Port Management Trends

The majority of UK ports are trust ports although the majority of cargo – approximately two-thirds – is handled by privatised ports. While the government has powers of compulsory privatisation, this has only been used on one occasion and the option is always open to trust ports to convert to privatised status. Trust ports are unique to the UK in that although some board members will be government appointees, they are nevertheless strategically and financially independent. Although they do not regard themselves as primarily profit driven, they nevertheless have to make a sufficient return on capital to invest in new facilities and to compete with other ports.

Guidelines on Corporate Governance for trust ports (although applicable to all ports) were published in 2000 resulting in substantial changes with the slimming down of many boards and improved accountability to stakeholders. Within the privatised sector there has been some consolidation since the early 1990s but common ownership is not as advanced as in other transport sectors. This may be partly because of the difficulties of consolidating facilities and operations – ports are all about location on the main, generally unchanging, trade routes.

The municipal sector is the smallest in number and tonnage although it has some key players in the ro-ro and oil markets. The majority of municipal ports serve local needs. The sector underwent a review in 2004 to ensure that it can play to its strengths and compete fairly. After a period of some re-adjustment in the 1990s, UK port management structures are experiencing a period of relative stability.