PortEconomics co-director Thanos Pallis presented his latest research on Foreign Direct Investments (FDI) in seaports: The case of Nigeria, during the annual conference of the International Association of Maritime Economists – IAME 2012, that was held in Taipei, Taiwan.
Policy reforms and subsequent entry of private port terminal operators in Nigeria ports provides an interesting case study of port policy practices to attract and benefit from foreign direct investment (FDI). FDI in port infrastructure is an attractive policy option for many countries, with concessions of terminals to international terminal operators (ITOs), being the most prominent form of FDI in ports. Yet, the policy challenges associated with introducing private investment should not be underestimated. These challenges include, among others, establishing the necessary legal and institutional framework, restructuring port entities, managing the bidding process, negotiating with ITOs, and providing effective regulation throughout the life of the project. Nigeria’s experience is particularly impressive when compared with the challenges faced by other developing countries that have traditionally been slow to involve ITOs.
The study – benefited by research conducted as part of a special UNCTAD Division on Investment and Enterprise report – examines key determinants of success in terms of formulating and implementing port policy framework. It also discusses the ways that industry dynamics and policy context for FDI have also contributed to the positive result. Drawing on this experience, lessons are distilled for other economies that might seek to adopt port policy reforms in the future.
The annual conference of the International Association of Marime Economists – IAME 2012, held in Taipei, Taiwan, provided the PortEconomics team the opportunity to present 16 different port or port related studies that progressed over the course of the most resent months – read more & reach the studies: PortEconomics team@IAME2012.