This study attempts to explore the implications of the privatisation of Port Klang Authority on three main issues, which has received little attention in previous researches. First, it examines the changes in management practices including changes in the management of human resources, and business practices. Secondly, the study analyses the implications for the relationship between unions and the management of the privatised port operators. Thirdly, it discusses the implications for the capacity of the personnel of port regulatory authority to undertake regulatory functions. The study was based on the result of fieldwork in Malaysia, where seventeen management officials of various organisations were involved in in-depth interviews. Materials from documents, annual reports, minutes of meetings and other published and unpublished sources were used as cross-references to data obtained from the interviews, Interview data were analysed using qualitative methods adopted from Miles and Huberman (1997). The study suggests that following privatisation changes have occurred in organisation structure, systems and processes, use of information technology and incentive systems of the privatised port operators. Employees have secured better terms and conditions of service, achieved higher productivity and received training and development attuned to the requirement of the privatised port operators. However, there were indications of increasing pressure to reduce the level of workforce, which affect the level of job security among employees. The study observes that privatisation has led to the 'break up' of employees unions and severing of ties and collaboration with the national union body. The study suggests that the in- house unions and the management of ports have dropped their previous confrontational approach. There appears to be more consultation with the unions and participation of the unions in management process, since privatisation. The privatisation of the Port Klang Authority, however, has serious implications for the capability of the regulatory authority to perform its functions. The process of hiving off port operation activities to the private sector, together with the downsizing policy, has led to a shortage of personnel, experience and expertise that affect the effectiveness of Port Klang Authority to act as a regulatory authority. As a result, it appears that regulation has focused more on safety aspects rather than economic regulation. There has been little economic regulation on tariff, standards of performance, quality of service and competition and merger policy.