A state-owned enterprise ( SOE ) is a business entity created or owned by a national or local government, either through an executive order or legislation. SOEs aim to generate profit for the government, prevent private sector monopolies, provide goods at lower prices, implement government policies, or serve remote areas where private businesses are scarce. The government typically holds full or majority ownership and oversees operations. SOEs have a distinct legal structure, with financial and developmental goals, like making services more accessible while earning profit (such as a state railway). They can be considered as government-affiliated entities designed to meet commercial and state capitalist objectives.
39-559: Tanzania Ports Authority ( TPA ) is a parastatal public corporation acting under the aegis of the Ministry of Infrastructure Development , that has the responsibility "to manage and operate" the ocean ports and lake ports of the country of Tanzania . The Tanzania Ports Authority headquarters are located in Mchafukoge ward of Ilala District in Dar es Salaam Region . It is a member of
78-494: A Parastatal and therefore reducing governmental authority over the company. The Tanzania Ports Authority is a Parastatal company wholly owned by the Government of Tanzania . The company is managed by a board of 5–8 members and a chairman who is appointed by the president . The organisation comes under the Ministry of Works, Transport and Communication and the ministry has the power to assign board members. The company has
117-661: A public objective. For that reason, SOEs primarily operate in the domain of infrastructure (e.g., railway companies), strategic goods and services (e.g., postal services, arms manufacturing and procurement), natural resources and energy (e.g., nuclear facilities, alternative energy delivery), politically sensitive business, broadcasting, banking, demerit goods (e.g., alcoholic beverages ), and merit goods (healthcare). SOEs can also help foster industries that are "considered economically desirable and that would otherwise not be developed through private investments". When nascent or 'infant' industries have difficulty getting investments from
156-495: A regular enterprise, state-owned enterprises are typically expected to be less efficient due to political interference, but unlike profit-driven enterprises they are more likely to focus on government objectives. In Eastern Europe and Western Europe , there was a massive nationalization throughout the 20th century, especially after World War II . In the Eastern Bloc , countries adopted very similar policies and models to
195-442: A similar management structure to any major company and in addition to this each major ocean and lake port has a port master in charge of operations. The key trends for the company over recent years are shown below (as at year ending 31 June): The head office of Tanzania Ports Authority is based in Dar es Salaam Tanzania at the Dar es Salaam Port . In 2015 construction was completed on their new headquarters. The 40-storey building
234-571: A visit, the Prime Minister found that 349 shipping containers, worth over US$ 37m, were smuggled without paying government taxes. Government-owned corporation The terminology around the term state-owned enterprise is murky. All three words in the term are challenged and subject to interpretation. First, it is debatable what the term "state" implies (e.g., it is unclear whether municipally owned corporations and enterprises held by regional public bodies are considered state-owned). Next, it
273-774: Is a semi-autonomous government within Tanzania for Zanzibar , which consists of the northern part of the Zanzibar Archipelago , mainly the islands of Unguja and Pemba . The government is made up of a Revolutionary Council and a House of Representatives of Zanzibar . The head of the government is the President of Zanzibar , who is also the chairman of the Revolutionary Council , currently Dr. Hussein Mwinyi . This Zanzibar -related article
312-562: Is a viable argument for SOEs is debated. SOEs are also frequently employed in areas where the government wants to levy user fees , but finds it politically difficult to introduce new taxation. Next, SOEs can be used to improve efficiency of public service delivery or as a step towards (partial) privatization or hybridization. SOEs can also be a means to alleviate fiscal stress, as SOEs may not count towards states' budgets. Compared to government bureaucracy, state owned enterprises might be beneficial because they reduce politicians' influence over
