o n making w i t h  general  officials  characteristic  respect  and  to port  therefore policies.  f u r t h e r removes t h e p o r t  "partisan politics"  by r e m o v i n g  the port  " a p p o i n t m e n t , t e r m s , and s a l a r y , " away f r o m  tics.  A f o u r t h general  states  t h a t the area  autonomous  the  requirement  the p o r t a u t h o r i t y from p o l i t i c s  a u t h o r i t y from  in  This  should  t h e method port."  characteristic  o f good  poli-  p o r t management  i n which the port a u t h o r i t i e s are  be s u f f i c i e n t  to allow  i t "broad  discretion  of e x e r c i s i n g t h e f u n c t i o n s o f a d m i n i s t e r i n g  A fifth,  s i x t h , and s e v e n t h  general  characteristic  endows t h e p o r t a u t h o r i t y , r e s p e c t i v e l y , w i t h autonomy i n staffing;  autonomy  from  boundaries;  and autonomy  supervision  (except  and  final  1 2  bid .  county  i n t e r f e r e n c e or  accomplishments).  The  eighth  o f good p o r t management i s t h e o n l y  w h i c h seems removed f r o m autonomy  Ibid.  1 31  from government  long-run  characteristic  one l i s t e d  l o c a l , m u n i c i p a l , and  considerations.  70 It  i s concerned with f i n a n c i a l  advantages.^  The R o c h d a l e C o m m i t t e e n o t e d similarity should  o f o p i n i o n on t h e t y p e  in i t sinterviewing, a of o r g a n i z a t i o n which  run a port:  Those who have g i v e n e v i d e n c e t o us have been o v e r whelmingly of o p i n i o n t h a t , wherever p o s s i b l e , port a u t h o r i t i e s s h o u l d be i n d e p e n d e n t autonomous b o d i e s , -| a d m i n i s t e r e d l o c a l l y , and s e l f - s u p p o r t i n g f i n a n c i a l l y . . . The C o m m i t t e e m o d i f i e d  the o p i n i o n of those  they  interviewed a  1ittle: We a c c e p t t h e argument t h a t p o r t s s h o u l d be a d m i n i s t e r e d l o c a l l y , b u t we do n o t t h i n k t h a t t h i s i s n e c e s s a r i l y i n c o n s i s t e n t w i t h the e x i s t e n c e of a small c e n t r a l p o l i c y making o f f i c e . I n d e e d , we would r e g a r d l o c a l management c o m b i n e d w i t h c e n t r a l d i r e c t i o n , as o f t e n e s s e n t i a l f o r the a d m i n i s t r a t i o n of a group of medium-sized o r s m a l l e r ports.16 The C o m m i t t e e ' s f i r s t one good  qualification  F a i r makes w i t h i n h i s s e v e n t h p o r t management.  is a role f o r p o l i t i c s  Both sources  decision-making.  "smaller  ports"  seem t o f e e l  The s e c o n d  that  qualification  enough f r o m t h e l a r g e r p o r t s  a different  f o r m o f management.  must, here,  exclude  conference  c h a r a c t e r i s t i c of  ( t h e Committee i n c l u d e d medium-sized  be d i f f e r e n t  t o the  there  or s u p e r - a u t h o r i t i e s i n the realm  long-run  a l s o ) , may  general  i s similar  the smaller  In any c a s e , ports.  of  i s that ports to require  the a n a l y s i s  Furthermore, a  i n 1 9 6 1 , by t e c h n i c a l c o m m i t t e e on P o r t s f o r t h e  I'^The i n f o r m a t i o n i n t h e p r e c e d i n g p a r a g r a p h i s l a r g e l y p a r a p h r a s e d f r o m M. L. F a i r ' s P o r t A d m i n i s t r a t i o n i n t h e Uni t e d S t a t e s op. c i t . . pp. 73-74 . t  ^ R o c h d a l e , op. c i t . , p. 3 7 . 1 6  1bid.,  p. 4 1 .  71 Organization  of American  States:  Recommended t o t h e member s t a t e s t h a t t h e y g i v e p r i o r i t y t o c o n s i d e r a t i o n o f t h e a d v a n t a g e s t o be d e r i v e d i n r e d u c t i o n of c o s t s and i n c r e a s e d development and e f f i c i e n c y of p o r t s by i n t r o d u c t i o n o f p o r t a d m i n i s t r a t i o n h a v i n g maximum autonomy f o r t h e i r operations.17 What i s more, t h e C o m m i t t e e n o t e d a t r e n d : In t h e h e m i s p h e r e . . . t o w a r d a d o p t i o n of p o r t autonomy s y s t e m s and p r o f e s s i o n a l management, and p o r t autonomy has a l r e a d y been e s t a b l i s h e d i n most S o u t h A m e r i c a n c o u n t r i e s . . . .18 This  review  concurrency Keeping  with  of the l i t e r a t u r e the r e s u l t s  has t e n d e d  p i c t u r e d i n Chart  was no c l e a r - c u t  d e m a r c a t i o n o f d e v e l o p e d and d e v e l o p i n g as p o r t s a r e c o n c e r n e d  would  be d e f i n i t e  studies  support  presented  The in  I , page 56.  i n mind t h e s t a t e m e n t by t h e U.N. p a m p h l e t on S h i p  T u r n a r o u n d , ^ which s a i d that "there  far  t o show a  . . . this  c o u n t r i e s , i n so study  f o r the opinions  (Chart given  I , page 5 6 ) ,  i n the other  above.  prominent American E c o n o m i s t , John Kenneth G a l b r a i t h ,  h i s most r e c e n t  statement which  book, The New I n d u s t r i a l  is a fitting  conclusion  S t a t e s , made a  to this  chapter:  The e x p e r i e n c e w i t h p u b l i c e n t e r p r i s e s , where autonomy i s denied, thus [ f a i l u r e ] accords f u l l y - - a n d t r a g i c a l l y - with expectation.20  11  Ibid .  1 81bi d .  19lbid. 2 0  Galbraith,  op. c i t . ,  p. 103.  CHAPTER VI MEASURES OF PERFORMANCE This This  chapter  quotation  c a n be b e s t  expresses  introduced  t h e need f o r q u a n t a t i v e  as a p r e r e q u i s i t e t o e f f e c t i v e modern  with a quotation. information  p o r t management i n t h e  port.  As o u r t e c h n o l o g y i m p r o v e s , o u r p o r t s y s t e m g e t s more and more c o m p l e x . The h i g h c o s t o f new s h i p s and new t e r m i n a l s p u t s a f a r g r e a t e r demand on t h e i r e f f i c i e n t utilization. No one c a n a f f o r d t o make m i s t a k e s i n p l a n n i n g o r o p e r a t i n g such s y s t e m s . To a v o i d c o s t l y m i s t a k e s , we must c o n t i n u e t o o b t a i n more and more q u a n t a t i v e i n f o r m a t i o n , to analyze t h i s i n f o r m a t i o n with t h e most a d v a n c e d t e c h n i q u e s a v a i l a b l e , t o p u b l i s h t h i s i n f o r m a t i o n f o r t h o s e who need i t . l T h e r e i s an a c k n o w l e d g e d demand f o r p o r t s t a t i s t i c s . r e p o r t s on p o r t o p e r a t i o n statistics.  important  have n o t e d an a p p a l l i n g l a c k o f  For example, the recent  Great B r i t a i n  (1961),  statistical  Many  found  itself  Rochdale r e p o r t i n  hampered by a l a c k o f  information.  We [ t h e c o m m i t t e e ] f o u n d on s e v e r a l o c c a s i o n s t h a t i n f o r m a t i o n a b o u t t h e f u n c t i o n i n g o f p o r t s w h i c h we r e g a r d e d as v i t a l t o o u r e n q u i r i e s was n o t r e g u l a r l y p r o d u c e d and c o u l d n o t r e a d i l y be deduced f r o m t h e f i g u r e s a v a i l a b l e t o u s . . . .2 What a r e t h e p a r t i c u l a r gathered?  This  statistics  i s the q u e s t i o n  which should  be  w h i c h comes up as a t t e m p t s  P e r m a n e n t T e c h n i c a l C o m m i t t e e on P o r t s a t t a c h e d t o t h e I n t e r - A m e r i c a n E c o n o m i c and S o c i a l C o u n c i l o f t h e O r g a n i z a t i o n o f A m e r i c a n S t a t e s , P r o c e e d i ng s, A u g . 23-29, 1961, Pan A m e r i c a n U n i o n , W a s h i n g t o n , D . C , p. 122. 2 R o c h d a l e , op. c i t . , p. 6.  a r e made t o f i l l This  i s not  A recent  as  the simple  local  that  feel  t h a t the  as  i s no  because of  The  statistics.  i t at f i r s t  may  appear.  paper d i r e c t e d towards the "there  efficiency,"  port operations.  