Posted: January 23rd, 2023

The governance structure and its impact on port performance

The governance structure and its impact on port performance: a case of Ports in West Africa
Governance structure refers to the way in which power and decision-making authority is distributed and exercised within an organization or system. In the context of ports, governance structure plays a crucial role in determining the efficiency and effectiveness of port operations. This study will examine the governance structure of ports in West Africa and its impact on port performance.
In West Africa, ports play a critical role in the regional economy, serving as key gateways for trade and commerce. However, the performance of these ports has been a source of concern in recent years, with issues such as poor infrastructure, inadequate equipment, and inefficiency causing significant delays and increased costs for shippers.
The main factors impacting the performance of ports in West Africa is the governance structure. In many cases, ports are owned and operated by the state, with decision-making authority centralized in a single entity such as a port authority or ministry of transport. This centralized governance structure has led to a lack of accountability and transparency, with decisions often being made without the input or participation of key stakeholders such as terminal operators and shipping companies.
Additionally, there is often a lack of clear lines of responsibility and coordination among different government agencies and departments that are involved in port operations. This can lead to delays and inefficiencies, as well as increased costs for shippers.
An alternative approach to the centralized governance structure is the use of a concession model, in which private companies are given the right to operate and manage a port facility for a specified period of time. This model has been successfully implemented in several ports in West Africa, and has been shown to improve efficiency and reduce costs for shippers.
For example, the port of Lagos in Nigeria has implemented a concession model, which has led to significant improvements in infrastructure and equipment, as well as increased efficiency in cargo handling. Additionally, the concession model has resulted in increased private sector investment in the port, which has helped to improve the overall competitiveness of the port. In Ghana, one example of a port is the Tema Port, which is located in the city of Tema and is the country’s largest and most important port. The port handles a wide range of cargo, including containers, general cargo, and bulk cargo. The Tema Port is operated by the Ghana Ports and Harbours Authority (GPHA) which is state-owned and responsible for the management and development of the country’s ports. In Guinea, one example of a port is the Conakry Port, which is located in the capital city of Conakry and serves as the country’s main port. The port handles a wide range of cargo, including containers, general cargo, and bulk cargo. The Conakry Port is operated by the Autonomous Port of Conakry (APC) which is responsible for the management and development of the port, and is under the authority of the Ministry of Transport and Communications.
Governance structure plays a crucial role in determining the efficiency and effectiveness of port operations in West Africa. Centralized governance structures have led to a lack of accountability and transparency, with decisions often being made without the input or participation of key stakeholders. An alternative approach is the use of a concession model, which has been shown to improve efficiency and reduce costs for shippers. The case of the port of Lagos in Nigeria serves as an example of the success of this model in improving port performance.

References:
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Sun, B., & Kauzen, R. (2023). The Impact of Port Infrastructure and Economic Growth in Tanzania: Adopting a Structural Equation Modeling Approach. SAGE Open, 13(1), 21582440221145894.
Xin, X., Wang, X., Ma, L., Chen, K., & Ye, M. (2022). Shipping network design–infrastructure investment joint optimization model: a case study of West Africa. Maritime Policy & Management, 49(5), 620-646.