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publicationAugust 11, 2025

Port Reform Toolkit

Seychelles Port image with ships and containers

Ports are undergoing constant transformation, induced by changes in the global economy, technology, or the environment. Port reform is influenced by factors that include aspirations for change underpinned by complex internal and external drivers. In a sector where public and private interests must work together, closely managing change is important. Having the right tools is key for a successful port reform and improvement process which enables economic growth, creates jobs, and fosters sustainable development.

For over two decades, the has been one of the most comprehensive guides for implementing port reforms. Along the way, the Toolkit has evolved in response to changing sectoral trends. The first edition, published in 2001, established a common language for policymakers and port industry stakeholders. It has since become the established reference for port privatization, labor, and modernization programs. Further experiences from a first wave of port reforms in Latin America, Africa, and Asia in the 1990s and early 2000s informed the second edition of the Toolkit, which was released in 2007. By that time, ports in developing economies had attracted over US$21 billion in investments from over 200 public-private partnership projects. In this context, the Port Reform Toolkit enabled port stakeholders to provide strategic advice to governments and the private sector.

Today, ports remain very dependent on changing macroeconomic dynamics. Other trends in the shipping industry, privatization and financialization, supply chain resilience, climate change, and corporate responsibility also require ports to continuously adapt in an increasingly digital world. This third edition of the Port Reform Toolkit deals with long-lasting issues and addresses a multitude of new challenges that the port sector has faced more recently. It represents an enhanced toolbox for policymakers and industry professionals to manage port reform and improvement processes effectively. While continuing to cover traditional private sector participation, this newest edition also explores groundbreaking trends that will influence ports in the coming decades.

As such, the Toolkit enables policymakers and industry professionals to:

  1. Identify trends in the port sector to stay in tune with potential investment needs.
  2. Manage change processes in a structured manner to secure stakeholder buy-in and maintain the social license to operate.
  3. Balance efficiency and equity to reconcile public and private sector interests for economic growth and job creation.
  4. Share risk effectively to facilitate private sector involvement, utilize financial resources prudently, and manage fiscal space responsibly.
  5. Promote sustainable development to reduce the potentially negative impact of port infrastructure and operations developments on the natural and built environment in and around port limits.

Modules

Module 1 provides a foundational understanding of the global trends shaping the port sector today. These range from incumbent forces like macroeconomic shifts and changing trade patterns to new drivers like supply chain disruptions and resilience, climate change, corporate responsibility, and digitalization.

Module 2 explains how to manage port reform through a structured, strategic approach. It suggests using a five-step change-management cycle that includes assessment, planning, implementation, performance measurement, and continuous feedback.

Module 3 reviews the different roles and functions of port authorities and seeks to examine the range of governance models adopted by ports across various countries. Highlighting the evolving role of port authorities¡ªfrom traditional landlords to trusted port developers and community builders¡ªthis module outlines how to balance commercial autonomy with public accountability.

Module 4 discusses the various models and implications of private sector participation in ports, from outsourcing and terminal concessions to full privatization. Given the range of stakeholders, this module outlines various approaches to assessing what structure best fits a specific context, considering factors like a port¡¯s strategic priorities, investment  needs, competition, as well as regulatory and technical capacity.

Module 5 examines how to design and implement effective economic regulation in ports to ensure fair pricing, prevent monopolistic practices, and promote competition. The module helps address commonly asked questions such as: When is regulatory intervention necessary? How can regulatory models be tailored to national contexts? And how can a balance be struck between protecting port users and encouraging private investment?

Module 6 explores how to manage risks and structure financing for sustainable and investable port projects, especially those involving public-private partnerships. The module presents insights into how to properly identify various financial and non-financial risks, allocate them appropriately, and apply the right tools to manage them.

Module 7 addresses the human and social dimensions of port reform by focusing on labor relations, workforce development, and equitable change management. With a focus on human capital, the module shares practical insights on designing fair labor adjustment strategies. These include voluntary retirement plans, retraining programs, and stakeholder engagement to help mitigate the social impact of port reforms¡ªespecially those inlvolving automation and private sector participation.

Module 8 provides an overview of environmental issues in ports, outlining options to integrate environmental sustainability into port infrastructure and port operations. Given the intricate relationship of ports with the environment, this module offers guidance on how to assess environmental impacts, set environmental targets, implement management systems, and plan environmentally-friendly and climate-resilient infrastructure.

Module 9 offers guidance on how ports can pursue a structured digital transformation journey, from introducing foundational digital systems to becoming fully integrated ¡°smart ports¡±, while ensuring robust cybersecurity. Against the backdrop of increasingly interconnected systems, the module highlights the critical drivers of port digitalization, outlines how to implement digitalization modernization programs, and manage associated risks. It emphasizes digital governance, workforce upskilling, and cybersecurity frameworks as key enablers of smart port development.

Module 10 highlights the crucial and evolving port-city relationship, addressing land-use conflicts, congestion, and environmental issues, as well as integrating port planning with urban development. It stresses stakeholder collaboration via community engagement tools and joint projects to balance efficiency and community well-being.