Features of Functioning of Private and State Ports

The article proves that government intervention in ports is necessary to regulate the production and provision of public goods and services to improve access to them. The conditions of port operations encourage private participation in the provision of port services in order to encourage the improvement of port efficiency. Ports are considered critical transportation hubs in economic development, which facilitates the movement of both imported and exported goods. Their ability to interact directly with the rest of the world can not only encourage or inhibit growth through trade, but can also bring with it international standards and expertise. Thus, countries depend heavily on their seaports to bring them closer to the globalization processes that surround them. Seaports are designed to facilitate the most efficient means of security, efficient loading / unloading and replenishment of ships. For these requirements, the ports are structured by different functions. The port can be divided into three separate areas of responsibility - port landowners, port operators and port regulation. "Privatize" in the sense of "make private" means the ability to transfer services or assets from state ownership or control to the ownership of a private entity. This happens in three ways: "deprivation of the right" – the transfer of state assets to private ownership through sale, return, transfer or liquidation; "Delegation" – the transfer of management and control over such government assets or activities to agents operating in accordance with certain market indicators; "Relocation" – passive assistance to the private sector to expand or by actively promoting the involvement of the private sector in former public sector activities – for example, transmission construction and operation projects and outsourcing. Privatization can be viewed in different ways, given the role of the state and its ability to produce results similar to those of privatized firms. Intervention by government agencies creates serious obstacles to the realization of competitive advantages, which allows such markets to operate effectively. Due to high cost structuring, underutilized resources and, as a result, high prices, SOCs are not only uncompetitive, but government regulation can actually continue to do so. SOC's ability to be innovative suggests that as consumer demands have changed, SOCs have adapted to more efficient production methods, which may not necessarily be new to the industry, but are at least new to the organization. However, this transformation is slower than private firms, and negative perceptions of the public interest persist.