How do they accomplish cost efficiency at the ports?
They are not afraid of promoting competition between ports. And this is the very fundamental rationale. They are sending a message to the ports that unless you are competitive, there is no way you are going to survive. Take, for example, the standoff between the ports at Hong Kong and Shenzhen. In order to be competitive, all their new port facilities are coming up outside the cities, where you have low-cost land, the equipment at competitive price, and disciplined labour. Once you put these fundamentals in place, productivity in ports is purely a matter of experience in operations. If you take what is happening in Nhava Sheva, P&O Ports are delivering excellent productivity results. Despite the fact they are working under not-so-easy working conditions in terms of antiquated labour laws, etc., they handle about 1.3 million TEUs, which is not bad at all. How successful has China been in linking the ports with the hinterland? Every stool has four legs. In China, linkage to ports is the
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