An assessment of port reform in Argentina: outcomes and challenges ahead

Abstract

During the 1990s Argentina engaged in a process of restructuring and deregulation of its ports. The main objective of the reform was to increase efficiency and service quality and to reduce the size and role of the public sector in ports. Overall, it was expected to allow the transport sector to adjust its capacity to demand changes and to facilitate international trade while contributing to the reduction of the fiscal burden of this sector. This paper shows that the reform caused significant efficiency gains, allowing a 50% drop in container terminal handling price within five years in the most important ports. The paper also identifies outstanding issues that could impact the long-run sustainability of the gains achieved. Among these issues, emphasis is given to recent horizontal and vertical mergers in the Port of Buenos Aires and their consequences in terms of actual competition and access regulation.

Acknowledgments

This paper owes a lot to M. Sgut, R. Del Valle, C. Polo and various members of the port users’ community in Argentina. We would like to thank Antonio Estache for his comments and suggestions. The views expressed are those of the authors and do not necessarily reflect the official view of the World Bank.