An important milestone was reached in December 2003 when the Barbados Port Authority became Barbados Port Inc (BPI).
After years of planning and legislation, the organisation was converted from a statutory port authority into a corporatised company, with all assets and liabilities transferred.
This has given the BPI power to manage and operate the Port of Bridgetown with a much greater degree of autonomy in pursuit of improved efficiency and cost-effectiveness.
The challenge was to convert the existing authority into one that would be open to the kind of investment strategy that creates opportunity for private sector participation.
With an estimated US$ 150 million of investment needed for this project, the Government of Barbados sought the involvement of the private sector to absorb some of the risks encountered with expansion while sharing in the benefits of a successful going concern.
The obvious way forward was to raise capital through divestment of shares in BPI.
At present, the government owns all shares in BPI, but as the divestment gets under way, some 35 to 40 per cent will be sold to institutional investors and the public sector, including a 5 to 10 per cent share reserved for BPI employees.
This latter measure ensures that port workers have a share in the responsibility and rewards of shaping their own destiny - a key factor in the port's ambitions to create a quality-driven service environment.
Once the first phase of conversion to a corporatised company is complete, private sector participation can begin. Divestment of shares is due to start during this year, 2006.
The composition of the Board will change on divestment, since the 'private' sector investors will be entitled to have a representation in the boardroom.
The corporatisation of BPI has also led to a change of management structure, from a wide and flat set-up to a divisional approach with four new divisions:
The corporatisation of the port authority is closely linked with the port's reform and expansion project, which is pushing up the standard of services offered by the Port of Bridgetown.
The BPI is looking to build commercial partnerships with stakeholders and investors in order to attract more private investment and participation in the port. For example, the new cruise pier will be a joint venture between BPI and Bridgetown Cruise Terminals Inc.
This is the line with the government's long-standing policy of promoting a partial divestment of state-owned companies to encourage private-public partnerships that can lead to renewal and expansion of services and facilities.
As part of the transformation to a corporatised company, the BPI is obliged to draw up a five-year master plan in addition to a business plan.
This ensures transparency to its shareholders, reinforces the confidence of its stakeholders and enhances the overall image of the port.
Corporatisation has also given the BPI an opportunity to rebrand the port with a stronger commercial focus that needs to generate performance results and produce a profit for its shareholders.