demand f o r  a question  research  Vancouver, argued operating  recognized  authors  simple  measure  the c o m p l e x i t y  of t h i s  Port  of  of  of modern  particular  paper  t r e m e n d o u s number of c l o s e i n t e r a c t i o n s i n  port f u n c t i o n s r e q u i r e s a simultaneous e f f e c t of a p a r t i c u l a r  policy.  To  look  attain  a t the  this  overall  goal,  they  have c h o s e n c o m p u t e r s i m u l a t i o n m e t h o d o l o g y as a means o f achievement. This  s i m u l a t i o n technique  management s y s t e m  based  i s i n marked c o n t r a s t t o a  on c o n t r o l s t a t i s t i c s ,  w h e r e b y management makes c h a n g e s a c c o r d i n g from p a r t i c u l a r  statistics.  t h a t between 55 and to  be  65  per  cent  berth  t h e n f i g u r e s below o r above t h i s of a c t i o n .  combined w i t h using The  facility,  of s t a t i s t i c s  e n l i g h t e n m e n t on  the  may  o c c u p a n c y was  of cargo  thought  handling,  per  cent  (high waiting  utilization,  time), for  indicate f a c i l i t y  i n t h i s manner r e q u i r e s p a r t of  felt  range might suggest c e r t a i n  i n s t a n c e , 85  slow turnaround  a specific  use  (For  system  to i n d i c a t i o n s  I f , f o r e x a m p l e , i t was  d e s i r a b l e f o r c e r t a i n types  courses  or a  the a n a l y s t w i t h  ships  enlargement)  considerable regard  to  port  ^ J . C. C l a p h a m , and W. J . S h e r i f f , "Computer S i m u l a t i o n A Tool i n P o r t P l a n n i n g . " Paper p r e s e n t e d to Canadian T r a n s p o r t a t i o n R e s e a r c h Forum, V a n c o u v e r , 1967, p. 1.  operations.  A recent  report  The  T u r n a r o u n d Time of S h i p s  for  knowledgeable a n a l y s t s :  by  the U n i t e d  Nations  in Port, points  out  entitled  the  need  A p p r o p r i a t e e v a l u a t i o n of p o r t p r o d u c t i v i t y m e a s u r e ments based on sound j u d g e m e n t and t h e most p r u d e n t a p p r o a c h t o p o r t i n v e s t m e n t as w e l l as t h e i m p l e m e n t a t i o n of a p p r o p r i a t e p o l i c i e s , are p r e r e q u i s i t e s t o a c h i e v i n g t h e h i g h e s t d e g r e e of e f f i c i e n c y . 4 This  statement s t r o n g l y requesting  statistics the is  properly  important,  are The  turnaround  around  statistical  information  statistics  looked  at  chapter time,  time;  i n the  deals  and  w h i c h would  with  be  remaining  p a r t of  such o p e r a t i n g  per  u n i t of  F u r t h e r m o r e , some g e n e r a l  economi c c o n s i d e r a t i o n s of These w i l l  charges at a p a r t i c u l a r particular  country;  goods t h r o u g h t h e of  the c a s u a l  berth,  the g r o w t h of the  berth  and  Other s t a t i s t i c s  (handling  occupancy reflecting  port, w i l l  i n d i c e s of t h e  the  turn-  and/or  costs  of  of s h i p  c a p a c i t y and  of  rates to a  reflecting  pattern  be  level  p o r t , i n d i c e s of f r e i g h t  situation;  port  of  statistics  the  port p r o f i t a b i l i t y ;  port.  labour  include:  this  statistics  t h e component s t a t i s t i c s  tonnage handled  statistics.  discussed.  obtained  considered  quay l e n g t h ; gang p r o d u c t i v i t y m e a s u r e s ; and  different  by  utilized.  A s e r i e s of  as  of  ( p o r t p r o d u c t i v i t y m e a s u r e m e n t s ) , i s hedged  r e q u i r e m e n t t h a t any  chapter.  t h e use  passing the  size  arrivals;  handling  ^ U n i t e d N a t i o n s , T u r n a r o u n d Time of S h i p s i n P o r t , Queen's P r i n t e r , Ottawa"! 1 967 , p. 17. (Underlining, writer's own).  75 efficiency),  and  to G.N.P. w i l l Operating  a measure of t h e p o r t as a  also  be  contributor  examined.  Statistics  By a l a r g e m a j o r i t y o p i n i o n , t u r n a r o u n d be t h e s t a t i s t i c To  g i v e an  of g r e a t e s t s i n g l e  i d e a of t h e i m m e n s i t y  the f o l l o w i n g  table  time  importance  seems t o  t o any  of t h e t u r n a r o u n d  port.  problem,  i s presented:  TABLE I I I ESTIMATE OF AVERAGE NUMBER OF DAYS A YEAR SPENT IN PORT AND AT SEA BY REPRESENTATIVE CLASSES OF SHIPS  At Passenger  Percentage  In Port  Percentage  360 days 100 per c e n t  225  62.5  135  37.05  100  145  40.27  21 5  59.72  100  tramps  205  56.94  1 55  43.05  1 00  General purpose tankers  290  80.55  70  1 9.44  1 00  Cargo  1 i ners  Sea  liners  Deep-sea  Source: A r n l j o t Stromme S v e n d s e n , ' S e e v e r k e h r und S c h i f f a h r t s w i r t s h a f t ' (Sea T r a n s p o r t and S h i p p i n g E c o n o m i e s ) Bremen, I n s t i t u t e f o r S h i p p i n g R e s e a r c h , 1 9 5 8 . *  ^Turnaround  Time, (U.N.),  op.  cit.,  p.  6.  In manner o f e x p l a n a t i o n , t h e r e p o r t s t a t e d "The f i g u r e s q u o t e d above may seem h i g h f o r t i m e i n p o r t . . . . However, one must t a k e i n t o a c c o u n t t h a t t h e d a y s a t sea i n c o r p o r a t e a t w e n t y - f o u r hour d a y , s e v e n days a week, w i t h o u t r e g a r d t o normal w o r k i n g h o u r s , . . . whereas i n p o r t t h i s i s n o t t h e c a s e , " ( p . 6 ) , and " F u r t h e r m o r e , f r o m  The R o c h d a l e rounded  Report  off in their  saw f i t t o use t h e s e  figures,  Report, d e s p i t e the very  nature of these c a l c u l a t i o n s .  5  tenuous  ( R e f e r t o page 75 f o r  explanati on). Other  q u o t a t i o n s as t o a v e r a g e  by c a r g o s h i p s i n p o r t , v a r y f r o m year.  The c o s t i m p l i c a t i o n  amounts o f t i m e  spent  40 t o 60 p e r c e n t o f t h e  of t h i s  p o r t time  i s equally  large. The c o s t e f f e c t s o f t h e t u r n a r o u n d p r o c e s s o f a s h i p a t i t s t e r m i n a l ends has been v a r i o u s l y e s t i m a t e d a t a c c o u n t i n g f o r between 30 and 60 p e r c e n t o f t h e operating c o s t s of a ship.6 The t u r n a r o u n d t h r e e component  p r o c e s s c a n b e s t be b r o k e n  down  into  parts:  F i r s t , d e l a y s which occur before a s h i p a c t u a l l y e n t e r s a p o r t ; s e c o n d l y , t h e t i m e r e q u i r e d by t h e s h i p operator to s e r v i c e h i s vessel f o r the f u t u r e voyages; and t h i r d l y , t h e t i m e r e q u i r e d f o r d i s c h a r g i n g a n d / o r l o a d i n g cargo which i s c l o s e l y a l l i e d t o p o r t productivity.7 A breakdown o f t u r n a r o u n d i s a good way o f i s o l a t i n g Table  time  problem  i n t o component p a r t s  areas.  I , page 2 1 , o f t h e c h a p t e r was b r o k e n  For instance, down by  t h e f i g u r e s g i v e n , one c a n n o t be c e r t a i n as t o how t h e y were d e r i v e d , o r f r o m what s o u r c e s t h e y were o b t a i n e d . " ( p . 7 ) . ^Rochdale, ^Turnaround 7  op. c i t . , p. 112. Time, (U.N.),  1 b i d . , pp. 1-13.  op; c i t . , p. 7.  analysis  as f o l l o w s :  40 p e r c e n t a t s e a . peri ods).  The  (Actual  twenty-four  hour  45.7  p e r c e n t i n p o r t as dead t i m e f o r w e e k - e n d s , h o l i d a y s , and n o n - w o r k i n g hours.  14.3  p e r c e n t as a c t u a l days o f t w e n t y - f o u r hour working periods a v a i l a b l e f o r working cargo.8  implication  here  i s that:  N e a r l y 75 p e r c e n t o f t h e 60 p e r c e n t q u o t e d as b e i n g t h e ' t i m e i n p o r t ' c o u l d p o s s i b l y be e r a d i c a t e d i f t w e n t y - f o u r hour d a y , s e v e n - d a y week work p e r i o d s were a p p l i c a b l e. . . . "9' The  main d i f f i c u l t y  with trying  to determine:  The s i z e and s e r i o u s n e s s o f t h e t u r n a r o u n d t i m e f o r s h i p s i n p o r t i s . . . a c o m p l e t e and u t t e r l a c k o f a c c e s s i b l e f a c t u a l data.ID This  i s the problem  The  interpretation  be t e m p e r e d in  weather  (rain,  in this  chapter.  