Study of Port Tariff Structure and Port Pricing Approach

Abstract

In order to support National Logistics System continuity there are at least three (3) main components that should synergize well, namely the sea side (sea transport), the land side (hinterland transport) and the part that connects between the two (port). Port performance will greatly affect the performance of the national logistics system as a whole. One of the indicator of a country's logistics performance evaluation is the ease of arranging shipments of goods at competitive prices (shipment). One of the components of logistics costs which become concern of many parties is the port costs, in order to support the national high logistics cost reduction, study related to the port tariff structure and its associated regulations is needed, especially a matter to formulate and determining policy related to pricing port services. The survey and analysis will be carried out in an attempt to identified the port tariff structure as basis to determining the port pricing model. Port tariff structure analysis include the Identification of port services and cost component (user and port operator point of view). Based on the analysis of transport logistics cost, the shipping cost contribute 48%, port cost 40% and hinterland cost 12%. The port cost on the container terminal, the stevedoring costs contribute 42%, followed by the cargodoring cost 58%. It takes further analysis for stevedoring tariff and tariff lift-on / lift-off container given a large contribution to the overall cost of loading and unloading at the port. Port pricing formulation problem associated with cost (competitiveness), performance (level of services) and value added (value added to the customer), so that the best approach for determinining port cost and tariff are: (1) the first best pricing approach is MC = MR = P, (2) the second best pricing approach is LRMC. We suggest that the pricing policy for ports where tariff formulation needs to consider the external factors (currency, rates, fuel price, minimum salary and etc) and differentiated based on the level of port service. Relevant quality level of port service factors are the time in port, and the punctuality of handling the vessel and its cargo. Port Tariff = f (Cost of Goods Manufactured (production unit cost), Margin, Level of Service (LS)) and Maximum Port Tariff = 1.25 % ofproduction unit cost .