Modernising Trust Ports 2nd Edition.pdf - SailingNetworks

.1 Structural Change.1.1 This Government has stated that it does not wish to use its powers under thePorts Act 1991 to force through the privatisation of a port..1.2 Nevertheless the Department strongly encourages trust ports to analyse theircorporate structure and keep it under review, with a view to identifyingopportunities to enhance their efficiency and get value from their assets. TheDepartment expects all trust ports with an annual turnover in excess of the1991 Act threshold to have reported to it by April 2010 on their analysis ofstructural change, and to explain and justify their intended course of action..1.3 In particular, the Department invites trust ports to consider the two modelshighlighted by PwC in their report as being of potential benefit. 11 The first ofthese is a two-tier model under which an operating subsidiary would beresponsible for the commercial running of the port, and would pass up everyyear a 'dividend' to the board, which would focus its attentions onadministering the stakeholder benefit. The second is the introduction of athird party operator or equity stake in an operating subsidiary. Both modelswould potentially allow a clearer delineation of the management structure, andallow the board to focus more completely on the use of profits for the benefit ofall stakeholders. The second of these models also creates the prospect ofgreater efficiency, driven by the disciplines and incentives of private investors..1.4 Changes of the type envisaged above are subject to what local legislationpermits and may need Harbour Revision Orders to carry them out.11Available of the Department's website at: http://www.dft.gov.uk/pgr/shippingports/ports/trust44