The Impact of Service Privatization: The Case of a Container Terminal at the Port of Limassol

Abstract

The Cyprus government has signed agreements for the commercialization of the activities of the Port of Limassol, with the aim to increase the financial viability of port operation and sustain competitive advantage. This paper aims to examine effects of and expectation from port privatization based on port stakeholders’ perspectives such as port authorities, concessionaire and port customers. Firstly, this study investigates how the port authority intends to verify and control the performance of the concessionaire with regard to the operational and functional domains that directly influence a container terminal’s performance and to identify all the possible effects of privatization. Secondly, it explores how the concessionaire intends to improve the performance of the container port. Thirdly, it examines port users’ expectations of the services and satisfaction with port services after privatization. A mixed methodology is employed involving interviews and a questionnaire survey with practitioners at the Port of Limassol. The impact of its privatization is provided in the discussion and conclusion section.