351-764: Is approximately 70% of total employment. State-owned enterprises are thus a major factor behind Belarus's high employment rate and a source of stable employment. In most OPEC countries, the governments own the oil companies operating on their soil. A notable example is the Saudi Arabian national oil company , Saudi Aramco , which the Saudi government bought in 1988, changing its name from Arabian American Oil Company to Saudi Arabian Oil Company. The Saudi government also owns and operates Saudi Arabian Airlines , and owns 70% of SABIC as well as many other companies. China's state-owned enterprises are owned and managed by
390-469: Is contestable under what circumstances a SOE qualifies as "owned" by a state (SOEs can be fully owned or partially owned; it is difficult to determine categorically what level of state ownership would qualify an entity to be considered as state-owned since governments can also own regular stock , without implying any special interference). Finally, the term "enterprise" is challenged, as it implies statutes in private law which may not always be present, and so
429-616: Is currently the tallest building in the country and was built by the Estim Construction. The TPA's main three Indian Ocean ports are Dar es Salaam , Mtwara , and Tanga ; minor seaports serving coastal traffic include Lindi , Kilwa Masoko , Mafia Island , Bagamoyo , Pangani and Kwale . Only sea ports on the Tanzanian mainland are controlled by TPA, the Port of Zanzibar and the Port of Pemba are administered separately by
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#1732780922744468-617: Is highlighted in the predominant local terminology, with SOEs in Canada referred to as a " Crown corporation ", and in New Zealand as a " Crown entity ". The term " government-linked company " (GLC) is sometimes used, for example in Malaysia , to refer to private or public (listed on a stock exchange) corporate entities in which the government acquires a stake using a holding company . The two main definitions of GLCs are dependent on
507-541: Is the second largest port operating in the country and has an annual capacity of 500,000 tonnes and is running at 90% capacity. The Ports authority has major plans to upgrade the port increase capacity and provide an alternative route for cargo flowing into the country. The port of Mtwara was built during the British Colonial times. The harbour at the Port of Mtwara was deepened during 1948–1954, and railway line
546-507: The Dar es Salaam Port . The Authority operates a maritime college in Dar es Salaam . In December 2015, Tanzania's president, John Magufuli , dissolved the board of the Tanzania port authority and sacked the permanent secretary of the transport ministry. This followed the discovery that over 2,700 shipping containers were smuggled at the Port of Dar es Salaam tax free. The government of Tanzania sacked three port chiefs in three years. On
585-881: The East African Community decided to separate the Railways and the Harbours Corporation, and in 1969 the East African Harbours Corporation was formed. The East African Harbours Corporation had the authority to run and develop the ports in Mombasa and Dar es Salaam . The new company operated for 10 years and ceased operations in 1977 due to the dissolution of the East African Community. Each country formed their respective organisations. In Tanzania ,
624-601: The East African Railways and Harbours Corporation . The corporation was formed by merging the Kenya and Uganda Railways and Harbours with the Tanganyika Railway and all Tanganyikan ports and harbours. After the independence of the respective east African countries the East African Railways and Harbours Corporation continued to facilitate its mandate on the railways and ports until 1967. After 1967
663-715: The State-owned Asset Supervision and Administration Commission (SASAC) . China's state-owned enterprises generally own and operate public services, resource extraction or defense. As of 2017 , China has more SOEs than any other country, and the most SOEs among large national companies. China's SOEs perform functions such as: contributing to central and local governments revenues through dividends and taxes, supporting urban employment, keeping key input prices low, channeling capital towards targeted industries and technologies, supporting sub-national redistribution to poorer interior and western provinces, and aiding
702-638: The Zanzibar Port Corporation . This is the principal port of Tanzania and handles 90% of the country's cargo traffic. The port is divided into two parts (TICTS and TPA), to increase efficiency and encourage new challenges to the local port operators the TPA has authorised TICTS privately owned by Hong Kong investors to receive and clear cargo at the port. The Port also provides a vital transit point for cargo from multiple neighbouring landlocked countries. Almost 35 percent of all cargo moving through
741-818: The Minister of Finance II, the Minister in the Prime Minister's Department in charge of the Economic Planning Unit, the Chief Secretary to the Government, Secretary General of Treasury and the heads of each of the GLICs (the Employees Provident Fund, Khazanah Nasional Berhad , Lembaga Tabung Angkatan Tentera (the armed forces pension fund), Lembaga Tabung Haji and Permodalan Nasional Berhad . Khazanah Nasional Berhad provided