o f d a t a , even i f a v a i l a b l e ,  t i m e of s h i p s .  These f a c t o r s v a r y from t h e  cargoes, unexpected  and p o l i t i c a l  East C r i s e s , a f f e c t  has t o  involved  snow, and f o g ) , t o l a b o u r s t r i k e s .  of p a r t i c u l a r  arrivals,  earlier  by a w a r e n e s s o f many o f t h e f a c t o r s  turnaround  ality  mentioned  bunching  Season up o f  e v e n t s , such as t h e r e c e n t M i d d l e  particular  ports'  turnaround  perform-  ances.  81b i d ., p. 6. week of e i g h t h o u r s -91 b i d . "I Q l b i d ., p. 5.  The a s s u m p t i o n o f an a v e r a g e f i v e - d a y a day i s made f o r p u r p o s e s o f a n a l y s i  The  a n a l y s t has o f t e n t o t a k e many f a c t o r s  i n t o c o n s i d e r a t i o n i n order around  situation  to properly evaluate  of p o r t o p e r a t i n g e f f i c i e n c y  given  the t u r n -  there.  Another o p e r a t i n g s t a t i s t i c  ultimate  at a port  statistic  i s gang p r o d u c t i v i t y .  f o rrelating  by one s o u r c e  to result  o f v a l u e as an i n d i c a t o r The  man-hour p r o d u c t i v i t y was from:  H a v i n g a commodity g r o u p l i s t common t o a l l [ s t e v e d o r i n g ] c o m p a n i e s t o g e t h e r w i t h a common t o n n a g e m e a s u r e i n e i t h e r w e i g h t o r volume f o r each commodity g r o u p , and a common method o f d e t e r m i n i n g manhours u t i l i z e d f o r each g r o u p . l l The further  study  by t h e U n i t e d  specified  excluded  Nations  oh t u r n a r o u n d  the elements which should  i n a measure of l a b o u r  time  be i n c l u d e d o r  productivity.  Measurements o f [gang] p r o d u c t i v i t y . . . s h o u l d n o r m a l l y i n c l u d e r e m o v a l and r e p l a c i n g o f h a t c h t e n t s , o p e n i n g and c l o s i n g o f h a t c h e s b u t s h o u l d e x c l u d e i d l e t i m e due t o a d v e r s e w e a t h e r c o n d i t i o n s a f f e c t i n g w o r k , s h i f t i n g o f t h e v e s s e l t o o t h e r b e r t h s , o r any o t h e r i n t e r r u p t i o n beyond t h e c o n t r o l o f l a b o u r . . . .12 This be  study  the important  f u r t h e r l a y e d o u t what i t c o n s i d e r e d t o classifications  labour p r o d u c t i v i t y (i) (ii) (iii)  general  of cargo  f o r relating  therewith associated: cargo.  p a r c e l s o f homogeneous c a r g o drums, b a g s , b u n d l e s , c a s e s ,  such as b a l e s , rolls, etc.  b u l k c a r g o s u c h as g r a i n , c o a l , o r e , phosphates,e t c .  'Permanent T e c h n i c a l C o m m i t t e e on P o r t s , op. c i t . , 3 5 . ^ U n i t e d N a t i o n s , T u r n a r o u n d T i m e , op. c i t . ,  p. 17.  79 (iv)  s p e c i a l c a r g o s u c h as p e r i s h a b l e refrigerated  Of  course,  cargo,  fruit,  and heavy l i f t  the f i g u r e s r e s u l t i n g  will  still  cargo.'  3  be a f f e c t e d by  e x t r a n e o u s f a c t o r s such as t h e number and t e c h n o l o g i c a l a d v a n c e m e n t o f c r a n e s f o r l o a d i n g and A third  statistic  unloading.  o f use as a measure o f o p e r a t i n g  e f f i c i e n c y i s r a t e o f b e r t h ( o r quay) t o n n a g e p r o d u c t i v i t y . ( t h i s measure) should r e f e r t o tonnages of cargo p a s s i n g f r o m quay t o s h i p and r e v e r s e , s e p a r a t e l y , f o r each b e r t h and s u m m a r i l y f o r a l l b e r t h s , e x p r e s s e d i n tonnage per metre of b e r t h . Should l i g h t e r e d cargo be p a s s i n g o v e r deep w a t e r b e r t h s , n o t e s h o u l d be made. 14 This  statistic  i s a f f e c t e d by such t h i n g s a s :  The l e n g t h o f b e r t h s , amount o f s u r f a c e w a t e r , d e p t h o f w a t e r , shed and s t o r a g e s u r f a c e , as w e l l as t h e c a p a c i t i e s o f p o r t e q u i p m e n t , and ' c r a n e s , t y p e s o f c a r g o , r a t e o f l o a d i n g and d i s c h a r g i n g , number o f w o r k i n g h o u r s p e r d a y , number o f w o r k i n g days p e r y e a r , and t h e t y n e and t o n n a g e o f v e s s e l s l i k e l y t o be c a l l i n g at port.'15 Therefore, research Control  i n t o a l l these statistics  over time, roughly  complete a n a l y s i s of a s t a t i s t i c  possible factors affecting i t .  c a n be e s t a b l i s h e d f o r a p a r t i c u l a r  and compared w i t h  comparable.  requires  p o r t s whose f i g u r e s s h o u l d  The U n i t e d  Nations  report declared  port be that:  S a t i s f a c t o r y , b u t by no means e x c e l l e n t p o r t p r o d u c t i v i t y i s c o n s i d e r e d t o be a c h i e v e d when t e n t o n s o f g e n e r a l c a r g o t u r n o v e r i s r e a c h e d p e r d a y , f o r each m e t r e of b e r t h . 1 .6 1  ^ I b i d ., p. 18.  "I flLoc. c i t . 1  Slbid.,  P. 16.  1 &L o c . c i t .  A fourth s t a t i s t i c utilization. following  The U n i t e d  of o p e r a t i n g Nations  efficiency  report  procedure f o r c a l c u l a t i n g  this  i s berth  recommends t h e statistic:  A t i m e f a c t o r e x p r e s s e d i n h o u r s f o r each l e n g t h o f b e r t h o r m e t r e o f b e r t h o c c u p i e d each d a y , e x p r e s s e d as a p e r c e n t a g e o f u s a b l e t i m e , s h o u l d be n o t e d . It is o f u t m o s t i m p o r t a n c e t o make a c l e a r d i s t i n c t i o n as t o o c c u p a n c y o f b e r t h s by w o r k i n g v e s s e l s , w h i c h may t h e n be c a l l e d p r o d u c t i v e b e r t h o c c u p a n c y as compared t o u n p r o d u c t i v e b e r t h o c c u p a n c y w h i c h r e f e r s t o u s e of b e r t h s by v e s s e l s moored a l o n g s i d e f o r p u r p o s e s o t h e r than commercial o p e r a t i o n s w i t h i n the port ( s h i p repairs, f i t t i n g , painting).17 Two o t h e r  useful s t a t i s t i c s  w i t h w h i c h t o measure  operating  p e r f o r m a n c e m i g h t be c r a n e u t i l i z a t i o n  increases  i n through-put  i n any o f t h e o t h e r  ( o r c h a n g e s and r a t e s o f c h a n g e s  statistics).  Measures o f Economic How w e l l a p o r t  Performance i s performing  economically  m i g h t be r e p r e s e n t e d  by, f i r s t  port  commodities through  t o move v a r i o u s  level  of charges;  (which  and  and t h i r d l y ,  speaking,  o f a l l , how much i t c o s t s a i t ; secondly, the  the p r o f i t a b i l i t y  of the port  i s t h e same as t h e d i f f e r e n c e between c o s t s and r a t e s ) . Probably,  t h e b e s t measure o f a p o r t ' s  economic  p e r f o r m a n c e ( c o n s i d e r i n g t h a t many p o r t s o f t h e w o r l d a r e operated  as p u b l i c u t i l i t i e s ) ,  through the p o r t .  1 7  Ibid.,  p. 18.  i s t h e c o s t o f moving  cargo  The t r u e e c o n o m i c c o s t s a r e d i f f i c u l t t o  81 measure. costing  Nevertheless, techniques  so  more e q u i t a b l y and distortion  there  t h a t r a t e s m i g h t be  more c o m m e r c i a l l y .  i n the a l l o c a t i o n  minimized.  Along  recommended  that:  i s pressure  these  the  ports to  b u i l t upon  Furthermore,  of r e s o u r c e s  lines,  on  would  use costs  any  be  Rochdale Committee  P o r t s ' o p e r a t i o n s s h o u l d be c o s t e d more f r e q u e n t l y and i n g r e a t e r d e t a i l w i t h t h e aim of m a k i n g i n d i v i d u a l a c t i v i t i e s self-supporting.18 The  c o s t s of  passing  to some d e g r e e , r e f l e c t e d port costs dues on  in freight  and  net  Rochdale Committee c i t e s of g r a i n , the  port w i l l The  cranes,  as  idle  time).  evidence of  be,  ships' stevedoring,  r e g i s t e r e d t o n n a g e , and  the w a i t i n g t i m e - - ( s h i p  handling  rates.  