Private sector involvement in developing ports became a
critical necessity in the 1980s due to a host of reasons. The bottleneck effect caused due to congestion in ports, had a considerable strain on the efficiency of distribution chains, which is an important factor that needed attention.
In this backdrop, government investments into port development were seen as a “White Elephant Syndrome”.
Amplified by recurring port congestion, consequent chronic service failures, were mainly attributed to the deterioration of service quality during this period.
Inadequate port services are phenomenal in this context, owing to the inability of governments to invest in port infrastructure capable of catering to the needs of international shipping. Hence many port complexes became virtual “white elephants”.