Market Power : Ports - A Case Study of Post-Privatization Mergers
An emerging issue to privatized infrastructure sectors is how regulators should deal with proposed mergers that could potentially increase market power and lead to anticompetitive behavior. This note looks at the issues in the port sector, discussi...
| Main Authors: | , |
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| Format: | Viewpoint |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2003/03/2380661/market-power-ports-case-study-post-privatization-mergers http://hdl.handle.net/10986/11302 |
| Summary: | An emerging issue to privatized
infrastructure sectors is how regulators should deal with
proposed mergers that could potentially increase market
power and lead to anticompetitive behavior. This note looks
at the issues in the port sector, discussing the regulatory
treatment of vertical and horizontal mergers. It focuses on
Argentina, one of the first countries to concession its
ports. In the early 1990s Argentina restructured and
privatized its port system. As part of this process the
government transferred ports to the provinces, which could
choose to operate, concession, or close them. The note also
analyzes the consequences of allowing a vertical merger
between a terminal operator and a maritime transport company
and the pros and cons of explicitly prohibiting horizontal
mergers between terminal operators. |
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