PORT PRIVATIZ ATION: AN INTERNATIONAL PERSPECTIVE by

By facilitating international trade, U.S. seaports play a significant role in shaping the country's economic health. All major U.S. ports are owned by public port authorities; many are also operated by public authorities. A 1990 report by the American Association of Port Authorities showed that 30 percent of the 66 port authorities surveyed were operating at a loss. Government-owned and operated ports face many problems. Lacking exposure to full commercial competitive pressures, publicly owned and operated ports may have reduced incentive to operate efficiently and are often subject to political interference. These public ports can absorb scarce funds from local governments and drag down local economies. On the other hand, efficiently operated public ports, such as the ports of Los Angeles and Long Beach, are often targeted by cities that want to siphon off surplus funds