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Introduction
The Yangon port stands out as the only notable international port for Myanmar. The gateway handles a significant portion of the nation’s imports and exports, facilitating its international trading activities (Thein & Yang, 2019). Despite being a significant mode of transport in Myanmar, the port currently faces a wide range of problems that require the implementation of considerable reforms. For instance, obtaining cargo in and out of the country remains costly and complicated. The institutional reform process is problematic, as most countries tend to adopt reforms that widen the gap between the public and private sectors. With the port reform toolkit’s help, Myanmar’s government can adopt several reforms aimed at improving the various port operations.
Port reforms needed at Yangon
Increase private sector participation
Myanmar’s transport sector is characterized mainly by minimal involvement of the private sector in the port management. The role of the private sector primarily involves the provision of cargo-handling equipment and vessel services. The nature of the private sector involvement depends on a wide range of factors, all of which should not compromise the public interests. The private sector stands out as a notable element for enhancing the development of major ports in the world we live in today (Win et al. 2015). Governments need to have similar forms of private sector involvement. The government of Myanmar can adopt a wide range of privatization options to reform the port of Yangon.
One such option includes removing outdated work practices and obsolete facilities that create obstacles to foreign trade. By leaving port operations to the private sector, the country can reduce government interference, making it possible to mismanage the various port funds and facilities. The effective allocation of funds to the different port operations makes it possible for the port to efficiently carry out its functions. In this way, Yangon can stand out as the most preferred port for facilitating the various international trading operations. Similarly, privatization makes it possible for the adequate provision of the various port facilities, easily mismanaged if left under direct control by the government.
The private sector has traditionally been a critical element in the active development of various port affairs (“Port Reform Toolkit,” n.d). A significant amount of cargo shipped through the ports belongs to the private sector and provides a wide range of trade facilitation and logistic services for the various commodities. Ship agents and cargo owners actively participate in making critical decisions concerning handling all types of cargo passing through the port. As such, Yangon needs to increase the private sector’s active participation in the various port operations.
Investment in port logistics
One major problem facing Yangon’s port is the massive congestion that slows down a wide range of port operations. It is very much tricky and costly to obtain clearance to import and export various commodities through Yangon’s port ( Thein & Yang, 2015). Such is due to the presence of inadequate logistic policies that hamper the significant movement of cargo to multiple destinations. Thus, there is a need for Myanmar to invest heavily in port logistics to enhance the swift action of commodities in and out of the port.
Improving logistics currently stands out as an ideal means for companies to obtain a competitive edge over their rivals. Logistics is primarily a process of coordinating all the facets of manufacturing and distribution to enhance the timely delivery of commodities to the respective destinations. As an important port, Yangon needs to incorporate key aspects in developing an efficient logistics strategy. First, the port needs to design a flexible transportation system that facilitates quick routing. It takes approximately 230hours to complete the border compliance process when importing goods through the port of Yangon. Similarly, the various inspection procedures take a considerable amount of time, leading to the high costs of importing multiple commodities. Such is relatively expensive when compared to other major ports within the various parts of the world.
Ports are in a suitable position to enhance the various logistic elements in different countries actively. Yangon’s seaport needs to improve its general logistic services, primarily the handling, loading, and unloading of goods. Such will make it possible to minimize congestion, as it would be much easier and faster to carry out the various logistic operations within the port. An excellent logistics design is one in which integrates all modes of transport and information systems. The seaport of Yangon should strive to incorporate these logistic elements as part of its reform process.
Adopt a sound legal framework
The initiation of a wide-ranging reform depends on the presence of a sound legal framework. Such a framework ensures transparency in the reform process, making it possible for investors to fund the various port operations. The legal framework is similarly a critical element in enhancing international participation from all stakeholders towards implementing various port reforms (“Port Reform Toolkit, n.d). Myanmar’s government needs to put in place a concession law that outlines each party’s responsibilities in the reform process.
The law should critically spell out the principles of the process and how it is applicable in executing the various reforms. The government needs to enact port provisions to govern the various routine port operations. The laws similarly govern ship movements and traffic structure. Port laws can usually be promulgated by the moral decree, and include the multiple sector laws and those governing contract awards.
Incorporating best labor practices
Competition stands out as the primary motivating factor behind the various port reforms. Ports take to change their work methods’ structure and nature, depending on the character for their hinterlands. Global competition forces different ports to assess the nature of their operational and organizational cost structures, procedures, and work methods. In this scenario, Myanmar needs to improve port Yangon’s efficiency by improving how it conducts its various activities. The port and trading community, which comprises importers, exporters, and manufacturers, can force the government to tweak the labor laws governing the various port operations.
The transformation of such requirements requires Yangon’s port to present a familiar voice towards implementing such reforms. Additionally, the Myanmar government needs to offer its full support labor reforms, decision-makers. Strong political support is essential for the successful implementation of such decisions. In most cases, governments in developing nations fail to fulfill promises concerning labor reforms upon election. Similarly, developing countries such as Myanmar tend to have outdated and inflexible practices that hinder operating and commercial environments. Such a situation hinders the inability of ports to respond to the rising customer demands and markets’ competitive nature
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Thus, the government of Myanmar needs to appraise the extent to which the various labor practices make it difficult for ports to attain the different port objectives. Such methods include outdated job practices that can cause congestion and slow down movement in and out of the harbor. Additionally, the government needs to ensure that there are practical training and recruitment opportunities. This situation makes it possible for the port to have a highly-skilled workforce to handle the various port activities. Additionally, the government needs to provides decent working conditions for the port staff to ensure that they effectively carry out their various duties.