i n c l u d e t h e c o s t s of h i r i n g  cargo,  c o s t s of  cargo through the  the  opportunity  Therefore,  inefficient  the  port  fact:  T h a t f r e i g h t r a t e s on g r a i n c a r g o e s to t h i s c o u n t r y ( B r i t a i n ) a r e h i g h e r t h a n on s i m i l a r c a r g o e s f r o m s i m i l a r p o i n t s of o r i g i n t o t h e m a j o r n e a r c o n t i n e n t a l p o r t s . . . .19 However, f r e i g h t as w e l l as basing freight  an  r a t e s a l s o r e g i s t e r many o t h e r  p o r t c o s t s , and  argument c o n c e r n i n g  rates.  For  to t h e U n i t e d  port  r a t e s are  inefficiency m i g h t be  p.  cit.,  p.  before directly  l e d to  noticeably higher  Kingdom t h a n t o H o l l a n d  1 8 R o c h d a l e , op. 19 I b i d . ,  must be c a r e f u l  i n s t a n c e , one  t h a t s i n c e the f r e i g h t  c.  one  influences,  and  on  conclude c.i.f.20  Germany, t h a t  223.  164.  2 Q c . i . f . r e f e r s t o t h e c o s t of s h i p p i n g (cost) + i . (insurance) + f. ( f r e i g h t ) .  goods i n c l u s i v e  of  British Dutch  p o r t s a r e more i n e f f i c i e n t  ports, i n handling  (May, 1962) d e f i n e d being  this  ore.  The W e s t i n f o r m  particular  handling would  explanations  indicator.  At l e a s t ,  of c o m p a r i n g  to  i t sprofit  ports  or l o s s p i c t u r e .  Miscellaneous  goals  spots.  charges  However, i s no e a s y  economic  Nevertheless,  performance any  p o r t must be made w i t h  of t h a t  value reference  port.  Performance Measures  The l a b o u r very  port  o u t by t h e R o c h d a l e Comm i t t e e .2-2  on a p a r t i c u l a r  the p r o f i t  strikes,  call for  of n e a r b y  p o r t c h a r g e s between p o r t s  One f u r t h e r measure o f a p o r t ' s  judgments  rates  i t would  i n d i c e s of v a r i o u s  i n p i n p o i n t i n g problem  t a s k , as was p o i n t e d  is  a  s i m i l a r cargoes.  be u s e f u l  task  r a t h e r t h a n as s t r i c t l y  o f v a r i a t i o n s f r o m t h e norm  More s p e c i f i c a l l y , would  as  p o t e n t i a l i t y to  p r o b l e m .2^However, an i n d e x o f f r e i g h t  be a u s e f u l  handling  Report  cost d i f f e r e n t i a l  r e l a t e d t o s h i p s ' s i z e , and p o r t s  handle the l a r g e ore c a r r i e r s ,  the  than, f o r instance,  problem which  high  i n c l u d e s a l a r g e number o f  wages, and " g o l d b r i c k i n g " or " f e a t h e r -  b e d d i n g " among o t h e r  things  i s often at least  partially  ^ I b i d . , p. 159. J:  2^1 b i d . , p. 73. The t e x t a l l u d e s t o t h e " p i t f a l l s " t h a t were e n c o u n t e r e d i n t r y i n g t o draw c o m p a r i s o n s .  attributed  to the casual  to s e t t h i n g s a r i g h t , for  labour  system a t p o r t s .  schemes have  been  p r o p o s e d and t r i e d  d e c a s u a l i z a t i o n of p o r t l a b o u r , t h e world  Therefore, casual  s t r e n g t h or weakness.  employing  of p o t e n t i a l  The R o c h d a l e Committee  labour  recommended:  a)  The i n t e r e s t e d p a r t i e s s h o u l d p r e s s ahead w i t h arrangements f o r the g r e a t e s t p o s s i b l e degree o f d e c a s u a l i z a t i o n o f dock l a b o u r , w i t h i n t h e Dock L a b o u r Scheme.  b)  Where t h i s i s n o t a l r e a d y t h e c a s e , p o r t a u t h o r i t i e s s h o u l d have a d e q u a t e s t a t u t o r y powers t o f o r m u l a t e t h e c o n d i t i o n s under w h i c h e m p l o y i n g f i r m s w i l l be g i v e n l i c e n s e s t o o p e r a t e w i t h i n p o r t s and s h o u l d t a k e a c t i v e s t e p s t o r e d u c e t h e number o f e m p l o y e e s t o a reasonabl e 1evel . 2 3  Therefore labour  over.  the degree to which a p o r t i s s t i l l  l a b o u r m i g h t be an i n d i c a t o r  In order  a statistic  i s probably  competence.  one good measure o f a p o r t a u t h o r i t y ' s  The s p e c i f i c  decasualization  s u c h as t h e d e g r e e o f c a s u a l  r o l e of the port a u t h o r i t y i n a  scheme m i g h t f u r t h e r e n l i g h t e n t h e a n a l y s t  as t o how p r o g r e s s i v e management i s . Some measure o f p o r t g r o w t h , e s p e c i a l l y vis  strong competition  be an i n d i c a t i o n put m i g h t  (perhaps from f o r e i g n p o r t s ) ,  of a port's success.  be one s u c h u s e f u l s t a t i s t i c  A s i m i l a r measure o f a p o r t ' s its  i m p a c t on t h e l o c a l  figures are obtained  2  ' I b i d . , p. 1 4 5 . 3  when v i s a  Increase of port  might  i n through growth.  p e r f o r m a n c e m i g h t be  o r r e g i o n a l community.  J u s t as  t o show t h e a d d i t i o n s t o G.N.P. t h a t  r e s u l t from o t h e r  i n d u s t r i e s , so s h o u l d  the p o r t  industry 24  try  t o g i v e a measure  of i t s c o n t r i b u t i o n  t o 6.N.P.  24Note a r e c e n t p a m p h l e t by t h e U.S. D e p t . o f CommerceM a r i t i m e A d m i n i s t r a t i o n , e n t i t l e d , The Economic Impact of U n i t e d S t a t e s Ocean P o r t s , 1966. T n i s does n o t seem t o be a very s o p h i s t i c a t e d attempt to t a c k l e t h i s problem. N e v e r t h e l e s s , i t i s an a t t e m p t .  CHAPTER V I I A FIELD T h i s c h a p t e r encompasses of a s t u d y d f two m a j o r to f i n d and  STUDY the methodology  p o r t s . ^ The i n t e n t o f t h e s t u d y i s  t h e n a t u r e o f t h e r e l a t i o n s h i p between  port  proficiency  Vancouver  i n two a c t u a l  and t h e P o r t  correlation supportive  between  1  measure d i r e c t l y proficiency, selected.  ports  of S e a t t l e ) .  port  autonomy  ( t h e Port of  A f i n d i n g of a p o s i t i v e  autonomy and p r o f i c i e n c y would be  of the hypothesis t h a t :  ports --caterious  and r e s u l t s  paribus.  Because  autonomously  operated  i t i s not p o s s i b l e to  t h e amount of autonomy or t h e d e g r e e o f  i n d i c a t o r s o f autonomy and of p r o f i c i e n c y a r e  These  i n d i c a t o r s a r e then u t i l i z e d  to  communicate  an i m p r e s s i o n as t o t h e d e g r e e of autonomy and o f p r o f i c i e n c y i n each  port.  A m e a n i n g f u l c o m p a r i s o n o f any two p o r t s recognition  of t h e many d i f f e r e n t c h a r a c t e r i s t i c s  t o each p o r t .  The s a l i e n t d i f f e r e n c e s  V a n c o u v e r and S e a t t l e the  e n t a i l s the  are, therefore,  peculiar  of t h e p o r t s of compared  early  on i n  chapter. The  ports  of Vancouver, B r i t i s h  Columbia, (the  ' " P o r t s , " i n t h i s case, r e f e r to major s e a p o r t s o n l y , ( P o r t s w h i c h a r e a b l e t o b e a r t h e e x p e n s e o f an e l a b o r a t e technostructure).  86 National  Harbours Board),  and S e a t t l e , W a s h i n g t o n , U.S.A.,  (The S e a t t l e P o r t A u t h o r i t y ) were c h o s e n f o r t h i s study (2)  because of t h e i r  the controversy  (1) s i z e ,  surrounding  Vancouver O p e r a t i o n ,  (similar  field  and s u b s t a n t i a l ) ,  the p r o f i c i e n c y of the  and t h e l e s s c o n t r o v e r s i a l S e a t t l e  P o r t , as a c o n t r a s t , and ( 3 ) t h e p r o x i m i t y o f t h e p o r t s t o the w r i t e r ' s The  residence.  i n t e r v i e w method was used t o g a t h e r  the i n f o r m a t i o n  r e q u i r e d , and was based on a l o o s e l y s t r u c t u r e d so as t o e n c o u r a g e - - b y stances  probing--the  p e c u l i a r t o each p o r t ' s  Methodological  expression  questionnaire of c i r c u m -  operation.  