An Assessment Of Seaport Privatization In Saudi Arabia : A Case Study Utilizing Grounded Theory Approach
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Date
2011-06
Authors
Al-Yagout, Fareed Mohammed
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
Saudi Arabia, one of the late adopters of the privatization as compared to
other countries, has embarked on the privatization policy in late 1990s with seaports
being one of the earliest sectors that the government opened up for private sector
involvement.
The purpose of this research is to study the seaports privatization outcome
after nearly 10 years of its implementation and to evaluate whether the declared
privatization objectives have been achieved and the contributory positive / negative
factors, as well as to suggest curative measures to mitigate the shortcomings, if any.
The complex nature of port activities need the port authority to co-ordinate different
departments within the government while supervising the works by various private
sector players to satisfactorily meet the obligations towards the port users for smooth
functioning of import and export. Due to this complexity of the subject, an
explanatory case study method is used whereby the data collection is done through
extensive field work consisting of semi structured interviews and informal
conversations with wide spectrum of individuals at various levels and different fields
within and outside the seaport authority, review of documentations as well as field
observation. Grounded Theory was utilized to analyze the collected data and to arrive
at final conclusions and recommendations.
The research concludes that the declared privatization objectives have not
been fully achieved. The data collected through the research field work gives ample
proof that the privatization of the seaports has positively contributed towards
increased efficiency and productivity, enhanced the port revenues received by the
government while at the same time reducing the government expenditure on seaports.
It has also provided employment opportunities, even though it has not reached the
expected levels of mitigating the unemployment problem. Achievements could be
elevated to better shape and higher level. However, due to significant factors such as
governmental bureaucracy, weak private sector, internal and external hindrances and
lack of foresight and inadequate infrastructure, the objectives were not fully met.
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Keywords
An assessment of seaport privatization , in Saudi Arabia