Enlightened thinking on state-side PPP
01 Oct 2008
Port Strategy articles on financial subjects, including a few I have written, invariably include some mention of public-private partnerships, which have enabled ports around the world to modernise and cope with increases in trade flows. Each mention of PPP is a tacit acknowledgement that the private sector (with proper oversight) handles businesses-like functions better than governmental entities.
As an American citizen, it was heartening for me to see that two US government agencies, both with major trade touchpoints, are now thinking about the manifestations of PPP. The US Maritime Administration (MARAD) and the US Department of Homeland Security (DHS) are both seeing the light.
The DHS, which now oversees the US Coast Guard and Customs and Border Protection, butts up against infrastructure and trade flow issues on a daily basis. Its secretary, Michael Chertoff paused from a schedule of late Summer hurricane preparations to conduct a briefing on the subject of critical infrastructure. In his remarks, Mr Chertoff said: "We have failed time and again to devote the energy and the effort and the investment to make sure that these structures can be preserved… simply through the ordinary degradation of any physical structure that comes year-in and year-out.”
In discussing what he called a Partnership Model, he continued: “It's a recognition that if we unleash industry and our partners in the private sector, we're going to achieve more positive results than if we try to dictate to them the best way to achieve outcomes.” He also talked about the alignment of government and business benefits from DHS activities. While not explicitly endorsing 100% scanning of inbound containers, Mr Chertoff cited the example of dual benefits to government (security) coinciding with benefits to industry (cargo visibility in supply chains).