Problems  How p r o f i c i e n t  a port, given  i t s natural  geographical  l i m i t a t i o n s , may be i s d e p e n d e n t upon many f a c t o r s : quality  o f t h e p o r t ' s management; t h e n a t u r e  statistics  of o p e r a t i n g  p r o d u c e d ; and t h e s p h e r e o f r e s p o n s i b i l i t i e s i n  which the p o r t  i s involved.  Rig.orous.l.y s p e a k i n g , judged  the  by t h e q u a l i t y ,  management q u a l i t y  number, and n a t u r e  d e c i s i o n s and a c t i v i t i e s .  c a n o n l y be  o f management  A comprehensive e v a l u a t i o n of a  p o r t management t h e r e f o r e , o f n e c e s s i t y , must be beyond t h e scope o f t h i s concentrate  thesis.  study,  t h e r e f o r e , was f o r c e d t o  on m e a n i n g f u l s t a t i s t i c s .  number o f s p e c i a l i s t s was  This  having  For example, the  d e g r e e s were t a b u l a t e d , and i t  assumed t h a t q u a n t i t y o f p e r s o n n e l  w i t h d e g r e e s and  87 quality  o f d e c i s i o n making a r e d i r e c t l y  more, t h e l o c a t i o n o f key p e r s o n n e l  relative  was n o t e d , t h e a s s u m p t i o n h e r e b e i n g location  related.  5  Further-  to operations  t h a t management on  i s t o be p r e f e r r e d t o management f r o m a d i s t a n c e .  Port S t a t i s t i c s proficiency. datum t e l l  tell  some o f t h e s t o r y o f p o r t  Not o n l y do p a r t i c u l a r  7  6  pieces  of  statistical  a s t o r y as t o management p r o f i c i e n c y , b u t a l s o  t h e mere e x i s t e n c e o f c e r t a i n s t a t i s t i c a l  data  i s valuable  Q  as an i n d i c a t o r o f management p r o f i c i e n c y . specific  data  Moreover,  a r e f r e q u e n t l y u n a v a i l a b l e t o t h e p u b l i c (and  even i f i t were a v a i l a b l e , s e a s o n e d e x p e r t i s e would be needed  i n order  to i n t e r p r e t i t ) .  m i g h t do i i i a n o n - d e p t h s t u d y , degree c e r t a i n s t a t i s t i c a l management.  Accordingly,  would  The  be t o f i n d  a  t o what  t h e b a s i c p u r p o s e o f C h a p t e r VI a r e t h e most n e c e s s a r y  b a c k g r o u n d f o r p r o f i c i e n t d e c i s i o n making  questionnaire  statistics  researcher  i n f o r m a t i o n was a v a i l a b l e t o  was t o d e t e r m i n e w h i c h s t a t i s t i c s provide  Then t h e b e s t  was d e s i g n e d  so as t o f i n d  to  i n a port.  which of these  were r e g u l a r l y p r o d u c e d a t V a n c o u v e r , and a t  Seattle. 5 T h i s a s s u m p t i o n i s based o n ' G a l b r a i t h s d e s c r i p t i o n o f management d e c i s i o n making by t h e " T e c h n o s t r u c t u r e " i n The New I n d u s t r i a l S t a t e . ( R e f e r page 27 o f t h i s t h e s i s ) . 1  6  S e e C h a p t e r I V , pp. 4 9 - 5 3 .  7  This  8  S e e pages  statement i s explained 72-74.  in detail  i n Chapter V I .  88 Moreover,  since  i t was  that a Port A u t h o r i t y was  t o be p r e f e r r e d  operations. the  scope  The  o f each  Finding  agreed  e x e r c i s i n g a broad  over a narrow  questionnaire port's  task.  The  decisions  i s one  i n d i c a t o r that  a n o t h e r ; and is a  The  secondly, and  activities,  t h e n a t u r e and  scope  of  shows, m e a s u r i n g  is a  decisions-  these  focii  p r o f i c i e n c y ) i s an a p p r o x i m a t i o n p r o c e d u r e .  on t h e w e i g h t i n g  depends,  of the i n d i c a t o r s ; on t h e i n d i c a t o r s ,  procedure that  t h e i n d i c a t o r s t o a common d e n o m i n a t o r  Seattle  of  third.  on t h e q u a l i t y o f d a t a o b t a i n e d  classify  determine  i s u s e d ; t h e l o c a t i o n of  on t h e r e p r e s e n t a t i v e n e s s  finally,  bring and  over port  q u a l i t y of the r e s u l t i n g c l a s s i f i c a t i o n s  firstly,  over  l o c a t i o n of a u t h o r i t y f o r spending  t h e above a n a l y s i s  (autonomy and  d e s i g n e d to  i n d i c a t o r s of autonomy, or the degree  difficult  As  of a u t h o r i t y  authority.^  of c o n t r o l  on-location  scope  literature  scope of a u t h o r i t y  was  decentralization  "staff"  upon i n t h e  i s used  to  so as t o compare  individual ports.  - Vancouver:  An  B o t h S e a t t l e and entrance channel  Introduction Vancouver  to Vancouver's  a c o n t r o l l i n g depth  and  Comparison  are natural  harbours.  harbour, Burrard  of t h i r t y - n i n e f e e t .  Inlet,  Seattle's  The has  harbour,  See pages 33 t o 42. The r e l e v a n t q u e s t i o n h e r e i s : "what a c t i v i t i e s s h o u l d a p o r t a u t h o r i t y become i n v o l v e d i n ? "  89 Elliott 900  B a y , has h a r b o u r d e p t h s  feet.  The j u r i s d i c t i o n  r a n g i n g from  150 f e e t t o  of the Port of Vancouver  "some f i f t y s q u a r e m i l e s o f w a t e r a r e a w i t h i n until  1 9 6 6 , when t h e a r e a was expanded  a total  Inlet"  to the United  E l l i o t t B a y , on t h e o t h e r h a n d , e n c o m p a s s e s  h a r b o u r a r e a o f 5,300 a c r e s ( 8 . 3 s q u a r e  The for  1 0  Burrard  " t o n e a r l y 200  square m i l e s o f water a r e a , extending c l e a r States B o r d e r . "  has been  P o r t of S e a t t l e  miles).  has 22 t e r m i n a l s w h i c h a r e "used  h a n d l i n g dry commercial  cargo."  1 1  Vancouver  provides 12  "24 d e e p - s e a  b e r t h s and t h r e e b e r t h s f o r c o a s t a l  One b a s i c d i f f e r e n c e Vancouver's day,  authority the  a week s h i f t ,  hour a week s h i f t .  comes f r o m  whereas V a n c o u v e r  Another d i f f e r e n c e  the f a c t that S e a t t l e ' s f o r Seattle's  port.  authority  i n S e a t t l e ' s o p e r a t i o n s from  o p e r a t i o n s , i s t h a t S e a t t l e o p e r a t e s on a  s e v e n days  a forty  Vancouver's  National  on t h e n e x t page w i l l  in operations  indicate further  i s the  A i r p o r t , as w e l l  Harbours port.  24-hour  o p e r a t e s on  Port Authority  International  f o r o n l y Vancouver's  differences  shipping."  Board  as  i s the  The s t a t i s t i c a l similarities  table  and  between t h e two p o r t s .  lONational p. 10.  Harbours  B o a r d , The P o r t o f V a n c o u v e r , 1 9 6 6 ,  ^ P o r t o f S e a t t l e , F a c i l i t i e s Handbook, p. 4. 1p ^ N a t i o n a l Harbours Board, Annual R e p o r t , Ottawa, 1967, p. 5 3 .  A STATISTICAL REVIEW FOR THE PORT OF SEATTLE AND THE PORT OF VANCOUVER ( 1 9 6 7 )  Stati stic 1.  T o t a l tonnage through port  2.  Foreign d e s t i n a t i o n or o r i g i n  Port of Seattle 16,000,000  P o r t of Vancouver tons  a p p r o x . 18% o f tons  3.  Book v a l u e of port c a p i t a l  4.  Depreciation  $1 ,850,000++  5.  Revenue  $6,770,000  6.  Profit  7.  A d m i n i s t r a t i on costs  23,000,000  tons  a p p r o x . 55% o f tons $40,000,000  $85,500,000+  $590,000 $7,084,000  $10,580,000+++  $150,000** $790,000  $1 ,480,000++  * A l l d o l l a r f i g u r e s i n the t a b l e a r e Canadian dollars. The e x c h a n g e r a t e i s assumed t o be $1 C a n a d i a n = $1.08 A m e r i c a n . + T h i s f i g u r e i n c l u d e s t h e v a l u e of t h e l a n d upon w h i c h p o r t f a c i l i t i e s s i t . The b a l a n c e s h e e t a s s e t f i g u r e f o r t h e p o r t and a i r p o r t c o m b i n e d , was $128,000,000 ( U . S . ) . The a i r p o r t was r e c e n t l y a s s e s s e d a t $ 3 5 , 0 0 0 , 0 0 0 , and was u n d e r g o i n g e x p a n s i o n , h e r e assumed t o be $4 m i l l i o n . F u r t h e r , t h e p o r t o p e r a t e s a $10,000,000 m a r i n a , w h i c h was a l s o s u b t r a c t e d f r o m t h e $128 m i l l i o n . ++ D e p r e c i a t i o n . I t was assumed t h a t t h e a i r p o r t a c c o u n t e d f o r 30 p e r c e n t of t h e d e p r e c i a t i o n . T h i s f i g u r e i s 70 p e r c e n t o f t h e n e t p r o f i t f o r t h e c o m b i n e d p o r t and a i r p o r t o p e r a t i o n . The f i g u r e i n c l u d e s $11,350,000 i n t a x r e v e n u e . +  taxes  +  +  ** The A u t h o r i t y p a i d a g r a n t of $25,000.  