Port pricing - UNCTAD

1 TD/ pricingUNITED NATIONSUNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENTG enevaPort pricingReport by the UNCTAD secretariatUNITED NATIONSNew York, 1975 NOTES ymbols of United Nations documents are composed of capital letters combined with figures. Mention of such a symbol indicates a reference to a United Nations order to obtain information about the various pricing systems applied in ports, questionnaires were sent to a sample of some 114 ports in 106 countries. The UNCTAD secretariat is grateful to the 81 port authorities which co-operated by answering these secretariat also wishes to acknowledge the valuable assistance received from persons and institutions in many NATIONS PUBLICATIONS ales No.

2 ; $ (or equivalent in other currencies)PageAbbreviations .. 1 ParagraphsSummary and Conclusions .. I-XI 3 PART ONE Approach to the study of port pricingChapterI. The function of pricing in ports 1-24 7A. 1-10 7B. Port pricing constraints .. 11-16 8C. Objectives of port pricing .. 17-24 9II. pricing and the administrative structure of p o 25-59 12A. What is provided to users in ports? .. 26-30 12B. By whom are port services provided? .. 31-42 12C. The statutes of port authorities .. 43-59 151. The administrative statutes of port authorities 44-49 152. The financial statutes of port authorities 50-59 16 III.

3 pricing system 60-103 18A. The various pricing systems applied in the world 61-73 181. Port dues .. 63 182. Specific port tariffs 64-73 18B. The basis for assessing port charges: statistical study .. 74-94 19C. Requirements of a good pricing structure for achieving pricing objectivesand statisfying pricing 95-103 21IV. pricing and the supply of port services and 104-129 23A. Characteristics of the supply of port services and facilities .. 105-113 23B. The importance of port charges for the port authority .. 114-119 24C. Requirements of a good pricing system from the suppliers point of view 120-129 24V. pricing and the demand for port services and 130-164 26A.

4 The demand for port services and facihties .. 131-137 26B. Who pays port charges? .. 138-143 26C. The weight of port charges for the port u se 144-158 271. Port charges on the s h 145-149 282. Port charges on the cargo .. 150 283. Port charges, transport costs and prices of 151-158 28D. Requirement of a sound pricing structure from the users point of view 159-164 29VI. Costs, benefits and revenue flows .. 165-213 33A. The flow of costs in a p o 166-194 331. Nature of the c o s 166-171 332. The generation of costs at a port .. 172-176 333. The calculation and analysis of costs .. 177-190 344. The allocation of 191-194 36 Paragraphs PageB.

5 The flow of port users benefits .. 195-209 361. introduction 195-198 362. Secondary users benefits .. 199-202 373. From the secondary users benefits to the cargo owners benefits .. 203-204 374. Cargo owners b e n e fit 205-209 38C. The revenue flow .. 210-213 38 PART TWO Establishing port chargesChapterVII. Preliminary 214-243 41A. The need for a good accounting and statistical 215-216 41B. The clarification of port- pricing objectives and constraints .. 217-238 411. Cost 219-223 412. Governmental 224 423. Liquidity constraints .. 225-228 424. The objective of improving the utilization of a sse 229-230 425.

6 The objective of establishing reserves .. 231-238 42C. Other preparatory tasks .. 239-243 43 VIII. The cost/revenue 244-258 45A. Cost centres .. 245-253 451. Definition of cost centres .. 246-252 452. Specific costs centres .. 253 45B. The choice of a pricing 254-258 451. The number of port 255 462. The definition of each charge .. 256-258 46IX. The calculation of co 259-272 48A. Specific costs .. 260-269 48B. General 270-272 51X. The calculation of charges .. 273-314 54A. Utilization of assets .. 276-290 541. What is the present level of the utilization of the asset?.. 277-279 542. What would be the desirable level of the utihzation of the asset?

7 280-282 543. Can port charges contribute to the improvement of the utilization ofthe asset? .. 283-286 554. If the answer to the previous question is in the affirmative, whichtype of port charge results in the desired improvement? .. 287-290 55B. Income estim 291-307 55C. First estimate of basic 308-311 57D. Adjustment taking account of future tren d 312-314 58XI. Guidelines for the application and presentation of the new port charges .. 315-340 59A. Application .. 316-317 59B. Presentation of port 318-340 591. Presentation of port charges to superior bodies .. 319-320 592. Presentation of port charges to port u se 321-340 59 ANNEXESA nnexI.

8 First UNCTAD secretariat 64II. Second UNCTAD secretariat questionnaire .. 65 III. Contribution of the various port charges to the revenue of 36 port authorities .. 68 Annex PageIV. Level of the major port charges on sh ip 69A. Frequency table of level of port dues on ship .. 69B. Frequency table of level of pilotage 69C. Frequency table of level of towage charges .. 69D. Frequency table of level of charges (berthing-unberthing).. 70V. The treatment of ca p ita 71VI. Allocation of c o 77 TABLEST able1. Providers of the main services in p o r 142. Distribution of port dues between ships and cargo .. 243. Level of the major port charges on sh ip 284.

9 Port charge to consignee and assumed share of ocean freight, as port charge to shippinglines, as a percentage of wholesalers cost for selected commodities at selected West and Central African locations, 1964 315. Port charge to shippers and assumed share of ocean freight which is the port charge toshipping lines, as a percentage of the overseas price of selected West and Central African countries, 1963,1964 326. Depreciation practices for various different kinds of assets .. 347. Study of the periods of depreciation for port assets .. 368. Possible cost centres for a hypothetical p o r 469. A possible pricing system .. 4710.

10 Cargo handling analysis .. 4911. Calculation of cargo-handling costs .. 5012. Cargo-handling c o s ts .. 5213. Breakdown of general costs in a hypothetical port .. 5314. Model for the presentation of port charges (tabular fo rm ).. 62 FIGURESF igure1. Steps in the determination of the pricing le v e 112. The movement of cargo and ship through a port: Main facilities and services provided by a port .. 133. Port charges on ship as a proportion of sea freight cost (the one-third rule) .. 30 ABBREVIATIONSВШСО baltic and International Maritime Cost, insurance, freightECA Economic Commission for Free on boardgrt Gross registered tonslAPH International Association of Ports and HarborsIMCO Inter-Governmental Maritime Consultative Organizationnrt Net registered tonsOECD Organisation for Economic Co-operation and DevelopmentUNCTAD United Nations Conference on Trade and Development* *References to dollars ($) are to United States charges - general term covering both port dues and specific port dues - charge applied either on ship or on cargo (or both)