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Port Strategy and Development - Essay Example

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Strategies in port operations include among others the pricing strategies, which refer to methods different ports use to price their products or services with an aim of covering all costs and making profits. …
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Port Strategy and Development

Download file to see previous pages... In determining the pricing in ports, the ports management should consider cargo handling, the time in port, port dues and charges. Indeed, the main objectives of port pricing include profit maximization, economic efficiency, macro-economic policy, and income distribution. However, there are many challenges that relate to port pricing like transparency, competition, cost recovery, discrimination, price review vs. yardstick benchmarking simplicity, and cross-subsidy. As such, ports should set their prices by analyzing the complex, network-like structure of principal and intermediary parties in the port, flow of services and related charges, differentiation and price discrimination in the market for port services, demand and supply in the ports, and competition. However, setting and comparison of port prices is becoming a challenge subject to the wide variability in the population of ships and cargoes that each port handles. However, this paper will address the methods and strategies for port pricing in the Port of Melbourne in Australia. In doing this, I will review port pricing, port capacity, investment, competition and regulation. The essay will compare port pricing in the Port of Melbourne with port pricing theory and different port prices models. In conclusion, the paper will draw my opinion. ...Download file to see next pagesRead More
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