in lieu  of municipal  ++ A d m i n i s t r a t i o n c o s t s f o r t h e p o r t a r e e s t i m a t e d t o be 70 p e r c e n t o f t h e a d m i n i s t r a t i o n c o s t s f o r t h e c o m b i n e d o p e r a t i on.  91 The the  i n t e r v i e w below c o n t a i n s  r e s p o n d e n t s ' answers i n the  the  interview questions  i n t e r v i e w s at Vancouver  and  and  Sea t t l e . I.  Interview  and  Selected  Responses  Q.  How w o u l d you d e s c r i b e t h e f o r m a l s t r u c t u r e of the P o r t A u t h o r i t y ? organization chart?  A.  See  Q.  How many s t a f f Authori ty?  A.  Vancouver: Approximately 200. S e a t t l e ! Approximately 415.  d i a g r a m s on  pages 95 and are  there  administrative Have you an  96.  i n the  office  of t h e  Port  -  Q.  How many s p e c i a l i s t s ( d e f i n e d i n e n s u i n g d i s c u s s i o n as U n i v e r s i t y g r a d u a t e s ) , a r e amongst t h e s t a f f ?  A.  Vancouver: T h r e e ; t h e y a r e e n g i n e e r s and a r e i n t h e E n g i n e e r i n g Department. Probe: Why a r e not more U n i v e r s i t y g r a d u a t e s h i r e d ? A n s w e r : B e c a u s e a u n i v e r s i t y d e g r e e i s of r e l a t i v e l y l i t t l e value to a port a d m i n i s t r a t o r . What i s r e q u i r e d i s a w o r k i n g k n o w l e d g e of p o r t o p e r a t i o n s , and t h i s can o n l y be o b t a i n e d t h r o u g h e x p e r i e n c e on t h e j o b . (The r e s p o n d e n t t h e n s t a t e d t h a t o n l y one p e r s o n i n t h e p o r t a u t h o r i t i e s ' o f f i c e had had w o r k i n g e x p e r i e n c e i n any o t h e r p o r t t h a n V a n c o u v e r ) . Seattle: Of t h e w h i t e - c o l l a r s t a f f (approximately 285 p e r s o n s ) , between o n e - t h i r d and o n e - h a l f have U n i v e r s i t y degrees. Probe: What i s S e a t t l e ' s p o l i c y w i t h r e g a r d t o hand!ing graduates? Answer: f t v a r i e s w i t h t h e r e q u i r e m e n t s of the j o b . F o r i n s t a n c e , t h e e n g i n e e r s must have d e g r e e s , but not d r a f t s m e n . Most p e o p l e i n P l a n n i n g have a degree.  II.  Q.  What t r a i n i n g p r o g r a m s a r e a v a i l a b l e t o t h e the p o r t a u t h o r i t i e s ' o f f i c e ?  staff  of  A.  Vancouver: Nothing f o r m a l . Sea t t l e~ A program w h i c h i s more a k i n t o a s o c i a l w e l f a r e program t h a n a " p o r t a d m i n i s t r a t i o n " t r a i n i n g program e x i s t s . No o t h e r f o r m a l programs e x i s t .  Q.  Which of t h e f o l l o w i n g a r e f u n c t i o n s of t h e authority? a) P l a n n i n g of p o r t f a c i l i t i e s ? Vancouver: Yes. This i s mainly a task Seattle: Yes.  port of O t t a w a .  92  P r o v i s i o n o f l i g h t h o u s e s , buoys, r a d a r , e t c . ? Vancouver: No. F u n c t i o n o f t h e D e p t . o f Transport. (D.O.T..) . S e a t t l e : Yes. Operation of Locks? Vancouver: None i n V a n c o u v e r . S e a t t l e T ~ B a l l a r d L o c k s a r e o p e r a t e d by t h e Army E n g i n e e r s — a F e d e r a l Government f u n c t i o n . Sound and S u r v e y t h e H a r b o u r ? Vancouver: Yes. Also r e s p o n s i b i l i t y S e a t t l e : Yes.  o f D.O.T.  B e l t l i n e R a i l w a y s ? f ) Towage? g) D r y d o c k i n g ? h) M o t o r T r u c k O p e r a t i o n s ? (answer f o r (e) t o ( h ) : Vancouver: No. P r i v a t e C o s . r e s p o n s i b i l i t y . S e a t t l e f ~ No. P r i v a t e C o s . r e s p o n s i b i l i t y . C o o r d i n a t i o n of d i f f e r e n t i n t e r e s t groups? Vancouver? How i s t h i s d o n e - - t h r o u g h what i n s t i t u t i o n a l i z e d patterns? Vancouver: There i s a P o r t P l a n n i n g Board which r e p r e s e n t s a d i v e r s i f i e d group of p o r t i n t e r e s t s . M o r e o v e r , an e x e c u t i v e o f N.H.B. s i t s i n and c h a i r s t h e m e e t i n g s . The P l a n n i n g B o a r d has t o d a t e made s e v e r a l r e c o m m e n d a t i o n s t o N.H.B. w h i c h have been p r o c e e d e d upon. Sea t t l e : T h e r e i s no i n s t i t u t i o n a l i z e d a r r a n g e ments by w h i c h v a r i o u s p o r t i n t e r e s t s a r e represented i n the Port A u t h o r i t i e s decision making. They may a p p e a l c e r t a i n d e c i s i o n s o f the A u t h o r i t y , b u t a r e v e r y s e l d o m , i f e v e r , successful. P o l i c e and F i r e P r o t e c t i o n ? Vancouver: Partial responsibility. f o u r harbour p a t r o l boats ( p o l i c e ) . S e a t t l e . Yes.  N.H.B. has  Assignment of B e r t h s ? B o t h S e a t t l e and V a n c o u y e r a s s i g n b e r t h s w h i c h the r e s p e c t i v e a u t h o r i t i e s o p e r a t e , on t h e f i r s t come, f i r s t s e r v e b a s i s . They r e f u s e , however, t o impose upon p r i v a t e t e r m i n a l o p e r a t o r s any o r d e r of p r e f e r e n c e i n b e r t h i n g . L i g h t e r a g e and Barge O p e r a t i o n s ? m) s t e v e d o r i n g ? Answer f o r ( 1 ) and (m): These a r e t h e r e s p o n s i b i l i t y of p r i v a t e companies a t both p o r t s .  93 n)  Dredging? Vancouver: w i t h P u b l i c Works. Sea t t l e : Y e s .  o)  W a r e h o u s i n g , T r a n s i t Shed O p e r a t i o n s , and Grain Elevators? Vancouver. Mo. P r i v a t e c o m p a n i e s o r l e a s e d o p e r a t i ons. S e a t t l e . Yes.  p)  Bunkering, S t o r i n g , Crewing, Repairing? P r i v a t e company r e s p o n s i b i l i t i e s i n b o t h  q)  III.  Yes.  coordination  ports.  C o l l e c t i o n of S t a t i s t i c s ? Vancouver: Yes. S e a t t l e : Yes.  Which o f t h e f o l l o w i n g s t a t i s t i c s c o l l e c t e d on t h e p o r t ? a)  In  Vessel Turnaround? this statistic?  i s (regularly.)  What i s t h e c o m p o s i t i o n o f  Seattle: Load/unload t i n e s a r e c o l l e c t e d f o r a l l s h i p s , b u t n o t on an i n d i v i d u a l ship-by-ship basis. T h e r e a r e no s t a t i s t i c s on w a i t i n g time. T h e r e i s v e r y l i t t l e w a i t i n g t i m e f o r any of t h e f a c i l i t i e s w i t h t h e e x c e p t i o n o f t h e grain elevator. No s t a t i s t i c s o f s e r v i c i n g time a v a i l a b l e e i t h e r . Vancouver: Aggregate load/unload times are c o l l e c t e d f o r N.H.B. o p e r a t e d f a c i l i t i e s only. b)  Gang p r o d u c t i v i t y ? N e i t h e r the Vancouver or the S e a t t l e port a u t h o r i t i e s c o l 1 e c t s t a t i s t i e s on gang p r o d u c tivity.  c)  Berth U t i l i z a t i o n ? Sea t t l e : Yes. For a l l f a c i l i t i e s . Vancouver: F o r N.H.B. o p e r a t e d f a c i l i t i e s only.  d)  B e r t h Tonnage P r o d u c t i v i t y ? Seattle: Y e s . Not on a v e s s e l but as a g g r e g a t e s . Vancouver: F o r N.H.B. o p e r a t e d only.  by v e s s e l facilities  basis  94  e)  Crane U t i l i z a t i o n ? B o t h S e a t t l e and V a n c o u v e r keep t h e s e s t a t i s t i c s b a s i c a l l y f o r purposes of f i x i n g r e n t a l c h a r g e s (usage c h a r g e s ) .  f)  C o s t o f moving v a r i o u s c o m m o d i t i e s t h r o u g h port? E x t r e m e l y l i t t l e has been done a t e i t h e r p o r t w i t h r e s p e c t to c o s t i n g s e r v i c e s .  g)  P e r c e n t a g e of c a s u a l labour at port? Neither  What i s t h e regard port  port  in order  indicated  authority  p o s i t i o n of  to s o l i c i t i n g  the  labour  is involved  the  books o f  as v e r s u s  port  in this  authority  such a step  was  completely  area.  with  p r i v a t e companies  t o compose i m p o r t a n t s t a t i s t i c s ?  