Topic 1, Sub-Topic 1
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Methodology used in Setting Port Price

Methodology used in Setting Port Price

  • The historical costs of providing the service or facility.
  • The imputed cost of unreimbursed and often unrecorded benefits provided by an outside entity (e.g fire, police, computer etc)
  • The return on investment for both land and equipment.
  • The competition from outside, what other ports within the region are charging for the same service.
  • Important customers especially regular customers with high volumes and strictly use the services of the port.
  • Political pressures where the landlocked counties within the region served by the port require favourable rate in order to use the port
  • Goals of the port- the intention of building the port.
    • Basic approaches in establishing port tariff structure
    • Among the considerable number of factors that should be taken into consideration: 
      • Clarification of the relationship between port facilities and users 
      • Prevention of double payment
      • Price mechanisms to prevent congestion
      • Simplification of port tariffs