International airports, ports, railroads and terminals help strengthen relations with other countries and markets, and are vital foreign policy tools.

The general policies related to Article 44 of the Iranian Constitution could ease the privatization of state-owned sectors and put an end to state monopoly over vital economic sectors.
Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei notified these general policies to the heads of three government branches and the chairman of State Expediency Council on July 2.
These policies are aimed at developing non-governmental sectors, including the private and cooperative sectors, through the allocation of some 80 percent of the shares of state-owned companies.
Experts believe that private sector operators can deliver any goods or services more efficiently than the government, which is prone to waste resources and make losses in the absence of competition. The main issue in the pro-privatization perspective is the need for responsible stewardship of national assets and capital.

Details
As per Article 44:
- The national economy is divided into state, cooperative and private sectors, and governed by systematic and sound planning.
- The state sector is to include all mother industries, foreign trade, major mines, banking, insurance, power generation, dams, large-scale irrigation networks, radio and television, post, telegraph and telephone services, aviation, shipping, roads, railroads and the like; all these will be publicly owned and administered by the state.
- The cooperative sector is to include companies and enterprises active in production and distribution activities in urban and rural areas, in accordance with the Islamic criteria.
- The private sector consists of activities concerned with agriculture, animal husbandry, industry, trade and services that supplement the economic activities of state and cooperative sectors.
- Ownership in each of these three sectors is protected by Iran’s laws, in so far as this ownership is in conformity with other aspects of this article, within the bounds of Islamic Law, contributes to the economic growth and progress of the country and does not harm society.
- The scope of each of these sectors as well as the regulations and conditions governing their operations will be specified by law.
PSO
According to the Hamshahri Online, the trend of privatizing the state-owned sector has not been satisfactory. On the other hand, the general policies related to Clause C seem to have a better chance of giving the expected results and their implementation is likely to be on the right track. Clause C concerns the privatization of organizations affiliated to the Ministry of Roads and Transportation.
Because of the positive process of privatizing the Ports and Shipping Organization, it could be safely stated that PSO has become a pioneer in transferring its properties or responsibilities to the private sector.
Ali Taheri-Motlaq, managing director of Ports and Shipping Organization, said that within the framework of the general policies of Article 44 it is crucial to look into what can be and cannot be privatized first.
The PSO is convinced that many things could be accomplished within the framework of these general policies.
According to the PSO chief, over the past five years or so, the PSO has performed well in transferring part of its activities to private businesses.
“For instance, until four years ago, most ports and terminals in the north and the south used to be managed by PSO, but now without any exception all these terminals are being run by private businesses,“ he said.
Last year, by implementing the general policies of Article 44, the number of people working for Ports and Shipping Organization declined from 6,500 to 2,500. Those who left the organization are now working for these private businesses instead. Therefore, it can be safely claimed that the PSO has been quick in transferring its properties and responsibilities to the private sector.
Ports and Shipping Organization operates under the supervision of Roads and Transportation Ministry and is in charge of the administration of ports. The head of the organization is a deputy transportation minister.
The organization’s branch offices are in Bandar Imam, Bushehr, Bandar Abbas, Chabahar, Khorramshahr, Abadan, Anzali, Noshahr and Orumieh.
Taheri-Motlaq announced other measures taken by the organization such as the establishment of a special committee to investigate the PSO operations to see whether they can also be transferred to private businesses.
Responsibilities
Administration of ports and marine installations, construction and management of ports facilities, formulation of ports and marine regulations, administration of loading and unloading operations, installation of navigation devices and inspection of ships are some of the organization’s responsibilities.
The PSO chief maintained that the organization is determined to distance itself from monopolistic policies and allow the private sector to do the job instead.
However, only qualified entities will be allowed to do business in this respect.
There are now many private businesses working for the PSO at all levels, which have met all the necessary criteria.
A PSO department is now responsible for issuing permits to private companies that are wiling to offer their services at ports and terminals. The process of issuing permits to such companies is continuing smoothly.
Subsidiary
Taheri-Motlaq further said that the PSO has no subsidiary, with the exception of Tidewater Company (Tidewater Middle East Marine Services). The organization holds about 43 percent of its shares that are tradable at the stock market.
Under the Fourth Five-Year National Development Plan (2005-10), the PSO is bound to sell all the shares of Tidewater Company by the end of the plan.
In the last few years, Tidewater Middle East Marine Services has taken significant strides in the management of Shahid Rajaei Container Terminal (SRCT) in Bandar Abbas. It increased container throughput from 731,000 TEUs in 2002 to 1,292,962 TEUs in 2005, registering a 77-percent gain. Its portfolio of over 37 major clients now includes many well-known international names in container shipping.
Tidewater has improved its status in World Seaport Container Terminals from 69th place in 2004 to 62nd in 2005.
The latest report of Industrial Management Organization about distinguished Iranian companies in 2005 also indicates that compared with 2004, Tidewater has had the highest promotion from among top 100 companies and rose from 82nd place in 2004 to 62nd in 2005.
According to the SEANA financial group report, of the hundreds of active marine companies, only Islamic Republic of Iran Shipping Line, Sadra, Tidewater and Abadan Marine Services are in the 2005 list of top 100 companies.
Taheri-Motlaq explained that Tidewater is a superior company in managing terminal services and that PSO must make optimum use of it.
“The company is a national asset and investment in Iran’s ports and shipping industry,“ he said, noting that the PSO is willing to gradually cede the ownership of this company to private businesses.

Conclusion
Ports and shipping services play a significant role in meeting the demands of trading and shipping companies. Therefore, they have a considerable influence on the country’s economy.
International airports, ports, railroads and terminals help strengthen relations with other countries and markets, and are vital foreign policy tools.
Maritime activities and transportation services are costly and need constant technological updating. For this matter, not every company has the capacity and the means to work in this particular sector. Therefore, privatization of such companies, which have extensive responsibilities in ports and terminals, should be wisely undertaken in the right circumstances. Failing to do so will only mean damage the efficiency of maritime transportation services and activities.
Taheri-Motlaq stressed that his organization has no intention of blocking attempts to privatize port and shipping activities, provided governmental or semi-governmental entities are not involved.
Ports and Shipping Organization is determined to implement the general policies of Article 44 by transferring its assets and operations to the private sector by the end of Fourth Plan (2010).