that  steady  in  Both  the  ports  beyond  their  collect  are  au t h o r i t y . Which of dential  the  above s t a t i s t i c s  you  confi-  and not open to the p u b l i c ? S e a t t l e: I t was t h o u g h t t h a t none were p a r t i c u l a r i t y c o n f i d e n t i a l a l t h o u g h a c e r t a i n amount of work would be n e c e s s a r y t o g a t h e r and compose t h e s t a t i s t i c s f r o m t h e raw f o r m w h i c h t h e y a r e i n . However, i t i s p o s s i b l e t h a t c e r t a i n s t a t i s t i c s p a r t i c u l a r t o p r i v a t e c o m p a n i e s , may be confidential. Vancouver: A l l t h a t i s not i n p r i n t e d p u b l i c r e p d r t s ' i s c o n f i d e n t i a l . T h i s would i n c l u d e any the s t a t i s t i c s mentioned above.  Some Comments on First reveals  Proficiency  of a l l ,  the  organization  chart  a somewhat more s o p h i s t i c a t e d f o r m o f  t h a n does V a n c o u v e r ' s o r g a n i z a t i o n a l functions  performed  a c c o u n t a n t , and  of  the  by  the  chart.  l a w y e r , the  marketing  for  organization The  economist,  specialist,  as  Seattle  well  staff the as  the  /  OR  IT  E. CHART 2 PORT OF S E A T T L E  COMMISSION  FIVE M E M B E R S - { E L E C T I V E )  ADMINISTRATIVE ASSISTANT  EXECUTIVE  ]  EXECUTIVE DEPARTMENT  ] 1  GENERAL MANAGER ASSISTANT GENERAL MANAGER  LEGAL  ASSISTANT  Controller Port  ENGINEERING Chief  Auditor  P u r c h a s i n g and Office Services P u r c h a s i n g and Property Agent  TRADE  P L A N N I N G AND RESEARCH  Engineer  Assistant  Traffic  Assistant  Manager  Superintendent  DEPARTMENTS  Assistant Superintendent  T e r m i n a l and W a r e h o u s e Superintendents (Oceon Terminals)  PROPERTY  Director  Manager  Fire  Department  Chief  Director  Ex por t - Import Rate Bureau  AVIATION  Manager  DIRECTOR  Director Assistant  Maintenance  TERMINALS  RELATIONS  WORLD TRADE CENTER  Director  OPERATING MARINE  DEVELOPMENT  Director Assistant Director  Director  Assistant Chief Engineer  PUBLIC  RELATIONS  DEPARTMENTS  STAFF ACCOUNTING  PUBLIC  OFFICER  Manager  Director of  Assistant  Managers  Operations  Security Chief Security  MANAGEMENT  Maintenance Officer  Te r m ina I Superintendents ( S m a l l - B o a t Terminals)  o i\3  Superintendent J a n . 1.1968  7D  1 ——£ TO  . 3 5  *  - 3 - — — '  —  •••• —  FISHDOCKS'  CD O  ^  97 engineer  and p l a n n e r s  In V a n c o u v e r , t h e o n l y  show up on t h e c h a r t as d e p a r t m e n t s . "staff"  a p p e a r t o be t h e e n g i n e e r i n g personnel for  or s t a f f i n g  such a d i s c r e p a n c y  performed a t these  (as versus  For  function.  The most a p p a r e n t  i n t h e number o f " s t a f f "  two p o r t s would  services  be t h e p r e s e n c e o f " s t a f f " t h e needed " s t a f f " o r  two r e a s o n s ,  the " s t a f f "  services a t the port of  The f i r s t  and t h e most a p p a r e n t  i s t h a t t h e p o r t manager c l a i m e d  services  reason  s e r v i c e s f o r Vancouver.  Vancouver are i n s u f f i c i e n t . reason  functions  f u n c t i o n s , and p e r h a p s t h e  departments i n Ottawa, which perform "specialist"  line)  o f "a s t a t i s t i c i a n , a f i n a n c e  a need f o r t h e specialist,  another  13 engineer,  and an e c o n o m i s t . "  that there  are only  O t t a w a , and t h e y  twelve  investments It  to f i f t e e n  are responsible  Canada, i n d i v i d u a l l y , and  The s e c o n d r e a s o n would be  as w e l l  of those  "specialists" in  f o r twelve  ports  as c o o r d i n a t i n g  twelve  throughout  the a c t i v i t i e s  ports.  i s t r u e t h a t Vancouver i s the l a r g e s t  port  N.H.B., j u r i s d i c t i o n ,  b u t even s o , V a n c o u v e r ' s t o t a l  is  one-fifth  only approximately  (1967). regards  of the t o t a l  F u r t h e r m o r e , p o r t management t h e o r y management a t a d i s t a n c e  from p o r t  under revenue  N.H.B. r e v e n u e generally  operations  I n t e r v i e w wi th C a p t a i n J o h n s o n , as P o r t P o r t o f V a n c o u v e r , June 2 6 , 1968.  Manager,  t o be  98 at a s u b s t a n t i a l Seattle  disadvantage  t o management on l o c a t i o n .  seems t o have an a b u n d a n c e o f " s p e c i a l i s t " t a l e n t  relative  to Vancouver.  Staff at Seattle,  one-quarter of the w h i t e - c o l l a r  estimated  that  employees (285) a r e degree  holders.  T h a t w o u l d mean t h a t  degrees.  Some o f t h e s e i n d i v i d u a l s would be i n v o l v e d i n  airport  71 p e o p l e h o l d  o p e r a t i o n s work o n l y .  percentage of the S e a t t l e  A t any r a t e , a much  Authority's  than the Vancouver A u t h o r i t i e s One p r o b l e m w i t h in  i n t o the e x i s t i n g  structure,  "specialist"  o f moving  i n d i v i d u a l s with  organizational  to higher l e v e l  bad on t h e m o r a l e of e x i s t i n g  proficiency.  This  The p o r t  industry  positions  disastrous  will  would  Doing  of probably  nothing,  i n terms of  i s one t o w h i c h  and s k i l l s  university  i n port  introduction  employees.  be a t l e a s t e q u a l l y  t i c a t e d management t o o l s  t h e most s o p h i s -  soon have t o be i n t r o -  i n o r d e r t h a t management c a n become more e f f e c t i v e .  millions  of d o l l a r s  are at stake  t h e m i s t a k e s o f an o u t - d a t e d  G a l b r a i t h , op. c i t . , p. page 15 o f t h i s t h e s i s . K  academic  structure.  Understandably, a rapid  personnel  however, c o u l d  and  people  a t p r e s e n t , has a l e g a c y o f p e o p l e w i t h o u t  administration.  duced  degrees  H a r b o u r s B o a r d ) , would  t r a i n i n g , who have a g r e a t many y e a r s e x p e r i e n c e  be  have  university-trained  the P o r t of Vancouver ( N a t i o n a l  skills  personnel  larger  personnel.  obtaining  seem t o be t h e d i f f i c u l t y  university  i n ports  Many  s u c h as V a n c o u v e r ,  "technostructure,"^could  71, f o r d e f i n i t i o n , also  be  99 costly. In t h e p r o d u c t i o n  of i m p o r t a n t s t a t i s t i c s ,  seems t o be more p r o f i c i e n t turnaround  time  whole P o r t  of S e a t t l e .  around  time  operated  (load/unload  In V a n c o u v e r , t h e s t a t i s t i c  facilities.  for  i n Ottawa.  lighthouses, in  Transport. for  Seattle  this  p o l i c e and f i r e  Authority  V a n c o u v e r does n o t . responsibility literature,  her harbour. with  Vancouver  (also transit  provides  Vancouver's  authority Port  t h e D e p a r t m e n t of partially  f o r this  s h e d s ) and g r a i n  A l l i n a l l , then, Seattle's  Port Seattle  elevators.  sphere of  seems t o be w i d e r t h a n V a n c o u v e r ' s .  t h e a u t h o r s seem t o p r e f e r  responsible  function.  In the  a broad sphere of  authority  t o a n a r r o w one.  Here a g a i n ,  Seattle's  mode o f o p e r a t i o n  i s t o be p r e f e r r e d  Vancouver's.  Authority;  has c o m p l e t e  i s only  responsible  port  Harbours  p r o t e c t i o n , whereas the S e a t t l e  i s completely  o p e r a t e s warehouses  Seattle  of  Port  ( b u t not Vancouver)  authority  Similarily,  "berth  Planning  i s done by t h e N a t i o n a l  b u o y s , and r a d a r .  shares  Board  has a w i d e r r a n g e o f a u t h o r i t y  i s done by t h e S e a t t l e  s o u n d i n g and s u r v e y i n g  Authority  Harbours  the s t a t i s t i c s  t h a n does V a n c o u v e r .  Vancouver, planning  Board  turn-  than Vancouver.  