780-817: The Port Management Association of Eastern and Southern Africa. The first formal commercial ports developed in German East Africa was the Tanga Port connected to the Usambara Railway in 1883 and the Dar es Salaam Port connected to the Tanzania Central Railway in 1905. The ports were controlled directly by the railway authorities throughout the colonial period. In 1947 the British government formed
819-553: The Tanzania Harbours Authority was formed. The Tanzania Harbours Authority ran operations from 1977 to 2005. In Tanzania Ports Authority was established by the Ports Act No. 17 of 2004 as landlord port authority. The act separated waterway operations between the Tanzanian mainland and Zanzibar and gave TPA the authority over all lake ports on the Tanzanian mainland. The act incorporated the company into
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#1732780922744858-1019: The USSR. Governments in Western Europe, both left and right of centre, saw state intervention as necessary to rebuild economies shattered by war. Government control over natural monopolies like industry was the norm. Typical sectors included telephones , electric power , fossil fuels , iron ore , railways , airlines , media , postal services , banks , and water . Many large industrial corporations were also nationalized or created as government corporations, including, among many others: British Steel Corporation , Equinor , and Águas de Portugal . A state-run enterprise may operate differently from an ordinary limited liability corporation. For example, in Finland, state-run enterprises ( liikelaitos ) are governed by separate laws. Even though responsible for their own finances, they cannot be declared bankrupt ;
897-507: The form of Public Sector Undertakings (PSUs). The Malaysian government launched a GLC Transformation Programme for its linked companies and linked investment companies ("GLICs") on 29 July 2005, aiming over a ten-year period to transform these businesses "into high-performing entities". The Putrajaya Committee on GLC High Performance ("PCG"), which oversaw this programme, was chaired by the Prime Minister , and membership included
936-661: The lake traffic is passenger traffic and is a lifeline for many of the resident residing around the lakes. Government ferries operating on the lakes are operated by the Marine Services Company Limited . TPA's major port in the Lake Victoria region is in Mwanza and TPA maintains an office in Mwanza. Mwanza port handled over 350,000 tonnes of cargo in 2012. TPA is responsible for fifty-eight ports on
975-607: The lake, the major ports of Mwanza North, Mwanza South, Bukoba , Kemondo Bay, Musoma , Nansio (Ukewere), and Mwaloni (in Mwanza); eight mid-level ports including Chato and Busisi ( Sengerema District ); as well as forty-three minor ports. The minor ports on the lake have limited passenger and fishing activity, and lack ferry docks, or often any functional docks. Principal lake ports on Tanganyika include Kigoma and Kasanga , with an office in Kigoma; there are 15 smaller ports along
1014-584: The lake. These ports provide vital trade connections between Burundi , Eastern Democratic Republic of the Congo and Zambia . Lake Nyasa/Lake Malawi has four important ports, at Itungi, Mbamba Bay , Liuli and Manda ; TPA maintains a Kyela District office. There are up to 10 other smaller TPA ports on the lake that facilitate passenger movement along the lake and between the countries of Malawi , Mozambique and Tanzania . The port at Kyela District provides an alternative route for cargo bound of Malawi from
1053-412: The leading application of the incomplete contract theory to the issue of state-owned enterprises. These authors compare a situation in which the government is in control of a firm to a situation in which a private manager is in control. The manager can invest to come up with cost-reducing and quality-enhancing innovations. The government and the manager bargain over the implementation of the innovations. If
1092-592: The negotiations fail, the owner can decide about the implementation. It turns out that when cost-reducing innovations do not harm quality significantly, then private firms are to be preferred. Yet, when cost-reductions may strongly reduce quality, state-owned enterprises are superior. Hoppe and Schmitz (2010) have extended this theory in order to allow for a richer set of governance structures, including different forms of public-private partnerships . SOEs are common with natural monopolies , because they allow capturing economies of scale while they can simultaneously achieve
