Cultivating Third Party Organization in Water Transportation Industry
----the Core of Remodeling the Relationship Between Government and Enterprises

Third party is generally referred to as nongovernmental organizations, or NGOs. In China, the third party agencies appeared as the main body of new resource allocation, and effectively make up the shortage of government and enterprise, the two main resource allocation subjects.

How does industry association play a role in waterway transportation governance

Traditionally, industrial association has strong characteristics of “second government” and gets used to relying on the government and using its privileges to work. When performing its duty, they focus on management not services and act as managers, “officialbased” phenomenon of is widespread. Under the new situation, industrial association’s function will be reflected in vertical communication and horizontal coordination.Industrial association, as a representative of the industry interests, should provide good mechanism to participating in policy game through vertical communication and horizontal coordination.

Aggregation and expression of interests. The enterprises’demand and desire for interest is an important basis to establish industry policy. Industrial association conveys clear and consistent industry opinions which have been discussed and formed by internal members to policy makers thus forming the clear information of the interests to convey to the government.

Rule establishment and self-discipline. For the rules of the industry, if the industry can do it by self-discipline,“bottom-up” standards made by industry associations and related enterprises are more suitable to fit into the industry technology development trend, and easier to meet the needs of users.

Undertake part of transferred functions of the government. For instance, after part of the approval functions being kept for records and leaving for industry associations to deal with, it will help industrial associations to get more comprehensive information and to provide better service to the industry.

How does shipping exchange play a role in waterway transportation governance

The earliest shipping exchange of China is Shanghai Shipping Exchange, which was approved by the state council and established jointly by the Ministry of Transport and the Shanghai municipal people's government. Established on November 28, 1996, it is the only national shipping exchange in China, the main functions of shipping exchange in the new period are:

Transaction services. Shipping exchange is mostly affiliated to enterprise rather than government. In the new period, shipping exchange must form their own new business model, not just being confined to ship agent,freight agent, ship trading and other traditional business.

Market barometer. This function is based on whether to build a business model that makes more shipping main bodies to participate. The participation of more bodies could cover a wider range of service objects, forming typical data samples, and the big data produced in the process of shipping transaction has value for ayalysis.

Platform services. The business model established by shipping exchange has the function of reducing information asymmetry for both sides involved in transaction, the trading mechanism can build trade mutual trust by way of third party authentication, thereby making up the inadequacy of the market credit system built by the government.