One important issue to be considered in port laws is the relationship between a port authority and port services providers, in particular the cargo handling companies operating in the port’s territory. Generally, it is undesirable for a public port authority to be directly involved in terminal operations. A port law may explicitly prohibit a port authority from providing cargo handling services. A further step to avoid conflict of interest issues would be to prohibit a port authority from being a shareholder in a terminal operating company located in its port area. Notwithstanding potential conflicts of interest, a port authority with the overall responsibility to develop the port area may sometimes opt to make strategic investments to develop a sector of the port business.
