EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf

The landlord model is the most commonly recommended model for port operation and has
been successful in Samoa as well as the Caribbean and Mauritius. In this model, a number of
private operators are employed on contract to the port authority to provide specialist
services.
Apia Port in Samoa and Lae and Port Moresby in Papua New Guinea have some of the
highest TEU throughput rates. They also have relatively low port charges. All of these ports
are profitable.
While the performance of Papua New Guinea’s ports could be explained by the fact that it is
close to and a natural hub between Australia and other parts of Asia, it is significant that
both here, and in Samoa ports are based on the landlord model, under which the private
sector competes to provide port services. Additionally, in Papua New Guinea there is
competition between ports.
Contracting out various port services to different operators may not be appropriate for small
ports like Betio in Kiribati, since the port has such a low level of traffic it is not likely to
generate sufficient competition. In these ports it may make more sense for the government
to contract out all superstructure services to a single entity on a concession basis to improve
efficiency.
Table A.6 provides a detailed overview of institutional arrangements in selected ports and
shipping services. Detailed information on selected ports follows.
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