What i s more, S e a t t l e  for Seattle  on  t o n n a g e p r o d u c t i v i t y " a r e more  comprehensive i n S e a t t l e  facilities  f o r National  Similarily,  and " b e r t h  operations  Statistics  o n l y ) are a v a i l a b l e f o r the  i s a v a i l a b l e only  utilization"  in port  than Vancouver.  Seattle  i t would  seem  over  that  1 00 It  i s d i f f i c u l t to a r r i v e a t the  j u d g m e n t as  to w h i c h p o r t  subjective  i s the more p r o f i c i e n t ,  value but  if a  d e c i s i o n must be made, i t a p p e a r s as  though S e a t t l e i s more  proficiently  than  organized  Some Comments on  for operation  Vancouver.  Autonomy 1 5  As "staff only  shown i n t h e  organization  f u n c t i o n s " are  lawyers,  located  performed  chartered  i n Ottawa.  split  other  h a n d , seems to be  own  legal  and  decisions  15See pages 95 l^The e x t e n t the  and  engineering  the  are  functions  S e a t t l e , on  seem the  department, p u b l i c r e l a t i o n s  research  seem t o be  is mostly responsible  example,  a s e l f - c o n t a i n e d u n i t , having i t s  w h i c h V a n c o u v e r does not  operating  For  Vancouver  economists,  Vancouver.  department, accounting  department, planning others,  and  between O t t a w a and  much of  i n Ottawa.  a c c o u n t a n t s , and  Personnel  t o be  charts,  d e p a r t m e n t s , amongst have.  the  for long-run  In  Vancouver,  c e n t r a l concern. decisions.''  Ottawa  5  96.  of V a n c o u v e r f u n c t i o n s  i s as  follows:  W i t h i n p r e d e t e r m i n e d p o l i c y g u i d e l i n e s s e t by t h e B o a r d P o r t Manager p e r f o r m s two v e r y i m p o r t a n t f u n c t i o n s : (a) (b)  short long  term term  a) Under s h o r t term f u n c t i o n s , the P o r t Manager i s r e s p o n s i b l f o r t h e a d m i n i s t r a t i o n and optimum u t i l i z a t i o n of p o r t facilities. For m a t t e r s r e q u i r i n g day t o day a t t e n t i o n , t h e P o r t Manager makes d e c i s i o n s and a c c o r d i n g l y e x e c u t e s them. L e a s e s up t o one y e a r a r e a l s o h a n d l e d by the P o r t Manager. The P o r t M a n a g e r , V a n c o u v e r , may p u r c h a s e m a t e r i a l s , s u p p l i e s s t o r e s and e q u i p m e n t t o a maximum of $ 2 , 0 0 0 , and up to a  101 Summary The and  general  management on  operations of t h e  rule  stating  location  maximum o f $ 2 0 0 , f o r o f f i c e b) Long Term  the  P o r t of  autonomy o f with  operations  proficient  in this  field  study  Vancouver.  equipment,  Functions  For major matters recommends:  (e)  to occur  seems t o have been b o r n e o u t  P o r t of S e a t t l e , and  (a) (b) (c) (d)  tend  t h a t both  r e q u i r i n g B o a r d d e c i s i o n , P o r t Manager  the l o n g p e r i o d l e a s e s the c a p i t a l budget the o p e r a t i n g budget t h e amount o f r e s e r v e t o be s e t up t o t a k e c a r e o f d o u b t f u l and bad accounts t h e P o r t Manager i n i t i a t e s and recommends d e v e l o p ment p l a n s and p r o j e c t s f o r t h e f u t u r e o f t h e harbour  CHAPTER V I I I A SUMMARY This  t h e s i s s e t o u t t o examine t h e v a r i o u s  port a d m i n i s t r a t i o n s t r u c t u r e s . evaluations economic  in light  I t attempted  of port goals  (especially  forms o f  t o make the goal of  efficiency).  The  m e t h o d o l o g y employed was, f i r s t o f a l l , t o  examine w h a t e v e r l i t e r a t u r e was a v a i l a b l e on p o r t  operations,  p o r t g o a l s , p o r t management, and p o r t management s t r u c t u r e s . Secondly, there  was a s t u d y  related  port a d m i n i s t r a t i v e s t r u c t u r e s to port  various  proficiency.  Next, a study  proficiency.  Finally,  for  of secondary sources  which  was made o f t h e i n d i c a t o r s o f  a field  study,  using  a questionnaire  i n t e r v i e w i n g p u r p o s e s , was u n d e r t a k e n on two r e l a t i v e l y  local  ports. What was r e p e a t e d l y  autonomous p o r t o p e r a t i o n operation. this  p o i n t ; the study  study  in this  tended  t h e s i s was t h a t an  t o be a p r o f i c i e n t  The p o r t management l i t e r a t u r e  secondary source field  noted  of world  material  (Chapter  ports  concurred  (Chapter  (Chapter  I V ) made  V) u s i n g  on i t , and even t h e  V I I ) showed t h a t t h e more  port a u t h o r i t y interviewed  port  autonomous  ( S e a t t l e ) t e n d e d t o be t h e more  p r o f i c i e n t one. T h e r e was a m a j o r t h e o r e t i c a l  problem  i n t h e way o f  concluding factor  t h a t an autonomous p o r t  i n p r o f i c i e n t port  operations.  unknown v a r i a b l e i s t h e a b i l i t y w h i c h make up t h e o r g a n i z a t i o n point  structure One  and s k i l l  separately  from  formal  and i n f o r m a l  dations  can be  regarding  formal  one o r t h e o t h e r .  and t h e i n f o r m a l  able  structures.  s t r u c t u r e f r o m t h e p e o p l e manning  regard  In o t h e r separate  The r e c o m m e n d a t i o n a d o p t autonomous  s t r u c t u r e s , r e s t s upon t h e  p r o p o s i t i o n of being  theoretically,  i t .  s t r u c t u r e s and make v i a b l e recommen-  l o c a l l y managed f o r m a l  analytical  analyzed  p u r p o s e s , c a n one m e a n i n g f u l l y  made h e r e , n a m e l y , t h a t m a j o r s e a - p o r t s and  I t i s a moot  t h e p e o p l e who work w i t h i n  words, f o r a n a l y t i c a l  important of the people  structure.  as t o w h e t h e r o r n o t a s t r u c t u r e  is a positive  but p r a c t i c a l l y ,  to separate the To s e p a r a t e t h e  i t may be s e n s i b l e  any d e c i s i o n s  made  with  t o t h e q u a l i t y o f a p a r t i c u l a r s t r u c t u r e must  a n a l y z e t h e e f f e c t o f t h e recommended c h a n g e s upon t h e people i n v o l v e d .  For example, a c e n t r a l i z e d form of p o r t  management may be s e n s i b l e too  few p e o p l e w i t h  individual the  ports  i n t h e s i t u a t i o n where t h e r e a r e  the required  properly  ability  and c o m p l e t e l y .  c e n t r a l a u t h o r i t y might l o g i c a l l y  staff  to s t a f f the In t h i s  case,  a c t as a s o u r c e o f  or s p e c i a l i s t s . Most a u t h o r s o f p o r t management and p o r t  structures avoid  management  p o s s i b l e p r o b l e m a r e a s by recommending t h e  s i m u l t a n e o u s " p r o f e s s i o n a l i z a t i o n " o f management, w i t h t h e increasing  o f t h e autonomy o f p o r t a u t h o r i t y  structures.  BIBLIOGRAPHY  BIBLIOGRAPHY A T e x a n d e r s s o n , Gunnar. World S h i p p i n g . An G e o g r a p h y of P o r t s and S e a b o r n e T r a d e . John W i l e y & S o n s , 1963.  Economic New Y o r k :  B r i t i s h Columbia Research C o u n c i l . Vancouver Harbour: T r a f f i c T r e n d s and F a c i l i t y A n a l y s i s . Vancouver, B.C., A p r i 1 , 1 967 . B r i t i s h Information Services. 1 967 .  Ports  in Britain.  London:  Brown, A., Dove, and T o o t h . P o r t O p e r a t i o n and Admi n i s t r a t i on ( L o n d o n : Chapman and H a l l CTd ., Chamberlain, N e i l . P r i v a t e and M c G r a w - H i l l Co., 1 9 6 5 ) .  Public  Planning  1960).  (New  York:  D e p a r t m e n t of E x t e n s i o n , U n i v e r s i t y of B r i t i s h C o l u m b i a . Symposium on t h e P o r t o f V a n c o u v e r , June 20-24, 1966. E r i k s e n , A. C. Com. 445 - E s s a y u n p u b l i s h e d . P a t t e r n s o f V a n c o u v e r , 1962.  Trade  F a i r , M. L. P o r t A d m i n i s t r a t i o n i n the U n i t e d 1954, C o r n e l l M a r i t i m e P r e s s .  States,  F l e r e , W. A. Port Economics. The A u t h o r i t y (Foxlow P u b l i c a t i o n s e d i t i o n , 1967).  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