Public or private: Does ownership affect innovation in shipping?

Description

In October 2019, the Scottish government confirmed that it will be taking the Ferguson Marine shipyard into public ownership. On the other side of the Atlantic, Teekay Offshore Partners is being acquired by Brookfield Business Partners and DryShips recently accepted an offer to be privatised. The Indian government, too, has revealed plans to privatise its flagship carrier, Shipping Corporation of India. Does this herald a renewed surge in limited ownerships or the rise of public-private partnerships (PPP) in the shipping industry?

The financial structures of the shipping industry are rapidly evolving even as ship owners face intensifying pressure to combat greenhouse gases. Can changes in ownership structures hinder innovation or could they perhaps be a way to encourage it?

Experts say these changes in ownership are inevitable in the current environment of low stock valuations and sharp drop-off in coverage.