Adopting efficient management structures and ownership models
The Myanmar government needs to incorporate efficient governance structures to enhance Yangon’s efficient management as a critical port. The government needs to invest in expensive port infrastructure that will bring about the efficient handling of the various port operations (” Port Reform Toolkit, “n.d.) heavily. In this way, the port can improve the quality of services it provides in cargo-handling and movement of goods to their various destinations. Additionally, there is a need for the effective management of the various port operations to attain optimal capital utilization.
Thus, the government needs to provide appropriate incentives to ensure the efficient allocation of the various port resources. Such resources are critical in fostering Yangon’s development, hence making it an ideal port for international trading operations. The delicate alignment of both public and private interests determines the nature of management policies adopted at any particular port. The primary objective of public policy is to effectively manage competitive behavior and create ideal market structures for the various port services.
Such a situation can be efficiently enhanced through licensing, which stands out as an ideal approach for allocating resources within ports. A considerable amount of time is spent obtaining various licenses that allow any particular individual to either import or export commodities with ease. Thus, Yangon can adopt favorable licensing procedures to allow the fast and less costly acquisition of permits to import and export cargo across various destinations.
Effective economic regulation measures
It is in the public’s interest to ensure the safe and effective handling of ports to enhance minimal environmental impact. Port operations primarily entail the application of heavy machinery, which in most cases pose a threat to the ecosystem (“Port Reform Toolkit” n.d). For instance, an oil spill can result in water pollution, thereby endangering many aquatic species. Economic regulation’s primary purpose is to foster the competitive and efficient functioning of ports in situations where there is minimal competition.
In this particular scenario, Myanmar needs to take into consideration the comprehensive design of the regulatory framework. Such concern is necessary when there is a need to adopt a strategy for private sector participation. The government needs to select a private-sector arrangement that minimizes the perils in the regulatory framework (Parker & Kirkpatrick, 2012). This situation calls for the state to adopt appropriate regulatory capacities, for the port to improve on the nature of its operations.
The failure to offer an ideal economic regulation framework can result in the provision of costly port services. Such costs are evident in the expensive transportation of cargo from one point to another. Yangon currently levies high prices on its exports, reducing the competitiveness of such commodities on the international market. This situation deters the country’s economic growth as minimal revenue is earned from these exports. Similarly, the excessive port costs resulting from congestion act as extra import duty, making it more costly for the importation of commodities into the country. In general, Yangon should strive to enhance port sector competition, as it is an essential element in solidifying its position in foreign trade.
Effective risk management policies
There exists a wide range of risks in various port operations, which necessitate the presence of adequate mitigation strategies. Such risks can arise from the involvement of private firms in port management. This situation results in the introduction of a complicated partnership with the port management authority. The current situation at Yangon calls for the establishment of appropriate risk mitigation strategies. Additionally, the port can place a contractual framework that makes it possible to quantify and manage risks.
Port reform similarly stipulates the public authority to assume a new role in regulating power (“Port Reform Toolkit,” n.d). Such reforms make it possible for the general administration to focus on social and economic regulation’s critical responsibilities. Such makes it possible to attain a balance in the interests of shipping entities and the public. The success of any particular reform lies in the ability to identify various risks (Palis, 2017). This situation is critical in figuring out the optimum sharing of risks between the port’s multiple stakeholders. The management at the port of Yangon needs to effectively incorporate suitable risk management strategies to mitigate the various risks inherent in maritime transportation.
Conclusion
With the help of the port reform toolkit, Myanmar’s government can adopt several reforms aimed at improving the various port operations. Over the years, the port has put several reforms to alter the routine procedures and bring changes to the port. Despite such reforms, the harbor still faces considerable challenges that require several amendments. For instance, congestion remains a serious problem that results in delays and high cost of importing and exporting commodities. Therefore, Yangon needs to adopt excellent practices that will help solve the port’s recent experiences. The port can adopt acceptable labor practices that will facilitate proper working conditions for the port’s workforce.
Similarly, the company can adopt an efficient organizational structure that will enable it to obtain a competitive edge over its rivals. Such reforms are critical in expanding the port into one with efficient facilities needed to foster Myanmar’s reputation in international trade. The amendments are similarly essential in the growth of the country’s economy.
References
Pallis, P. L. (2017). Port risk management in container terminals. Transportation research procedia, 25(1), 4411-4421.
Parker, D., & Kirkpatrick, C. (2012). Measuring regulatory performance. The economic impact of.
Port Reform Toolkit. (2003). doi:10.1596/0-8213-5046-3
http://regulationbodyofknowledge.org/wp-content/uploads/2013/03/WorldBank_Port_Reform_Toolkit.pdf\
Thein, S. N. S., & Yang, H. (2019). Study on the present status of Yangon Port and future development plans. Int J Sci Res Publ, 9(3).