Influential factors in the design of port infrastructure tariffs

Bandara, Yapa Mahinda; Nguyen, Hong-Oanh; Chen, Shu-Ling

Abstract

The main aim of this article is to examine the factors influential to the practical process of port infrastructure tariff design. The analysis is based on the survey data of 67 seaports representing the Australasian, East Asian, European, North American and South American regions. Exploratory factor analysis (EFA) was first carried out to identify the factors influential to the selection of the infrastructure tariff design model. Subsequently, confirmatory factor analysis (CFA) was used to confirm the relationship between the variables. The findings showed that demand, knowledge about pricing theories, the dynamics of port and shipping sectors (including competition and ship size), pricing objectives and port cost consideration are influential factors in infrastructure tariff design. Most ports use a mix of pricing approaches including price discrimination, cost-based pricing and market-based pricing. Ports are aware of the basic pricing approaches but have limited knowledge of their application. Based on the results of analysis, policy implications for port management in designing port infrastructure tariffs, limitations and recommendations for future research are discussed.

Citation

Bandara, Y. M., Nguyen, H., & Chen, S. (2016). Influential factors in the design of port infrastructure tariffs. Maritime Policy and Management, 43(7), 830-842. https://doi.org/10.1080/03088839.2016.1173735

• Journal Article Type: Article
• Online Publication Date: Apr 22, 2016
• Publication Date: Oct 2, 2016
• Deposit Date: Dec 4, 2021
• Journal: Maritime Policy & Management
• Print ISSN: 0308-8839
• Electronic ISSN: 1464-5254
• Publisher: Routledge
• Peer Reviewed: Peer Reviewed
• Volume: 43
• Issue: 7
• Pages: 830-842
• DOI: https://doi.org/10.1080/03088839.2016.1173735
• Keywords: Port pricing, infrastructure tariff design, factor analysis, pricing strategy, port management
• Public URL: http://researchrepository.napier.ac.uk/Output/2824432