Swot Analysis of Philippines Port
UNIT I
1.1 PORTS OVERVIEW Ports are points of convergence between two domains of freight circulation, land and maritime domains. The term port came from the Latin word “portus”, which means gate or gateway. Ports are bound by the need to serve ships, and so access to navigable water has been historically the most important site consideration. Ports can be classified in two categories; Mono-functional port and Polyfunctional port. Monofunctional ports transit a limited array of commodities, most often dry or liquid bulks (raw materials). For example, the oil ports of the Persian Gulf or the mineral ports of Australia, Africa and in some measure of Canada. They have specialized piers designed to handle specific commodities and where the flows are commonly outbound. Meanwhile, polyfunctional ports are vast harbors where several transshipment and industrial activities are present. They have a variety of specialized and general cargo piers linked to a wide variety of modes that can include containers, bulk cargo or raw materials. Ports produce a combination of public and private goods. Public goods include those that are inherently non-divisible and non-consumable, such as public safety, security, and a healthy environment on the one hand, and coastal protection works necessary to create port basins on the other hand. Private goods are both consumable and divisible and their use entails a minimum of economic externalities. Public goods create positive externalities when they are used; the social benefits they generate are greater than the price that private parties can charge for them. Thus, some form of public intervention is appropriate in their production to make certain that an adequate level of public goods is maintained. Moreover, ports generate direct economic benefits (private goods) through their operations, as well as additional indirect benefits (public goods) in the form of trade enhancement, second order increases in
1.1 PORTS OVERVIEW Ports are points of convergence between two domains of freight circulation, land and maritime domains. The term port came from the Latin word “portus”, which means gate or gateway. Ports are bound by the need to serve ships, and so access to navigable water has been historically the most important site consideration. Ports can be classified in two categories; Mono-functional port and Polyfunctional port. Monofunctional ports transit a limited array of commodities, most often dry or liquid bulks (raw materials). For example, the oil ports of the Persian Gulf or the mineral ports of Australia, Africa and in some measure of Canada. They have specialized piers designed to handle specific commodities and where the flows are commonly outbound. Meanwhile, polyfunctional ports are vast harbors where several transshipment and industrial activities are present. They have a variety of specialized and general cargo piers linked to a wide variety of modes that can include containers, bulk cargo or raw materials. Ports produce a combination of public and private goods. Public goods include those that are inherently non-divisible and non-consumable, such as public safety, security, and a healthy environment on the one hand, and coastal protection works necessary to create port basins on the other hand. Private goods are both consumable and divisible and their use entails a minimum of economic externalities. Public goods create positive externalities when they are used; the social benefits they generate are greater than the price that private parties can charge for them. Thus, some form of public intervention is appropriate in their production to make certain that an adequate level of public goods is maintained. Moreover, ports generate direct economic benefits (private goods) through their operations, as well as additional indirect benefits (public goods) in the form of trade enhancement, second order increases in
References: Basilio Enrico L. 2003, The Philippine Port Sector; PPA: A Case of Regulatory Capture; International Conference on Challenges to Development: Innovation and Change in Regulation/ Competition Llanto Gilberto M. Et Al., 2005, Competition Policy And Regulation In Ports And Shipping, PIDS-World Bank Competition Policy Project http://www.ppiaf.org; Alternative Port Management Structures and Ownership Models, Port Reform Toolkit,USA http://www.investphilippines.gov.ph; Sea Port Development/Operations, Board of Investments Industry and Investment Building 385 Sen. Gil J. Puyat Avenue, Makati City [pic][pic][pic] ----------------------- Figure 1. Philippine Port System