1131-477: The port is transit cargo. The port is connected to two railways the Tanzania Central Railway and the TAZARA Railway , but the railways have been depreciating in reliability. The majority of the cargo moves out by road and has been a major bottleneck in expansion plans due to the weak road infrastructure of the city. Major expansion projects have been set in place to increase the capacity and efficiency of
1170-594: The port. After the construction of the Kigamboni bridge in the city the port plans to create more berths in Kigamboni. Furthermore, the construction of the Bagamoyo mega port has also begun set to help take the load off in 2018. The Port of Tanga is one of the oldest operating port in the country and was built by the German East Africa Company as the endpoint of the Usambara Railway . The port
1209-399: The private sector (perhaps because the good that is being produced requires very risky investments, when patenting is difficult, or when spillover effects exist), the government can help these industries get on the market with positive economic effects. However, the government cannot necessarily predict which industries would qualify as such 'infant industries', and so the extent to which this
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1248-428: The proportion of the corporate entity a government owns. One definition purports that a company is classified as a GLC if a government owns an effective controlling interest (more than 50%), while the second definition suggests that any corporate entity that has a government as a shareholder is a GLC. The act of turning a part of government bureaucracy into a SOE is called corporatization . In economic theory ,
1287-451: The question of whether a firm should be owned by the state or by the private sector is studied in the theory of incomplete contracts developed by Oliver Hart and his co-authors. In a world in which complete contracts were feasible, ownership would not matter because the same incentive structure that prevails under one ownership structure could be replicated under the other ownership structure. Hart, Shleifer, and Vishny (1997) have developed
1326-533: The secretariat to the PCG and managed the implementation of the programme, which was completed in 2015. As of 2024, Philippines Amusement and Gaming Corporation (PAGCOR) is the most profitable state-owned enterprise in the Philippines. It is the third largest contributor to government revenues, following taxes and customs. Revolutionary Government of Zanzibar The Revolutionary Government of Zanzibar
1365-469: The service. Conversely, they might be detrimental because they reduce oversight and increase transaction costs (such as monitoring costs, i.e., it is more difficult and costly to govern and regulate an autonomous SOE than it is the public bureaucracy). Evidence suggests that existing SOEs are typically more efficient than government bureaucracy, but that this benefit diminishes as services get more technical and have less overt public objectives. Compared to
1404-465: The state answers for the liabilities. Stocks of the corporation are not sold and loans have to be government-approved, as they are government liabilities. State-owned enterprises are a major component of the economy of Belarus . The Belarusian state-owned economy includes enterprises that are fully state-owned, as well as others which are joint-stock companies with partial ownership by the state. Employment in state-owned or state-controlled enterprises
1443-497: The state's response to natural disasters, financial crises and social instability. China's SOEs are at the forefront of global seaport-building, and most new ports constructed by them are done within the auspices of the Belt and Road Initiative . As of at least 2024, an Ethiopian SOE is Africa's largest and most profitable airline, as well as Ethiopia's largest earner of foreign exchange. In India , government enterprises exist in
1482-542: The term "corporations" is frequently used instead. Thus, SOEs are known under many other terms: state-owned company, state-owned entity, state enterprise, publicly owned corporation, government business enterprise, government-owned company, government controlled company, government controlled enterprise, government-owned corporation, government-sponsored enterprise , commercial government agency, state-privatised industry public sector undertaking, or parastatal, among others. In some Commonwealth realms , ownership by The Crown
1521-559: Was built connecting the port, as part of the Tanganyika groundnut scheme . The port was functional but underused for many years due to poor transport infrastructure, However, in 2010–2011, oil and gas exploration activity caused a surge on operations. In December 2015 Alistair Freeports Limited injected $ 700,000 to construct an export processing zone around the port area. Tanzania Ports Authority operates on three Tanzanian lakes: Lake Victoria , Lake Tanganyika and Lake Nyasa . Most of
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