The changing landscape of port governance: case of Baltic states

Abstract

Global changes in transportation sector and technological development have outlined the recent worldwide trend towards port devolution, which, in turn, has generated researchers‘ interest in studying port governance models and their implications for improving port performance. There are many measurable indicators of port performance, but not many researchers analysed how port governance models impact these indicators. Therefore this research delivers a conceptual framework which integrates various relevant port performance indicators, such as efficiency and effectiveness that could be used for a comprehensive port governance models evaluation and improvement of existing port governance models afterwards.

Aim of the study – The aim of this research is to explore changes in global economy landscape and how they have impacted port governance models worldwide, to analyse current port governance models in the Baltics, identify key challenges and propose possible solutions for sustainable port governance models and development.

Materials and methods – Theoretical scope of the paper includes international researcher‘s insights on different strategic port governance models. Empirical part gives an insight into the existing models of port governance in Baltic States and worldwide. The main methods used for achieving research goals involve: theoretical – literature analysis; empirical - observation; monographic or descriptive method. Description method is based on the framework to assess congruence of the port governance models in Baltic States and the global trends on port governance.

Main results – Different port governance models within Baltic States identified and analysed in correlation with port performance components. Key challenges and proposed possible solutions for economically viable and efficient and effective model development are explored. Lithuania and Estonia, major seaports, have followed a corporatisation or commercialisation path leading to decentralised government involvement and transformed port authorities into institutions which are commercially efficient and effectively responsive to market conditions and trends. Meanwhile, port governance models in Latvia are one of the few that has not been substantially modified and improved following modern market economy and regional development trends and thus limiting port performance results.

Conclusions – This research, along with the empirical evidence provided by port authorities, leards to the conclusion that port governance decisions are based on very little or no assessment of port performance.